Chipset maker Qualcomm said its revenue fell 4 percent to $5.6 billion, while net income dipped 22 percent to $1.2 billion in the second quarter of fiscal 2016.

The San Diego-based technology major said MSM chip shipments fell 19 percent to 189 million in Q2 fiscal 2016. Total reported device sales dipped 8 percent to $70.1 billion. Estimated reported 3G/4G device shipments dropped 13 percent to 335 million – 339 million.

Qualcomm on cost cutting

# to achieve $1.4 billion spending reductions
# to realize $700 million in savings in FY 2016, an increase of $100 million from original estimate

Qualcomm CEO Steve Mollenkopf said: “We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics.”

Qualcomm, announcing the outlook, said it is expecting third quarter revenue of $5.2 billion to $6 billion against $5.8 billion it achieved in Q3 fiscal 2015.

The chipset maker is expecting 13 – 22 percent drop in MSM chip shipments in the third quarter to 225 million.

The week guidance reflects Qualcomm’s current inability to capitalize on the estimated growth in the number of 3G and 4G devices.

Global 3G 4G device shipments are expected to grow 5-11 percent to 1.625 billion – 1.725 billion in 2016 from 1.55 billion in 2015.

Qualcomm and LG settle dispute

Qualcomm and LG Electronics have resolved an arbitration dispute over certain terms in their license agreement under Qualcomm’s patents covering 3G WCDMA and CDMA2000 and 4G LTE wireless technologies. As per the resolution, LGE will benefit from access to Qualcomm’s technologies that enable LGE to deliver devices to its customers.

Qualcomm in licensing deal with Hisense

Qualcomm has signed a new 3G and 4G Chinese Patent License Agreement with Hisense Group to offer Hisense a royalty-bearing patent license to develop, manufacture and sell 3G WCDMA and CDMA2000 including EV-DO and 4G LTE terminals for use in China.