Qualcomm forecasts sales above estimates, settles dispute with Huawei

Qualcomm Inc on Wednesday forecast fourth-quarter revenue largely above Wall Street expectations, powered by sales of its chips used in 5G devices and reaching a settlement with Huawei Technologies Co Ltd .

Shares of the company were up as much as 13% in extended trading despite a forecast for fourth-quarter chip revenue slightly lower than analysts expected because of a delayed “flagship phone launch” analyst believe is Apple’s new iPhones.

The company also said it resolved a licensing dispute with Huawei, which will pay Qualcomm a catch-up payment of $1.8 billion in the fiscal fourth quarter. While Huawei is still barred from buying Qualcomm’s chips under U.S. regulations, it has now resumed paying licensing fees for wireless technology, Qualcomm said.