Qualcomm financial statements were better than analysts expected.

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Qualcomm's earnings this quarter were better than analyst estimates. After the financial statements were announced on Wednesday, the semiconductor company's shares rose 2 percent. Qualcomm also provides positive third-quarter earnings estimates.

According to CNBC, when compared to the same quarter last year, Qualcomm's revenue fell about 13 percent from the US $ 6 billion to the US $ 5.2 billion. The reason is that they spend much less to deal with Apple and other companies in court.

Qualcomm's licensing program contributes greatly to their total revenue. And this program is supported by the patents they have. However, they cited not recording licensing payments from Apple over the past three quarters.

This is what causes a 40 percent reduction in operating income and a 44 percent decrease in license revenues compared to last year. In the second quarter of last year, Qualcomm earned the US $ 970 million in royalties from Apple-made products.

Nevertheless, Qualcomm was successful in developing their processor business in the second quarter, making profits rise 6 percent in the US $ 3.9 billion. Sales of chips for 3G and 4G devices rose 3 percent in the second quarter, which was lower than expected.

In response to the problem, Qualcomm adjusted its device shipments forecast this year to about 1.8-1.9 billion from 1.85 to 1.95 billion. This adjustment was made due to the declining demand for smartphones in China. 


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