Qualcomm Earnings Miss Expectations

Qualcomm reported that it earned a net income of $2.9 billion on revenues of $11.4 billion in the most recent quarter, missing expectations. The firm also reported earnings for its full fiscal 2022, with a net income of $13 billion on revenues of $44.2 billion.

“We are pleased to report another strong year, despite the macroeconomic challenges, as we continue to execute our strategy of transforming Qualcomm from a wireless communications company for the mobile industry to a connected processor company for the intelligent edge,” Qualcomm president and CEO Cristiano Amon said. “While our financial outlook is being temporarily impacted by elevated channel inventory, our diversification strategy and long-term opportunities remain unchanged.”

Qualcomm’s QCT (Qualcomm CDMA Technologies) business delivered revenues of $9.9 billion (up 28 percent), with strong sales of chipsets for smartphones and other mobile devices. And its licensing business, QTL (Qualcomm Technology Licensing), provided another $1.4 billion (down 8 percent). Over the fiscal year, QCT was up 39 percent to $37.7 billion, and QTL was up 1 percent to $6.4 billion.

The problem for Qualcomm, as has been the case with most technology firms this quarter, is the future: Qualcomm warned that it now expects a “low double-digit percentage decline” in its overall business in the current quarter, worse than the previous guidance. The company blamed an elevated channel inventory caused by “a rapid deterioration in demand and easing of supply constraints across the semiconductor industry.”