Stock Quote

Blog Coverage: BlackBerry Announces Final Award in Qualcomm Arbitration; Set to Receive $940 million for the Patent Refund Case

LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. blog coverage looks at the headline from BlackBerry Ltd (NASDAQ: BBRY) and Qualcomm Inc. (NASDAQ: QCOM). BlackBerry announced on May 26, 2017, that it has reached an agreement with Qualcomm, resolving all amounts payable, in reference to the interim arbitration decision announced on April 12, 2017. Post a joint stipulation by the parties, the arbitration panel has issued a final award, where Qualcomm will pay BlackBerry a total amount of $940 million including interest and attorney's fees, net of certain royalties due from BlackBerry for FY16 and Q1 FY17. Qualcomm is legible to pay the full amount of the final award by May 31, 2017. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

Today, AWS is promoting its blog coverage on BBRY and QCOM. Get all of our free blog coverage and more by clicking on the link below:
http://www.activewallst.com/register/.

Qualcomm Arbitration

On April 12, 2017, BlackBerry announced a binding interim arbitration decision, offering the Company $814.87 million in royalty payments made to Qualcomm. On April 20, 2016, Blackberry and Qualcomm entered into an agreement to arbitrate a dispute concerning Qualcomm's agreement to cap certain royalties applied to payments made by BlackBerry under a license agreement midst the parties. The binding arbitration hearing was held in San Diego, California from February 27, 2017, to March 03, 2017, under Judicial Arbitration and Mediation Services rules.

This arbitration payment is to refund BlackBerry's overpayment of royalty fees to Qualcomm. The Company made advance royalty payments on Qualcomm's patents where Qualcomm argued it was nonrefundable but Blackberry won the battle because the Company did not manufacture the phones involving those prepaid royalty fees. Blackberry initially argued that there should be a cap on those royalty payments that did not get applied at the time. The refund from Qualcomm will boost BlackBerry's cash hoard which was $1.7 billion at the end of Q4 FY16. The Company no longer manufactures phones that used Qualcomm Technology and argued that it was due to refund after sales collapsed.

Qualcomm's Story

Qualcomm owns multiple patents which cover the fundamentals of modern mobile technology and receives a set payment on the selling price of handsets from phone makers. The semiconductor chip maker earns a majority of its profit from the license payments. In 2010, Ontario-based BlackBerry signed a non-refundable agreement with Qualcomm to cover royalty payments through 2015. The Company shipped far fewer phones than it expected, leading it to seek a refund on some payments. Initially, Qualcomm stated on April 12, 2017, that it disagreed with the outcome of arbitration proceeding with BlackBerry, but observed that the decision was binding, and hence, could not appeal against it.

Company Growth Prospects

BlackBerry is a mobile-native security software and Services (SaaS) Company which develops devices and processes for the enterprise community. Based in Waterloo, Ontario, BlackBerry was found in 1984 and currently operates across North America, Europe, Middle-East, Asia, Latin America, and Africa. Through the proceeds from this arbitration, BlackBerry can expand in the SaaS segment and significantly elevate its position.

On April 19, 2017, BlackBerry entered into a new initiative with Allied World Assurance (NYSE: AWH) for an undisclosed amount, under which, Allied World would provide its cyber policyholders with direct access to BlackBerry's cyber security expertise through an online self-assessment tool that identifies segments of weakness. This agreement enabled BlackBerry to expand its channel reach and help policyholders stay secure from rising cyber security threats.

Stock Performance

On Friday, May 26, 2017, the stock closed the trading session at $11.11, marginally falling 0.98% from its previous closing price of $11.22. A total volume of 10.41 million shares have exchanged hands, which was higher than the 3-month average volume of 8.10 million shares. BlackBerry's stock price soared 56.48% in the last three months, 48.73% in the past six months, and 54.95% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 61.25%. The stock currently has a market cap of $5.99 billion.

On Friday, May 26, 2017, Qualcomm's stock closed the trading session at $57.52, slipping 1.59% from its previous closing price of $58.45. A total volume of 8.22 million shares have exchanged hands. The Company's stock price advanced 8.10% in the last month, 1.39% in the past three months, and 3.19% in the previous twelve months. The stock is trading at a PE ratio of 19.14 and has a dividend yield of 3.96%. At Friday's closing price, the stock's net capitalization stands at $86.36 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464420

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.