Qualcomm revenue forecast meets estimates, signs contract with Huawei

Qualcomm Inc forecast current-quarter revenue that met analysts` expectations and said it had negotiated a new interim contract with Huawei Technologies that added to revenue in the quarter, sending its shares up 4 percent after the bell.

The new interim contract with Huawei means the only big dispute Qualcomm has with a customer now is with Apple, after it resolved its disputes with Samsung Electronics last year.

Qualcomm`s forecast comes as a relief to investors after a bunch of other chipmakers, including Taiwan Semiconductor Manufacturing Co, Samsung and Intel Corp, delivered lower-than-expected sales forecasts this month, citing economic weakness in China.

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Modem chip shipments fell 21.5 percent to 186 million, but were better than analysts estimate of 185.4 million, according to FactSet.

Qualcomm said it expects current-quarter revenue to be between $4.4 billion and $5.2 billion, meeting analysts` estimate of $4.80 billion at the midpoint, according to IBES data from Refinitiv.

Net income attributable to Qualcomm was $1.07 billion, or 87 cents per share, for the first quarter ended Dec. 30, compared with a loss of $5.98 billion, or $4.05 per share, a year earlier when it took a $6 billion tax charge.

Excluding items, the company earned $1.20 per share.

Revenue fell 20 percent to $4.84 billion, slightly missing the analyst average estimate of $4.90 billion.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)