A federal judge issued a preliminary ruling Thursday that Qualcomm (QCOM)  must pay Apple (AAPL) nearly $1 billion in rebates in a long-running legal dispute.

U.S. District Court Judge Gonzalo Curiel of the Southern District of California issued the ruling, Reuters reported.

Apple sued Qualcomm two years ago, claiming the chipmaker had violated the terms of a cooperation agreement between the two companies, according to the report.

The ruling won't take effect until after a trial in the case is completed, according to the report.

Qualcom shares fell 20 cents in after-hours action to $55.20. Apple rose 32 cents to 184.05.

Apple is expected to report on May 7 earnings of $2.40 a share on sales of $57.6 billion in the current quarter, based on a FactSet survey of 36 analysts. In the same period a year ago the electronic devices maker and services provider posted earnings of $2.73 a share on sales of $61.1 billion.

The stock has risen 17.5% since the company last reported earnings on Jan. 29. Quarterly estimates have fallen less than 1 cent a share in the past month. Apple is currently trading at a price-to-forward-earnings ratio of 15.2 based on the 12-month estimates of 42 analysts surveyed by FactSet.

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Qualcomm is expected to report April 24 earnings of 70 cents a share on sales of $4.8 billion for the current quarter, based on a FactSet survey of 19 analysts. In the same period a year ago the company posted earnings of 80 cents a share on sales of $5.2 billion.

The stock has risen 10.4% since the company last reported earnings on Jan. 30. Qualcomm is currently trading at a price-to-forward-earnings ratio of 13.3 based on the 12-month estimates of 21 analysts surveyed by FactSet.

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