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Qualcomm cuts fiscal 2015 outlook after new chip skipped by big customer

Published 01/28/2015, 04:35 PM
Updated 01/28/2015, 04:35 PM
© Reuters.  A Qualcomm sign is pictured in front of one of its many buildings in San Diego, California

© Reuters. A Qualcomm sign is pictured in front of one of its many buildings in San Diego, California

By Noel Randewich

SAN FRANCISCO (Reuters) - Qualcomm Inc (O:QCOM) reduced its outlook for fiscal 2015, saying it expects its newest Snapdragon mobile chip will not be used in a major customer's flagship smartphone, sending its shares lower.

The chipmaker said in a statement on Wednesday it expects fiscal 2015 revenue between $26.0 billion and $28.0 billion, down from a previous estimate of between $26.8 billion and $28.8 billion.

It now expects non-GAAP diluted EPS for fiscal 2015 between $4.75 and $5.05, compared to a previous estimate of between $5.05 and $5.35.

Earlier this month, Bloomberg reported that Samsung Electronics Co Ltd (KS:005930), the world's top smartphone maker, decided not to use the new Qualcomm Snapdragon 810 processor for the next flagship Galaxy S smartphone after the chip overheated during testing. Samsung had declined to comment on the report.

Qualcomm posted higher fiscal first-quarter revenue that beat analysts' expectations as a year-long antitrust investigation in China weighed on investor sentiment.

The chipmaker reported first-quarter revenue of $7.1 billion, up 7 percent from the year-ago period. Analysts on average had expected first-quarter revenue of $6.94 billion, according to Thomson Reuters I/B/E/S.

Qualcomm posted first-quarter net income of $2.0 billion, up 5 percent from a year ago. GAAP diluted earnings per share were $1.17.

Its non-GAAP earnings were $1.34 per share, better than the $1.25 expected by analysts.

© Reuters.  A Qualcomm sign is pictured in front of one of its many buildings in San Diego, California

Qualcomm shares were down 5.27 percent in extended trading after closing down 1.09 percent at $70.99 on Nasdaq.

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