Qualcomm Inc. reported a net loss of $5.95 billion — largely because of one-time items — on revenue of $6.07 billion during the first quarter of its 2018 fiscal year, which ended Dec. 24.
The wireless technology giant made its financial results public after the markets closed on Jan. 31.
Qualcomm (Nasdaq: QCOM) took a $6 billion charge related to the recently passed Tax Cuts and Jobs Act. Some $5.3 billion was a one-time charge for funds repatriated from U.S.-owned foreign subsidiaries. In addition, the company took a $1.2 billion charge for the fine that the European Commission levied against it. Regulators allege that Qualcomm committed anticompetitive behavior by entering an exclusive supplier deal with Apple Inc. Qualcomm says it will appeal.
The $6.07 billion in revenue was above the midpoint of Qualcomm’s guidance for the recently ended quarter.
Qualcomm, which Broadcom Ltd. (Nasdaq: AVGO) is pursing in a hostile takeover, reported non-GAAP net income of $1.5 billion and diluted earnings per share of 98 cents, beating its guidance. Non-GAAP means the number does not conform to generally accepted accounting principles. Stock analysts consider non-GAAP numbers a significant measurement of company performance.
Also Jan. 31, the business reported it amended a long-term cross-license agreement with Samsung covering mobile devices and infrastructure equipment. Terms of the amended deal were not disclosed. With the deal, Samsung has agreed to withdraw its interventions in Qualcomm’s appeal of a separate antitrust decision, made by South Korean regulators. Qualcomm is appealing the decision in the Seoul High Court.
Additionally, Qualcomm and Samsung extended a strategic relationship in which they plan to work together on new technology and across a range of mobile devices.