Qualcomm Third Quarter Fiscal 2020 Results
On July 29, 2020, Qualcomm announced its fiscal 2020 third-quarter financial report. Net profit was US$845 million, a 61% decrease from US$2.149 billion in the same period last year; revenue was US$4.893 billion, compared to 96.35 in the same period last year. One hundred million U.S. dollars.
At the same time, Qualcomm also announced that a major legal dispute with Huawei has been resolved, and it has signed a new long-term patent license agreement with Huawei. Huawei will become a major supplier of 5G mobile phones and network equipment.
“As 5G continues to roll out, we are realizing the benefits of the investments we have made in building the most extensive licensing program in mobile and are turning the technical challenges of 5G into leadership opportunities and commercial wins,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “We delivered earnings above the high end of our range, continued to execute in our product and licensing businesses and entered into a new long-term patent license agreement with Huawei, all of which position us well for the balance of 2020 and beyond.”Qualcomm.
It is reported that Huawei will make a one-time payment of 1.8 billion U.S. dollars in the fourth fiscal quarter for patent license fees that it has not paid.
According to foreign media reports, thanks to the popularity of 5G chips and the patent settlement reached by Huawei, Qualcomm’s fourth-quarter revenue is predicted to be much higher than Wall Street’s expectations. At present, Qualcomm’s stock price has risen by 13% in after-hours trading.
Qualcomm said that although Huawei is still banned from purchasing Qualcomm chips, the latter has now resumed paying for wireless technology licensing fees.
Qualcomm CEO said that this patent settlement will promote future sales growth and is a favorable result for future business. The company is very pleased to see this problem resolved.