close

Results

CorporateNationalNewsResults

Bharti Infratel Q2 Net Profit Rises 25% to Rs 579 Cr

bharti-infratel

Bharti-Infratel-Q2-Net-Profit-Rises-25%-To-Rs-579-CrBharti Infratel second quarter net profit increased 25 percent to reach Rs 579 crore whereas consolidated revenue increased 4 percent to reach Rs 3,038 crore.

Consolidated EBITDA improved to Rs 1,308 crore up 7 percent, representing an operating margin of 43.1 percent and consolidated EBIT at Rs 734 crore, witnessed a 9 percent Y-o-Y growth.

Akhil Gupta, chairman, Bharti Infratel said, “Mobile data is going to be the key pillar of growth for the India telecom industry. We are already witnessing clear signs of accelerated 3G and 4G rollouts by the operators with multi-fold increase in such installations as compared to last year. In addition, the sector is also seeing increased focus on quality of service and a possible utilization of unused spectrum. These trends are positive for tower companies and we are fully geared to meet the resultant additional requirements of the telecom industry.”

In the second quarter, Bharti Infratel added 787 towers taking its overall tally to 87,184. The company increased its tenancy ratio from 2.13 to 2.15.

read more
CorporateResults

Ericsson Reports 3% Growth In Q3, Thanks To Professional Services

Hans_Vestberg_Ericsson
Ericsson-Reports-3%-Growth-In-Q3,-Thanks-To-Professional-Services
Hans Vestberg, president and CEO, Ericsson

Ericsson today reported 3 percent growth in YoY sales thanks to the growth in professional services.

Sales, adjusted for comparable units and currency, decreased by 9 percent due to lower sales in networks and this was partly offset by sales growth in professional services.

Hans Vestberg, president and CEO, Ericsson said, “Sales growth remained strong in India as well as in South East Asia and Oceania compared to the same period last year, while sales declined in North East Asia as well as in Northern Europe and Central Asia.”

“In the quarter, there was a slowdown of the 4G deployments in Mainland China. We also saw a somewhat slower pace of mobile broadband investments in markets such as Russia, Brazil and parts of the Middle East which had a weak macro added Vestberg.

Professional Services sales increased by 15 percent YoY, with double-digit growth in eight out of ten regions, driven by strong performance across the portfolio.

Operating income, excluding restructuring charges, increased by 46 percent YoY with improvements in all segments. The main contributors to the profit improvement were lower operating expenses and a break-even result in network rollout. The negative effect of revaluation and realization of currency hedge contracts was lower than a year ago.

The global cost and efficiency program, with the target to achieve annual net savings of SEK 9 billion during 2017, is progressing according to plan.

The strategic growth initiatives build on a combination of excelling in core business and establishing leadership in targeted growth areas are seeing good progress and had a sales growth of more than 10 percent YoY.

There is an increased customer interest in future network architecture for 5G, virtualization, efficient video delivery and internet of things (IoT).

read more
CorporateNationalNewsResults

Bharti Airtel Q1 Profit Jumps 40%; Mobile Data Grows 57%

Airtel

Bharti-Airtel-Ist-Quarter-2016-Profit-Jumps-40-Percent;-Revenue-Grows-3-Percent son-For-LTEBharti Airtel Q1, 2016 profit jumped 40 percent to reach Rs 1,554 crore whereas revenue grew by 3.1 percent to reach Rs 23,671 crore.

Airtel’s consolidated mobile data revenues at Rs 3,459 crore grew by 56.9 percent, thanks to data traffic growth of 86.5 pecent.

India revenues reported a growth of 10 percent Y-o-Y, led by 22.2 percent in airtel business and 15.8 percent in Digital TV. Mobile data revenue at Rs 2,609 crore registered a growth of 67.3 percent Y-o-Y in India, uplifted by increase in the data customer base by 25.8 percent and traffic by 83.4 percent.

Data ARPU has moved up by Rs 42 to Rs 181 in Q1 2016, led by 42.7 percent increase in data usage per customer. Mobile data revenues contribute to 19.2 percent of mobile India revenues vis-a-vis 12.4 percent in the corresponding quarter last year.

In constant currency terms, Africa revenues grew by one percent Y-o-Y. Data revenues stood at $128 million with growth of 48.5 percent Y-o-Y, led by increase in data customer base by 31.9 percent and traffic by 111.6 percent.

Data ARPU increased to $3.3 from $3 in the corresponding quarter last year. Data revenues contribute to 12.9 percent of overall Africa revenues vis-à-vis 8.8 percent in the corresponding quarter last year.

