Qualcomm released its fourth fiscal quarter and full-year performance report as of September 24, 2023. The financial report shows that revenue in the fourth quarter of fiscal year 2023 was US$8.67 billion, a year-on-year decrease of 24%; net profit was US$1.489 billion, a year-on-year decrease of 48%. Full-year revenue for fiscal year 2023 was US$35.820 billion, a year-on-year decrease of 19%; net profit was US$7.232 billion, a year-on-year decrease of 44%. Qualcomm expects revenue to reach $9.1 billion-9.9 billion in the first quarter of fiscal 2024.
It is noted that despite a sharp year-on-year decline, Qualcomm’s fourth-quarter sales and earnings exceeded expectations, and Qualcomm’s stock price rose more than 3% in after-hours trading.
Qualcomm’s fortunes are closely tied to the smartphone industry, which has been in the doldrums for nearly two years.
Qualcomm Chief Financial Officer Akash Palkhiwala said in a conference call with analysts: “We are seeing early signs of stabilization in global 3G, 4G, 5G mobile phone demand.” He said Qualcomm expects total shipments of mobile phone chips using its mobile phones in 2023 That will be down a “mid-to-high single-digit percentage” from last year, which is better than the company had previously expected.
Qualcomm’s mobile chip sales fell 27% year over year to $5.46 billion in the fiscal fourth quarter, beating StreetAccount’s forecast of $5.34 billion. Those sales were lumped into the QCT unit, Qualcomm’s largest unit that sells processors, where sales fell 26% year over year to $7.37 billion.
The company’s automotive business was a bright spot for the QCT unit, growing 15% year over year on sales of $535 million, beating Wall Street expectations. It’s still a small business, but it will continue to grow as Qualcomm convinces more automakers and parts makers to use its chips in vehicles.
The company’s “Internet of Things” business, which also includes the chips Meta uses for its Quest headset, fell 31% year over year to $1.38 billion in revenue. The company’s lucrative licensing business, QTL, reported sales of $1.26 billion, down 12% year over year and in line with StreetAccount forecasts.
Qualcomm said earlier this year it would continue to supply 5G modems for Apple phones until 2026. Analysts had previously expected Apple to use a different modem this year.
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