Qualcomm Technologies Inc. reported a better-than-expected rise in revenue for the fourth quarter ending Sept. 30 assisted by strong demand from China.

The semiconductor and telecommunications equipment company reported revenue of $6.2 billion for the quarter on net income of $1.6 billion, or $1.07 per share, up 13.3 percent from $5.5 billion in revenue on earnings of $1.1 billion, or 67 cents per share, a year ago.

Qualcomm shipped 211 million mobile chips in the quarter compared to analysts’ average prediction of 206.1 million. In addition, the company also reported fiscal 2016 year numbers, which came in at revenue of $23.6 billion and an operating income of $6.5 billion, down 7 percent from $25.3 billion in 2015 but up 12 percent on income from $5.8 billion.

“Our fiscal fourth quarter EPS was above the high end of our expectations, reflecting new license agreements in China and strong chipset shipments,” Qualcomm Chief Executive Officer Steve Mollenkopf said in a statement. “We are forecasting continued growth of global 3G/4G device shipments in calendar year 2017, led by growing demand in emerging regions.

Interestingly, much of the success of the quarter came from licensing agreements, with Qualcomm signing patent agreements with Oppo and Vivo in the fourth quarter, as well as receiving catch-up payments for past periods when Chinese phone makers failed to sign patent agreements despite using Qualcomm technology, according to the San Diego Union Tribune.

NXP growth

The quarterly financials follow an announcement late October that Qualcomm had agreed to acquire rival NXP Semiconductors N.V. for $47 billion in cash, a company that as well as making chips for the Internet of Things devices is also the largest manufacturer of automotive electronics. That acquisition is said to be part of a push by Qualcomm to diversify its chip range as growth in demand for smartphones slows.

“We are well positioned to extend our mobile technology leadership and footprint into attractive growth opportunities, accelerated by our recently announced agreement to acquire NXP,” Mollenkopf added.

Shares in Qualcomm dipped 0.28 percent in after-hours trading to close at $66.90 over fears that the strong revenue growth off the back of patent deals in China won’t repeat in future quarters.

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