Active Airtel Money customer base increased to 7 million, boosting the total transaction values on Airtel Money platform by 72.6 percent to $3.3 bilion.

Consolidated EBITDA at Rs 8,262 crore grew by 6.4 percent Y-o-Y with EBITDA margin expanding by 1.1 percent to 34.9 percent, driven by India‟s margin expansion by 2.1 percent Y-o-Y. The resultant consolidated EBIT of Rs 4,216 crore represents a Y-o-Y growth of 14.2 percent, with EBIT margin improving by 1.7 percent.

The company‟s consolidated net debt excluding the deferred payment liabilities to the DoT and finance lease obligations is now at $7.64 billion. During the quarter, tower disposals to the tune of $1.34 billion were closed.

Gopal Vittal, MD and CEO, India & South Asia said, “The year has begun on a healthy note, with underlying revenue growth accelerating to 12.7 percent in India. Our customer base has continued to steadily expand. Mobile minutes and data traffic have grown by 7.4 percent and
83.4 percent respectively. I am pleased that our revenue growth is broad based across all business units, especially the domestic enterprise & corporate segment, which saw revenues grow by 18.1 percent, and DTH business which had a underlying topline growth of 26.8 percent. Our capex programme is mostly directed at increasing 3G/4G coverage and improving all-round customer experience.”

Christian de Faria, MD and CEO, Africa said, “In the first quarter, Airtel Africa has set the pace for the year, with customer base growing by 13.4 percent to 78.3 million. Customer churn has been reduced from 7 percent to 5.4 percent as a result of customer lifecycle management programmes. Minutes grew by 16 percent, while data volumes have more than doubled. The data customer penetration at 16.6 percent reflects the untapped potential in the internet space. I am particularly delighted to report that 7.0 million Airtel Money customers are transacting more than $1 billion of money every month.”

read more
CorporateResults

HFCL Q1, 2015 Profit Jumps 62 Percent

HFCL

HFCL-Q1,-2015-Profit-Jumps-62-PercentHimachal Futuristic Communications (HFCL) Q1, 2015 profit jumped 62 percent to reach Rs 112.4 crore as compared to Rs 69.5 crore in the corresponding quarter of previous fiscal.

HFCL is an integrated telecom solutions provider engaged in manufacturing of telecom equipments and optical fibre cables, executing telecom turnkey contracts and providing services announced net sales at Rs 625.37 crore, as compared to Rs 618.82 crore in the corresponding quarter of previous fiscal.

The company’s earnings before interest, tax, depreciation and amortization (EBIDTA) rose by 4.3 percent to Rs.91.54 crore in Q1, FY16, as compared to Rs 87.77 crore in the corresponding quarter of the previous fiscal. The earnings per share (EPS) for the first quarter of FY16 increasing to Rs 0.90 from Rs 0.55 in the corresponding quarter of previous fiscal.

The company has seen a rise in exports by 255 percent to Rs 32 crores as compared to the first quarter of the previous year. The expected turnover from exports in FY16 is Rs 100 crores. The total order book as of today stands around Rs 3,000 crores.

Commenting on the company’s performance during the first quarter of FY16, Mahendra Nahata, managing director, HFCL said, “In the last four years HFCL has grown almost 10 times in revenue, 17 times in profit, and we are confident of a significant growth in the current financial year. The positive movements in the current order book, combined together with the upcoming opportunities is indicative of the same.”

“Such strong growth has been possible due to high demand of optical fibre cables and turnkey projects. A growth of 255 percent in exports added to our positive outlook of further growth in exports which is going to be key thrust area going forward. Due to cost control and efficient raw material purchase, we have seen improvement in margins,” added Nahata.

read more
CorporateNationalResults

Alcatel-Lucent Q2 Revenue Up 5%

Michel Combes – Altice
Alcatel-Lucent-Q2-Revenue-Up-5%
Michel Combes, CEO, Alcatel-Lucent

Alcatel-Lucent second quarter 2015 revenue was up by 7 percent whereas net income was better at EUR -54 million from EUR -298 million in Q2, 2014.

Positive free cash flow of Euro 65 million, marking the first Q2 of positive free cash flow since the Alcatel-Lucent merger in 2006, improving by Euro 270 million compared to the year-ago quarter. Free cash flow before restructuring of Euro 158 million, up Euro 248 million compared to the year-ago quarter.

