CORRECTED - Chipmaker Qualcomm's revenue falls 9.6 percent

CORRECTED - Chipmaker Qualcomm's revenue falls 9.6 percent

CORRECTED - Chipmaker Qualcomm's revenue falls 9.6 percent

Royalties on iPhone sales lately have accounted for about 12% of Qualcomm's total revenue and as much as 30% of its per-share earnings, according to Srini Pajjuri of Macquarie Capital.

For the second quarter, the company expects net revenue to be between $2.28 billion and $2.32 billion and non-GAAP earnings to be between 43 cents and 45 cents per share. eBay expects full-year non-GAAP earnings for this year to be between $1.98 and $2.03 per share, which is somewhat light against the consensus of $2.02 per share.

Qualcomm forecast current-quarter adjusted profit of $0.90-$1.15 per share and revenue of $5.3 billion-$6.1 billion. Six analysts surveyed by Zacks expected $5.88 billion.

Revenues rose 8.1% from previous year to $5.99 billion, also topping analysts' view for $5.86 billion. QCT revenues rose to $3.7 billion on 179 million MSM chip shipments.

Qualcomm's market share in China is expected to increase to 65 percent this year from 50 percent in 2016, with share gains in OPPO, Vivo, Xiaomi and Meizu, Rosenblatt Securities analyst Jun Zhang wrote in a note.

Qualcomm's third-quarter guidance was negatively affected by concerns about certain clients who underpaid royalties.

Qualcomm reported lower revenue and net income on Wednesday for its fiscal second quarter, with results weighed down by a refund in patent royalties to BlackBerry. Qualcomm has also provided a wide range of guidance for its next fiscal quarter because of the ongoing legal battle...

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According to the Australian government, for example, most of the Indians who migrated in 2014-15 did so under the 457 program. Majority of the beneficiaries under the 457 scheme are from India, which accounts for almost a quarter of the visa holders.

Qualcomm continued to collect some royalties for Apple's use of its wireless technology in iPhones past year despite dueling lawsuits between the two mobile giants, cheering Qualcomm investors who feared that the payments had entirely dried up.

Qualcomm CEO Steve Mollenkopf, said, "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".

QUALCOMM, Inc. shares rose $1.39 (+2.64%) to $54.00 in after-hours trading Wednesday.

Qualcomm stock is up 89 cents, or 1.7%, at $53.50. However, our revenues were not negatively impacted as the contract manufacturers acknowledged the amounts are due and the underpayment was equal to the amounts that Qualcomm has not paid Apple under our Cooperation Agreement that are now in dispute.

Timothy Green owns shares of NXP Semiconductors.

Qualcomm has appealed the South Korean fine, is seeking dismissal of the FTC lawsuit and has countersued Apple.

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