Qualcomm (QCOM) releases financial report for Q3 FY 2023

Qualcomm (QCOM) recently released its financial report for the third quarter of the 2023 fiscal year. The report revealed a decline in several key financial metrics compared to the previous year.

In terms of revenue, Qualcomm saw a decrease of 22.7%, with total revenue amounting to $8.4 billion. This decline can be attributed to a 25% drop in income from the smartphone microchip segment, specifically for iPhones and Android devices. The decrease in demand for phones following the pandemic and slow economic recovery in China were cited as the main reasons for this decline.

Qualcomm (QCOM) Q3 Fiscal Year 2023 Report

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also experienced a significant decrease of 41%, amounting to $2.3 billion. Similarly, the earnings per share (EPS) declined by 29.4%, with a value of $1.87.

Table: Financial Report for Qualcomm’s 3rd Quarter of 2023 Fiscal Year

MetricAmountYear-on-year Change
Revenue$8.4B↓ -22.7%
EBITDA$2.3B↓ -41%
EPS$1.87↓ -29.4%
Income from Microchips$5.26B↓ -25%

To counteract these challenges, Qualcomm has announced plans to reduce operating expenses, primarily through employee layoffs. This cost-cutting measure aims to improve the company’s financial performance and mitigate the impact of the decline in revenue.

Following the release of the financial report, Qualcomm’s stock prices dropped by 6.9% after the trading session concluded. This decline reflects the market’s reaction to the company’s financial performance and future outlook.

Key data from the report:

  • Qualcomm reported a 23% decrease in total revenue to $8.4 billion.
  • In the last quarter, Qualcomm’s revenue from smartphone component sales decreased by 25% to $5.26 billion.
  • Qualcomm’s stock price dropped by nearly 7% after market close.
  • The company expects to generate revenue between $8.1 billion and $8.9 billion in the current quarter.
  • Qualcomm’s net profit in the previous quarter decreased by 52% to $1.8 billion.
  • The QCT division saw a 24% decrease in revenue to $7.2 billion.
  • Revenue in the Internet of Things segment decreased by 24% to $1.5 billion.
  • Revenue in the automotive sector increased by 13% to $434 million.
  • Revenue from technology licensing decreased by 19% to $1.2 billion.
  • Qualcomm reduced expenses by 5% compared to the first half of last year.
  • The company paid $893 million in dividends and spent $400 million on share buybacks.

In summary, Qualcomm’s third-quarter financial report highlights the impact of the pandemic on the smartphone industry and the challenges faced by the company in terms of declining revenue and profitability. The company’s cost-cutting initiatives and strategic measures will be crucial in navigating these difficult times and ensuring future growth.

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