Qualcomm Fined $975 Mln For Violating China's Anti-Monopoly Law

(RTTNews) - Qualcomm Inc. (QCOM) said Monday that it has reached a resolution with China's National Development and Reform Commission regarding the Commission's investigation of the U.S.-based chipmaker under China's Anti-Monopoly Law.

The NDRC has issued an administrative sanction decision finding that Qualcomm violated China's Anti-Monopoly Law.

Qualcomm said it will not pursue further legal proceedings contesting the NDRC's findings. The company has agreed to implement a rectification plan that modifies certain of its business practices in China and that fully satisfies the requirements of the NDRC's order.

In addition, the NDRC imposed a fine of 6.088 billion Chinese Yuan Renminbi, or about $975 million at current exchange rates, on Qualcomm. The company said it will also not contest the fine and pay it on a timely basis as required by the NDRC.

Qualcomm also said it now expects revenue of $26.3 billion to $28.0 billion, earnings of $3.56 to $3.76 per share and adjusted earnings of $4.85 to $5.05 per share for the fiscal year 2015. Previously, the company expected revenue of $26.0 billion to $28.0 billion, earnings of $4.04 to $4.34 per share and adjusted earnings of $4.75 to $5.05 per share.

Analysts polled by Thomson Reuters currently expect the company to earn $4.95 per share on revenue of $27.10 billion for the fiscal year 2015. Analysts' estimates typically exclude special items.