Qualcomm 1Q Net Income Slips As Costs Grow

NEW YORK (AP) -

Cellphone chip maker Qualcomm said Wednesday its net income fell 2 percent in its fiscal first , as its expenses increased.

The company said sales and marketing costs and employee-related costs both increased, compared to a year ago. Its results were also hit by some large one-time items: an after-tax gain of $430 million gain on the sale of Omnitracs, its North and Latin American transportation logistics business, and a $346 million impairment charge.

Qualcomm said its net income fell to $1.88 billion from $1.91 billion. It earned $1.09 per share in both periods. Excluding one-time costs and gains, the San Diego company said its net income totaled $1.26 per share in the first quarter of fiscal 2014, and the first quarter of fiscal 2013. Revenue rose 10 percent to $6.62 billion from $6.02 billion.

Analysts expected net income of $1.18 per share and $6.84 billion in revenue, according to FactSet.

In November, Qualcomm sold Omnitracs to the private equity firm Vista Equity Partners for $800 million. The company’s fiscal first quarter ended on Dec. 29.

Qualcomm Inc. shares advanced $2.03, or 2.9 percent, to $73.15 in aftermarket trading following the release of the results.