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Qualcomm says to maintain current corporate structure

One of the Qualcomm buildings in San Diego, California.
Mike Blake | Reuters

Qualcomm has decided not to separate its chipmaking 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 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.

Qualcomm had earlier forecast a profit of 80 cents to 90 cents 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 chipmaking unit.

The company had previously said that its existing structure allowed it to leverage relationships with Chinese customers looking to expand into other countries.

But Qualcomm itself has recently faced a host of problems in China and other key markets such as South Korea, including delays in closing new licensing agreements.

Up to Monday's close, the company's stock had plunged 37 percent this year.