Wireless technology specialist Qualcomm Inc. reported net income of $1.2 billion, or 78 cents per share, on revenue of $5.6 billion in its second quarter, which ended March 27.
Revenue was down 19 percent from the same quarter of 2015, but was still within the company’s forecast, the company said in the April 20 earnings report.
It was a stronger than expected quarter, CEO Steve Mollenkopf told listeners on a conference call.
Separately, the company said that it had resolved its patent licensing dispute with South Korea-based LG Electronics.
With business volume below previous levels, Qualcomm is trying to reclaim its strong earnings of its recent history by getting into adjacent markets. The company is also in the middle of a restructuring effort meant to save $1.4 billion per year.
The company said that it shipped 189 million microchips in the second quarter, down 19 percent from the same quarter in 2015 and down 22 percent from the first quarter of 2016.
Twenty-five analysts surveyed by Thomson/First Call collectively expected Qualcomm to post earnings of 96 cents per share, on a non-GAAP basis, during the recently ended quarter. Qualcomm reported earnings of $1.04 on a non-GAAP basis. GAAP is an accounting term, short for generally accepted accounting principles.
The 25 analysts had collectively expected earnings of $5.34 billion.
Looking ahead to the third quarter, Qualcomm said it expected revenue between $5.2 billion and $6.0 billion. Non-GAAP earnings per share would likely to fall in the range of 90 cents to $1.00, Qualcomm said. Chip shipments are expected to be in the range of 175 million to 195 million.
Qualcomm reported its financial results after the stock market closed on April 20.
In the after-hours market, Qualcomm shares fell below and then rose above their $52.09 closing price, before falling off 3 percent to $50.50 two hours after the broader market’s closure.