Qualcomm faces massive fine in China

|About: Qualcomm Inc. (QCOM)|By:, SA News Editor

Qualcomm (QCOM) is facing a penalty of over $1B in China as it continues talks with the country's National Development and Reform Commission (NDRC) over an antitrust probe.

Earlier this month, Qualcomm said it was uncertain what the investigation was about.

The NDRC can fine a company 1-10% of a company's revenues for the previous year - in FY 2013, Qualcomm earned $12.3B in China.

Qualcomm could get away with a lower penalty if it makes licensing and commitments of its technology.

Qualcomm is due to report FQ1 earnings after the bell, with analysts expecting that EPS dropped to $1.18 from $1.26 but that revenue rose 10.8% to $6.67B.

This was corrected on 01/29/2014 at 10:21 AM. The reporting period for Qualcomm's China revenues was misstated.