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Qualcomm Incorporated has reached an agreement with Chinese telecommunications business Huawei to resolve a patent dispute, the company announced Wednesday.
According to Qualcomm, the global license agreement grants Huawei the back-up rights to some of the patents of the San Diego-based technology company as of January 1, 2020.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| QCOM | QUALCOMM INC. | 93.03 | +1.58 | + 1.73% |
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Qualcomm expects about $ 1.8 billion from Huawei as part of the retroactive agreement.
“As 5G continues to roll out, we are realizing the benefits of the investments we have made in building the most extensive licensing program on mobile devices, and we are turning 5G’s technical challenges into leadership opportunities and business victories.” Qualcomm CEO Steve Mollenkopf said in a statement.
Qualcomm announced the deal in its third quarter earnings report. The company had $ 4.89 billion in revenue and $ 845 million in profit for its quarter that ended Tuesday.
One of the many Qualcomm buildings shown in San Diego. (REUTERS / Mike Blake / File Photo)
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The company reported a profit of $ 0.74 per share, exceeding analyst expectations. For its current quarter, Qualcomm forecast earnings of $ 1.05 to $ 1.25 a share, even with a 15 percent year-over-year drop in device shipments that it attributed to the coronavirus pandemic.
Qualcomm announced a similar license agreement with Apple last year.
“We deliver earnings above the upper end of our range, continue to run in our product and licensing businesses, and enter into a new long-term patent licensing agreement with Huawei, all of which positions us well for the 2020 balance and beyond. ” Mollenkopf said.
Qualcomm’s share price rose 14 percent in off-hours trading on the news Wednesday.
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