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Tax charge, EU fine drag Qualcomm to loss in fiscal Q1, FY'18

U.S. tax reform and a European fine tipped Qualcomm Inc. into a $5.95 billion loss for the quarter ended Dec. 24, 2017, as opposed to a net profit attributable of $682 million in the year-ago period.

On a per-share basis, diluted loss came in at $4.03 in the first quarter of fiscal 2018, compared to a profit of 46 cents in the corresponding quarter of the previous year. Qualcomm booked a $6.0 billion charge related to the U.S. Tax Cuts and Jobs Act and a $1.2 billion fine imposed by the European Commission during the quarter.

Qualcomm's GAAP revenue for the quarter rose to $6.07 billion from $6.00 billion in the prior year. Operating income for the quarter was $29 million, down from $778 million.

The company raised its quarterly dividend to 57 cents per share in the quarter from 53 cents per share in the previous year.

For the second quarter of fiscal 2018, Qualcomm expects revenue in the range of $4.8 billion and $5.6 billion, with GAAP diluted EPS of 41 cents to 51 cents. The guidance excludes QTL revenues for royalties due on certain Apple Inc. product sales, and on the sale of products by the other licensee due to ongoing disputes.

Qualcomm also expects to close its $38 billion acquisition of NXP Semiconductors NV in early calendar 2018, though operating results estimated from the closing were not included in the company's guidance for the second fiscal quarter of 2018. The deal was first announced in October 2016.

Qualcomm reiterated its plan to reduce annual costs by $1 billion. The company expects cost reductions to be fully captured in fiscal 2019 results.