Qualcomm Inc (NASDAQ: QCOM) has decided not to separate its chip making and technology licensing businesses, concluding a six-month strategic review pushed by hedge fund Jana Partners.
Qualcomm, the biggest maker of chips used in mobile phones, said on Tuesday its current structure offered unique strategic benefits that cannot be replicated.
The company also Tuesday raised its forecast for earnings per share for the current quarter, which it said would be at or modestly above the high end of the previous forecast ranges.
The California-based company had earlier forecast a profit of 80-90 cents U.S. per share for the quarter.
Qualcomm's technology business has thrived for years on the big royalties it collects on the chip-technology developed by its chip making unit.
Qualcomm shares came firing out of the starting blocks Tuesday morning, gaining 84 cents, or 1.8% to $47.67 U.S., within a 52-week trading range of $45.93 U.S. to $75.72 U.S.
