Dividend.com: Qualcomm Battles Higher

Qualcomm Swings to Loss on Settlement; Raises Guidance

Telecom company Qualcomm (QCOM Quote), shares spiked Monday morning, after the company reported first-quarter earnings that included a big legal settlement with its arch rival Broadcom (BRCM Quote). Qualcomm said that after a more than four-year legal battle over patent infringement issues with Broadcom, the two sides finally reached an agreement late Sunday night that requires Qualcomm to pay $891 million over the next four years.

Because of this settlement, Qualcomm posted a fiscal first-quarter net loss of $289 million, or 18 cents per share, compared with a profit of $766 million, or 47 cents per share, in the year-ago quarter. Excluding special items, the company would have seen profits of 3 cents per share.

On average, Wall Street analysts expected profit of 40 cents per share. ...