Qualcomm Takes $100 Million Revenue Deferral on Licensing Dispute With LG
Q1 revenue in Qualcomm’s QTL technology licensing business was higher than expected “and would have been even higher if not for a contract dispute with LG” that prompted QTL to defer revenue of more than $100 million for the quarter,…
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Qualcomm President Derek Aberle said Wednesday on an earnings call. “Although LG continues to report and pay, we're not recognizing revenue while the arbitration regarding the dispute proceeds,” Aberle said. “We believe LG's claims are without merit. The deferral of this revenue has the effect of depressing the implied royalty rate as you would calculate it, as their shipments are included in total reported device sales without the corresponding revenue. Assuming we conclude this matter successfully, as we have done with others in the past, we would expect to recognize the deferred revenues at that time.” LG representatives didn’t comment Thursday.