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Semiconductor giant Qualcomm (QCOM) - Get Qualcomm Inc Report reported better-than-expected third quarter results on Wednesday, but its stock fell over 2.5% in after-hours trading on disappointing fourth quarter guidance.

Despite the weak outlook for earnings per share and revenues, the chipmaker offered solid fourth quarter chip guidance of between 205 and 255 million units sold versus the 198 million unit consensus, suggesting that fears that Apple (AAPL) - Get Apple Inc. Report would shut Qualcomm out of supplying chips for the new iPhone didn't pan out.

Qualcomm, however, expects a 31% to 41% licensing revenue drop due to an ongoing patent dispute with Apple and another unnamed licensee.

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The company said it did not factor in Qualcomm Technology Licensing (QTL) revenues when calculating its fourth quarter estimates because of its patent disputes with Apple.

Revenue from licensing has much higher margins, resulting in a bigger effect on earnings per share.

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