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Qualcomm quarterly profit falls 44%
2015-11-05 00:05:00| Telecompaper Headlines
(Telecompaper) Qualcomm reported a sharp fall in results for its fiscal fourth quarter to September, hurt by a slowdown in China sales after forced changes to its licensing practices there. Revenues declined 18 percent year-on-year to USD 5.5 billion. This was towards the high end of its outlook, as MSM shipments came in stronger than expected, helping offset the delays to agreeing new licences in China. Net profit dropped 44 percent to USD 1.1 billion, and EPS declined 40 percent to USD 0.67, also in line with the chipmaker's forecast. The result included USD 190 million in restructuring charges for the company's earlier announced strategic realignment plan. Qualcomm said it was on track to deliver the cost reductions planned for the next year and was also receiving a good reception for its new flagship processor, the Snapdragon 820. The company said it aims to "exit fiscal 2016 on an improved financial trajectory". However, the company said it would no longer give guidance for annual results and only provide a limited quarterly forecast. For fiscal Q1 of the new year, it expects a continued drop in results. with revenues down 15-27 percent year-on-year to USD 5.2-6.0 billion. EPS is forecast to fall 23-32 percent to USD 0.80-0.90. MSM shipments are estimated at 225-245 million, an improvement from 203 million in the previous quarter but still down 9-17 percent on an annual basis.
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Category:Telecommunications