Group revenues, excluding managed services and at constant perimeter, increasing 6 percent year-on year. At constant exchange rates, group revenues, excluding managed services and at constant perimeter, were down 8 percent. The weight of next-generation activities continued to progress, representing 76 percent of revenues compared to 70 percent in the year-ago quarter.

Commenting on the results, Michel Combes, CEO, Alcatel-Lucent said, “Our second quarter 2015 results represent a significant milestone for Alcatel-Lucent, reflecting the first Q2 of free cash flow generation since the merger of Alcatel and Lucent in 2006. Alcatel-Lucent’s financial results for the first half of 2015 clearly show that the company has delivered on the key objectives of The Shift Plan, launched two years ago. The company is now well on track to complete its turnaround by the end of the year.

Core Networking segment revenues were Euro 1,675 million in Q2 2015, up 22 percent year-over-year at actual rates. IP Routing revenues were Euro 659 million in Q2 2015, an increase of 17 percent at actual rates.

The business witnessed double-digit growth in EMEA and CALA, resilience in North America and declines in APAC driven by a continued spending pause in Japan. Revenues from non-telco customers grew at a double-digit pace year-over-year, at constant exchange rates, reflecting the continued progress in our market diversification strategy.

IP Transport revenues were Euro 630 million in Q2 2015, up 30 percent at actual rates. Terrestrial optics revenues showed strong double-digit growth at constant rates, as WDM witnessed strength in EMEA, CALA and APAC. The cyclical upswing continued in our submarine business, as revenues grew more than 40 percent at constant rates and our pipeline grew with new awards and contracts signed.

IP Platforms revenues were Euro 386 million in Q2 2015, a year-on-year increase of 19 percent at actual rates. The business was driven by IMS for VoLTE, which witnessed strong traction in North America and benefited from geographic expansion into other regions. This was partially offset by declines in Policy and Charging and SDM, which had difficult year-over-year comparisons, and the tail-end of the phase out of legacy businesses.

Access segment revenues were Euro 1,772 million in Q2 2015, a decrease of 7 percent year-over-year at actual rates. In Q2 2015, segment operating income was Euro 23 million, compared to a segment operating income of Euro 11 million in Q2 2014, reflecting improvements from both wireless and managed services, in addition to continued double-digit margin contribution from Fixed Access.

Wireless Access revenues were Euro 1,148 million, a year-on-year decrease of 12 percent at actual rates. Marked by a difficult comparison base in the year-ago quarter, the sales decline was driven by lower spending in the US and project timing in China.

Fixed Access revenues were Euro 548 million in Q2 2015, an increase of 5 percent compared to the year-ago quarter at actual rates. Traction with fiber and next generation products continued in APAC with China returning to growth, but was offset by declines in EMEA and the continued spending pause in North America.

North America revenues increased by 2 percent at actual rates year-over-year. Europe witnessed improving trends, with revenues increasing 9 percent year-over-year, driven by positive momentum in IP Transport and IP Routing. Asia Pacific posted a 3 percent year-over-year increase in revenues at actual rates, mainly reflecting project timing in China related to wireless access and continued weakness in Japan, partially compensated by growth in South-east Asia, Australia and India. In Rest of World, revenues increased 11 percent year-over-year, as double-digit growth in CALA was partially offset by declines in MEA.

read more
CorporateResults

Facebook Q2 Net Income Down 9%; Revenue Up 39%

mark_zuckerberg_facebook
Facebook-Q2-Net-Income-Down-9%;-Revenue-Up-39%
Mark Zuckerberg, founder and CEO, Facebook

Facebook second quarter net income was down by 9 percent whereas revenue was up by 39 percent.

The net income was $719 million in Q2, 2015 vis-a-vis $791 million in in Q2, 2014 whereas revenue was $4.04 billion in Q2, 2015 vis-a-vis $2.9 billion in Q2, 2014. Mobile advertising contributed $3.8 billion whereas payment and other fees contributed $215 million.

In terms of geographic break-up, US & Canada contributed $1.97 billion, Europe contributed $1 billion, Asia-Pacific generated $623 million and RoW contributed $415 million.

“This was another strong quarter for our community,” said Mark Zuckerberg, founder and CEO, Facebook.

“Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services,” added Zuckerberg.

