Qualcomm Incorporated (NASDAQ: QCOM), headquartered in San Diego, California, is a silicon giant engaged in designing, manufacturing and globally commercialising digital communication products comprising platforms, processors and connectivity; and solutions including mobile computing, networking and others.
It primarily operates through three divisions: QSI (Qualcomm Strategic Initiatives), QCT (Qualcomm CDMA Technologies) and QTL (Qualcomm Technology Licensing).
On April 3rd, 2019, the company announced that its chief financial officer, George Davis, has resigned after six years of tenure to join the fellow industry player, Intel. Also, as per the recent reports, Qualcomm and Samsung Electronics have both rejected Apple’s bid to purchase 5G baseband chips from them. Although, the agreement between Qualcomm and Apple could not be reached due to predominant issues between the parties, the South Korean manufacturer Samsung is still in a strong position to negotiate with Apple.
Qualcomm is currently at the forefront of the 5G mobile network wave, expected to gain momentum in the upcoming months as the industry players prepare for launch in 2020. It has a growing portfolio of network products, targeting not just the smartphone market but also planning to break out into the 5G automotive, connected laptop, and small cell markets as well.
Qualcomm has a current market capitalisation of around $ 69.811 billion and is listed on the Nasdaq Stock Market in New York, United States. With the end of the trading session on April 3rd, 2019, the QCOM stock closed at the price of USD 57.68, down 0.71% by USD 0.41.
On January 30th, 2019, the company announced its results for its fiscal first quarter ended December 30th,2018 (Q1 Fiscal 2019), confirming strong growth in the company driven by strong product leadership and operating expense management. Besides, the company consistently executed its strategic objectives including the global transition to 5G while expanding into new industries and categories.
For the concerned period, the revenues were recorded at $4.8 billion, reflecting a year-on-year decline of 20% on $6 billion in Q1 Fiscal 2018 and includes $180 million of restructuring and restructuring-related charges announced under the Cost Plan in the second quarter of fiscal 2018. As per the segment-wise performance, QCT generated revenues of $3.7 billion with an EBT (Earnings (loss) before taxes) of $ 598 million while the QTL business resulted in revenues of $1.02 billion with an EBT of $ 590 million.
The diluted earnings per share rose by 25% to $ 1.20 from $ 0.96 in Q1 Fiscal 2018. As of December 30th, 2018, Qualcomm has executed around $ 22.2 billion of share repurchases, primarily comprising three Accelerated Stock Repurchase Agreements (ASRs) whereby the company paid $ 16 billion and a tender offer under which it extended $ 5.1 billion. The ASRs are scheduled to terminate i
n early September 2019.
Recently on January 14th, 2019, the company also declared a quarterly cash dividend of $ 0.62 per share, due to be paid out on March 28th, 2019 to shareholders of record at the close of business on March 7th, 2019.
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