Qualcomm has decided not to split its chipmaking and licensing businesses, saying that the current structure is best for business.
The decision follows a strategic review by a special committee comprised of the company’s board of directors.
The committee concluded that the company’s existing corporate and financial structure allows it to lead the next generation of mobile innovation and drive greatest value for stockholders
Qualcomm CEO Steve Mollenkopf said: "The strategic benefits of the current structure will best fuel Qualcomm’s growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries.
"We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns."
New York hedge fund Jana Partners, which holds a $2bn stake in Qualcomm, forced the company to spin off its chip business to cut costs, repurchase shares faster and bring new members to its board.
Citing people familiar with the matter, Reuters reported that Jana is comfortable with Qualcomm’s latest decision and supportive of the board’s efforts.
The company said business in the existing quarter was better than anticipated as 3G/4G device ASPs and shipments are favorably impacting the licensing business.
Qualcomm expects earnings per share to be at or modestly above the high end of earlier forecasts of 80 cents to 90 cents a share for the quarter.
