Qualcomm Incorporated signed a deal with Chinese telecom business Huawei to settle the patent dispute, the company announced on Wednesday.
The global licensing agreement returned Huawei’s rights to some of the patents of the San Diego-based tech company on 1 January 2020, according to Qualcomm.
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Qualcomm expects $ 1.8 billion from Huawei under a back-date agreement.
“As 5G continues, we are realizing the benefits of the investment made in building the most comprehensive licensing program in mobile and leading the technical challenges of 5G,” said Qualcomm CEO Steve Mollenkneff. a statement.
Qualcomm announced the deal in its third quarter earnings report. The company had $ 4.89 billion in revenue and $ 845 million in profit for the quarter ended Tuesday.
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In line with analyst expectations, the company registered a profit of $ 0.74 per share. For its current quarter, Qualcomm predicted earnings of between $ 1.05 and $ 1.25 per share, even with a 15 percent year-over-year decline in handset shipments attributing it to the coronavirus virus epidemic .
Qualcomm announced a similar licensing deal with Apple last year.
“We delivered above the high end of our range, continued to execute our product and licensing businesses and entered into a new long-term patent license agreement with Huawei, all of which bode well for the balance of 2020 and beyond. Position, ”said Molenkoff.
According to the news, Qualcomm’s stock price jumped nearly 14 percent after Wednesday’s trading.
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