Qualcomm's Net Income Drops 40 Percent
San Diego-based Qualcomm Wednesday reported $866 million in net income, or 58 cents per diluted share, in the third quarter of its fiscal year, compared to $1.4 billion, or 97 cents per diluted share, in the same period last year.
The results for the quarter ended June 25 represented a 40 percent drop. However, the performance was an improvement over the second quarter, in which net income was roughly $700 million, or 50 cents per diluted share.
The maker of technology for mobile devices has been embroiled in a legal dispute with Apple over iPhone royalty payments and has faced regulatory investigations in Asia and Europe.
"We delivered better than expected results in our semiconductor business this quarter, which drove (earnings per share) above the midpoint of our expectations versus our April updated guidance," said Steve Mollenkopf, Qualcomm's CEO.
"Our products and technologies continue to enable the global smartphone industry, and we are expanding into many exciting new product categories, including automotive, mobile computing, networking and (the internet of things)," Mollenkopf said. "We believe that we hold the high ground with regard to the dispute with Apple, and we have initiated new actions to protect the well-established value of our technologies."
He said Apple's nonpayment of royalties cut into revenues.
For the first nine months of the fiscal year, the company reported net income of $2.3 billion, or $1.54 per diluted share, compared to $4.1 billion, or $2.74 per diluted share, in the first three quarters of last year.