Qualcomm Incorporated has reached an agreement with Chinese telecom business Huawei to resolve a patent dispute, the company announced Wednesday.
The global licensing agreement gives Huawei rights back to some of the San Diego-based technology company’s patents effective January 1, 2020, according to Qualcomm.
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Qualcomm expects about $ 1.8 billion from Huawei as part of the dated deal.
“As 5G continues to be realized, we are realizing the benefits of the investments we have made in building the most extensive mobile licensing program and turning 5G’s technical challenges into leadership opportunities. and business victories, “said Qualcomm CEO Steve Mollenkopf’s statement
Qualcomm announced the deal in its third-quarter earnings report. The company had $ 4.89 billion in revenue and $ 845 million in profit for its quarter ended Tuesday.
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The company reported a profit of $ 0.74 per share, which exceeded analysts ’expectations. For the current quarter, Qualcomm predicted earnings of between $ 1.05 and $ 1.25 per share, even with a 15 percent year-over-year decline in hand shipments attributed to the coronavirus pandemic.
Qualcomm announced a similar licensing agreement with Apple last year.
“We delivered profits above the high level of our range, continued to conduct our licensing products and businesses and entered into a new long-term patent licensing agreement with Huawei, all of which place with us well for the balance of 2020 and beyond, “Mollenkopf said.
Qualcomm’s share price jumped about 14 percent in after-hours trading Wednesday on the news.
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