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Technology / Hardware

Qualcomm reports steep decline in profits and revenue

Qualcomm has released its Q3 financial results with the company seeing a drop in revenue.

The company’s financial results revealed that its third earnings (Q3) dropped from $1.44bn in 2016 to $866m in a drastic plummet.

The company has seen its year over year (yoy) profits decrease 40% from $1.4b in 2016 to $0.9b in 2017.

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“We delivered better than expected results in our semiconductor business this quarter, which drove EPS above the midpoint of our expectations versus our April updated guidance,” said Qualcomm CEO Steve Mollenkopf in a statement to NASDAQ.

“Our products and technologies continue to enable the global smartphone industry, and we are expanding into many exciting new product categories, including automotive, mobile computing, networking and IoT. We believe that we hold the high ground with regard to the dispute with Apple, and we have initiated new actions to protect the well-established value of our technologies.”

The company also posted a decline in its net income, falling from $1.7bn to $1.2bn from 2016 to 2017.

The company has returned $1.1bn to stockholders. This includes $844m of cash dividends being paid, with a $0.57 per share value.

Read more: Qualcomm wants to block the sale of iPhones in latest patent row

Other losses saw the company face reduction of operating cash flow of around $940m when it was ordered to pay a fine to Blackberry over royalty payments in April.

The company also had to pay $927m due to a fine being issued by the Korea Free Trade Commission (KFTC) over a court battle in February stating the company was using its position in the market unfairly by charging higher prices for patens used by smartphone makers. This includes the company refusing to offer licenses to chipset manufacturers.

The company’s shares have dropped 2% in the stock market according to reports from the Wall Street Journal earlier today.
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