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Qualcomm Records 10.5% Increase In Net Income

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Qualcomm Records 10.5% Increase In Net Income

US chipmaker Qualcomm reported a 10.5% increase in net income in the second quarter of its fiscal ending on March 27. However, the company recorded a significant drop in its chipmaking and licensing business.

Its net income during the quarter rose to $1.16 billion, with overall revenue dropping 19.5% to $5.55 billion. Revenue of the chip division recorded a drop of 25% and licensing unit’s revenue declined by 12%.

Qualcomm expects chip shipments to fall 13-22% to 175-195 million units, with 3G and 4G device shipments forecast to increase 8% in Q3, which is down from its previous estimate of about 10%.

Gartner expects mobile phone shipments to increase by just 2.6 per cent this year, with end-user spending predicted to rise 1.2 per cent.

“We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan,” Qualcomm CEO Steve Mollenkopf said in the earnings call. “We’ve continued to make gains on the licensing side in China and this continues to be positive for the company.”

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