Wireless chipmaker Qualcomm reported revenues of $6.2 billion in the company’s fiscal 2016 fourth quarter, which ended Sept. 25, a 13 percent increase over fourth-quarter 2015.
The company said it shipped 211 million chips in the quarter, a 4 percent increase over the 203 million that it had forecasted. Plus, it reported a profit of $1.6 billion, up from $1.06 billion in the previous fiscal year.
The San Diego-based firm, which last week announced its acquisition of NXP Semiconductors for $38 billion, also forecasted strong growth for fiscal 2017. CEO Steve Mollenkopf said the company is forecasting mid-to-single digit growth for 3G and 4G devices in fiscal 2017 as well as strong growth in the Internet of Things (IoT) sector. Specifically, Qualcomm forecasts between 205 million and 225 million shipments in the first quarter of fiscal 2017. The company also anticipates sales between $5.7 billion to $6.5 billion.
Mollenkopf noted the company expects the largest cellular operators around the globe to launch narrowband IoT networks in 2017, which will increase modem sales. “We do see good trends with operators focusing on NB-IoT and industrial and IoT devices,” Mollenkopf said. “We think this is a growth opportunity.”
Indeed, this week Finland’s Sonera announced it was testing NB-IoT using gear from Nokia. And earlier this year, Vodafone, SoftBank, and Singapore’s Mobile One all said they will commercially launch NB-IoT networks in 2017.
One of the key reasons for Qualcomm’s purchase of NXP was that the company believes NXP will give it more opportunities in 5G and IoT. In addition, it’s hoping NXP will help it diversify so that it’s less dependent on the cellphone market. During the call with investors, Qualcomm executives said they do not expect regulatory pushback on the NXP deal but were reluctant to say when they expect it to close.