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Qualcomm clocks $1.16 EPS and $6 Billion revenue in Q3

Qualcomm, Snapdragon 835
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Well, powers are appearing to be feeling particularly benevolent towards tech corporations. After Microsoft’s better than expected earning’s report, Qualcomm too has posted earnings exceeding most financial forecasts.

According to the Qualcomm, which has considered the financial quarter ending on June 26th in its report, the total revenues were to the tune of a staggering $6 Billion with a net income of $1.44 billion.

Percent wise, Qualcomm marked an impressive 22 percent increase in its net income — up from $1.18 billion last year. The Non-GAAP revenue also marked a 3.6 percent hike at $6.04 billion, climbing up from $5.8 billion a year ago. On a per share basis, the figures amount to a $1.16 EPS, as opposed to the around $1 expected figure.

Speaking on the topic, Steve Mollenkopf, CEO of Qualcomm Incorporated said,

We are continuing to make progress in our licensing business and expect that momentum to continue.

The licensing rights here refer to Qualcomm’s tie-ups with OEM’s across the world, more recently and particularly those situated in China, one of the world’s largest smartphone manufacturing hubs.
The company is also moving to attack the upcoming 5G segment, making preparations so that it is ready with its chips when the world finally adopts the 5G technology en-masse.

Recent spectrum regulatory decisions and movement inthe US and Europe, combined with progress on the spectrum regulatory front in China, Japan and Korea, are good indications that the world is preparing for 5G.

The company also offered data on the cash it had gained from various sources that were not strictly related to the company’s business.

  • The third quarter of fiscal 2016 GAAP and Non-GAAP results included $235 million of revenues, or $0.11 per share, due to the recognition of previously deferred royalty revenues related to the dismissal of the arbitration with LG Electronics, Inc.
  • The second quarter of fiscal 2016 GAAP and Non-GAAP results included $266 million of revenues, or $0.13 per share, due to the termination of an infrastructure license agreement resulting from the merger of two licensees.
  • The third quarter of fiscal 2015 GAAP results included $142 million of charges, or $0.08 per share, that resulted from an impairment of goodwill and long-lived assets related to one of our display businesses.

The company also returned a total of $881 million to stockholders, including $781 million — or $0.53 per share — of cash dividends paid and $100 million through repurchases of 1.8 million shares of common stock.

Qualcomm shares were up almost 6.8 percent in after-hours trading after the positive earnings announcement.

Meanwhile, the company still has some catching up to do despite its good performance this quarter. Qualcomm revenues have actually decreased by 12.4 percent to $17.37 billion from $19.83 billion the year before, taking into account a 9 month period that ended in June 2016.

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