Qualcomm chipset shipments plummet, earnings eke out a gain
Silicon powerhouse it is, Qualcomm actually had to fend off a decline in revenue this quarter — this despite a decently performing Snapdragon 820 chipset and some popular mid-range SoCs in the 600-series.
Revenues for the quarter ending March 27 came up to $5.6 billion, a 19 percent decline year-over-year. It was able to score an 11 percent gain in net income, up to $1.2 billion, but only thanks to a sale of wireless spectrum in the UK that netted the company more than $380 million — the earnings statement recognizes $200 million of that sale. Chip shipments dropped 19 percent to 189 million, within the upper end of analysts’ forecast range. Equipment and services earnings fell by a quarter while licensing revenue sank 12 percent.
The San Diego-based company also announced it has come to terms with LG as the latter complained that it was paying too much to license patents from Qualcomm. Both have agreed to dismiss the arbitration process they’ve been going through and LG retains rights to the patented technology.