Qualcomm has announced operating income of US$2.6 billion on revenues of US$22.3 billion in its fiscal year ended September 24, 2017, which represented on-year decreases of 60% in operating profits and 5% in revenues.
Qualcomm generated net profits of US$2.5 billion in its fiscal 2017, down 57% from a year ago. Diluted earnings per share for the fiscal year came to US$1.65, down from US$3.81 in the company's fiscal 2016.
Qualcomm reported revenues for the fourth quarter of fiscal 2017 decreased 5% on year to US$5.9 billion, while operating profits fell 82% from a year ago to US$0.3 billion. Net profits for the fiscal fourth quarter plummeted 89% from a year earlier to US$0.2 billion, with diluted EPS reaching US$0.11 compared with US$1.07 in the same quarter of fiscal 2016.
On a non-GAAP basis, Qualcomm's revenues for the fourth quarter of fiscal 2017 dropped 3% on year to US$6 billion, while operating profits declined 27% from a year earlier to US$1.6 billion. Net profits for the fiscal fourth quarter slid 28% from a year ago to US$1.4 billion, with diluted EPS arriving at US$0.92 compared with US$1.28 during the same quarter of fiscal 2016.
Qualcomm's fiscal 2017 revenues on a non-GAAP basis slipped 1% on year to US$23.2 billion, while operating profits decreased 9% from a year ago to US$7.1 billion. Net profits for the fiscal year on a non-GAAP basis came to US$6.4 billion, down 4% on year, with diluted EPS reaching US$4.28 compared with US$4.44 in fiscal 2016.
Qualcomm indicated its GAAP and non-GAAP results for the third and fourth quarters of fiscal 2017 were negatively impacted as a result of actions taken by Apple and its contract manufacturers, as well as the previously disclosed dispute with another licensee, who underpaid royalties due in the second quarter of fiscal 2017 and did not report or pay royalties due in the last two quarters of fiscal 2017. "We expect these licensees will continue to take such actions in the future until the respective disputes are resolved," the company said.
Qualcomm disclosed its licensing (QTL, Qualcomm Technology Licensing) revenues fell 36% from a year earlier to US$1.21 billion in the fourth quarter of fiscal 2017, with earnings before taxes (EBT) generated by the business declining 48% on year to US$829 million. The QCT (Qualcomm CDMA Technologies) business generated revenues of US$4.65 billion in the fiscal fourth quarter, up 13% from the same quarter of fiscal 2016, however, with EBT rising 42% on year to US$973 million.
Revenues generated by QTL for fiscal 2017 came to US$6.45 billion, down 16% from a year ago, while EBT fell 21% on year to US$5.175 billion. Revenues and EBT generated by QCT for fiscal 2017 were up 7% and 52%, respectively, on year to US$16.48 billion and US$2.75 billion.
Looking forward, Qualcomm expects to post revenues of between US$5.5 billion and US$6.3 billion in the first quarter of fiscal 2018, which will represent an up to 5% increase or an up to 8% decrease on year. EPS is forecast to be between US$0.63 and US$0.73, up 37-59% from US$0.46 during the same quarter of fiscal 2016. On a non-GAAP basis, EPS for the first quarter of fiscal 2018 is expected to be US$0.85-0.95, down from US$1.19 a year ago.
Qualcomm added the guidance for the first quarter of fiscal 2018 excludes revenues related to the sale of Apple products by Apple's contract manufacturers as well as the other licensee in dispute, as the company expects the recent actions taken by these licensees will continue until the respective disputes are resolved. |