Facebook Second Quarter 2015 Highlights
Daily Active Users (DAUs) were 968 million on average for June 2015, an increase of 17 percent year-over-year
Mobile DAUs were 844 million on average for June 2015, an increase of 29 percent year-over-year
Monthly Active Users (MAUs) were 1.49 billion as of June 30, 2015, an increase of 13 percent year-over-year
Mobile MAUs were 1.31 billion as of June 30, 2015, an increase of 23 percent year-over-year
More than 40 million small and medium-size businesses are using Facebook pages for advertisement
Source: Facebook

Cash and cash equivalents and marketable securities were $14.13 billion at the end of the second quarter of 2015 whereas free cash flow for the second quarter of 2015 was $1.33 billion.

Mobile advertising revenue represented approximately 76 percent of advertising revenue for the second quarter of 2015, up from approximately 62 percent of advertising revenue in the second quarter of 2014. Capital expenditures for the second quarter of 2015 were $549 million.

read more
CorporateInternationalNewsResults

Nokia Q2 Net Sales Jumps 9 Percent

rajeev_suri_1803_0
Nokia-Q2-Net-Sales-Jumps-9 Percent
Rajeev Suri, president & CEO, Nokia

Nokia net sales in Q2, 2015 was up by 9 percent to reach EUR 3.2 billion vis-a-vis EUR 2.9 billion in Q2, 2014. Net sales was down by 1 percent on a constant currency basis.

Nokia Networks achieved 6 percent year-on-year net sales growth primarily driven by an elevated level of software sales within mobile broadband and strong performance across global services.

In the second quarter 2015, mobile broadband represented 51 percent of Nokia Networks net sales, compared to 53 percent in the second quarter 2014 and 52 percent in the first quarter 2015. In the second quarter 2015, global services represented 49 percent of Nokia Networks net sales, compared to 46 percent in the second quarter 2014 and 48 percent in the first quarter 2015.

Global services net sales increased 12 percent year-on-year in the second quarter 2015, primarily due to growth in the network implementation, care, network planning and optimization. The network planning and optimization and systems integration delivered particularly strong percentage growth on a year-on-year basis, consistent with ongoing focus on services-led and professional services business. Mobile broadband net sales increased 3 percent year-on-year in the second quarter 2015, primarily due to growth in overall radio technologies, with particular strength in LTE.

HERE achieved 25 percent year-on-year growth in net sales, with 24 percent growth in new vehicle licenses for embedded navigation systems whereas Nokia Technologies accomplished 31 percent year-on-year growth in net sales primarily due to higher intellectual property licensing income from existing and new licensees and non-recurring net sales.

Nokia’s operating profit increased 42 percent year-on-year in the first six months of 2015, primarily due to an increase in operating profit in Nokia Technologies and Group Common Functions and, to a lesser extent, in HERE. This was partially offset by a decrease in operating profit in Nokia Networks.

Speaking on the results, Rajeev Suri, president and CEO, Nokia said, “I am particularly pleased by Nokia Networks, which delivered improved performance overall, despite a year-on-year decline in net sales on a constant currency basis. Software sales were up significantly, core networking sales improved, we saw a reduced impact of strategic entry deals, global services had one of its best quarters in the history of the company and costs remained well under control.”

In Asia-Pacific, net sales decreased 7 percent, primarily driven by lower mobile broadband net sales, partially offset by a slight increase in global services net sales. The overall decline in Asia-Pacific was primarily due to lower net sales in Japan, Indonesia and South Korea, partially offset by higher net sales in India and Myanmar.

read more
CorporateResults

AT&T Second Quarter Net Income Drops 14%

AT&T

AT&T'-Second-Quarter-Net-Income-Drops-14%AT&T second quarter, 2105 net income dropped by 14 percent. Net income for the quarter was $3 billion compared to net income of $3.5 billion in the year-ago quarter.

AT&T second quarter consolidated revenues was $33 billion, up 1.4 percent versus the year-earlier period reflecting Mexican acquisitions and pressure from foreign exchange and global hubbing exit. AT&T today reported solid second-quarter results with strong adjusted EPS growth, expanding margins and growing free cash flow.

Randall Stephenson, chairman and CEO, AT&T said, “We grew revenues, expanded margins and delivered double-digit adjusted EPS and cash flow growth. We added more than 2 million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality, high-speed wireless service to Mexican consumers and businesses.

“This is a pivotal time for us. We look forward to closing DIRECTV and building on this momentum by delivering a new TV everywhere experience integrated with mobile and high-speed Internet service,” added Stephenson.

