On Tuesday, Shares of QUALCOMM, Inc (NASDAQ:QCOM), lost -1.21% to $61.32.
QUALCOMM, Inc, declared that its indirect, wholly-owned partner, Qualcomm Global Trading Pte. Ltd, has accomplished its acquisition of CSR plc (CSR), a leading fabless provider of end-to-end semiconductor and software solutions for the Internet of Everything (IoE) and automotive segments. The acquisition, which was accomplished at an enterprise value of about $2.2 billion ($2.4 billion equity value)*, complements Qualcomm Technologies, Inc.’s (Qualcomm Technologies) current offerings by adding a compelling portfolio of new products, sales channels and a large number of customers in the areas of IoE and automotive – both key growth precedingities for Qualcomm Technologies.
“As we strive to connect billions more devices, automobiles and people within the Internet of Everything, we are enthusiastic about the growth that this combination will foster,” said Steve Mollenkopf, chief executive officer, Qualcomm Incorporated. “CSR’s complementary strengths in connectivity, audio technologies and systems-on-chips will assist strengthen Qualcomm Technologies’ position in the IoE and automotive industries, and add to a broad and highly advanced portfolio.”
While the accounting for the transaction is not yet finalized, Qualcomm estimates that on a Non-GAAP basis the acquisition will be modestly accretive to earnings per share in fiscal 2016 comprising with preceding guidance. In addition, based on preliminary estimates, Qualcomm anticipates the transaction to be modestly dilutive to GAAP earnings for fiscal 2016 driven primarily by acquisition-related items.
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, and the United States. The company operates through three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Planned Initiatives (QSI).
Finally, C&J Energy Services, Ltd (NYSE:CJES), ended its last trade with -10.06% loss, and closed at $5.63.
C&J Energy Services’s “underperformance” is tied to its high dilution risk with regard to covenants, Jefferies said in an analyst note.
Jefferies also mentioned the company’s 2014 revenue, which was up 50% over 2013 to $1.6 billion, as reason for confidence in its “relative recovery.”
C&J Energy Services, Ltd. provides completion and production services for oil and gas industry primarily in North America. The company provides a range of well services involved in the completion, life-of-well maintenance, and plugging and abandonment of a well to oil and natural gas drilling and production companies. It operates in three segments: Completion Services, Well Support Services, and Other Services.
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