Qualcomm Posts Loss as Revenue Slips

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Qualcomm requisitioned $5.8 billion in income for a quarter, off 2% from a year earlier. Analysts had approaching $5.53 billion.

The association requisitioned $4.65 billion in sales in a shred that creates chip sets used in mobile devices, roughly prosaic from final year. Earnings before taxes in a business fell 18% to $796 million, according to a company. Qualcomm pronounced mobile modem shipments rose 5%, however.

In a chartering segment, sales fell 6% to $1.14 billion and gain before taxes forsaken 11% to $739 million. Qualcomm didn’t record any chartering income in a entertain from Apple, that is self-denial kingship payments from Qualcomm in a brawl over a company’s chartering practices.

Qualcomm has indicted Apple of transferring a egghead skill to

Intel
Corp.

, that is provision chips for new-model iPhones.

Meanwhile, progressing this week, a sovereign decider ruled that Qualcomm contingency permit some of a patents to opposition chip suppliers in an antitrust fit brought by a Federal Trade Commission. The statute has a intensity to invert Qualcomm’s use of chartering to device makers rather than chip suppliers, some analysts say.

During a call with analysts Wednesday, Chief Executive Steve Mollenkopf pronounced a FTC “ruling is incorrect.” He pronounced a association is focused on settling a case, that goes to hearing in January.

“There’s zero in a sequence that complicates that, and in a meantime, we’re not compelled to do anything differently with a business,” Mr. Mollenkopf said.

A slack in tellurian smartphone sales is compounding Qualcomm’s chartering woes. The association expects modem chip shipments to decrease 22%, or about 185 million units, during a 3 months finale in December. The association pronounced that decrease partly reflects Apple’s recover of new iPhones but Qualcomm modem chips.

Shares in Qualcomm were down 4.3% in after-hours trading. The company’s batch sealed down 0.7% progressing Wednesday.

For a stream quarter—the initial in a company’s new mercantile year—Qualcomm foresee income between $4.5 billion and $5.3 billion, and per-share gain between 78 cents and 88 cents. Adjusted gain are approaching to be between $1.05 a share and $1.15 a share, forward of a accord foresee from analysts of 94 cents a share.

Qualcomm has faced a array of hurdles in a latest mercantile year. Earlier this year, a association fended off a takeover bid by

Broadcom
Inc.,

a understanding eventually quashed by President Trump.

In June, Qualcomm nixed a due $44 billion merger of Dutch chip maker

NXP Semiconductors

NV after unwell to win capitulation for it from Chinese regulators.

Qualcomm also stays sealed in a apart brawl with Chinese smartphone builder Huawei Technologies Co., that is also self-denial kingship payments.

Qualcomm pronounced it repurchased 254.6 million shares valued during $21.14 billion in a Sep period, fulfilling a joining it done after abandoning a offer for NXP.

Write to Micah Maidenberg during micah.maidenberg@wsj.com

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