Qualcomm's quarterly profit year-on-year loss, mainly due to the 60 billion U.S. tax reform spending, 1.2 billion EU antitrust fines.
Qualcomm is also working to avoid antitrust sanctions Qualcomm announced on the same day that it has expanded its global patent cross licensing agreement with Samsung to cover mobile devices and infrastructure equipment.In December 2017, the FTC opened a $ 868 million Antitrust fines, Qualcomm is seeking an appeal and Samsung will stop interfering with the appeal as part of the agreement.
For non-GAAP non-GAAP non-GAAP calculations, Qualcomm first quarter net income of 1.5 billion US dollars, down 18%. Qualcomm explained in the earnings report, the net profit decline mainly due to Patent disputes with Apple Inc. dragged down from the same period last year, Qualcomm obtained from Apple's patent license revenue of about 740 million US dollars.
Qualcomm said that Apple and its foundries have only paid a small amount of royalty since the beginning of 2017 and have not even paid their fees, which has affected the performance of several recent quarters and the two companies have been in litigation since the beginning of 2017. According to " Wall Street Journal "reported that Apple will abandon Qualcomm in the new iPhone, iPad in 2018. Apple consider using Intel's baseband products instead, MediaTek is also possible.
Qualcomm's performance is still higher than expected.According to Reuters data, Qualcomm first quarter revenue forecast 5.93 billion US dollars, the actual receipt of 6.1 billion US dollars; Qualcomm adjusted earnings forecast 0.91 US dollars, the real charge of 0.98 US dollars.
From the business segment, Qualcomm's chip business continued to grow and its patent business declined rapidly. In Q3 2018 Q1 revenue rose 13% YoY to $ 4.65 billion; pre-tax profit increased 32% YoY, To 950 million U.S. dollars.
Revenue from patent license business (QTL) fell 28% YoY to US $ 1.3bn while pretax profit dropped 42% YoY to US $ 890m.
Qualcomm expects to complete the acquisition of NXP in early 2018. Qualcomm announced the acquisition of NXP, the world's largest automotive semiconductor supplier, in cash of 38 billion U.S. dollars in October 2016. The transaction was approved by the U.S. antitrust authorities in April 2017 and Approved by EU and South Korea in January 2018, China's attitude will be crucial.
On February 1, a spokesman for the Ministry of Commerce responded with a peak response to Cai Xin's report. At present, this case is being conducted by the Ministry of Commerce with a focus on antitrust review by operators. According to the Anti-monopoly Law and the Measures for Centralized Examination of Operators, Such as the provisions of laws and regulations, within the statutory time to make a review decision.
Qualcomm recently also suffered Broadcom's strong takeover bid .In November 2017, the world's fifth largest semiconductor maker Broadcom announced plans to acquire 70 shares of Qualcomm all the outstanding shares, the total transaction volume will reach 130 billion US dollars.November 13 , Qualcomm Board of Directors rejected Broadcom's acquisition proposal.Bottom is not willing to nominate Qualcomm in December 11 new directors plan to replace all Qualcomm directors to win the acquisition by controlling.
Qualcomm's annual general meeting of shareholders will be held March 6, Qualcomm will elect a new session of the Board and consider the company's other matters.
Qualcomm shares on the January 31 after the US session rose 0.15% to $ 68.15 per share.