With NXP buyout ahead, Qualcomm 4Q16 earnings are a win
As Qualcomm bulks itself up with an acquisition of NXP Semiconductors to better position itself against Broadcom, the company has been able to end its fourth fiscal quarter on the bright side.
Overall revenues compare 13 percent better than last year with $6.2 billion recorded. Operating income soared by 58 percent to $1.8 billion, though both figures year-on-year differences measure to $700 million. Net income increased 51 percent to $1.6 billion.
It’s been a better year in the wider mobile market for QCOM with no overheating controversies affecting the Snapdragon 820 unlike the 810. For the quarter, the company was able to ship 211 million mobile chips — within the upper end of its target and beating analysts’ target of 206 million. Licensing agreements with Chinese manufacturers have also helped the company, though some OEMs have been bargaining too hard for its liking.
However, whole year results for the manufacturer were down from 2015 with a 7 percent dip in overall revenues, a 9 percent decline in operating income and a 13 percent slip in net income.
The company expects to increase its shipments for 2017 and serve more customers with its NXP service base. It also expects negligible impact from the omission of the Galaxy Note 7 from this year’s device calendar, according to PCWorld.