Qualcomm, a US chip designer based in San Diego, reported fiscal third-quarter revenue of US$9.947 billion on July 29, down 4% year on year.

Net income fell 25% to US$2.002 billion.

Diluted GAAP earnings per share (EPS) fell to US$1.87 from US$2.43, while non-GAAP EPS declined to US$2.21 from US$2.77.

Qualcomm’s QCT chip unit posted a 5% revenue decline to US$8.504 billion.

Within QCT, handset revenue fell 20% to US$5.086 billion, while automotive revenue rose 61% to US$1.588 billion, and internet of things (IoT) revenue increased 9% to US$1.83 billion.

Qualcomm also said it had completed its acquisition of Modular and expected fiscal fourth-quarter revenue of US$9.7 billion to US$10.5 billion.

Modular, a US AI software company, runs AI on graphics processing units (GPUs) and central processing units (CPUs) and offers model-serving tools, adding AI inference software to Qualcomm’s lineup.

Qualcomm said it was planning its business on the assumption that Apple would use its own modems.

Automotive remains a diversification focus after Qualcomm previously said its design-win pipeline had reached US$30 billion.

🔗 Source: Qualcomm