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Qualcomm sees revenues grow but profits fall

Cites one-time tax bill for drop in profit
Thu Apr 25 2013, 10:55
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CHIP DESIGNER Qualcomm reported a 24 percent rise in second quarter fiscal 2013 revenues to $6.1bn, but saw profits drop by 16 percent to $1.8bn.

Qualcomm, which has become increasingly reliant on its Snapdragon processor chips to drive its business forward, announced another set of results that show semiconductor vendors that are big in the smartphone and tablet industry are not suffering in the same way as those reliant on the PC industry.

The firm's revenues rose by 24 percent from the same period last year to $6.1bn, though profits fell by 16 percent to $1.8bn.

Qualcomm said the drop in profits was due to a one-time tax bill from selling its 700MHz spectrum, and without it profits would have risen. So far the firm's six month fiscal 2013 figures make for positive reading, with the firm's revenues up by 26 percent to $12.1bn and, despite the 16 percent drop in profits reported in the most recent quarter, six month profits are up by four percent to $3.7bn.

Given Qualcomm's strong position in the smartphone and tablet markets, it is not surprising that the firm is forecasting fiscal third quarter revenues to be up between 25 percent and 36 percent to $5.8bn and $6.3bn respectively. The firm is also bullish on its full-year revenue forecast, expecting between $24bn and $25bn.

Qualcomm's financials come days after similarly rosey figures from ARM and a week after Intel announced a 25 percent drop in profits. For Intel, the figures from ARM and Qualcomm should serve as a graphic illustration of what the firm is missing out on by relying on the PC industry for too long. µ

 

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