NEW YORK-Qualcomm Inc. announced Nov. 18 a drop in net income for the fourth quarter and the fiscal year, accompanied by a sharp increase in revenues for the same period.
Net income for the last quarter of fiscal 1996 was $8 million, compared with $11 million during the same quarter the prior year. Net income for the 1996 fiscal year was $21 million, compared with $30 million for the 1995 fiscal year. This year, both the quarter and the fiscal year ended Sept. 29.
At the same time, fourth quarter revenues leaped by 133 percent to $283 million from $122 million during the same quarter last fiscal year. Revenues for the full 1996 fiscal year more than doubled to $814 million, vs. $387 million in Fiscal 1995.
Fully diluted earnings per share were 11 cents during the final quarter of 1996, down from 17 cents during the same period last year. For the full year, Qualcomm posted earnings per share of 30 cents compared with 52 cents per share during the prior year.
“Earnings were lower due to significant investment in research and development and selling and marketing expenses in 1996, both of which doubled in absolute dollars but fell as a percentage of sales,” Qualcomm reported. The company also attributed lower earnings to lower percentage gross margins it earned on Code Division Multiple Access subscriber and infrastructure equipment as it shifted to high-volume manufacturing. “Start-up costs associated with a ramp-up of high-volume manufacturing” also put a damper on gross margins, Qualcomm said.
