Qualcomm, the American multinational semiconductor and telecommunications company, has announced their financial results for its fourth quarter and for the 2017 fiscal year.
The fourth quarter ended Sept 25th. Under generally accepted accounting principles, their earnings per share were 92 cents and the revenue reported was $5.96 billion. The company’s share increased by 2% in after-hours trading on Wednesday. For this fiscal year, Qualcomm reported revenue of $23.2 billion which is down by 1% from last year.
Though Qualcomm did somewhat better than expected. Its quarterly results were negatively impacted as a result of actions taken by Apple and its contract manufacturers.
In January, Apple filed a lawsuit against Qualcomm for running an extortion scheme over its smartphone royalties. Apple claimed that Qualcomm charged unfairly high royalties for technologies they have nothing to do with, and that Qualcomm had withheld payments it owed. The lawsuit has been filed for roughly $1 billion.
In turn, Qualcomm alleged that technology purchased by Apple from Intel, violated six of Qualcomm’s patents. The company asked U.S. trade regulators to halt the sale of imported iPhone and iPads in U.S.
In addition to the lawsuit filed by Apple, which likely hurt the profitability of Qualcomm this year.
There were several other factors that brought down the company’s profit. A $927 million fine charged by South Korea’s anti-monopoly regulation department, another $940 million reduction in revenues after they lost a battle against Blackberry and a fine imposed by Taiwan Fair trade commission last month. Qualcomm is appealing against the Taiwan fine and the South Korean judgment.
“We remain focused on defending our business and our patented inventions for the long term,” said Chief Executive Steve Mollenkopf.