|
 San Diego-based Qualcomm, the biggest maker of chips used in mobile
phones, said on Tuesday its current structure offered unique
strategic benefits that cannot be replicated.
Qualcomm, whose earnings have slumped by more than 40 percent in
each of the last three quarters, said it expected earnings per share
for the current quarter to be at or modestly above the high end of
its previously forecast range.
The company had previously forecast earnings of 80-90 cents per
share for the quarter.
Qualcomm's shares, which have lost almost 40 percent of their value
this year, were up 2.3 percent in premarket trading.
Qualcomm said it was seeing a stronger quarter than expected as 3G
and 4G device shipments were helping its licensing business and the
benefits of cost cuts were kicking in.
Qualcomm's technology business has thrived for years on the big
royalties it collects on the chip-technology developed by its
chipmaking unit.
"Looking ahead, we have a focused plan in place that we believe will
drive growth and we are off to a good start implementing that plan,"
Chief Executive Steve Mollenkopf said in a statement. He did not
elaborate on the plan.
The special committee that carried out the strategic review included
two members nominated by Jana, which unleashed a public campaign to
reform Qualcomm in April.
Jana declined to comment on Tuesday.
[to top of second column] |
Qualcomm President Derek Aberle said in September that Jana did not
pressure the company to break up but wanted a review to look at all
options to unlock value.
The company has said in the past that its existing structure allowed
it to leverage relationships with Chinese customers looking to
expand into other countries.
But Qualcomm itself has recently faced a host of problems in China
and other key markets such as South Korea, including delays in
closing new licensing agreements.
Qualcomm shares were trading at $47.91 before the opening bell.
(Reporting by Sayantani Ghosh and Devika Krishna Kumar in Bengaluru;
Editing by Ted Kerr)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
