NEW YORK (TheStreet) --Shares of Qualcomm Inc. (QCOM) are lower by 9.46% to $69.90 at the start of trading on Thursday, after the company announced last night that it is dealing with an antitrust investigation that could hurt its business in China next year, and also said it is facing new regulatory investigations in the U.S. and Europe, Reuters reports.
Qualcomm is facing a possible fine of over $1 billion in China as a result of the National Development and Reform Commission investigation. The investigation could result in the smartphone chip maker having to make concessions that could negatively impact its successful business of charging royalties on phones that use its patents, Reuters added.
The European Commission is also looking into the company's rebate and other financial incentives practices in regards to the sale of its chips. The U.S. Federal Trade Commission is looking into a possible licensing terms breach, Reuters noted.
Additionally, Qualcomm announced its fiscal 2014 fourth quarter earnings results and showed a 26% increase in GAAP-net income to $1.89 billion, or $1.11 per diluted share. Revenue for the latest quarter was up 3% year-over-year to $6.69 billion for the quarter.
On a non-GAAP basis net income for the latest quarter increased 18% year-over-year to $2.14 billion, or $1.26 per diluted share.