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Qualcomm will reserve a one-time payment of $ 4.5 billion to $ 4.7 billion the next quarter of its settlement with Apple in a patent battle, Wednesday announced the maker of mobile device chips by announcing its results quarterly.
This was the first time investors had seen how the deal would help Qualcomm's net income and the company's shares fell about 3% after normal business hours. The stock had risen more than 50% in recent weeks, reflecting investor relief. However, Qualcomm's forecast suggested that Apple's license fees would not substantially increase revenues, with Apple catching up on royalties it did not pay while the two companies quarreled.
Excluding this payment, Qualcomm has estimated its revenue for the third quarter of its fiscal year, between $ 4.7 billion and $ 5.5 billion, with a median slightly lower than the $ 5.29 billion expected by analysts , according to IBES data from Refinitiv.
"We are planning a break before the launch of 5G," said Cristiano Amon, chip manager at Qualcomm, during a conference call with investors, referring to the new generation of mobile networks, which will be rolled out this year and next year.
The contract with Apple, which includes a six-year patent license and a chip supply contract, is expected to generate an additional profit of $ 2 per share, Qualcomm said. The financial details have not been disclosed, but the deal should help Qualcomm regain the pre-eminent position on the mobile chip that it held in the early 2010s.
Apple said Tuesday that its gross margin guidance, which was virtually unchanged from previous quarters, included the Qualcomm regulation. Taken together, both disclosures suggest that the patent licensing agreement had little financial impact in the short term.
For the last quarter, which ended in March, Qualcomm reported net income of $ 663 million, or 55 cents per share, up from $ 330 million, or 22 cents per share, a year earlier.
Revenues dropped to $ 4.88 billion, but exceeded analysts' estimates of $ 4.80 billion.
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