Qualcomm has abandoned its takeover of NXP Semiconductors after it was unable to obtain regulatory approval in China by the agreed deadline of 25 July, according Telecompaper. The failure to close the deal, first announced in October 2016, means Qualcomm will pay NXP a termination fee of USD 2 billion. Qualcomm also announced plans to buy back USD 30 billion of its own shares, alongside its results for the fiscal third quarter to June.
Qualcomm's quarterly results were better than expected, after the chipmaker partially resolved a licensing dispute with one large customers. While Apple continues to pay no royalties, the other unnamed customer paid an initial USD 500 million in the past quarter towards royalties due since Q3 2017. Qualcomm is still working on a final licensing agreement with the customer, but expects to receive another USD 100 million in the next quarter.
The extra income meant Qualcomm's quarterly revenue reached the top of its guided range, growing 4 percent year-on-year to USD 5.6 billion. Net earnings jumped 41 percent to USD 1.2 billion or USD 0.82 per share, also better than expected. On an adjusted basis, excluding one-time items, EPS rose 22 percent to USD 1.01.
For the fiscal fourth quarter, Qualcomm forecast revenues flat to 14 percent lower year-on-year at USD 5.1-5.9 billion. MSM shipments are also expected flat to lower, at 205-225 million. EPS will continue to improve, thanks in part to the ongoing share buybacks, to USD 0.58-0.68 versus USD 0.10 a year earlier.
