Qualcomm’s 1Q Sees Revenue, Chip Shipment Growth
Qualcomm started its fiscal 2014 with both revenue and MSM chip shipments up.
First quarter revenues hit $6.62 billion, up 10 percent annually. The mobile chip giant reported moving 213 million units during the quarter, marking a 17 percent annual increase.
Device sales for the quarter reached $61.6 billion, a 16-percent annual increase, with 3G/4G device shipments totaling approximately 276 to 280 million units.
Revenue got a $665 million boost from Qualcomm’s sale of Omnitracs. But that was offset somewhat by a $444 million impairment charge the company incurred on property and equipment associated with the company’s QMT division.
Despite the boost in business, Qualcomm reported lower profits. The $1.88 billion in first quarter net income was down two percent annually.
Looking ahead, Qualcomm estimated $6.12 billion in revenue for the second quarter, sitting at the low end of its quarterly guidance range of $6.1 billion to $6.7 billion.
"Looking forward, we expect our performance to reflect the continued strong global growth of smartphones,” said Paul Jacobs, chairman and CEO of Qualcomm.
With the hire of new CEO Steve Mollenkopf in December, this quarter is the last with Jacobs at the helm. Jacobs will stay on as an employee and executive chairman of the company’s board.