Qualcomm Inc. (NASDAQ: QCOM) reported first fiscal quarter 2018 results after markets closed on Wednesday. The chipmaker posted adjusted diluted earnings per share (EPS) of $0.98 and revenues of $6.1 billion. In the first quarter of 2017, Qualcomm reported EPS of $1.19 on revenues of $6 billion. The consensus analysts’ estimates called for EPS of $0.91 and $5.93 billion in revenue.
On a GAAP basis Qualcomm reported net loss per share of of $4.03, including non-payment of $700 million in royalties due from Apple and its contract manufacturers; $5.3 billion related to repatriation of earnings held overseas; $562 million in other charges related to the changes to U.S. tax law; and $86 million for deciding not to reinvest certain foreign earnings indefinitely.
The company estimated its fiscal year GAAP effective tax rate at 297% and 8% on a non-GAAP basis, including the $6 billion in first quarter charges and a $1.2 billion fine from the European Commission that is not tax deductible.
Steve Mollenkopf, the company’s CEO, said:
Our fiscal first quarter results reflect continued strong performance in our semiconductor business, as well as continued strength in 3G/4G handset ASPs. We recently detailed our roadmap for value creation, outlining the significant growth potential for Qualcomm as we enter the 5G world and our products and technologies expand into attractive new markets.