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Legal Woes Haunt Qualcomm
Battles with Nokia and Broadcom take toll on stock despite record results
By Peter Fearon
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Posted Nov 8, 07 10:49 PM CST
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(Newser)
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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.