Thank you, Steve, and good afternoon, everyone. We are pleased to announce strong second quarter results with GAAP revenues of $5 billion, above the midpoint of our guidance range; and non-GAAP EPS of $0.77, $0.02 above the high end of our range.
The outperformance in the quarter was primarily driven by QTL revenues of $1.12 billion that were positively impacted by approximately $100 million of out-of-period catch-up, offsetting some impacts from overall market weakness. Additionally, we saw improved QCT gross margins and operating expenses, which came in lower than expected. QCT revenues of $3.7 billion were in line with expectations.
MSM shipments of 155 million units were within the guidance range but below the midpoint, reflecting overall weakness in global device shipments. QCT EBT margin was 14.6% for the quarter, at the high end of our prior guidance range, driven by improvements in gross margins. Please note results this quarter do not contain any contributions from the settlements of our disputes with Apple and its contract manufacturers. Turning to our global 3G/4G/5G device forecast.
We are lowering our estimates for calendar 2019 by another 50 million units at the midpoint to 1.85 billion units due to continued weakness in China and a lengthening of handset replacement cycles, potentially reflecting a pause in advance of 5G rollouts. We now expect global handset units to decline slightly year-over-year, offset by continued growth in nonhandsets, resulting in total overall unit growth of approximately 3% at the midpoint.
In regards to our recently announced Apple agreements, we expect to record revenues resulting from the settlement of matters prior to the effective date of the agreement of $4.5 billion to $4.7 billion in our third fiscal quarter. This includes a cash payment from Apple and the release of related liabilities. The settlement amount will be excluded from our non-GAAP results. Our guidance for the third fiscal quarter, we estimate GAAP revenues to be in the range of $9.2 billion to $10.2 billion, and estimate GAAP EPS of $3.57 to $3.77, which includes the revenues related to the settlement with Apple and the contract manufacturers. We estimate fiscal third quarter non-GAAP revenues to be in the range of $4.7 billion to $5.5 billion and non-GAAP EPS to be approximately $0.70 to $0.80. For QTL, we expect revenues to be between $1.225 billion and $1.325 billion, including the addition of ongoing Apple royalties, offset by a relatively modest impact from previously discussed market weakness and impacts from OEM mix. This compares favorably to the second quarter of QTL revenues, which after adjusting for approximately $100 million of greater-than-expected catch-up revenues, was about $1.025 billion.
As a reminder, our third quarter guidance includes the last $150 million payment under the ending term agreement with Huawei. We expect QTL EBT margin to be 65% to 69%, up sequentially, reflecting the inclusion of Apple licensing revenues and modestly lower litigation expense. In QCT, we estimate 150 million to 170 million MSM shipments for the third quarter and EBT margins between 13% and 15%. QCT is also being negatively impacted by overall market weakness, unfavorable OEM mix shift, including share shift towards Huawei, and near-term impacts to adjacent businesses from economic weakness in China.
With respect to the cost plan, we have completed and achieved substantially all of the target $1 billion savings based on our second quarter run rate excluding excess litigation costs. For our third fiscal quarter, we expect non-GAAP combined R&D and SG&A expenses to increase 6% to 8%. About 6 points of the sequential increase reflects an increase in our employee bonus plan as a result of the impacts of our Apple settlements. Litigation expense savings are expected to be modest in the third quarter given expenses incurred in advance of the resolution with Apple and its contract manufacturers, as well as continuing costs related to the ongoing regulatory actions in the U.S., Korea and EU. In our fiscal fourth quarter, we expect further litigation cost savings, partially offset by investment in our employees. Longer term, we expect litigation cost savings to be somewhat offset by increased investment to support Apple product ramp.
Turning to our tax rate. We estimate our third quarter non-GAAP tax rate to be approximately 14% to 15%, and expect it to be a good proxy for the remainder of the fiscal year. As an update on our share repurchase activity, as of May 1, we have completed approximately 65% of the ASRs at an average price of approximately $61 per share. As a reminder, we expect to complete the ASRs in early September. We are estimating 1.23 billion weighted average shares outstanding for the third fiscal quarter and approximately 1.2 billion weighted average shares outstanding for the full year fiscal 2019. Looking longer term, when we announced our settlement with Apple, we indicated the deal would add an incremental $2 of EPS from the combination of ongoing Apple licensing revenues and product shipments as we fully ramp. The $2 EPS estimate excludes any impacts from the $4.5 billion to $4.7 billion of revenues resulting from the settlement, and it does not incorporate any impacts from the reduction of FX litigation expense. The $2 estimate also does not reflect any contributions from potential resolution with Huawei. Before I finish my prepared remarks, let me summarize the key drivers of our long-term earnings growth opportunities. First, with the global launch of 5G starting in the second half of calendar 2019, we expect to see an increase in both device and chipset selling prices and are well-positioned given the strength of our 5G chipset road map. Second, with the multiyear agreement with Apple, we expect to see significant revenue and margin expansion for both our licensing and chipset businesses, with further additional opportunities to capture broader product content over time. Third, we are seeing increased design win traction for our RF front end products across all OEMs, driven by the upcoming launches of sub-6 and millimeter wave 5G devices. Fourth, while some of our adjacent opportunities have seen short-term impacts from economic weakness, we remain confident in our ability to scale these opportunities over the next few years. And lastly, we will continue to focus on increasing gross margins and driving operating expense efficiencies as we realize our growth opportunities outlined above. Thank you. I will now turn the call back over to Mauricio.