Revenue during the quarter dropped 9.64 percent to $5,016 million from $5,551 million in the previous year period. Gross margin for the quarter contracted 545 basis points over the previous year period to 55.98 percent. Total expenses were 85.47 percent of quarterly revenues, up from 74.51 percent for the same period last year. That has resulted in a contraction of 1096 basis points in operating margin to 14.53 percent.

Operating income for the quarter was $729 million, compared with $1,415 million in the previous year period.

However, the adjusted operating income for the quarter stood at $2,220 million compared to $1,885 million in the prior year period. At the same time, adjusted operating margin improved 1030 basis points in the quarter to 44.26 percent from 33.96 percent in the last year period.

"We delivered strong results this quarter, with healthy year-over-year growth across our QTL licensing and QCT semiconductor businesses, especially in the important automotive, networking and IoT growth areas," said Steve Mollenkopf, chief executive officer of Qualcomm Incorporated. "Our performance reflects continued execution of our strategy to lead the mobile industry across a broad set of technologies, including advanced LTE and 5G, and accelerate our growth opportunities beyond mobile into automotive, IoT, security and networking."

For the third-quarter, Qualcomm Incorporated projects revenue to be in the range of $5,300 million to $6,100 million. The company forecasts diluted earnings per share to be in the range of $0.67 to $0.92. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.90 to $1.15.

Cash flow from investing activities was $760 million for the first half as against cash outgo of $1,435 million in the last year period.

The company has spent $1,770 million cash to carry out financing activities during the first six months as against cash outgo of $3,822 million in the last year period.

Cash and cash equivalents stood at $7,124 million as on Mar. 26, 2017, up 23.36 percent or $1,349 million from $5,775 million on Mar. 27, 2016.

Working capital drops significantly
Qualcomm Incorporated has witnessed a decline in the working capital over the last year. It stood at $6,763 million as at Mar. 26, 2017, down 48.50 percent or $6,368 million from $13,131 million on Mar. 27, 2016. Current ratio was at 1.67 as on Mar. 26, 2017, down from 2.87 on Mar. 27, 2016.

Cash conversion cycle (CCC) has increased to 38 days for the quarter from 22 days for the last year period. Days sales outstanding went up to 50 days for the quarter compared with 25 days for the same period last year.

Days inventory outstanding has decreased to 43 days for the quarter compared with 56 days for the previous year period. At the same time, days payable outstanding went down to 55 days for the quarter from 60 for the same period last year.