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$QCOM 2Q15 10-Q: QCOM shipped approx. 233MM MSM integrated circuits for CDMA & OFDMA-based wireless devices, grew approx. 24% vs. 188MM MSM integrated circuits in 2Q14. Worldwide cellular connections grew sequentially by approx. 2% to reach approx. 7.2Bil. Worldwide 3G/4G connections grew sequentially by approx. 5% to 3.1Bil.
Chip maker $QCOM slipped into loss in 1Q18 due to $6Bil one-time charge related to the new U.S. tax laws and a fine of $868MM imposed by the Korea Fair Trade Commission. Net loss came in at $6Bil, or $4.03 per share,versus earnings of $0.7Bil, or $0.46 per share in 1Q17. Adj. EPS was $0.9Bil. Revenue rose marginally by 1% YoY to $6.1Bil.
$AVGO made its final offer to acquire $QCOM and under the terms of the proposed agreement Qualcomm stockholders would receive an aggregate of $82 per each Qualcomm share, consisting of $60 in cash and the remainder in Broadcom shares. The new offer represents a 50% premium over the closing price of $QCOM stock on Nov. 2, 2017.
$AVGO said the US Federal Trade Commission has requested more information regarding its acquisition plan of $QCOM. The effect of the second request is to extend the 30-day waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. After $AVGO complies with the request, the regulator has 30 days to complete its review.
$AVGO, which recently had a failed takeover bid of $QCOM, swung to profit in 4Q17, driven by a 33% growth in its Wireless communications segment, which makes smartphone parts and chips for iPhones. Profit was $671MM or $1.50 per share for the quarter, while revenue surged 17% to $4.84Bil. Adjusted EPS jumped 32% to $4.59 per share.
Chipmaker $AVGO bids to buy $QCOM for $130Bil. $AVGO's proposal would remain whether $QCOM's pending acquisition of NXP Semiconductors is completed on the present disclosed terms of $110 per NXP share or the deal is terminated. Silver Lake Partners to provide $5Bil convertible debt financing commitment letter to $AVGO to support $QCOM transaction.
Chipmaker $AVGO bids to buy $QCOM for $130Bil, the largest ever acquisition in the history of technology sector if the deal materializes. Under the proposal, $QCOM shareholders to receive $70 per share of each of its rival's outstanding shares; $60 in cash and $10 in shares. Deal is subject to Hart–Scott–Rodino Act in U.S. and regulatory approvals.
In FY18, $QCOM expects the device shipment of 3G/4G to be approx. 1.9-2Bil units, up by approx. 8% at midpoint. This reflects continued 3G/4G handset shipment growth in India as well as other regions and above-average growth in 3G/4G non-handsets, primarily in IoT. $QCOM expects mid-single digit percentage growth in global 3G/4G device sales YoY.
In order to boost its growth, $QCOM relies on the proposed $39Bil acquisition of $NXPI. The deal that was initially announced on October 27. 2016 continues to face several challenges and is expected to close in early 2018. The company intends to fund the transaction with cash generated from May 2017 debt offering.
iPhone chip supplier $QCOM reported a 89% drop in its 4Q17 profit, crippled by the ongoing legal battle with Apple and a $778MM fine from the Taiwanese regulators. Net income fell to $0.2Bil, or $0.11 per share, from $1.6Bil, or $1.07 per share during 4Q16. Revenue slipped 5% YoY to $5.9Bil. Excluding items, $QCOM earned $0.92 per share,up by 28%.