CALIFORNIA: Qualcomm cashed in on the momentum around the rollout of faster 5G smartphones during its fiscal fourth quarter, posting strong financial results that beat Wall Street analysts’ expectations.
The San Diego cellular technology giant — a leader in 5G smartphone processors and intellectual property — said that it benefited from a host of 5G trends during the quarter.
They include Apple’s launch of four new 5G iPhone models in October that use Qualcomm chips; a settlement payment in a long-running patent licensing dispute with China’s Huawei; more Android smartphone buyers upgrading from 4G to 5G devices across the globe; and additional chip content from Qualcomm in many 5G phones.
The company also reported traction for cellular technologies in new industries beyond its core smartphone stronghold — such as work-from-home gear and connected cars.
“The challenges of the Covid-19 pandemic highlight the critical importance of our products,” said Chief Executive Steve Mollenkopf in a conference call with investors.
“As you can see from our results,the early stages of the 5G ramp are well underway, with our strategy playing out largely as expected.” For the quarter ended September 27, Qualcomm posted adjusted revenue of $6.5 billion, a 35 per cent increase over the prior year. Adjusted net income came in at $1.7 billion, or $1.45 per share.
Wall Street analysts predicted fourth quarter sales of $5.9 billion and adjusted earnings of $1.17 per share. — dpa
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