Qualcomm Inc. (NASDAQ: QCOM) reported third fiscal quarter 2015 results after markets closed on Wednesday. The chipmaker posted adjusted diluted earnings per share (EPS) of $0.99 and revenues of $5.8 billion. In the third quarter of 2014, Qualcomm reported EPS of $1.31 on revenues of  $6.8 billion. Thomson Reuters had estimates for EPS of $0.95 and $5.85 billion in revenue.

The company also announced that it is adding three directors from activist investor firm JANA Partners to Qualcomm’s board and that the company has launched a strategic realignment initiative that is expected to “improve execution, enhance financial performance and drive profitable growth.” Qualcomm is cutting $1.4 billion in spending, including about $300 million annual share-based compensation grants. The company expects to fire about 15% of its semiconductor business’ full-time staff, significantly reduce its temporary workforce, and streamline its engineering organization,among other steps.

Steve Mollenkopf, the company’s CEO, had this to say about the realignment:

We are right-sizing our cost structure and focusing our investments around the highest return opportunities while reaffirming our intent to return significant capital to stockholders and refreshing our Board of Directors. Importantly, our Strategic Realignment Plan is designed to drive meaningful change in the near term – without jeopardizing our ability to retain and build upon our technology leadership position and create long-term value for our stockholders.

In addition to the strategic plan the company has also initiated a $5 accelerated share repurchase program as part of its plan to buy back $10 billion in stock by March of next year.

In its outlook for its fourth fiscal quarter, Qualcomm guided revenues in a range of $4.7 to $5.7 billion compared with $6.7billion actual in the fourth quarter a year ago. Adjusted EPS is forecast in a range of $0.75 to $0.95, compared with an actual total of $1.26 last year. Analysts were expecting fourth-quarter EPS of $1.08 on revenues of $6.13 billion.

Quarterly MSM chip sales are forecast to decline 19% to 28% to a range of 170 to 190 million units, compared with actual shipments of 236 million in the fourth quarter of 2014. Fourth-quarter sales of all third-party devices using Qualcomm chips are forecast at approximately $6.05 to $66.5 billion, a range increase of 5% to 16% compared with last year’s total of about $57.4 billion.

For the full fiscal year ending in September, Qualcomm lowered its revenue forecast from a prior range of $25 to $27 billion to a new range of $24.5 to $25.5 billion, and lowered its adjusted EPS range from a prior $4.60 to $5.00 to a new range of $4.50 to $4.70. The consensus full year estimates called for EPS of $5.07 and revenues of $25.95 billion.

Without the boost to the share buyback plan and the addition of new blood to the company’s board of directors Qualcomm stock could well have been down a lot more than the current dip of just of 1% in after-hours trading at $63.51. The stock’s 52-week range is $61.48 to $81.97 and the consensus price target is $74.00. Shares closed at $64.19 in Wednesday’s regular session.

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