Qualcomm Incorporated (QCOM) has reported a 50.71 percent jump in profit for the quarter ended Sep. 25, 2016. The company has earned $1,599 million, or $1.07 a share in the quarter, compared with $1,061 million, or $0.67 a share for the same period last year.
Revenue during the quarter grew 13.34 percent to $6,184 million from $5,456 million in the previous year period. Gross margin for the quarter expanded 22 basis points over the previous year period to 58.94 percent. Total expenses were 70.83 percent of quarterly revenues, down from 79.11 percent for the same period last year. This has led to an improvement of 828 basis points in operating margin to 29.17 percent.
Operating income for the quarter was $1,804 million, compared with $1,140 million in the previous year period.
"Our fiscal fourth quarter EPS was above the high end of our expectations, reflecting new license agreements in China and strong chipset shipments," said Steve Mollenkopf, chief executive officer of Qualcomm Incorporated. "We are forecasting continued growth of global 3G/4G device shipments in calendar year 2017, led by growing demand in emerging regions. We are well positioned to extend our mobile technology leadership and footprint into attractive growth opportunities, accelerated by our recently announced agreement to acquire NXP."
For the first-quarter 2017, Qualcomm Incorporated projects revenue to be in the range of $5,700 million to $6,500 million. The company forecasts diluted earnings per share to be in the range of $0.91 to $1.01. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.12 to $1.22.
Operating cash flow improves significantly
Qualcomm Incorporated has generated cash of $7,400 million from operating activities during the year, up 34.40 percent or $1,894 million, when compared with the last year.
The company has spent $3,488 million cash to meet investing activities during the year as against cash outgo of $3,572 million in the last year. It has incurred net capital expenditure of $291 million on net basis during the year, down 60.03 percent or $437 million from year ago.
The company has spent $5,522 million cash to carry out financing activities during the year as against cash outgo of $2,261 million in the last year period.
Cash and cash equivalents stood at $5,946 million as on Sep. 25, 2016, down 21.35 percent or $1,614 million from $7,560 million on Sep. 27, 2015.
Working capital decreases marginally
Qualcomm Incorporated has witnessed a decline in the working capital over the last year. It stood at $15,670 million as at Sep. 25, 2016, down 2.06 percent or $329 million from $15,999 million on Sep. 27, 2015. Current ratio was at 3.14 as on Sep. 25, 2016, down from 3.62 on Sep. 27, 2015.
Debt moves up
Qualcomm Incorporated has witnessed an increase in total debt over the last one year. It stood at $11,757 million as on Sep. 25, 2016, up 7.18 percent or $788 million from $10,969 million on Sep. 27, 2015. Total debt was 22.45 percent of total assets as on Sep. 25, 2016, compared with 21.59 percent on Sep. 27, 2015. Debt to equity ratio was at 0.37 as on Sep. 25, 2016, up from 0.35 as on Sep. 27, 2015. Interest coverage ratio improved to 23.74 for the quarter from 16.29 for the same period last year.
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