Wireless technology company Qualcomm has seen revenues soar as 5G starts to enter the mainstream.
Nasdaq-listed Qualcomm reported a strong fourth quarter that beat both analysts’ expectations and the company’s own highest estimates.
In the three months ending 27 September 2020, GAAP revenues rose 73pc to reach $8.3bn, with net income approaching $3bn. The fourth-quarter surge brought the company’s full-year revenues to $23.5bn and net income to $5.2bn.
Following its announcement, MarketWatch reported that shares in Qualcomm surged 7pc in after-hours trading.
‘Our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses’
– STEVE MOLLENKOPF
Qualcomm’s wireless technology is found inside 3G, 4G and, increasingly, 5G smartphones. As well as mobile, the company’s technology is embedded in emerging automotive, IoT and computing products.
The release of 5G smartphones from client companies such as Apple is expected to further drive performance at Qualcomm in the new year. Apple unveiled four versions of its 5G-compatible iPhone 12 last month.
“Our fiscal fourth quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses,” said Qualcomm CEO Steve Mollenkopf.
Following the “exceptional fourth quarter results”, Mollenkopf added that the company is well positioned for further growth in the coming year.
“As the pace of disruption in wireless technology accelerates, we will continue to drive growth and scale across our RF front-end, automotive and IoT adjacencies,” he said.
This time last year, Qualcomm said its venture arm, Qualcomm Ventures, would back companies that were driving 5G adoption and innovation. It planned to invest up to an aggregate of $200m in companies developing new and innovative 5G use cases, driving 5G network transformation and expanding 5G into enterprise markets.