San Diego-based Qualcomm reported a 5 percent higher profits on record sales, but warned of lower revenue ahead for its Snapdragon processor business and “heightened competition in China.”

Net income for the quarter ended Dec. 28 was $2.0 billion, or $1.17 per share, compared to $1.9 billion, or $1.09 per share, in the same quarter a year ago. Revenues totaled a record $7.1 billion, up 7 percent from the $6.6 billion from a year ago.

Qualcomm shares were down 8 percent near the stock’s 52-week low in after-hours trading.

“We delivered a strong quarter, achieving record quarterly revenues and …we also are very pleased to have resolved our previously disclosed dispute with a licensee in China,” said CEO Steve Mollenkopf.

“Looking ahead, we have lowered our revenue outlook for our semiconductor business for the second half of the fiscal year and lowered our EPS expectations. These changes reflect our revised expectations related to OEM mix, sales to a large customer and heightened competition in China.”

The company said it did not expect its Snapdragon 810 processor would be in “a large customer’s flagship device,” apparently referring to the upcoming Samsung Galaxy S6. Samsung is expected to use one of its own chips.

For all of its 2015 fiscal year, the company reduced its per-share earnings forecast by 29 cents to a range between $4.04 and $4.34. The revenue forecast also was cut, by $800 million to a range between $26 billion and $28 billion.

In December, the company announced 600 layoffs worldwide, including 178 in the San Diego area.

Qualcomm is a worldwide leader in wireless technology with more than 30,000 employees and a market value of approximately $120 billion.

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