(Reuters) - U.S. chipmaker Qualcomm Inc’s (QCOM.O) quarterly profit and revenue topped Wall Street forecasts, led by higher sales of modem semiconductors used in smartphones and connected cars.
The results announced Wednesday, particularly in Qualcomm’s smartphone chip business, were in contrast to those from major mobile phone components makers in Asia including TSMC (2330.TW) and SK Hynix Inc (000660.KS), which have warned of slower growth in their smartphone chip divisions.
While revenue from Qualcomm’s modem chips business — its largest — rose 6 percent in the three months ended March 25, revenue from its licensing business plunged 44 percent, reflecting the loss of revenue due to a high-profile patent battle with Apple Inc (AAPL.O).
The results come as San Diego-based Qualcomm tries to convince shareholders it can boost earnings by cutting annual costs by $1 billion and resolving the Apple dispute.
The chipmaker is also awaiting approval from Chinese regulators for its proposed $44 billion acquisition of NXP Semiconductors NV (NXPI.O).
Qualcomm on Wednesday forecast current-quarter revenue of between $4.8 billion and $5.6 billion, and adjusted earnings of 65 to 75 cents per share. Analysts were expecting revenue of $5.32 billion and earnings of 75 cents per share, according to Thomson Reuters I/B/E/S.
Qualcomm’s quarterly net income fell to $363 million or 24 cents per share, from $749 million or 50 cents per share a year earlier.
Excluding one-time items, Qualcomm earned 80 cents per share, ahead of analysts’ average estimate of 70 cents, according to Thomson Reuters I/B/E/S.
Total revenue rose 4.9 percent to $5.26 billion, topping expectations of $5.19