Qualcomm Warns of Weaker Revenue Forecasts Ahead
Published on: 24th Apr 2014
By: Ian Mansfield
Qualcomm has reported that its second fiscal quarter revenues and profits improved over the past year but it warned about a weaker than expected growth in the future sending its shares down by 5% in after close trading.
The company posted revenues of USD6.37 billion, a rise of 4 percent over the previous year, and net profits that rose by 5 percent to USD1.99 billion.
"We delivered another solid quarter driven by demand for our leading multimode 3G/LTE chipset solutions and record licensing revenues," said Steve Mollenkopf, CEO of Qualcomm.
The forecast for revenues for the current quarter has however been cut to between US$6.2 to $6.8 billion, which could see sales declining compared to a year ago.
The company also confirmed that it could face action in the USA relating to bribery allegations in China. The company is already facing an investigation in China into how it charges for its products.
The company shipped 188 million of its MSM chips, a rise of 9 percent over the previous year.
R&D costs have continued to rise, this time by 11 percent over the previous year.
Qualcomm ended the quarter with USD32.1 billion in cash and equivalents in the bank. The company's effective tax rate came in at 14 percent.