Qualcomm Inc (QCOM.O) reported a 3.9 percent rise in quarterly revenue, boosted by strong demand for its chips used in smartphones, at a time when the company is facing multiple legal challenges over its alleged "anticompetitive" tactics.Net income attributable to the company more than halved to $682 million, or 46 cents per share, in the first quarter ended Dec. 25, from $1.50 billion, or 99 cents per share, a year earlier.The quarter included a $868 million charge related to the Korea Free Trade Commission (KFTC) investigation, the company said on Wednesday.Revenue rose to $6 billion from $5.78 billion. bit.ly/2jqEoha
The U.S. Federal Trade Commission and Apple Inc (AAPL.O) have sued Qualcomm accusing the chipmaker of resorting to "anticompetitive" tactics to maintain a monopoly over key semiconductors in mobile phones.Apple also filed a lawsuit against Qualcomm in Beijing on Wednesday, alleging that the chip supplier abused its clout in the chip industry and is seeking 1 billion yuan ($145.32 million) in damages.
South Korea's antitrust regulator, The Korea Fair Trade Commission, fined Qualcomm 1.03 trillion won ($854 million) in December for what it called unfair business practices in patent licensing and modem chip sales.Qualcomm is a major supplier to both Apple and Samsung Electronics Co Ltd (005930.KS), with the two accounting for 40 percent of the company's $23.5 billion in revenue in 2016.
The Qualcomm Technology Licensing (QTL) business, which contributed about 85 percent of the company's earnings before taxes in 2016, generates royalties earned through the licensing of wireless patents to the mobile industry. (Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila)
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Updated Date: Jan 26, 2017 03:30 AM