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To quote Qualcomm's FY2018Q3 earnings release with respect to Apple: http://files.shareholder.com/downloads/QCOM/6406790406x0x982849/44B30309-24B6-4141-8786-5A
by floatingatoll 8y ago
To quote Qualcomm's FY2018Q3 earnings release with respect to Apple:
http://files.shareholder.com/downloads/QCOM/6406790406x0x982849/44B30309-24B6-4141-8786-5A1A80339FAB/FY_2018_3rd_Quarter_Earnings_Release.pdf http://files.shareholder.com/downloads/QCOM/6406790406x0x982...
Beginning in the third quarter of fiscal 2017, GAAP and Non-GAAP results have been negatively impacted by our dispute with Apple and its contract manufacturers (who are Qualcomm licensees). We did not record any QTL revenues in the first nine months of fiscal 2018 or the third or fourth quarter of fiscal 2017 for royalties due on sales of Apple’s products. We expect the actions taken by these companies will continue until these disputes are resolved. QTL revenues in the third quarter of fiscal 2018 included $500 million paid under an interim agreement with the other licensee in dispute (which dispute was previously disclosed). This represents a partial payment for royalties due after the second quarter of fiscal 2017 by that other licensee while negotiations continue. This payment does not reflect the full amount of royalties due under the underlying license agreement. We did not record any revenues from the third quarter of fiscal 2017 through the second quarter of fiscal 2018 for royalties due on the sales of the other licensee’s products. If we do not reach a final agreement with the other licensee, it may not make any other payments or may not make full payments under the underlying license agreement, which may result in increased legal costs and will negatively impact our GAAP and Non-GAAP results.
- pdpi 8y ago“Contract manufacturers” seems like a very particular choice of words to describe intel here. If Intel is manufacturing an Apple design as a contractor, Intel’s licenses don’t matter and it’s Apple who’s on the hook to pay royalties. If Apple is buying an off-the-shelf Intel product, it’s Intel’s licence terms that matter.
- ksec 8y agoContract manufacturers here means Foxconn and Winstron alike.