CEO Stephen Mollenkopf said the current structure, based on the R&D and product division QCT and the licensing business QTL, offers a number of strategic benefits and synergies that cannot be replicated under other models. QCT develops the technology licensed by QTL and helps the company remain an industry leader and expand into adjacent product areas. Keeping both divisions in the same company also gives Qualcomm a strong role in setting industry standards and provides significant cost and tax benefits.
Qualcomm also updated its guidance for calendar Q4, saying it expects 3G/4G device ASPs and shipments to come in better than expected as well as benefits from the cost reductions announced earlier this year. As a result it expects to reach the high end or modestly exceed its previous guidance for EPS and adjusted EPS for its fiscal first quarter to December. The company said it will provide a comprehensive review of its results, an update on its China licensing progress and its outlook during the January earnings conference call.
