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Qualcomm Profits Down but Tops Analyst Expectations

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Smartphone chipmaker, Qualcomm has reported a slight decline in its quarterly profits even as revenues continued to rise on the back of its Snapdragon platform. It however came at the top end of most analyst expectations.

The company posted a 10 percent rise in quarterly revenues of US$6.62 billion, but a 2 percent decline in net profits of USD1.88 billion.

The drop in net profit was caused by a 28% decline in operating income, while R&D expenses increased 21 percent and marketing costs rose by 10 percent.

MSM chip shipments rose by 17 percent to 213 million units. 

"We are pleased with the start to our fiscal year, with record results in quarterly revenues, device sales reported by licensees and MSM chip shipments," said Dr. Paul E. Jacobs, Chairman and CEO of Qualcomm.

The company ended the quarter with cash and equivalents of US $31.6 billion, compared to $28.4 billion a year ago.

Qualcomm's Chief Operating Officer Steve Mollenkopf will take over from Paul Jacobs in March.

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