from the that's-only-two-bits dept.
Qualcomm Inc., the biggest maker of chips used in mobile phones, said a push into new markets such as automotive and connected devices bolstered sales in the second quarter, helping relieve concerns that growth will be hurt by legal challenges in its licensing business.
[...] Qualcomm's net income in the fiscal second quarter, which ended March 26, fell to $749 million, or 50 cents a share. Excluding certain items, profit was $1.34 a share, compared with an average estimate of $1.19. Adjusted sales gained 8 percent to $5.99 billion. Analysts had predicted revenue of $5.87 billion.
[...] The results help validate Mollenkopf's decision to acquire NXP Semiconductor Inc. for $47 billion -- the biggest purchase in the company's history, due to close later this year -- to ease Qualcomm's reliance on the smartphone market. The semiconductor maker said its licensing business, which generates the majority of profit, didn't receive full royalty payments associated with phones sold by Apple Inc., which is suing Qualcomm, claiming the company abused its position to create a monopoly in chips. Qualcomm has countersued.
The patent licensing battle between Apple and Qualcomm keeps getting more heated. Wednesday, Qualcomm filed another lawsuit against Apple, this time alleging Apple shared confidential Qualcomm software information with its chip rival, Intel. The breach of contract lawsuit said Qualcomm gave Apple "unprecedented access to Qualcomm's very valuable and highly confidential software, including source code." In return, Apple agreed to take steps to keep the software confidential and secure. But Qualcomm said instead it found that Apple shared information with Intel.
In one instance, Apple requested confidential software information from Qualcomm and cc'd an Intel engineer on the message, Qualcomm said.
Qualcomm wants a court to declare Apple breached the agreement and award damages, among other demands. "As the direct and proximate result of Apple's conduct, Qualcomm has suffered significant damages in an amount to be proven at trial," the filing said.
Apple also hasn't complied with Qualcomm's rights to audit Apple's compliance with the provisions of their software agreement, Qualcomm said in its lawsuit. It wants to do so to make sure Apple hasn't shared more information with Intel.
Previously: U.S. Federal Trade Commission Sues Qualcomm for Anti-Competitive Practices
Qualcomm's Good Quarter
Intel Hints at Patent Fight With Microsoft and Qualcomm Over x86 Emulation
Apple vs. Qualcomm Escalates, Manufacturers Join in, Lawsuits Filed in California and Germany
Apple Could Switch From Qualcomm to Intel and MediaTek for Modems