Qualcomm May Take Charge in 4th Quarter

Qualcomm Inc. said it may take a fourth-quarter charge after Leap Wireless International Inc. ended a venture in Russia that Qualcomm supplied with equipment. Qualcomm, which spun off Leap last year, said it expects to meet or exceed analysts’ 88-cents-a-share average earnings forecast, excluding charges, in the quarter. The San Diego-based firm supplied equipment to Metrosvyaz, a company trying to set up wireless phone ventures in Russia. Leap, a phone service provider, said it will cease funding Metrosvyaz because it defaulted on loans; it also accused it of questionable contracts and payments. Leap will take a $9.6-million fiscal fourth-quarter charge related to Metrosvyaz, in which it owns a 35% stake. San Diego-based Leap also had a 21% stake in Transworld Cos., a group trying to establish a domestic long-distance business in Russia. Transworld is being liquidated because the satellite on which the business relied failed. Leap will take charges totaling $17.7 million for Transworld for the quarter ended Aug. 31. Qualcomm shares gained $1.44 to close at $189.19; Leap fell 31 cents to $23.50, both on Nasdaq.