SAN DIEGO (AP) — Chip maker Qualcomm delayed its quarterly earnings report today because it’s in “advanced” settlement talks with rival Broadcom over patents and royalties.
San Diego-based Qualcomm said it will post the quarter’s results Monday instead. It did say that the quarter’s revenue and operating income, without the effects of a settlement, “met or exceeded prior guidance.” The shares of both companies advanced in after-hours trading.
Qualcomm and Broadcom have been embroiled in a long-running legal dispute. Qualcomm said a settlement would affect the quarter’s results, though it did not say how.
Bill Blanning, a spokesman for Irvine, Calif.-based Broadcom, confirmed that the companies are in advanced settlement discussions, but both companies declined further comment.
In January, the company forecast operating income between $500 million and $600 million, down from $810 million a year earlier. It also said then it expected revenue between $2.25 billion and $2.45 billion, down from $2.61 billion a year earlier. Analysts polled by Thomson Reuters expect the company to post sales of $2.35 billion.
Qualcomm’s shares climbed $1.61, or 4 percent, to $41.73 in after-hours trading following the announcement. The stock had closed down 9 cents at $40.18.
Broadcom’s shares jumped $1.69, or 7.5 percent, to $24.30, after closing up $2.09, or 10 percent, at $22.61.
Filed Under: Infrastructure