Qualcomm Profit Plunges Without Royalties From Apple
July 19 2017 - 5:16PM
Dow Jones News
By Ted Greenwald
Qualcomm Inc. on Wednesday said profit fell 40% in its latest
quarter, the first in years that didn't include patent royalties on
devices from Apple Inc.
The San Diego company reported profit in the three months
through June 25 of $865 million, on total revenue of $5.37 billion,
which fell 11% from a year earlier.
In the patent-licensing division, revenue fell 42% to $1.17
billion. Qualcomm, the leading producer of smartphone chips, is
embroiled in an escalating legal dispute with Apple, which has
blocked licensing payments that previously flowed to Qualcomm for
iPad and iPhone sales.
Apple's manufacturing partners on Tuesday sued the chip maker in
federal court in San Diego, claiming it uses unlawful means to
boost its royalty rate.
Qualcomm had warned that the Apple dispute would sharply reduce
its earnings in the latest period. Its results on Wednesday came in
above the expectations of analysts, with the company citing
better-than-expected results in its semiconductor business.
On an adjusted basis that excludes items including stock-based
compensation, Qualcomm reported per-share profit of 83 cents, down
28% from the year-earlier quarter. Analysts polled by Thomson
Reuters on that basis had expected earnings of 81 cents on revenue
of $5.3 billion.
Shares fell 3.1% after hours Wednesday, following an advance of
9% to $56.78 in regular trading. The stock price had fallen roughly
9.7% through Wednesday's close since Apple filed its initial suit
in January against Qualcomm.
Write to Ted Greenwald at Ted.Greenwald@wsj.com
(END) Dow Jones Newswires
July 19, 2017 17:01 ET (21:01 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
QUALCOMM (NASDAQ:QCOM)
Historical Stock Chart
From Mar 2024 to Apr 2024
QUALCOMM (NASDAQ:QCOM)
Historical Stock Chart
From Apr 2023 to Apr 2024
