SAN FRANCISCO—Facing ongoing legal battles on multiple fronts, fabless chip giant Qualcomm Inc. turned in mixed results for its fiscal first quarter, as a year-over-year sales increase that exceeded consensus analysts' expectations was accompanied by a precipitous decline in profit.
Qualcomm CEO Steve Mollenkopf told analysts after the quarterly report that Qualcomm has "more opportunities ahead of it than at any time in the company's history" but has had "a series of legal and regulatory challenges that have unfortunately overshadowed otherwise strong operating performance."
Qualcomm executives elaborated on the company's high-profile $1 billion dispute with Apple Inc., saying contract manufacturers involved in the dispute are contractually obligated to make royalty payments owed to Qualcomm despite pressure from Apple.
Executives also touched on a recent arbitration ruling that Qualcomm must repay nearly $815 million to Blackberry and another ongoing royalty payment dispute with an unnamed customer. They also provided updates on regulatory investigations in multiple jourastications around the globe, including South Korea, the U.S., Taiwan and Europe.
Qualcomm is no stranger to legal disputes, but the squabble with Apple has been among the most unusual in the company's history. Qualcomm last week filed a cross complaint accusing Apple of pressuring Taiwan ODMs Compal, Foxconn, Pegatron and Wistron not to honor royalty agreements with Qualcomm in an effort to collect nearly $1 billion that Apple says Qualcomm owes it.
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