Qualcomm Inc. (QCOM - Get Report) , the smartphone chipmaker, forecast weaker-than-expected revenue for the current quarter as it accounted for payments from Apple Inc. (AAPL - Get Report) to settle a long-running patent dispute.
Qualcomm said non-GAAP earnings for the three months ending in March, its fiscal second quarter, came in at 77 cents per share, down one penny from the same period last year but firmly ahead of the Street consensus of 71 cents per share. Group revenues, Qualcomm said, fell 5.78% to $4.9 billion, with a projection of $4.7 billion to $5.5 billion for the current quarter, trailing the $5.3 billion mid-point Refinitiv forecast.
Qualcomm also said Apple's back-dated royalty payments linked to the patent dispute settlement, which was reached last month after years of litigation, would give it a one-time benefit of between $4.5 billion and $4.7 billion. Qualcomm had earlier estimated the settlement would boost earnings per share by around $2 per share.
"We believe this settlement is a win for both companies and we are pleased with the result and pleased to have it behind us," CEO Steve Mollenkopf told investors on a conference call late Wednesday. "[It] includes two long-term agreements with Apple: a global patent license agreement and a multi-year chipset supply agreement."