In the quarter, Qualcomm revenue of 6.1 billion US dollars, up from 6 billion US dollars last year, an increase of 1%, higher than analysts expected; according to the United States GAAP (GAAP), a net loss of 60 billion US dollars last year The same period, net profit of 700 million US dollars, turnaround year on year, resulting in huge losses mainly due to the United States issued a new tax law and a one-time record of 6 billion US dollars, in addition, in response to EU fines and provided 1.2 billion US dollars;
For the second quarter, Qualcomm expects the company's revenue will be 4.8 billion to 5.6 billion between the adjusted earnings per share will be 65 cents to 75 cents, compared to Wall Street analysts on average Expected 86 cents to be low.
The slowdown in smartphones is the main reason Qualcomm lowered its expectations in the second quarter, and Qualcomm will face even greater challenges in the coming month, including its acquisition of NXP and its defense of Broadcom.
Broadcom's takeover bid seriously undervalues QUALCOMM's value, and second, Broadcom's perception of the future of the mobile industry and the potential for mobile technology to be derived from other related industries is not the most favorable to our shareholders, and we think the takeover In the final analysis, we have a very clear and open position and we have also provided our shareholders with a wealth of relevant materials and information. "At a recent technology summit in Beijing, Qualcomm president Christiano Ammon reiterated his position with Broadcom, including CBN, about the acquisition of Broadcom, in which a number of handset manufacturers, including millet, OPPO, vivo and Lenovo openly oppose Broadcom Qualcomm acquisitions.
At the same time, he told reporters that in fiscal 2017 our chip business comes from the Chinese OEM manufacturers product revenue from Apple's revenue twice, the Chinese market will continue to grow.
Chinese business revenue of chip business is double that of apple
In the main business of Qualcomm, QCT refers to Qualcomm CDMA Technologies Group, is mainly responsible for research and development and sales of hardware and software solutions such as chips in wireless infrastructure and equipment, and QTL Qualcomm technology licensing department, is mainly responsible for the accumulation and Acquisition of the technology patent authorization.And from the first quarter performance of these two businesses, with the previous quarter tends to be flat.
Specifically, QCT (chip technology) in the first quarter revenue of 4.651 billion US dollars, compared with 4.101 billion US dollars last year, an increase of 13% pre-tax profit of 955 million US dollars last year to 724 million US dollars, an increase of 32% Last quarter was 973 million US dollars, a decline of 2%. Pre-tax profits accounted for 21% of revenue, compared with 18% the previous quarter, an increase of 21% .MSM chip shipments of 237 million, the same period last year was 2.17 One hundred million, up% over the previous year, 220 million last quarter, an increase of 8%.
The QTL (technology license) revenue of 1,299,000,000 US dollars, compared with 1,811,000,000 US dollars last year, down 28%. Pre-tax profit of 887 million US dollars last year to 1.532 billion US dollars, down 42% from the previous quarter to 829 million US $, an increase of 7% over the same period of 2008. Pre-tax profits accounted for 68% of revenue, up 85% from a year earlier and 68% from the previous quarter.
From the revenue share of the two business point of view, one-third of Qualcomm's revenue from patent fees, two-thirds from the chip sales, but the profit is just the opposite, two-thirds of the profits from the patent business, The remaining one-third from the chip business.In other words, after Qualcomm and the major customer Apple's patent disputes still have a greater impact on Qualcomm's net profit, but the chain increased by 7% shows that Qualcomm is trying to improve the passive status of patent licenses .
As you can see, Qualcomm has recently reached a consensus with Samsung that Qualcomm has said it has "broadened the global patent cross licensing agreement with Samsung to cover mobile and infrastructure equipment." As part of the transaction, Samsung will withdraw its license to Qualcomm Intervention by the Seoul High Court of Appeal and Qualcomm is also working hard to strengthen its cooperation with Chinese manufacturers in its chip business cooperation.
Qualcomm recently announced a memorandum of understanding with Lenovo, Xiaomi, OPPO and vivo, which will purchase Qualcomm RF front-end components worth no less than $ 2 billion in three years.
