Qualcomm to continue with current corporate and financial structure

Qualcomm CEO Steve Mollenkopf
Chipset major Qualcomm today announced its decision to continue with the current corporate and financial structure – following a detailed review.

There were industry rumors that Qualcomm will be split itself into two or restructure the chip business in order to enhance focus.

Qualcomm says a Special Committee of the Board of Directors, has addressed the benefits and challenges of the existing structure of the US-based semiconductor major, as well as considered a range of alternatives for enhancing stockholder value.

In a statement issued on Tuesday, Qualcomm says that the chip company’s current corporate and financial structure best positions Qualcomm to maintain its technology leadership and product strength.

Thomas W. Horton, presiding director, Paul E Jacobs, chairman of the Board, independent directors Donald G Cruickshank, Jonathan J Rubinstein, Mark D McLaughlin and Anthony J Vinciquerra were the members of the Special Committee.

“The strategic benefits of the current structure will fuel Qualcomm’s growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries,” said Steve Mollenkopf, CEO of Qualcomm.

What’s Qualcomm structure and focus?

QCT research and development (R&D) drives a substantial portion of Qualcomm’s technology that is licensed by QTL, and corporate R&D drives technology leadership, benefiting QCT product sales.

The chipset business facilitates adoption of the company’s technology and intellectual property (IP), encouraging adoption across the mobile ecosystem and new industries.

Qualcomm invests in fundamental R&D, driving improvements in network performance, reductions in network costs, enhanced user experience and improved mobile computing — providing value to global operators, device OEMs, consumers and applications and services companies.

The combination of Qualcomm’s technology innovations and semiconductor product reach enables the company to work effectively within standards bodies and with ecosystem partners to develop new technology and deliver chipset products to customers.

Qualcomm realizes significant annual cost savings in R&D and, to a lesser extent SG&A expenses, as well as tax synergies from not having to operate two separate companies.

The company said it is seeing a stronger quarter relative to prior guidance as 3G/4G device ASPs and shipments are positively impacting the licensing business, and benefits are being realized from cost actions.

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