No more spin off.
Tuesday July 24, 9:02 am Eastern Time
Press Release
QUALCOMM Withdraws Plan to Spin Off its Semiconductor Business
Company to Continue to Focus on Growth and Deployment of CDMA Worldwide
SAN DIEGO--(BUSINESS WIRE)--July 24, 2001--QUALCOMM Incorporated (Nasdaq:QCOM - news), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it no longer plans to spin off its integrated circuits and system software business (QUALCOMM CDMA Technologies or ``QCT'').
The spin-off was intended to allow QCT, through patent cross-license agreements, to gain reasonable access as a separate company to third party intellectual property through cross-license agreements that may be necessary for the supply of multi-mode (including WCDMA and GSM) integrated circuits. Since announcing the spin-off in July 2000, QUALCOMM has entered into approximately 40 license agreements or extensions including NEC, Fujitsu, Matsushita, Nokia and others covering third-generation CDMA systems. QUALCOMM has received rights to supply multi-mode integrated circuits and system software under each of these agreements or extensions.
``Last year we viewed the spin-off as necessary, among other things, to minimize potential patent litigation that could arise as a result of QUALCOMM selling multi-mode chipsets, including WCDMA and GSM technology,'' said Dr. Irwin M. Jacobs, chairman and chief executive officer of QUALCOMM. ``Since that time, we have entered into agreements that provide us considerable freedom to support the global expansion of the wireless industry by supplying integrated circuits and software that support one or more modes of CDMA as well as GSM. Although we are withdrawing our plan to spin off our semiconductor business, we would reconsider if conflicts arise that adversely affect our ability to operate each business in the best interests of our shareholders.'' |
