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Qualcomm | ARS: Annual Report to Security Holders

SEC announcement ·  Jan 18 00:00
Summary by Moomoo AI
Qualcomm Incorporated, a leading developer of foundational technologies for the wireless industry, reported a decrease in annual revenues from $44.2 billion in fiscal 2022 to $35.8 billion in fiscal 2023, marking a 19% decline. Net income also fell by 44%, from $12.9 billion in the previous year to $7.2 billion. The company attributes the revenue decline to weaker macroeconomic conditions affecting consumer demand for smartphones and other devices that incorporate Qualcomm's products and technologies. Additionally, customers reduced their inventory levels, which were previously elevated. Qualcomm's QCT segment, which includes semiconductor sales, saw a 19% revenue decrease, while the QTL licensing segment experienced a 17% drop. The company also incurred other expenses totaling $862 million, primarily related to restructuring and restructuring-related charges. Despite these challenges, Qualcomm's effective income...Show More
Qualcomm Incorporated, a leading developer of foundational technologies for the wireless industry, reported a decrease in annual revenues from $44.2 billion in fiscal 2022 to $35.8 billion in fiscal 2023, marking a 19% decline. Net income also fell by 44%, from $12.9 billion in the previous year to $7.2 billion. The company attributes the revenue decline to weaker macroeconomic conditions affecting consumer demand for smartphones and other devices that incorporate Qualcomm's products and technologies. Additionally, customers reduced their inventory levels, which were previously elevated. Qualcomm's QCT segment, which includes semiconductor sales, saw a 19% revenue decrease, while the QTL licensing segment experienced a 17% drop. The company also incurred other expenses totaling $862 million, primarily related to restructuring and restructuring-related charges. Despite these challenges, Qualcomm's effective income tax rate was notably lower at 1% in fiscal 2023 compared to 13% in fiscal 2022, due to additional foreign-derived intangible income deductions. The company's cash, cash equivalents, and marketable securities increased by nearly $5 billion, and Qualcomm continued to invest in strategic acquisitions, such as the purchase of Veoneer's Arriver business. Looking ahead, Qualcomm anticipates further impacts on revenue due to continued inventory drawdowns by customers and the uncertain macroeconomic environment. The company has initiated cost reduction actions to invest in key growth areas and expects to face ongoing intense competition and potential challenges from vertical integration by customers.

This announcement is a separate document:

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