BlackBerry shares surge on $814.9 million Award from Qualcomm

BlackBerry Ltd. (NASDAQ: BBRY) On Wednesday said it was awarded $814.9 million in arbitration against Qualcomm Inc. over royalty payments, sending the shares up more than 16 percent.

Last April, BlackBerry decided to arbitrate a dispute over Qualcomm’s agreement to cap certain royalties applied to payments made by BlackBerry under a license pact between the two parties.

BlackBerry shares jumped as much as 16 percent to $8.93 in the early trading in New York. The amount of award is about 17 percent of BlackBerry market cap in the U.S.

"BlackBerry and Qualcomm have a longstanding relationship and continue to be valued technology partners," BlackBerry Chief Executive Officer John Chen said in the statement. "We are pleased the arbitration panel ruled in our favor and look forward to collaborating with Qualcomm in security for ASICs and solutions for the automotive industry."

BlackBerry reported better-than-expected fiscal fourth-quarter earnings last month. The company, famous for making smartphones, is now focused on building its software business. The company’s gross margin jumped significantly last quarter and it expects to profitable for its entire fiscal 2018.

BlackBerry said the final amount of the award will be issued after a hearing on May 30.

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