Qualcomm (NASDAQ: QCOM) is expecting to obtain up to $4.7 billion from its settlement with Apple (NASDAQ:AAPL) and its contract manufacturers.
On April 16, Apple and Qualcomm entered into a settlement agreement to end all of their ongoing patent litigation. The companies also signed a six-year global patent license agreement (including an option for Apple to extend for an additional two years). The chip maker also entered a multi-year chipset supply agreement with the iPhone maker.
On Wednesday, Qualcomm disclosed its second quarter financial results and business outlook for the next quarter.
“While we continue to assess the accounting impacts of the agreements, our financial guidance for the third quarter of fiscal 2019 includes estimated revenues of $4.5 billion to $4.7 billion resulting from the settlement (which will be excluded from our Non-GAAP results), consisting of a payment from Apple and the release of our obligations to pay or refund Apple and the contract manufacturers certain customer-related liabilities,” according to Qualcomm.
