Qualcomm released its Q3 earnings recently and it showed that the company racked up a revenue of $5.6 billion which represent a 4% increase year-on-year, with a net profit of $1.2 billion (up 41% year-on-year). Qualcomm abandoned the acquisition of NXP after the final deadline on Wednesday and the company had to pay $2 billion in liquidated damages. However, Qualcomm is not without gains this quarter. They have received a patent fee of $500 million from a smartphone company which is suspected to be Huawei.
Gizchina News of the week
Due to the failure to obtain approval from the Chinese regulatory authorities at 11:59 on the 26th of this month, Qualcomm abandoned the acquisition of NXP and the company’s $2 billion liquidation damages fee is very costly. Although faced with a major defeat, Qualcomm’s share price did not fall sharply because the market was psychologically prepared for Qualcomm’s failure in acquiring NXP and also, Qualcomm has decided to buy back $20 to $30 billion dollars of stock in order to boost market confidence, thus there was no fiasco after the deal fell apart.
