Qualcomm on Tuesday ruled out splitting up the company, with CEO Steve Mollenkopf insisting that its current structure will best fuel the company’s growth.
The mobile chip maker also raised its earnings per share (EPS) guidance for its first quarter of fiscal 2016.
"The strategic benefits and synergies of our model are not replicable through alternative structures," said Mollenkopf, in a statement. "We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns."
Qualcomm launched a strategic review in July and confirmed that a breakup was one of the options on the table, after reporting hefty declines in turnover and profit in the quarter ended 30 June. The company also unveiled a strategic realignment plan that includes more than 4,000 redundancies in a bid to save US$1.4 billion.
Reports at the time claimed that Qualcomm was under pressure from an activist shareholder, Jana Partners, to separate the company’s chip-making activities from its patent-licensing business.
On Tuesday, Qualcomm said the review assessed the company’s current corporate and capital structure, as well as a wide range of alternatives, and tested them thoroughly, including evaluating ways to mitigate risks and challenges posed by these alternatives.
"Given the dynamic industry and competitive environment, we decided to take a fresh look at our structure to ensure we were doing everything possible to enhance the value of the company and position ourselves for long-term success," said Qualcomm chairman Paul Jacobs.
In a separate presentation, Qualcomm said it is on track achieve its $1.4 billion savings target.
The company also raised its EPS guidance for fiscal Q1 2016. It now expects to meet or exceed its forecast of $0.80-$0.90 per share for the three months to the end of December.
