Qualcomm lowers fiscal full-year revenue forecast by US$1 billion

Qualcomm has reported that its fiscal second quarter performance to March 29, 2015 yielded net earnings of US$1.1 billion, down 45% from US$2 billion a year earlier.

Results for the quarter included a US$975 million charge related to a settlement with Chinese regulators over a probe of Qualcomm under anti-monopoly law.

Qualcomm’s revenues for the quarter were up eight per cent at US$6.9 billion compared with US$6.4 billion in the prior year.

“We are pleased with our second quarter results, with record licensing revenues and earnings driven by all-time high 3G/4G device shipments reported by our licensees,” said CEO Steve Mollenkopf.

Mollenkopf said the company sees robust global demand for 3G/4G devices, including in China.

Qualcomm reported that MSM chip shipments for the quarter reached 233 million, up 24 per cent year-on-year, while total reported device sales came in at US$75.8 billion, up 14 per cent year-on-year, above our prior guidance range.

For the third quarter, the company expects revenues of US$5.4 billion to US$6.2 billion.

For the fiscal full-year 2015, the company lowered its revenue guidance to approximately US$25 billion – US$27 billion, down six per cent to up two per cent year-on-year, versus prior guidance of US$26.3 billion – US$28 billion.

Qualcomm raised its guidance for total reported device sales in fiscal 2015 to approximately US$255 billion to $275 billion, up five per cent to 13 per cent year-on-year, versus prior guidance of approximately US$245 billion – US$270 billion.