Qualcomm Decides To Keep Current Structure
Qualcomm's board of directors and management have completed a six-month review of the companys corporate and financial structure and decided not to separate its chipmaking and technology licensing businesses.
The company's board concluded that the companys current corporate and financial structure best positions Qualcomm to maintain its technology leadership and product strength, so as to drive the greatest long-term stockholder value.
"The strategic benefits of the current structure will best fuel Qualcomms growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "The strategic benefits and synergies of our model are not replicable through alternative structures. We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns. Looking ahead, we have a focused plan in place that we believe will drive growth and we are off to a good start implementing that plan."
Qualcomm, whose earnings have slumped by more than 40 percent in each of the last three quarters, said it expected earnings per share for the current quarter to be at or modestly above the high end of its previously forecast range.
The company had previously forecast earnings of 80-90 cents per share for the quarter.
Qualcomm said it was seeing a stronger quarter than expected as 3G and 4G device shipments were helping its licensing business and the benefits of cost cuts were kicking in.
Qualcomm's technology business has thrived for years on the big royalties it collects on the chip-technology developed by its chipmaking unit.
"Looking ahead, we have a focused plan in place that we believe will drive growth and we are off to a good start implementing that plan," Mollenkopf said in a statement.
"The strategic benefits of the current structure will best fuel Qualcomms growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "The strategic benefits and synergies of our model are not replicable through alternative structures. We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns. Looking ahead, we have a focused plan in place that we believe will drive growth and we are off to a good start implementing that plan."
Qualcomm, whose earnings have slumped by more than 40 percent in each of the last three quarters, said it expected earnings per share for the current quarter to be at or modestly above the high end of its previously forecast range.
The company had previously forecast earnings of 80-90 cents per share for the quarter.
Qualcomm said it was seeing a stronger quarter than expected as 3G and 4G device shipments were helping its licensing business and the benefits of cost cuts were kicking in.
Qualcomm's technology business has thrived for years on the big royalties it collects on the chip-technology developed by its chipmaking unit.
"Looking ahead, we have a focused plan in place that we believe will drive growth and we are off to a good start implementing that plan," Mollenkopf said in a statement.
