Author: Li Na
Despite the worst intentions, patent friction with Apple continues to affect Qualcomm's performance in the latest fiscal season.
In the early morning of November 8, Qualcomm (NASDAQ: QCOM) released its fiscal fourth quarter results for fiscal year 2018 as of September 30, 2018. Qualcomm reported revenue of $5.8 billion in the fourth quarter, down 2% from $5.9 billion in the same period last year, and a net loss of $493 million, compared with a net profit of $168 million in the same period last year.
Meanwhile, Qualcomm expects revenue to continue to show a downward trend in the first quarter of fiscal year 2019, as no settlement has been reached with Apple.
Qualcomm shares fell $0.42, or 0.66%, to close at $63.21 in regular Nasdaq trading on Wednesday. At the time of release, Qualcomm shares fell $2.31 in after hours trading, or 5%, to $60.01. According to Wednesday's closing price, Qualcomm's market value is about $92 billion 900 million.
However, Qualcomm CEO Steve Molenkov continued to see this as a better-than-expected result, saying
In an earlier interview, Qualcomm President Cristiano
Obviously, apple is not currently in the 5G queue.
Apple or absent from Qualcomm 5G first camp
Since early 2017, the partnership between Qualcomm and Apple has broken down, and the two sides have launched several litigation battles over patent licensing fees. The main dispute revolved around Qualcomm's technology licensing business. Apple accused Qualcomm of irrational intellectual property rights licensing model, while Qualcomm accused Apple of using Qualcomm's patents without paying. Qualcomm and apple have launched many lawsuits in the United States and China before.
Judging from the latest news, Apple, which is likely to miss the 5G start, has no plans
In the main business of Qualcomm, QCT refers to Qualcomm's CDMA technology group, which is mainly responsible for the development and sale of hardware and software solutions such as chips in wireless infrastructure and equipment, while QL is Qualcomm's technology licensing department, which is mainly responsible for the licensing of technology patents accumulated and purchased by Qualcomm over the years.
According to the quarterly financial data, Qualcomm Technology Licensing Group's fourth quarter revenue was $1.138 billion, down 6% from $1.213 billion in the same period last year and 22% from $1.465 billion in the previous quarter. The group's pre-tax profit (EBT) was $739 million, down 11% from $829 million in the same period last year and 30% from $1.049 billion in the previous fiscal quarter, with pre-tax profits accounting for 65% of revenue, compared with 68% in the same period last year and 72% in the previous fiscal quarter.
Qualcomm's CDMA technology group had revenue of $4.647 billion in the fourth quarter, almost the same as $4.650 billion in the same period last year, an increase of 14% compared with $4.087 billion in the last quarter. The group's pre-tax profit (EBT) was $796 million, down 18% from $973 million in the same period last year, up 31% from $607 million in the previous fiscal quarter, and its pre-tax profit accounted for 17% of revenue, compared with 21% in the same period last year and 15% in the previous fiscal quarter.
As Apple still hasn't continued to buy Qualcomm chips, Qualcomm also gave a less optimistic forecast for revenue in the next fiscal quarter: revenue in the first quarter of fiscal year 2019 will be between $4.5 billion and $5.3 billion, down 13% to 26% compared with $6.1 billion in the same period last year. In the past 52 weeks, Qualcomm's top share price was $76.50 and its lowest was $48.56.
But compared to Qualcomm, Apple also has a potential market crisis.
For some manufacturers
Can 5G become an inflection point?
From the current market perspective, Chinese manufacturers are becoming the most important driving force in Qualcomm business.
According to Qualcomm, in 2010, only one of the top 10 smartphone manufacturers in the world was Chinese; in 2016, seven of the top 10 smartphone manufacturers in the world were Chinese; and in 2018, that figure remained at
Qualcomm CFO George
However, although more than 80% of product revenue still comes from sales related to smartphone business, as the influence of mobile technology continues to expand, the management of Qualcomm hopes to change this structure and make business revenue more diversified.
But analysts believe that Qualcomm still needs to solve the patent problem with Apple. Five gigabytes will not bring fundamental changes to Qualcomm's business in the short term, and Qualcomm needs to convince investors of the capital before the new line of business grows.