Telecom & Wireless

Qualcomm Earnings Partly Immaterial As It Settles Nokia Suit (QCOM, NOK)

Douglas A. McIntyre

Qualcomm Inc. (NASDAQ: QCOM) did come out with earnings after all, albeit quite late (very late if you’ve been here since 5:30 AM).  The company posted non-GAAP EPS of $0.55 on revenues of $2.76 Billion.  We had First Call estimates of $0.55 EPS on $2.71 Billion in revenues.  But what mattered tonight much more than earnings was its pending litigation with Nokia (NYSE: NOK) to resolve this never-ending saga.  The company will give guidance in its conference call tomorrow.

Paul E. Jacobs, CEO: “…I am also pleased to announce that we havereached a settlement agreement with Nokia that resolves all litigationbetween the companies and will allow both of us to focus our efforts on driving the global 3G and 4G marketsforward.  In addition to providing an up-front royalty payment andother benefits, Qualcomm will also receive ongoing royalties for allCDMA standards, as well as single-mode OFDMA.  I look forward toproviding our updated guidance tomorrow morning.”

Qualcomm’s cash and equivalents was approximately $11.2 billion at the end of the quarter.

This one closed up over 1.5% at $44.82 today, but shares are up about16% after-hours on last look at $52.15.  There’s something to be saidfor clearing up your legal cases.

Jon C. Ogg
July 23, 2008