China and Huawei have denied those charges. He called the twin agreements a positive outcome for the business going forward and an issue the company was pleased to see wrapped up.July 29, 2020 18:48 ET (22:48 GMT)As part of that tussle, the administration and China have imposed tariffs on each other, including on electronics. Qualcomm Q2 2020 posts a strong quarter with revenue growth of five percent bringing its total to $5.21 billion (£4.1), this despite a drop in handsets. The settlement was paired with a multiyear agreement to license Qualcomm's patented technologies for Huawei use.Qualcomm forecast sales in the current quarter of $7.3 billion to $8.1 billion, bolstered by the Huawei payment. Qualcomm is battling an antitrust case brought by the Federal Trade Commission over its licensing practices. While those have all but stopped Qualcomm's chip sales to Huawei, they don't affect the licensing arrangement covered by the latest accord.Qualcomm's business is split into two parts, one that makes chips and another that collects licensing fees on its patented technologies, many of which are included in cellular communications standards that virtually all mobile phones use. Of those, 18 hiked their price targets resulting in an average price target of $113.24, up from a previous $98.48, according to FactSet data. Based in San Francisco, his focus is on U.S. equities. Federal Trade Commission’s Opposition to Qualcomm’s Motion to Dismiss [Public Version With Fewer Redactions, As Approved by the United States District Court] (622.38 KB) June 26, 2017 United States District Court Order and Opinion Denying Qualcomm’s Motion to Dismiss (1.7 MB) Qualcomm is battling an antitrust case brought by the Federal Trade Commission over its licensing practices.
The Trump administration has accused China of stealing trade secrets and using technology, including Huawei's, as a vehicle to potentially conduct espionage. Qualcomm Inc won a partial stay against the enforcement of a sweeping antitrust ruling in a lawsuit brought by the U.S. Federal Trade Commission (FTC), according to a court filing on Friday. During the regular session, ahead of the Qualcomm earnings news, QCOM stock rose 1.7% to 93.03. Profit fell 60% to $845 million year over year. The administration saw the deal as a threat to U.S. leadership over China in technological arenas such as the emerging field of superfast 5G communications.Qualcomm on Wednesday said it would receive a $1.8 billion lump-sum payment from the Chinese tech giant to cover previously unpaid licensing fees. Qualcomm, which didn't name the phone vendor, is a supplier to Apple Inc., which, people familiar with the matter have said, has delayed its launch of its first 5G phone later this year.The agreement was unexpected given the backdrop of an increasingly acrimonious political battle between Washington and Beijing over technologies broadly and Huawei in particular. In 2018, President Trump blocked the $117 billion takeover bid of Qualcomm by rival chip maker Broadcom Inc., which was previously based in Singapore. As Huawei and Qualcomm negotiated a settlement in their fight, the Chinese company made interim payments of some of the licensing fees it owed.The San Diego-based chip maker announced the Huawei pact when reporting third-quarter earnings that saw sales almost halve from the year prior to $4.89 billion, as the coronavirus pandemic weighed on smartphone sales. Shares in the U.S. company rose 12% after hours.U.S. Morgan analyst Samik Chatterjee, who has an overweight rating and raised his price target to $120 from $108, said Qualcomm’s leadership in 5G technology ahead of the rollout was “pivotal” to the settlement.Oppenheimer analyst Rick Schafer, who has a perform rating on Qualcomm, said that will all the positives of the settlement, he remains on the sidelines.Wallace Witkowski came to MarketWatch from the Associated Press in New York, where he was a business reporter specializing in pharmaceutical companies. Sales and profit beat Wall Street expectations.Washington has imposed restrictions on sales to Huawei and several other Chinese companies.