Qualcomm delays results on Broadcom talks - Mobile World Live

Qualcomm delays results on Broadcom talks

23 OCT 2009

Shares in both Qualcomm and Broadcom rose this morning after the two rival chip-makers confirmed they are in talks to reach a settlement over their long-running legal battle, reports Reuters. The talks are at a sufficiently advanced stage for Qualcomm to delay its quarterly earnings announcement to 27 April. The vendor – which was scheduled to report its fiscal second-quarter earnings yesterday – noted that any settlement would affect the quarter’s results, though it did not say how. Not taking into account the effects of the settlement, Qualcomm said that the quarter’s revenue and operating income would either meet or exceed prior guidance. Meanwhile, Broadcom – which reported earnings on Tuesday – confirmed to Reuters that talks were ongoing but gave no indication that a conclusion was imminent. “I’ve said all along that our hope is to eventually find a way to settle with Qualcomm,” said CEO Scott McGregor. “Someday I hope that happens, but I certainly don’t have any news that would suggest we’re closer.”

Qualcomm and Broadcom have been locked in a bitter legal dispute over alleged patent infringements and anti-competitive behaviour for several years. According to Reuters, the court cases stretch across three continents with cases ongoing in the US, Europe and South Korea. However, the report notes that analysts have long expected the two firms to reach a settlement eventually. Qualcomm, the world’s largest mobile chip vendor, settled a similar dispute with Nokia last year and the two former rivals are now working together. Today’s developments saw Qualcomm’s shares rise 4 percent while Broadcom’s rose 7 percent.

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