Citing weaker handset demand and inventory drawdown, Qualcomm reported revenue of $9.463 billion for the first quarter of its fiscal 2023, down 12% compared to a year earlier. Net income for the quarter dipped to $2.235 billion, down 34% year-over-year.
“In a challenging environment, we delivered results consistent with guidance, including year-over-year growth in QCT Automotive and IoT,” said Cristiano Amon, President and CEO of Qualcomm Incorporated. “The long-term trends driving demand for our differentiated technologies and solutions that enable digital transformation are intact. We are confident in our ability to navigate the near term and remain focused on executing our diversification strategy.”
Some highlights
- Combined auto and IoT revenues represent 27% of total QCT revenues reflecting continued progress on revenue diversification.
- The company expects elevated channel inventory levels to persist at least to the first half of calendar 2023, and multiple end industries within IoT are also experiencing weaker than expected demand and elevated inventory levels.
- Qualcomm is implementing further spending reductions and streamlining operations