Qualcomm cuts fiscal 2015 outlook after new chip skipped by big customer
Reuters
Published Jan 28, 2015 04:35PM ET
Qualcomm cuts fiscal 2015 outlook after new chip skipped by big customer
By Noel Randewich
SAN FRANCISCO (Reuters) - Qualcomm Inc (O:QCOM) reduced its outlook for fiscal 2015, saying it expects its newest Snapdragon mobile chip will not be used in a major customer's flagship smartphone, sending its shares lower.
The chipmaker said in a statement on Wednesday it expects fiscal 2015 revenue between $26.0 billion and $28.0 billion, down from a previous estimate of between $26.8 billion and $28.8 billion.
It now expects non-GAAP diluted EPS for fiscal 2015 between $4.75 and $5.05, compared to a previous estimate of between $5.05 and $5.35.
Earlier this month, Bloomberg reported that Samsung Electronics Co Ltd (KS:005930), the world's top smartphone maker, decided not to use the new Qualcomm Snapdragon 810 processor for the next flagship Galaxy S smartphone after the chip overheated during testing. Samsung had declined to comment on the report.
Qualcomm posted higher fiscal first-quarter revenue that beat analysts' expectations as a year-long antitrust investigation in China weighed on investor sentiment.
The chipmaker reported first-quarter revenue of $7.1 billion, up 7 percent from the year-ago period. Analysts on average had expected first-quarter revenue of $6.94 billion, according to Thomson Reuters I/B/E/S.
Qualcomm posted first-quarter net income of $2.0 billion, up 5 percent from a year ago. GAAP diluted earnings per share were $1.17.
Its non-GAAP earnings were $1.34 per share, better than the $1.25 expected by analysts.
Qualcomm shares were down 5.27 percent in extended trading after closing down 1.09 percent at $70.99 on Nasdaq.
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