AT&T’s Q2, 2015 Highlights
2.1 million net adds including 410,000 postpaid, 331,000 prepaid and 1 million connected cars
About 1.2 million branded (postpaid and prepaid) smartphones added to base
Completion of Nextel Mexico acquisition
Integration with Iusacell underway
Established plans to own and operate 4G LTE network in Mexico with plans to cover 100 mn POPs
Source: AT&T

Compared with results for the second quarter of 2014, operating expenses were $27.3 billion versus $27 billion; operating income was $5.7 billion versus $5.6 billion in the second quarter a year ago, and operating income margin was 17.3 percent, up slightly from 17.2 percent in the year-ago quarter. When adjusting for merger and integration-related expenses, operating income was $6.5 billion versus $5.8 billion a year ago; and operating income margin was 19.6 percent, up 190 basis points from a year ago.

Cash from operating activities totaled $9.2 billion in the second quarter and $15.9 billion year to date; and capital expenditures totaled $4.7 billion and $8.7 billion year to date. Free cash flow — cash from operating activities minus capital expenditures — totaled $4.5 billion for the quarter and $7.2 billion year to date, an increase over the year-ago quarter even as the company continues to invest in its high-quality network and customers.

read more
CorporateResults

Huawei’s Consumer Business H1 Revenue Grows By 69%

Huawei Honor 6 Plus

Huawei's-Consumer-Business-H1-Revenue-Grows-By-69% Huawei's Consumer Business Group (BG) first half revenue has grown by 69 percent to reach $9.09 billion. Huawei’s handset business revenue reached $7.23 billion in H1, 2015, recording a year-on-year increase of 87 percent. This outstanding growth was due to Huawei's strategy of focusing on mid-to high-end handsets, which contributed to both the increase in shipments and average selling price. The unit’s sales income represented 32 percent of the total income of Huawei Technologies, up from 24 percent in the same period last year. “This incredible growth is a testament to our core business strategy to offer premium quality products, bringing our expected earnings for 2015 from $16 billion to $20 billion,” said Richard Yu, CEO, Huawei Consumer BG. “Such a remarkable and rapid growth in performance is a result of Huawei’s Consumer BG’s commitment to consumers’ needs and our core strategy of providing innovative hardware technology and software experience. With our consistent and huge investment in R&D, Huawei is set to become one of the key players in the long-run,” added Yu. In 1H 2015, Huawei Consumer BG shipped a total of 48.2 million smartphones, representing a year-on-year increase of 39 percent, while global smartphone demand has only recorded a 7% growth in the same period. Shipment for the mid-to-high end category recorded a year-on-year increase of 70 percent, representing 31 percent of the total handset shipment and 42.9 percent of total income. The income of the mid-to-high end category increases 388 percent while the profit of this category representing 44 percent of the total profit. Huawei’s global strategy continues to stimulate stable business growth in both China and overseas markets. Revenue surged 124 percent year-on-year in China, while some regions recorded more than 40 percent revenue growth. Western Europe, Northeast Europe, South Pacific, North Africa and Middle East recorded 45 percent, 54 percent, 41 percent, 164 percent and 48 percent year-on-year growth respectively. Huawei's high-end smartphone shipment in Italy and Spain achieved year-on-year growth of 293 percent and 448 percent respectively. In H1, 2015, Huawei’s flagship smartphone, Huawei Mate7 shipped a global total of 5 million units with impressive sales in over 100 countries including China, Western Europe, Middle East, South East Asia, and South Pacific, among others. Huawei P7 recorded accumulative sales of 7 million units and was available in over 100 countries and regions. Over one million units of Huawei P8 have been sold in the first two months since launch with availability in over 52 markets including China, France, Spain and ItalyHuawei’s Consumer Business Group (BG) first half revenue in 2015 has grown by 69 percent to reach $9.09 billion.

Huawei’s handset business revenue reached $7.23 billion in H1, 2015, recording a year-on-year increase of 87 percent. This outstanding growth was due to Huawei’s strategy of focusing on mid-to high-end handsets, which contributed to both the increase in shipments and average selling price.

The unit’s sales income represented 32 percent of the total income of Huawei Technologies, up from 24 percent in the same period last year.

“This incredible growth is a testament to our core business strategy to offer premium quality products, bringing our expected earnings for 2015 from $16 billion to $20 billion,” said Richard Yu, CEO, Huawei Consumer BG.

“Such a remarkable and rapid growth in performance is a result of Huawei’s Consumer BG’s commitment to consumers’ needs and our core strategy of providing innovative hardware technology and software experience. With our consistent and huge investment in R&D, Huawei is set to become one of the key players in the long-run,” added Yu.

