- Qualcomm informed that it responded to the global pandemic quickly
- The company is of view that there will be 30 per cent reduction in handset shipments relative to its prior expectations
Qualcomm Incorporated has announced results for its fiscal second quarter that ended on 29 March 2020. The company said that there was reduction in demand of 3G/4G/5G handsets of approximately 21 per cent compared to its prior expectation.
“We executed extremely well in the second fiscal quarter, with strong Non-GAAP results in line with our guidance, demonstrating the strength of our business model and the resilience of our team to respond quickly to the unique challenges presented by the global pandemic,” said Steve Mollenkopf, CEO of Qualcomm Incorporated.
Qualcomm Incorporated had earlier announced a quarterly cash dividend of $0.62 per common share. It was payable on March 26, 2020, to stockholders of record at the close of business on fifth March 2020.
Negatively impacted by the global coronavirus pandemic
Company’s second quarter fiscal 2020 GAAP and Non-GAAP results were negatively impacted by the global coronavirus (COVID-19) pandemic, which caused a reduction in demand of 3G/4G/5G handsets. In addition, Qualcomm’s GAAP results were also negatively impacted by $265 million, or ($0.21) per share, in non-marketable
investment impairments, resulting in part from the impacts of COVID-19.
“During the second quarter of fiscal 2020, we returned $2.3 billion to stockholders, including $705 million, or $0.62 per share, of cash dividends paid and $1.6 billion through repurchases of 20.0 million shares of common stock,” read Qualcomm’s official statement.
It on guidance for the ongoing quarter continued, “Given the uncertainty caused by the COVID-19 pandemic, including the timing and pace of economic recovery, our guidance for the third quarter of fiscal 2020 is based on a planning assumption that there will be an approximate 30 per cent reduction in handset shipments relative to our prior expectations, resulting in an estimated impact of greater than ($0.30) to EPS in the third quarter of fiscal 2020.”
