Reuters reported on Tuesday, Qualcomm has decided to keep the company's current business structure unchanged, will not strip the chip business and licensing business.
In April this year, activist investors Jana Partners sent a letter to Qualcomm's Board, asked Qualcomm to consider licensing the chip business and business sector should be stripped. Jana Partners is one of Qualcomm's biggest shareholder.
After six months of evaluation, Qualcomm announced today, has decided to keep the company's current business structure unchanged, will not strip the chip business and licensing business. Qualcomm believes that company's current business structure has no substitute for strategic advantage.
In the past three quarters, Qualcomm each quarter profit fell by more than 40%. Qualcomm now expects diluted earnings per share for the current fiscal quarter will be at least guidance expected cap of the company, or even slightly higher than the expectations. Before Qualcomm expects diluted earnings per share for the current fiscal quarter will reach 80 to 90 cents.
Today in premarket trading, Qualcomm shares rose 2.3%. This year, Qualcomm's share price has tumbled by about 40%.
Qualcomm said the company this quarter is very strong, has exceeded company expectations. This was mainly due to higher 3G and 4G device shipments boosted the company's licensing business, cost-cutting measures also contributed to earnings growth in the current fiscal quarter.
Qualcomm CEO shidifu·molunkepufu (Steve Mollenkopf) said in a statement: "looking to the future, we already have a plan, and we believe that promoting the performance of the company continues to grow. "Molunkepufu did not detail the company's plan, but said it had got off to a good start.
Continue to maintain current business architecture decisions made by Qualcomm to set up a Special Committee, the two members of the Special Committee are nominated by Jana Partners. At present, Jana Partners has yet to comment on the decision.
Qualcomm CEO delike·aboli (Derek Aberle) had said in September this year, Jana Partners does not force high-pass the chip business and licensing operations are split, only the recommended high-pass option, so as to create greater value for shareholders.
Recently, high-throughput in China, Korea and the European Union, and several other major markets are in trouble. In February this year, China's national development and Reform Commission that Qualcomm abused its dominant market position, to eliminate or restrict competition monopoly of Law 975 million-dollar fine.
Last month, the Korea Fair Trade Commission also Qualcomm Korea patent technology authorized the way antitrust investigations. Last week, the European Commission was sent to Qualcomm "statement of objections" alleging that Qualcomm used its dominance in the market for mobile phone chips down rivals.
High-throughput back to Jue investors: don't spin off chip and licensing operations
Posted by doll on 01:22:00 with No comments
Categories: Technology
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