Qualcomm Incorporated today announced results for its fiscal third quarter ended June 24, 2018. The company has reported a revenue of $5.6 billion compared to $5.4 billion from the same time last year. This is a good 4% improvement YoY. Qualcomm’s operating income comes to around $0.9 billion versus the $0.8 billion from Q3 Fiscal 2017 and is a 20% growth.
As for the Net income, Qualcomm has reported $1.2 billion and saw a growth of around 41%, the Diluted earnings per share is around $0.82 with a 41% growth and the Operating cash flow is around $2.1 billion compared to $0.2 billion from Q3 Fiscal 2017. As for the Third Quarter, Non-GAAP results, it excludes the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. It reported a revenue of $5.6 billion with a 6% growth, an Operating income of $1.4 billion with 16% improvement.
The Diluted earnings per share are $1.01 with 22% YoY change. On another note, Qualcomm back in 2016 set its sights on purchasing NXP Semiconductors N.V. (NXP) for estimated total cash of $44 billion. However, the company is now expecting to terminate the acquisition as a result of a continued absence of regulatory approval from the Chinese State Administration for Market Regulation (SAMR). It will be terminating the transaction later today.
However, as per the original agreements, if SAMR has not approved by the End Date, NXP will be entitled to receive a termination fee of $2.0 billion, which will be paid using existing cash and cash equivalents.
Steve Mollenkopf, CEO of Qualcomm Incorporated said:
We reported results significantly above our prior expectations for our fiscal third quarter, driven by solid execution across the company, including very strong results in our licensing business. We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments. In addition, as previously indicated, upon termination of the agreement, we intend to pursue a stock repurchase program of up to $30 billion to deliver significant value to our stockholders.