Chipset major Qualcomm said its revenue reached $5 billion (–10 percent), while net income was $0.7 billion (–36 percent) for its fiscal second quarter ended March 26, 2017.
“We delivered strong results this quarter, with healthy growth across our QTL licensing and QCT semiconductor businesses, especially in the important automotive, networking and IoT growth areas,” said Steve Mollenkopf, CEO of Qualcomm.
Steve Mollenkopf said the performance of Qualcomm reflects execution of its strategy to lead the mobile industry across a set of technologies, including advanced LTE and 5G, and accelerate growth opportunities beyond mobile into automotive, IoT, security and networking.
Qualcomm outlook
Qualcomm said it is expecting revenue of $5.3 billion to $6.1 billion with a 12-1 percent drop in the third quarter of fiscal 2017.
Apple’s contract manufacturers reported, but underpaid, royalties in the second quarter of fiscal 2017. Qualcomm said its revenues were not negatively impacted as the contract manufacturers acknowledged the amounts are due and the underpayment was equal to the amounts that Qualcomm has not paid Apple.
“It is not clear whether Apple’s contract manufacturers will underpay royalties owed under their contracts with us in the third quarter of fiscal 2017, which could have a negative impact on our financial results,” Qualcomm said.
Qualcomm said its accounts receivables balance reflects the ~$1 billion due from Apple’s suppliers. Qualcomm continues to carry ~$1 billion in other current liabilities for unpaid disputed amounts with respect to the Cooperation Agreement with Apple, which expired in 2016.
