Qualcomm Says Smartphone, Automotive Chip Demand Has Surged

Qualcomm Says Smartphone, Automotive Chip Demand Has Surged

 Qualcomm Says Smartphone, Automotive Chip Demand Has Surged

Chipmaker Qualcomm's profit and revenue beat expectations as demand surged for its chips used in smartphones and cars, but an earnings forecast for the current quarter fell below analysts' estimates due to tepid mobile sales in China.
China's smartphone market in 2017 was weaker than expected with 4G handset shipments down 11 percent, according to Bernstein analyst Stacy Rasgon.
"Performance of the current quarter is weighed down by Apple and China," Stifel analyst Kevin Cassidy said.
"If there wasn't the Broadcom bid the stock might be down 5 percent instead ... I don't think investors are focused really on the near term operating results or even guidance at this point," he said.
Shares of the company were marginally lower in late trade.
The company's CDMA technologies unit, its largest business, saw a 13 percent rise in revenue to $4.65 billion (roughly Rs. crores) in the first quarter ended December 24. But licensing revenue dropped 28 percent to $1.30 billion (roughly Rs. 8,300 crores), weighed down by a dispute with Apple.
Apple sued Qualcomm last January, accusing it of overcharging for chips and refusing to pay some $1 billion (roughly Rs. 6,300 crores) in promised rebates.
"We remain open to finding a path to resolution (with Apple)," Qualcomm Chief Executive Steve Mollenkopf said on a call with analysts.
The company forecast second-quarter revenue of $4.8 billion (roughly Rs. 30,500 crores) to $5.6 billion (roughly Rs. 35,600 crores) and adjusted earnings per share of 65 cents to 75 cents, below analysts' estimates for revenue of $5.58 billion (roughly Rs. 35,400 crores) and earnings of 85 cents, according to Thomson Reuters.
In the first quarter, Qualcomm posted a net loss of $5.95 billion (roughly Rs. 37,800 crores) due to a $6 billion (roughly Rs. 38,100 crores) charge for new US tax laws and a $868 million charge (roughly Rs. 5,500 crores) for a fine imposed by the Korea Fair Trade Commission.
Excluding items, Qualcomm earned 98 cents per share, topping analysts' average estimate of 91 cents, according to Thomson Reuters.
Revenue rose 1.2 percent to $6.07 billion (roughly Rs. 38,600 crores) and exceeded estimates of $5.93 billion (roughly Rs. 37,700 crores).
Qualcomm is in the midst of closing its long-pending $38-billion (roughly Rs. 2.41 lakh crores) deal to buy automotive chip maker NXP Semiconductors. In November, it rebuffed a $103-billion (roughly Rs. 6.55 lakh crores) takeover bid by Broadcom.
© Thomson Reuters 2018
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SOURCE  :https://gadgets.ndtv.com/mobiles/news/qualcomm-says-smartphone-automotive-chip-demand-has-surged-1807198
Qualcomm Says Smartphone, Automotive Chip Demand Has Surged Qualcomm Says Smartphone, Automotive Chip Demand Has Surged Reviewed by Mohamed on February 01, 2018 Rating: 5

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