In 1H 2015, Huawei Consumer BG shipped a total of 48.2 million smartphones, representing a year-on-year increase of 39 percent, while global smartphone demand has only recorded a 7% growth in the same period. Shipment for the mid-to-high end category recorded a year-on-year increase of 70 percent, representing 31 percent of the total handset shipment and 42.9 percent of total income. The income of the mid-to-high end category increases 388 percent while the profit of this category representing 44 percent of the total profit.

Huawei’s global strategy continues to stimulate stable business growth in both China and overseas markets. Revenue surged 124 percent year-on-year in China, while some regions recorded more than 40 percent revenue growth. Western Europe, Northeast Europe, South Pacific, North Africa and Middle East recorded 45 percent, 54 percent, 41 percent, 164 percent and 48 percent year-on-year growth respectively. Huawei’s high-end smartphone shipment in Italy and Spain achieved year-on-year growth of 293 percent and 448 percent respectively.

In H1, 2015, Huawei’s flagship smartphone, Huawei Mate7 shipped a global total of 5 million units with impressive sales in over 100 countries including China, Western Europe, Middle East, South East Asia, and South Pacific, among others. Huawei P7 recorded accumulative sales of 7 million units and was available in over 100 countries and regions. Over one million units of Huawei P8 have been sold in the first two months since launch with availability in over 52 markets including China, France, Spain and Italy.

read more
CorporateInternationalNewsResults

Qualcomm Q3 Profit Down by 47%; Plans Restructuring

qualcomm

Qualcomm-Q3-Profit-Down-By-47%;-Plans-RestructuringQualcomm announced Q3 profit of $1.2 billion, down by 47 percent vis-a-vis Q3, 2014 profit of $2.2 billion.

The third quarter fiscal revenue for Qualcomm was $5.8 billion which was down by 14 percent in comparison to Q3, 2014 revenue of $6.8 billion. With revenues coming down, Qualcomm has announced a Strategic Realignment Plan designed to enhance financial performance and drive profitable growth.

“Our fiscal third quarter revenues, MSM chip shipments and EPS were within prior expectations, and we took a significant step towards our increased capital return commitments through the initiation of a $5 billion accelerated share repurchase as part of our plan to repurchase an additional $10 billion in stock by March 2016,” said Steve Mollenkopf, CEO, Qualcomm.

“During the quarter, we also launched a comprehensive review of our cost structure and announced today a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth. Importantly, the changes we are announcing today are designed to enable us to right-size our cost structure and reposition Qualcomm for improved financial and operating performance,” added Mollenkolf.

During the third quarter of fiscal 2015, Qualcomm returned $6.2 billion to stockholders, including $5.4 billion through repurchases of 63.7 million shares of common stock (which includes the 57.7 million shares initially delivered under the $5 billion accelerated share repurchase agreements (ASR Agreements)) and $757 million, or $0.48 per share, of cash dividends paid.

The Strategic Realignment Plan will help in cost reduction and help in reducing annual costs from fiscal 2015 levels of $7.3 billion (adjusted for variable compensation) by Qualcomm Announces Third Quarter of approximately $1.1 billion through a series of targeted reductions that will not jeopardize our growth objectives or core technology roadmap.

The Strategic Realignment Plan will focus on: Right-sizing the cost structure by eliminating approximately $1.4 billion in spending, including an approximately $300 million reduction in annual share-based compensation grants; reviewing alternatives to the company’s corporate and financial structure; reaffirming company’s plan to return significant capital to stockholders; aligning executive compensation with performance, including returns on investment; and disciplined investment in areas that further Qualcomm’s leadership positions, build upon the company’s core technologies and capabilities and offer attractive growth opportunities and returns.

Qualcomm also plans to reduce annual share-based compensation grants by approximately $300 million and expect these cost initiatives to be fully implemented by the end of fiscal 2016. In connection with this plan, we expect to incur approximately $350 million to $450 million in restructuring and restructuring-related charges, of which approximately $100 million to $200 million is included in our fourth quarter fiscal 2015 GAAP EPS guidance.

Qualcomm has reduced QCT Outlook in the fiscal fourth quarter compared to the prior expectations driven primarily by factors impacting premium-tier demand. The increased concentration within the premium tier is causing reduced demand for certain OEM devices that include chipset, lower demand for our premium-tier chipsets from a vertical customer and lower sell through in China of certain handset models using our premium-tier chipsets.

For QTL, the company expects global 3G/4G device shipments to be approximately 1.52 billion to 1.6 billion for calendar year 2015. The company is not providing any forecast for calendar year 2015 for 3G/4G device shipments.

read more
1 2 3 4 12
Page 2 of 12