Sci-tech

Qualcomm shares surge after it announces new licensing deal with Huawei

Qualcomm shares surge after it announces new licensing deal with Huawei”

The news sent Qualcomm's shares up during after-hours trading as much as 12% as of 7:11 PM.

"In China, just midway through the calendar year and despite the impact of COVID-19, 5G now represents the majority of domestic mobile phone shipments", he said. (QCOM) on Wednesday reported fiscal third-quarter net income of $845 million. Analysts, on average, estimated $5.77 billion, according to data compiled by Bloomberg. Earnings should range from $1.05 to $1.25 per share.

After resolving a bruising legal battle with iPhone maker Apple Inc (O:) previous year, Qualcomm entered 2020 with a deal to resume selling chips to Apple and predicting revenue growth from 5G devices, which fetch higher chip revenue per phone for the company.

By the numbers, Qualcomm raked in almost $4.9 billion in revenue during last quarter, for a profit of $982 million, both almost identical to the amounts it earned in the same quarter a year ago.

Huawei, which is still subject to U.S. government restrictions, trumped Samsung for the first time in the worldwide smartphone market in the second quarter, research Canalys said on Thursday.

Excluding the $1.8 billion gain from Huawei, Qualcomm predicts sales of $5.5 billion to $6.2 billion for the September quarter. Six analysts surveyed by Zacks expected $4.81 billion. On an adjusted basis, profit rose to 86 cents a share from 80 cents a share a year earlier. Apple makes its own core processor but uses Qualcomm's modem chip. The company's market cap is now around $115.77 billion.

More news: COVID-19 app, backed by federal government, now available

The big picture: The company posted earnings for the three months ending June 30 that were above expectations and said it expects that phone sales this quarter could be down 15% year over year, "including a partial impact from the delay of a global 5G flagship phone launch".

Through the deal, Huawei can get complete technology patents on 5G SoC (system on a chip).

Qualcomm remains the top supplier of silicon for smartphones, including 5G phones.

The reach of its intellectual property and the profits they generate has attracted legal and regulatory challenges around the world.

"The most important element of the Qualcomm call was the settlement of the license dispute with Huawei, which we believe adds $900 million to $1 billion annual (licensing) revenue and about 70 cents in annual earnings", said Chris Caso, an analyst with Raymond James, in a research note.

Register to read this article for free.



Like this

loading...
loading...

Latest


01 August 2020
British GP, Practice One: Max Verstappen leads Lewis Hamilton, Nico Hulkenberg returns
The Canadian finished top, with Nico Hulkenberg, deputising for Perez, seventh in the running, six tenths behind his team-mate.

01 August 2020
Fraser Health confirms coronavirus case Dania Home in Burnaby
Henry and Dix said health teams continue to support the active outbreaks on Haida Gwaii and at Fraser Valley Packers Inc. The province also recorded one new death, in the Vancouver Coastal Health Authority, bringing the total in B.C.to 195.

01 August 2020
Dating site security flaws fixed
The vulnerabilities if exploited would have exposed user data including their stated characteristics, pictures, and other details. It is always advised to use strong passwords and to not give away too much personal information on a dating app.

01 August 2020
Ellen Degeneres Show producers accused of sexual misconduct
If not for COVID, I'd have done this in person, and I can't wait to be back on our stage and see you all then. Ellen DeGeneres has apologised to her staff amid allegations of a toxic work environment on her talk show .

01 August 2020
Rep. Jordan questions Dr. Fauci on how protests are contributing to pandemic
That includes the need to wear masks, avoid crowds and practice good hand hygiene, he said. As a result, the United States' baseline of transmission was higher than Europe.

01 August 2020
Halo Infinite multiplayer will be free-to-play according to new leak
However, there are some signs showing that the online multiplayer paywall for free to play Xbox games may be here to stay. Microsoft is expected to have more next-gen Xbox news in August, so we'll see what happens in the coming weeks.

01 August 2020
Ontario reports 134 new cases of COVID-19 on Friday
The total number of COVID-19 cases in Waterloo Region remains at 1,385, including 1,231 resolved cases and 119 deaths. The province is also recording three new deaths related to the virus, bringing the overall total to 2,775.

01 August 2020
Vietnam reports 1st-ever COVID-19 death after new outbreak
The patients are aged between 27 and 87 and all are patients or employed at Danang's hospitals or their relatives, it added. Vietnam had not seen new domestic infections since mid-April until last weekend, when a person in the city tested positive.

01 August 2020
Fed Appeals Court Overturns Death Sentence for Boston Marathon Bomber
He was convicted in 2015, including for the deaths of Krystle Campbell, Martin Richard, Lingzi Lu and Sean Collier. Attorney's office in Bostonsaid they are now reviewing the opinion and declined further comment at this time.

01 August 2020
Google teases new Pixel phone and reveals launch date
It has updated the account's name on Twitter and Facebook to 'The Google RTing, Meme Loving, Info Sharing Stream' for fun. The smartphone would miss out wireless charging feature but would get a capacitive fingerprint scanner at the back.