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Qualcomm's Q1 revenue and net profit both increased. Chip production capacity restricted sales and stock prices fell.

Published :2/4/2021 4:08:12 AM

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On February 3, US chip maker Qualcomm announced its financial report for the first quarter of fiscal year 2021. Affected by tight chip supply, revenue was slightly lower than market expectations. Even if 5G demand continued to grow strongly, its financial estimates were better than market expectations. The stock price still fell more than 7%.

Qualcomm's Q1 revenue in fiscal 2021 reached US$8.23 billion, an annual increase of 62%, slightly lower than the US$8.27 billion expected by Refinitiv survey analysts; net profit reached US$1.455 billion, an annual increase of 165%. CEO Steve Mollenkopf, who will step down this year, said: "Thanks to the strong growth in demand for 5G in the mobile, RF-FE, automotive, and IoT sectors, we have achieved outstanding quarterly results, with double-digit revenue in the first quarter compared to the same period last year. growing up."


Qualcomm said in the conference call that thanks to the growth in demand for mobile phones, radio frequency front-ends (RFFE), automotive electronics and the Internet of Things (IoT), the QCT division’s first quarter revenue performance was strong, of which the first quarter revenue of the mobile terminal market An annual increase of 79% to US$4.22 billion.

RF-FE market revenue increased by 157% annually to US$1.061 billion, reflecting the strong growth of customer demand for a wide range of frequency bands; IoT revenue also exceeded US$1 billion, mainly due to the acceleration of consumer, network and industrial demand growth.

In addition, the demand for automotive Telematics and Connectivity and digital Cockpit chips continued. In the first quarter, automotive market revenue was US$212 million, maintaining a growth trend.

Refinitiv's data shows that for the first fiscal quarter ended December 27, Qualcomm's sales and adjusted profit were US$8.24 billion and US$2.17 per share, respectively, while analysts’ expectations were US$8.27 billion and 2.10 per share. Dollar. According to FactSet's data, chip and licensing revenues exceeded expectations of $6.53 billion and $1.66 billion, respectively.

Qualcomm is the world's largest chip supplier, which helps mobile phones connect to cellular data networks and provides chips for Apple and other mobile phone manufacturers. Qualcomm disclosed on Wednesday that the profit from selling chips to Apple is slightly lower than the profit from selling to other mobile phone manufacturers, because Apple does not buy additional software from Qualcomm like Android device manufacturers.

But the company is also building a business to provide chips to automakers, such as General Motors, which disclosed a transaction to purchase chips from Qualcomm last week and challenged Intel to new types of processing for laptops and desktops. Device.

According to data from FactSet, Qualcomm predicts that its chip business’s median revenue in the second fiscal quarter will be US$6.25 billion, exceeding the expected US$5.62 billion. According to data from FactSet, Qualcomm predicts the mid-price of its licensing business, which has a higher profit margin than its chip business, and generates most of its profits at US$1.35 billion, lower than the expected US$1.43 billion.

CEO Steve Mollenkopf, who will step down this year, said that Qualcomm’s performance is affected by the tight supply of chips. “If you can produce more, you can sell it.” Qualcomm outsources chips to TSMC and Samsung, and foundries are doing their best to satisfy semiconductors. Industry needs in certain markets.

In response to the shortage of automotive chips, Qualcomm executives said that although Qualcomm does not produce automotive chips, it still has a cooperative relationship with foundries. It is estimated that chip supply in the first half of 2021 will remain tight.

Qualcomm said that in fiscal 2021, 5G mobile phone chip products are estimated to remain at 450 million to 550 million units, and the total shipments of 3G, 4G and 5G mobile phone chip products are expected to show high single-digit growth compared with the same period last year.

Qualcomm closed down 1.51% on Wednesday to close at US$162.3 per share, and fell 7.15% to US$150.7 per share after the after-market earnings report.