Qualcomm president Christiano Amon told First Financial said: 'The Chinese market is one of the fastest growing markets. One piece of data that can be shared is that in FY17, our chip business came from Chinese OEMs' products At the same time, I also think that the Chinese market will continue to grow, and the more opportunities we face will allow us to unite China Mobile ecosystem partners to jointly build China's Mobile Ecosystem In the future, we will also be able to help China achieve the world leading position in the field of IoT, as mobile technology is also helping other technologies. "
In fact, as one of the most important mobile terminal markets in the world, the Chinese market and Chinese manufacturers have become an important impetus for Qualcomm's continued growth in the future.Currently, Qualcomm comes from China OEM manufacturers' revenue CAGR of 17% In 2015, this figure was 4 billion U.S. dollars, up from 6 billion U.S. dollars last year. Qualcomm expects to reach 8 billion U.S. dollars in 2019.
The next two months into Qualcomm turning point
Although Qualcomm is under pressure to stabilize the performance of the first quarter, but in the next two months, Qualcomm will face the most difficult period in history.
A month later, Qualcomm will hold a general meeting of shareholders, shareholders will be announced for the final acquisition of Broadcom antitrust regulators said the acquisition of NXP's forthcoming position may also force Qualcomm and NXP shareholders to negotiate.NPU currently Shareholders are currently reluctant to sell their shares to Qualcomm, arguing that Qualcomm must make adjustments to the $ 110 acquisition price per share.
At the same time, both Qualcomm and Apple's lawsuit still have no concession meanings.As of early 2017, the cooperation relationship between Qualcomm and Apple ruptured, and the two parties held many litigation contests around the patent licensing fee.The main disputes revolved around QUALCOMM's technology licensing business. Qualcomm intellectual property licensing model unreasonable, while Qualcomm accused Apple of using Qualcomm patents but not paid.Quotes and Apple have been in the United States, China and other places have initiated many lawsuits.
However, Qualcomm is also looking for more favorable conditions for future performance support, the support of Chinese manufacturers is one of them.
At the Qualcomm technology summit on January 25, OPPO CEO Chen Mingyong, vivo CEO Shen Wei, Xiaomi president Lin Bin, ZTE terminal CEO Cheng Lixin and Lenovo Group executive vice president Aymar de Lencquesaing made it clear that they opposed Broadcom's acquisition of Qualcomm .
According to the survey data of HISMarkit, OPPO and Xiaomi are the top five vendors in the global smartphone sales volume in Q3 of 2017. vivo, ZTE and Lenovo are among the top 10 vendors in the world in terms of shipments, which means that the above five mobile phone manufacturers' Stand for the global mobile phone industry represents the mainstream voice.
Earlier, OPPO, vivo executives of both companies have said publicly that the potential merger against Broadcom and Qualcomm because of concerns that the deal will squeeze profit margins for smartphone makers sacrifice the interests of manufacturers, so that large-scale global competition Opponents benefit from it.
At the summit, Chen Mingyong, the founder of OPPO, further said: 'I've been thinking about what Qualcomm was, and what kind of company Qualcomm might become a company after it was acquired, and we have been with Qualcomm for nearly a decade Cooperation, Qualcomm This team has feelings, like technology-driven innovation, often not entirely interest-oriented, which is like Qualcomm .If Qualcomm was eventually acquired, will have a great deal of uncertainty, this is me Do not like it.
Shen Wei, founder of Vivo, also said: 'We have been cooperating with Qualcomm for so many years in a brotherly strategic cooperation and the result is very good. We do not want change because of the uncertainty brought by the change.'
Lin Bin, co-founder of millet, said, "Each generation of Qualcomm products is a masterpiece of technological innovation, not a year or two can be done, (Qualcomm) was the acquisition of our most worried about the future there is no epoch-making chip products, We are particularly worried about, so full support for Qualcomm.
ZTE terminal president Cheng Lixin said in the United States, mergers and acquisitions happen every day, the United States the fourth-largest operator T-mobile was launched in recent years twice, but failed, but to make T-mobile become more powerful , Has become the third largest operator in the United States and hopes that the acquisition will also give Qualcomm the impetus to move forward.
Broadcom announced in November 2017 that it plans to acquire Qualcomm at a price of more than $ 100 billion per share for $ 70 a share, which Qualcomm Board and management boycotted.Bottom did not give up, but expressed its position to continue to promote the acquisition Qualcomm also sent a letter to its shareholders on January 23, 2018, stating that Broadcom's acquisitions have regulatory issues and will not bring long-term value to the company, calling on shareholders to boycott Broadcom.
At Qualcomm's annual general meeting on March 6, 2018, Broadcom's acquisition of Qualcomm will usher in a Qualcomm shareholder vote.