Qualcomm Inc. said its earnings rose 11% in the latest quarter as a gain from the sale of U.K. assets helped to offset a revenue decline.
The maker of processors and modem chips for smartphones also said a patent dispute was resolved in arbitration with LG Electronics, which will continue to have access to Qualcomm’s patented technologies, though specific details weren’t provided in the news release Wednesday.
“We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics,” Chief Executive Steve Mollenkopf said in prepared remarks Wednesday.
In January, Qualcomm said LG Electronics alleged that it had paid the chip maker too much under its patent licensing deal and was seeking compensation through an arbitration proceeding. At the time, Qualcomm said it believed LG’s claims were without merit.
The San Diego company has two major units—one that sells chips and another that licenses patents on cellular technology to smartphone makers. The chip unit faces pressures amid signs of slowing sales of high-end smartphones from Apple Inc. and others, as well as moves by customers like Samsung Electronics Co. to use internally developed chips where possible.
Last year Qualcomm decided against splitting up despite pressure from an activist investor and scrutiny of the semiconductor company’s business by antitrust authorities.
For the latest quarter, Qualcomm said chip shipments fell 19% to 189 million, compared with expectations for shipments of 175 million to 195 million.
Equipment and services revenue dropped 25%, and licensing revenue declined 12%.
For the period ended March 27, Qualcomm reported a profit of $ 1.16 billion, or 78 cents a share, up from $ 1.05 billion, or 63 cents a share, a year earlier.
The latest quarter included a gain of $ 380 million, or 20 cents a share, from the sale of wireless spectrum in the U.K. Excluding such one-time items, adjusted per-share earnings fell to $ 1.04 cents from $ 1.40.
Revenue decreased 19% to $ 5.6 billion.
The company expected per-share earnings of 90 cents to $ 1 and revenue of $ 4.9 billion to $ 5.7 billion.
For the current quarter, the company forecast per-share earnings of 90 cents to $ 1 and revenue of $ 5.2 billion to $ 6 billion. Analysts expected per-share profit of $ 1.02 and revenue of $ 5.56 billion.
Shares of Qualcomm fell 9 cents to $ 52 in after-hours trading.
Write to Tess Stynes at [email protected]