- Qualcomm Inc shares fell about 3.5% on Wednesday as investors got their first look at the bottom line impact of a patent fight settlement with Apple Inc, including a multibillion dollar one-time payment and more modest future patent fees.
Qualcomm will book a one-time payment of $4.5 billion to $4.7 billion in the fiscal third quarter from the settlement, as Apple catches up on royalties that the iPhone maker did not pay while they were locked a legal dispute. “We’re looking forward to having a 5G Christmas as the year ends,” Cristiano Amon, Qualcomm’s chip chief, said on a conference call with investors.
The licensing revenue outlook includes royalties from sales of Apple products. Apple on Tuesday said its gross margin guidance, which was largely unchanged from previous quarters, included the Qualcomm settlement. The two disclosures suggest little short-term financial impact from the patent licensing deal.
Qualcomm shares dipped 3.5% to $83.35 in after-hours trading. They shares closed at $57.18 on April 15, the day before the Apple settlement was announced.
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