For this quarter, the company sees revenue of $5.4 billion to $6.2 billion, which would be in a range of down 13% to flat with the prior-year period.
"This is not a new battle for Qualcomm", he said.
Adding yet another wrinkle to an increasingly complex legal saga, four major Apple partners who help manufacture the iPhone have filed their own suits against Qualcomm. More specifically, it predicted up to a 47 percent drop in technology licensing revenues, to as low as $1 billion thanks to Apple's manufacturing partners withholding license fees.
As a result of the recent actions taken by Apple's contract manufacturers and the other licensee in dispute, we now do not believe total reported device sales and related estimated ranges of device shipment and average selling price are meaningful in measuring our QTL business, and therefore, we are not providing such metrics for the fiscal third quarter.
Wall Street was looking for earnings of 81 cents per share with $5.26 billion in revenue.
Qualcomm management will host a conference call with analysts at 4:45 pm, Eastern time, this evening, and you can listen in via a webcast on the company's investor relations Web site.
Apple Inc first sued the chipmaker in January, accusing it of overcharging for chips and refusing to pay some US$1 billion in promised rebates.
Qualcomm, Inc. shares fell 2.8% in after-hours trading Wednesday following the report.
Qualcomm's patent-licensing practices have also come under scrutiny from governments across the world and other customers.
Reuters further noted that "Much of the language in the contractors' allegations mirror Apple's objections to Qualcomm's business model".
In the company's earnings release, CEO Steve Mollenkopf said that he believes Qualcomm holds "the high ground" in its legal battle with Apple, while also noting that the company has taken new actions to protect the value of its technologies. The accusations, made in a filing late Tuesday in US District Court for the Southern District of California, are counterclaims to a Qualcomm lawsuit filed in May seeking to force the contractors to pay Qualcomm licence fees that Apple directed them to stop paying. In response to Apple's lawsuit Qualcomm sued Apple contract manufacturers Foxconn, Pegatron, Wistron, and Compal for withholding royalties.