Qualcomm is facing multiple legal entanglements over the way it licenses its technology to clients while allegedly blocking out competitors, but that’s not dampening spirits and sales at the company. It is, however, not impressing investors with its earnings report for the first quarter of fiscal 2017, ending on Christmas.
That’s because while overall revenues improved by 3.9 percent to just shy of $6 billion, analysts were looking for $6.12 billion. Net income for the quarter was affected by an $864 million fine from the Korean Fair Trade Commission — the result was $682 million or 42 cents a share. Qualcomm would’ve beat Street estimates by a cent per share were it not for the fine.
Qualcomm announced the news after markets closed and QCOM logged a 3.45 percent gain for the day. Share prices dropped 3 percent afterwards.
It now faces suits from the Federal Trade Commission and three cases from Apple — one in the US and two in China. That is not affecting Qualcomm’s forecast for revenue between $5.5 billion and $6.3 billion for the current quarter, of which it expects to derive $1.15 to $1.25 per share for investors.