Qualcomm Inc. said it is reviewing the need for and timing of its proposed initial public offering of Qualcomm Spinco Inc., the company’s semiconductor business, which it plans to spin off.
Regardless of the decision on the IPO, Qualcomm said it still expects the spinoff to occur by fall.
The company also said Globalstar L.P.’s decision to suspend debt payments, including vendor financing obligations, impacted its quarterly financial results.
“Our satellite business … has been impacted by economic and capital market conditions, and by Globalstar’s recent decision to suspend payments on its funded debt and study its options, including restructuring,” said Dr. Irwin M. Jacobs, Qualcomm’s chairman and chief executive officer.
Globalstar did not make a principal and interest payment of approximately $22 million owed to Qualcomm on Jan. 15.
Qualcomm reported pro forma revenues of $684 million, or 29 cents per share, for its first fiscal quarter, compared with revenues of $764 million, or 27 cents per share, during the same period last year, and $635 million, or 25 cents per share, for the fourth quarter.
The company said the increase in revenues from the fourth quarter is due to growth in royalty revenues, significant license fees from third-generation amendments to existing license agreements, new license agreements and higher unit shipments of MSM integrated circuits to wireless device manufactures, which were offset by lower revenues related to its business with Globalstar. The $100 million decrease from the year-ago period was attributed to substantially lower revenues related to the company’s business with Globalstar-from $124 million last year to $7 million this year-a decrease in OmniTracs unit shipments due to U.S. economic conditions and lower average selling prices of integrated circuits, the company said.
The company reported a net loss of $228.7 million, or 31 cents per share, including charges related to Globalstar, compared with net income of $177.1 million, or 27 cents per share, for the same period last year.
