Qualcomm Incorporated (Qualcomm) reported its financial results for the first quarter of fiscal 2024, revealing a mixed performance with increased revenues but fluctuating segments. The company's total revenues rose to $9.935 billion, up from $9.463 billion in the same period last year, marking a $472 million increase. This growth was primarily driven by a $525 million rise in equipment and services revenues from the QCT (Qualcomm CDMA Technologies) segment. However, licensing revenues from the QTL (Qualcomm Technology Licensing) segment decreased by $64 million. Gross margin percentage remained flat at 57%. Research and development expenses decreased by $155 million, primarily due to lower employee-related costs following restructuring actions. Other income and expenses saw a significant change, with a $108 million decrease compared to the previous year. Interest and...Show More

Qualcomm Incorporated (Qualcomm) reported its financial results for the first quarter of fiscal 2024, revealing a mixed performance with increased revenues but fluctuating segments. The company's total revenues rose to $9.935 billion, up from $9.463 billion in the same period last year, marking a $472 million increase. This growth was primarily driven by a $525 million rise in equipment and services revenues from the QCT (Qualcomm CDMA Technologies) segment. However, licensing revenues from the QTL (Qualcomm Technology Licensing) segment decreased by $64 million. Gross margin percentage remained flat at 57%. Research and development expenses decreased by $155 million, primarily due to lower employee-related costs following restructuring actions. Other income and expenses saw a significant change, with a $108 million decrease compared to the previous year. Interest and dividend income increased by $94 million, primarily due to higher interest rates on securities. Income tax expense was $151 million with an effective tax rate of 5%, reflecting additional benefits from FDII deductions. Discontinued operations related to the Non-Arriver businesses resulted in a net loss of $44 million. The QCT segment saw a revenue increase in handsets and automotive but a decrease in IoT revenues. The QTL segment experienced a decrease in licensing revenues and a slight increase in EBT as a percentage of revenues. Looking forward, Qualcomm anticipates challenges such as customer inventory drawdowns, elevated inventory levels, product cost increases, intense competition, and potential impacts from U.S./China trade relations. The company has extended and entered into several key OEM license agreements and is negotiating with others, aiming to sustain and grow its business long-term.