Qualcomm profits tumble
Qualcomm Inc, the biggest maker of chips used in mobile phones, forecast steep declines in profit and licensing sales, underscoring its dependence on the royalties that one of its largest customers, Apple Inc, has stopped paying. Sales in the company’s licensing division, which collects fees for use of its mobile technology, will sink as much as 47 percent in the current period to as little as US$1 billion, the company said on Wednesday. That will drag down overall revenue by as much as 13 percent in the quarter, which ends in September. The guidance excludes patent fees related to products from Apple and another customer whose contract is in dispute.
SAP raises revenue outlook
Software giant SAP SE yesterday raised its annual revenue outlook and said it would buy back up to US$500 million in stock after reporting a better-than-expected jump in sales, lifted by a revamped version of its flagship software. The German maker of applications that run businesses’ finances, manufacturing and personnel is projecting sales of 23.3 billion euros to 23.7 billion euros (US$26.8 billion to US$27.2 billion) this year, based on constant currencies. That is up about a 100 million euros on both ends of its prior forecast. SAP is about to start a share buyback of up to 500 million euros this year and it is raising its outlook for cloud and software revenue.
Unilever reports sales hike
Unilever PLC, the owner of brands like Hellman’s, Lipton, and Knorr, yesterday said its net profit rose 22.4 percent in the first half of this year compared with the same period last year, to 3.3 billion euros as a company-wide growth program bore fruit. Unilever said that first-half sales rose 5.5 percent to 27.7 billion euros, calling its earnings a “substantial step-up in profitability despite the persisting volatile global trading environment.” The strong results came in a period in which rival consumer products giant Kraft Heinz withdrew a US$143 billion takeover offer.
Trade surplus rebounds
The nation logged a trade surplus of nearly US$4 billion last month, rebounding from a deficit the previous month, but its politically sensitive surplus with the US slipped, government data showed yesterday. The world’s third-largest economy logged a surplus of ￥439.9 billion (US$3.92 billion), down 35.9 percent from the same month a year earlier, according to data from the finance ministry. Overall exports last month rose 9.7 percent from a year earlier to ￥6.61 trillion, marking the seventh consecutive monthly rise. Imports expanded 15.5 percent to ￥6.17 trillion, logging the sixth straight monthly increase.
Record rise in employment
The nation recorded the biggest back-to-back increase in full-time hiring in 29 years as the center of its mining boom showed signs of exiting a protracted investment slump. Government data released yesterday showed employment advanced 14,000 last month from May, compared with economists’ forecast of a 15,000 gain, as the jobless rate rose to 5.6 percent. Full-time jobs surged by 62,000 after a 53,400 gain in May, the biggest two-month increase since January 1988, while part-time roles fell 48,000, data showed. The labor participation rate rose to 65 percent from 64.9 percent.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
The latest US government action against Huawei Technologies Co (華為) takes direct aim the company’s HiSilicon (海思) chip division — a business that in over the past few years has become central to China’s ambitions in semiconductor technology, but is now to lose access to tools that are central to its success. That could make it the most damaging measure by the US yet against a Chinese company. On Wednesday, US officials told reporters that the Huawei’s chip division functioned as a “tool of strategic influence” for the Chinese Communist Party. Huawei, for its part, denounced the US allegations and called the