Sharp, QUALCOMM, Inc. (NASDAQ:QCOM) New Display Venture Starves Of Capital

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StockQUALCOMM, Inc. (NASDAQ:QCOM) and Sharp Corporation are on the verge to co-develop business venture for new screen technology, however there are some obstacles in the way. Most recently the Japanese electronics firm Sharp Corporation reported that a second equity investment by Qualcomm Inc has been delayed due to some agreement issues and will not take place by the end of March.

Sharp is facing troubles as it struggles to streamline core businesses to bolster its balance sheet. At this moment a sudden cash inject is necessary and Qualcomm investment delay would make the mess even harder. The electronics firm was badly crippled by nearly two years of consecutive record losses.

Both companies are fostering collaboration to build “next generation displays” by combining liquid crystal display technology held by Sharp and Qualcomm’s low power display technology. The agreement was initially reported by Sharp on December 4 after Qualcomm pledged to inject 9.9 billion Japanese yen in the venture. Moreover, the South Korean Samsung Electronics also pledged to invest 10.4 billion Japanese yen for 3 percent stake in Sharp.

QUALCOMM, Inc. (NASDAQ:QCOM) stock in last session held volume of 26.18 million shares as compare to its average volume of 11.34 million shares. The stock after opening at $66.42 hit high price of $66.58 and then closed at $64.97 by falling -2.40%.

Looking at the revenue measures, the company generated sales of 20.46 billion in last twelve months with income of $5.83 billion. The Company showed a positive 28.28% in the net profit margin and its operating margin is calculated as 30.04%. Company’s annual sales growth for the past five years was 16.60%.

QCOM past twelve months price to sales ratio was 5.46 and price to cash ratio recorded as 8.41. As far as the returns are concern, QCOM return on equity recorded as 18.28% while its return on assets stayed at 14.04%.

QUALCOMM, Inc. (NASDAQ:QCOM) and Sharp Corporation are on the verge to co-develop business venture for new screen technology, however there are some obstacles in the way. Most recently the Japanese electronics firm Sharp Corporation reported that a second equity investment by Qualcomm Inc has been delayed due to some agreement issues and will not take place by the end of March.

Sharp is facing troubles as it struggles to streamline core businesses to bolster its balance sheet. At this moment a sudden cash inject is necessary and Qualcomm investment delay would make the mess even harder. The electronics firm was badly crippled by nearly two years of consecutive record losses.

Both companies are fostering collaboration to build “next generation displays” by combining liquid crystal display technology held by Sharp and Qualcomm’s low power display technology. The agreement was initially reported by Sharp on December 4 after Qualcomm pledged to inject 9.9 billion Japanese yen in the venture. Moreover, the South Korean Samsung Electronics also pledged to invest 10.4 billion Japanese yen for 3 percent stake in Sharp.


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