Qualcomm has just posted their earnings for the first fiscal quarter of 2017 (running from October 1st, 2016 through December 31st, 2016), and the company raked in $6 billion in total revenues. That represents a 4% increase year-over-year, jumping from $5.8 billion over the same period, a year earlier. However, compared to Q4 of FY 2017, that is a 3% drop in revenues. Operating income was $0.8 billion, down 54% year-over-year. While net income was $0.7 billion, also down 54% year-over-year. Qualcomm notes that their cash, cash equivalents and marketable securities total about $29.8 billion, at the end of Q1. That was compared to $30.6 billion in Q1 FY 2016 and $32.4 billion at the end of the previous quarter. In the first quarter, Qualcomm did estimate shipping of 331 to 335 million 3G/4G devices. With the average selling price being between $186 and $192 USD. Shipments are up 8% year-over-year, but the average selling price has dropped by about 4%.
In their press release, Qualcomm talked about their impending purchase of NXP. The company agreed to purchase them in October of last year, for $38 billion. Qualcomm expects the deal to close before the end of the 2017 calendar year. It’ll need to be approved by the appropriate shareholders before it can be finalized. Qualcomm also noted that they returned $1.2 billion to stockholders in the first quarter of fiscal 2017. On January 12th, they announced a cash dividend of $0.53 per share payable on March 22nd, 2017.
Looking ahead, Qualcomm announced their outlook for the second quarter of the year, which they now expect to post revenues between $5.5 and $6.3 billion. That’s compared to them posting $5.6 billion in the second quarter of Fiscal 2016. GAAP diluted earnings per share are expected to be between $0.89 and $0.99, that’s up from $0.78 in Q2 FY2016. When it comes to chipsets, the company shipped 189 million in Q2 of fiscal 2016, they expect to ship between 165 and 185 million. That would bring the total reported device sales to about $70.1 billion and $74-82 billion respectively.
Not a terrible quarter for Qualcomm at all, and it’s clear that they are looking forward to the Snapdragon 835 coming out in a few months. The Snapdragon 835 is rumored to be in the Galaxy S8 and Galaxy S8 Plus, which are definitely going to be some of the most popular devices in 2017. Qualcomm could say that part of their decreases in certain areas, year-over-year, were due to the Galaxy Note 7 being recalled. Seeing as that did sport the Snapdragon 820 and the Galaxy Note series is always popular.