Qualcomm Incorporated (QCOM) has reported 54.47 percent plunge in profit for the quarter ended Dec. 25, 2016. The company has earned $682 million, or $0.46 a share in the quarter, compared with $1,498 million, or $0.99 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,783 million, or $1.19 a share compared with $1,469 million or $0.97 a share, a year ago. Revenue during the quarter grew 3.88 percent to $5,999 million from $5,775 million in the previous year period. Gross margin for the quarter expanded 316 basis points over the previous year period to 59.28 percent. Total expenses were 87.03 percent of quarterly revenues, up from 70.82 percent for the same period last year. That has resulted in a contraction of 1621 basis points in operating margin to 12.97 percent.
Operating income for the quarter was $778 million, compared with $1,685 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,073 million compared to $1,741 million in the prior year period. At the same time, adjusted operating margin improved 441 basis points in the quarter to 34.56 percent from 30.15 percent in the last year period.
"We are pleased with the strong start to our fiscal year and the year-over-year earnings growth across both our semiconductor and licensing businesses," said Steve Mollenkopf, chief executive officer of Qualcomm Incorporated. "Looking ahead, the pending NXP acquisition accelerates our strategic transformation in the high growth areas of automotive, IoT, security and networking. We are very well positioned to lead as the semiconductor engine for the intelligent, connected world."
For the second-quarter, Qualcomm expects revenue to be in the range of $5,500 million to $6,300 million. The company projects diluted earnings per share to be in the range of $0.89 to $0.99 for the second-quarter. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.15 to $1.25 for the second-quarter.
Operating cash flow drops significantlyQualcomm Incorporated has generated cash of $1,379 million from operating activities during the quarter, down 49.65 percent or $ 1,360 million, when compared with the last year period. Cash flow from investing activities was $681 million for the quarter as against cash outgo of $716 million in the last year period.
The company has spent $1,104 million cash to carry out financing activities during the quarter as against cash outgo of $2,665 million in the last year period.
Cash and cash equivalents stood at $6,885 million as on Dec. 25, 2016, down 0.41 percent or $28 million from $6,913 million on Dec. 27, 2015.
Working capital drops significantly
Qualcomm Incorporated has witnessed a decline in the working capital over the last year. It stood at $7,785 million as at Dec. 25, 2016, down 43.73 percent or $6,050 million from $13,835 million on Dec. 27, 2015. Current ratio was at 1.97 as on Dec. 25, 2016, down from 3.13 on Dec. 27, 2015.
Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 27 days for the last year period. Days sales outstanding went up to 31 days for the quarter compared with 26 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 49 days for the previous year period. At the same time, days payable outstanding went up to 55 days for the quarter from 48 for the same period last year.
Debt moves up
Qualcomm Incorporated has witnessed an increase in total debt over the last one year. It stood at $11,684 million as on Dec. 25, 2016, up 6.70 percent or $734 million from $10,950 million on Dec. 27, 2015. Total debt was 22.31 percent of total assets as on Dec. 25, 2016, compared with 21.80 percent on Dec. 27, 2015. Debt to equity ratio was at 0.37 as on Dec. 25, 2016, up from 0.36 as on Dec. 27, 2015. Interest coverage ratio deteriorated to 8.64 for the quarter from 22.77 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
