Qualcomm's Profit Tumbles as Royalty Disputes Continue

By Ted Greenwald

Qualcomm Inc. said its profit plunged 52% from a year earlier as it dealt with a tangle of challenges, including Apple Inc. and Huawei Technologies Co. continuing to withhold royalties for using the company's patents.

The San Diego-based chip maker reported a profit of $363 million in its fiscal second quarter. Revenue rose 4.9% to $5.26 billion.

The chip maker's shares jumped 3.8% in after-hours trading. The stock finished Wednesday's session down 0.4% at $49.75, below its price of $53 a year ago and well below the $79 a share offered by Broadcom Inc. in an unsuccessful takeover effort that ended in March.

Qualcomm reported per-share earnings of 80 cents on an adjusted basis, omitting share-based compensation and other items. Analysts had expected 70 cents a share on $5.19 billion in revenue, according to a survey by Thomson Reuters.

Write to Ted Greenwald at Ted.Greenwald@wsj.com

(END) Dow Jones Newswires

April 25, 2018 16:40 ET (20:40 GMT)

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