Qualcomm sees $80 mln charge for arbitration ruling
--From AOL. A little more detail.-- Cooters
NEW YORK, Dec 11 (Reuters) - An international arbitration panel has ruled that wireless communications technology company Qualcomm Inc. <QCOM.O> must share certain royalties on sales of its technology in South Korea, and the company will record an $80 million charge to cover that cost, Qualcomm said on Monday.
San Diego-based Qualcomm said in a statement it must share additional royalties with the Korean Electronics and Telecommunications Research Institute, or ETRI.
In addition to back payments of royalties, the International Court of Arbitration of the International Chamber of Commerce ruled that Qualcomm must continue to share royalties it receives only on sales of certain code division multiple access, or CDMA, equipment for use in South Korea. That cost is expected to be on the order of about $4 million per quarter, it said.
Qualcomm will record the charge in its fiscal 2001 first quarter, ending this month.
"While we are disappointed by the ICA's decision, we continue to look forward to receiving strong royalty revenues from sales of CDMA equipment in Korea," said Louis Lupin, senior vice president and general counsel of Qualcomm. "The ICA's decision does not in any way affect Qualcomm's ability to collect royalties on CDMA, WCDMA or other CDMA-based standards, and has no impact on the ability of Qualcomm To collect royalties from sales of CDMA equipment in Korea."
08:04 12-11-00 |
