Legal Woes Haunt Qualcomm

Battles with Nokia and Broadcom take toll on stock despite record results
By Peter Fearon,  Newser Staff
Posted Nov 8, 2007 10:49 PM CST
Paul Jacobs, CEO of Qualcomm, speaks at the Seoul Digital Forum 2006 in Seoul, South Korea May 25, 2006. Qualcomm Inc. has nothing to do with making Apple Inc.'s iPhone, but Jacobs, the chief executive...   (Associated Press)
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(Newser) – Qualcomm reported record sales and profits for its 2007 fiscal year, but if its executives thought that would please a jittery Wall Street, they were wrong, as shares fell in after hours trading. The Financial Times reports the company is in a long-running and costly multinational legal battle with Nokia, and disappointing revenue forecasts excluded any estimated royalties from the cell phone giant.

Qualcomm's $200 million in court costs also include a potentially damaging dispute with Broadcom. The International Trade Commission imposed a ban on Qualcomm's 3G chips, because they allegedly infringe a Broadcom patent, and so far the two companies have failed to negotiate a licensing deal. Qualcomm reported fourth quarter revenues of $2.31 billion, up 15 per cent year-to-year.