Qualcomm Inc. lowered its guidance for its current, third quarter as its dispute with Apple Inc. continued.
The San Diego business said on April 28 that it learned the iPhone maker was withholding payments to its contract manufacturers for the royalties those contract manufacturers owe Qualcomm (Nasdaq: QCOM). The disputed amounts are for sales during the quarter ended March 31.
Qualcomm collects royalties on intellectual property that it licenses to other companies. Apple (Nasdaq: AAPL) says it is paying too much, says that Qualcomm owes it money, and is suing Qualcomm in several countries. Qualcomm countersued in U.S. District Court.
“Apple is improperly interfering with Qualcomm’s longstanding agreements with Qualcomm’s licensees,” Qualcomm general counsel Don Rosenberg said in a statement issued by the company.
Qualcomm told investors to expect third quarter revenue to be in the range of $4.8 billion and $5.6 billion, down 7 percent to 21 percent from last year. Earnings are projected to be in the range of 52 cents to 62 cents per share, down 36 percent to 46 percent from the same quarter last year. Excluding one-time items, earnings are expected to be in the range of 75 cents to 85 cents.
Previously Qualcomm told investors to expect earnings of 67 cents to 92 cents per share on revenue of $5.3 billion to $6.1 billion.
Qualcomm shares sank following the early morning announcement April 28, but they closed 1 percent higher at $53.74.