Qualcomm’s fourth-quarter net income rose 26 percent year-over-year to reach $1.89 billion and operating income also saw a 25-percent jump annually.
The profits came from $6.69 billion in revenue, a three-percent increase annually.
But the figures didn’t meet Wall Street expectations and Qualcomm’s forecast for the next quarter are also falling short of analyst estimates.
Qualcomm’s fiscal-year revenue, income and Earnings Per Share (EPS) were all up but the chipmaker could be facing some hardships as its fiscal calendar turns over. Qualcomm reported the FTC has launched a probe into its licensing business.
The Commission is looking into whether Qualcomm violated reasonable and non-discriminatory terms in licensing its patents. If Qualcomm is found to be in violation, it could face fines or modifications to its licensing practices.
Qualcomm is also facing complaints from both the Korean and Japanese Federal Trade Commissions.
“The unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition or cash flows,” Qualcomm wrote in an SEC filing.
Potential legal woes aside, Qualcomm is still upbeat about its mobile chipset business.
“We are forecasting continued growth of global 3G/4G device shipments in calendar year 2015, particularly in emerging regions,” CEO Steve Mollenkopf said in a statement.
Qualcomm’s MSM division, responsible for the company’s popular Snapdragon processors, saw its quarterly chip shipment rise 24 percent annually to 236 million. Fiscal year chip shipments reached 861 million units, up 20 percent year-over-year.
In the wake of missed quarterly estimates and a looming FTC probe, Qualcomm shares have plummeted more than 11 percent as of 9:22 a.m. CT.
Filed Under: Infrastructure