Qualcomm Taps Second Interim CFO This Year -- 3rd Update
August 23 2019 - 6:59PM
Dow Jones News
By Dave Sebastian and Mark Maurer
Qualcomm Inc. said Friday its interim finance chief David Wise
is retiring.
The move is effective Friday. The finance-chief change is the
company's second one this year.
Mr. Wise has served in the interim role since April when George
Davis left the company after six years as chief financial officer.
Mr. Davis is now the CFO of Intel Corp.
Mr. Wise previously served as Qualcomm's senior vice president
and treasurer. He joined the company in 1997.
Qualcomm said Akash Palkhiwala, the senior vice president of
finance and the finance chief of Qualcomm CDMA Technologies, has
become its interim CFO while the company looks for a permanent
replacement. Qualcomm said Mr. Wise will remain in a consulting
capacity.
Mr. Palkhiwala joined Qualcomm in 2001, having been in senior
finance roles for more than 10 years.
Mr. Wise had informed the company of his plans to retire before
accepting the interim position, agreeing to extend his employment
until the conclusion of his service, according to an April
regulatory filing.
But analysts said the timing of his departure -- while the
company's search for a permanent CFO is ongoing -- is unusual. "The
timing suggests they're not imminently filling the permanent slot,"
said Stacy Rasgon, an analyst for Sanford C. Bernstein & Co.,
who follows the company.
Also on Friday, A federal appeals court froze a ruling that
Qualcomm had committed an array of antitrust violations, a boost
for the chip maker that allows it to maintain its business
practices for now.
The Federal Trade Commission had sued the company, alleging it
engaged in an illegal monopoly that harmed smartphone manufacturers
and rival chip producers.
Last month, the company cut its full-year forecast for
smartphone sales and warned that challenges emanating from China
are hurting its business.
"The business right now looks horrendous," Mr. Rasgon said.
"I've been covering the stock for 10 years and the recent guidance
was the worst I've ever seen [for the company]."
The CFO announcement was made after the end of regular trading
on the Nasdaq. Qualcomm's shares closed at $73.52, down 4.7%.
Shares were up 0.37% to $73.79 in after-hours trading.
Write to Mark Maurer at mark.maurer@wsj.com
(END) Dow Jones Newswires
August 23, 2019 18:44 ET (22:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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