Tags: Qualcomm | Results | China | Troubles

Qualcomm Results Disappoint amid China Troubles

Wednesday, 05 Nov 2014 05:13 PM

Qualcomm Inc. gave a disappointing forecast for 2015 revenue after quarterly earnings missed expectations, as the wireless chipmaker continues to struggle in China with royalty collection and an antitrust investigation.

China's expanding high-speed 4G network is driving demand for smartphones with leading-edge technology. But Qualcomm's opportunities have been clouded by a 11-month-old antitrust investigation there.

Wall Street is worried: Qualcomm could face a fine of more than $1 billion in China and could be forced to make concessions that would hurt its highly profitable business of charging royalties on phones that use its patents.

Qualcomm shares slid on the news, which was reported after regular stock market trading ended Wednesday. Shortly after 5 p.m. in New York, the company's shares were down 6 percent at $72.60, after posting a slight gain to end the regular Nasdaq session at $77.20.

"Our fiscal 2015 outlook reflects continued LTE leadership in our semiconductor business and is tempered by the issues we are facing in China related to our licensing business," the company said in a press release.

Qualcomm said in July it was struggling to collect licensing revenue from some device makers in China, including a growing number of local manufacturers the U.S. chipmaker has done little or no business with in the past.

Qualcomm forecast revenue for fiscal 2015 of between $26.8 billion and $28.8 billion. Analysts on average have estimated $28.91 billion, according to Thomson Reuters I/B/E/S.

The company also said it expects non-GAAP earnings per share in fiscal 2015 between $5.05 and $5.35. Analysts on average expected $5.58.

The chipmaker reported revenue of $6.69 billion for its fiscal fourth quarter, ended Sept. 28, up 3 percent from the year-ago period. Analysts on average had expected $7.016 billion.

Qualcomm posted fourth-quarter net income of $1.89 billion, up 26 percent from a year ago. GAAP earnings per share were $1.11, while non-GAAP earnings were $1.26 per share.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Qualcomm Inc. gave a disappointing forecast for 2015 revenue after quarterly earnings missed expectations, as the wireless chipmaker continues to struggle in China with royalty collection and an antitrust investigation.
Qualcomm, Results, China, Troubles
315
2014-13-05
Wednesday, 05 Nov 2014 05:13 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved