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TheStreet Open House

Qualcomm Unveils New Corporate Structure

Stocks in this article: QCOMAAPL

SAN DIEGO ( TheStreet) -- Apple (AAPL) partner Qualcomm (QCOM) announced plans to overhaul its corporate structure in an attempt to speed up product delivery and protect its patent portfolio.

Under the new structure, parent company Qualcomm Inc. will include the Qualcomm Technology Licensing Division, known as QTL, as well as the chipmaker's corporate functions and most of the firm's patent portfolio.

Qualcomm has announced a new corporate structure.

A new, wholly owned subsidiary, Qualcomm Technologies Inc. (QTI), along with its subsidiaries, will operate most of the company's R&D and its product and services businesses. The chip specialist's semiconductor business, Qualcomm CDMA Technologies, known as QCT, will be operated by QTI.

"Our internal reorganization will provide even greater protection for our industry-leading intellectual property portfolio as our products and services businesses seek to accelerate innovation and deliver our products to market quickly," explained Qualcomm CEO Paul Jacobs, in the company's statement. "We are confident that this change to our corporate structure will be accomplished with little to no disruption to employees and customers."

Qualcomm, which is seen as one of the best-positioned stocks for the push to 4G networks, said the new structure will bolster the company's ability to defend its patents.

"The company expects that QTI and its subsidiaries' product and services businesses will increase their work with open source software in the future," it explained, in its statement. "This restructuring will, among other things, help ensure that QTI and its subsidiaries' activities do not result in the licensing of any of Qualcomm Incorporated's patents, including its 3G and 4G patents."

Qualcomm expects that the new corporate structure will come into effect during the first fiscal quarter of 2013. The company does not expect any changes to the way it defines its operating segments for financial reporting purposes as a result of the restructuring.

The San Diego company comfortably beat analysts' forecasts in its recent fiscal second-quarter results, although investors were less than impressed by the company's guidance.

During the second quarter, Qualcomm cited supply constraints for its 28 nanometer chips, with demand outpacing supply

Shares of Qualcomm, which have gained just 0.38% this year, were down 0.84% to $54.45 in premarket trading on Thursday.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

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