Until last year, Qualcomm showed great pace of business development. Regular quarterly developer SoC for smartphones and cellular stations were modest, as voiced by the forecast, which implies that the company expects a further decline in capacity revenues. The problem is that in China, the country's authorities began an investigation of Qualcomm. Since a significant portion of the company's revenues represent revenues from licensing activities, investigation prevents Qualcomm enter into new contracts for the supply of solutions for mobile 3G/4G and does not allow to collect royalties from local producers.
China company was forced to reduce the revenue forecast for the third quarter. According to the manual Qualcomm, revenues fall in the range of $ 6.5 billion to $ 7.4 billion , this immediately caused a decrease in the value of shares by almost 5%. Position of the company will be even more difficult when China will force Qualcomm to pay a fine, the amount of which promises to exceed one billion U.S. dollars.
During the reporting quarter, the company gained $ 6.81 billion - is 9% more than in the same quarter last year. Net income for the year grew by 42% - to $ 2.24 billion in respect of quarterly net profit increased by 4%.