Qualcomm makes peace with Huawei as 5G rollout escalates
US wireless technology innovator Qualcomm, with major operations in Cambridge, has posted non-GAAP Q3 revenues of just under $4.9 billion – almost identical to 2019.
Earnings per share exceeded the high end of the guidance range and the company has resolved a dispute with Huawei and agreed a new licensing deal – a timely move as 5G rollout ignites.
CEO Steve Mollenkopf said: “As 5G continues to roll out, we are realising the benefits of the investments we have made in building the most extensive licensing program in mobile and are turning the technical challenges of 5G into leadership opportunities and commercial wins.
“We delivered earnings above the high end of our range, continued to execute in our product and licensing businesses and entered into a new long-term patent licence agreement with Huawei, all of which position us well for the balance of 2020 and beyond.”
During the third quarter of fiscal 2020, Qualcomm returned $843 million to stockholders, including $733 million, or $0.65 per share, of cash dividends paid and $110 million through repurchases of 1.6 million shares of common stock.
It has just entered into a settlement agreement, as well as a new long-term, global patent licence deal with Huawei, including a cross-licence granting back rights to certain of Huawei’s patents, covering sales beginning January 1, 2020.
Its financial guidance for the fourth quarter of 2020 includes estimated revenues of approximately $1.8 billion related to amounts due from Huawei under the settlement agreement.