Qualcomm announced its FY17 Q3 result with GAAP revenue of $4.5 billion and net profit of $900 million, resulting in a net margin of 20%. Both the revenues and net profit declined on a yearly basis, by 11% and 40% respectively.
Qualcomm indicated that its quarterly results, particularly the net profit, was adversely affected as a result of actions taken by Apple’s contract manufacturers, who did not fully report and did not pay royalties due on sales of Apple products, as well as the previously disclosed dispute with another licencee, who did not report or pay royalties due in FY17 Q3.
The company believes that it holds the high ground with regard to the dispute with Apple and it has initiated new actions to protect the well-established value of its technologies. For FY17 Q4, Qualcomm expects to post revenues in range of $5.4-$6.2 billion in FY17 Q4, down up to 13% from a year ago. This excludes revenues related to the sale of Apple products by Apple’s contract manufacturers as well as the other licensee in dispute.
