Qualcomm Under Investigation for “Foreign Corrupt Practices Act”
Qualcomm's financial results for the fourth calendar quarter 2011 i.e. their first quarter in fiscal 2012 revealed a potentially problematic issue: the company is being investigated by the U.S. Attorney office and the Department of Justice.
Qualcomm recently reported record results for the company, with their fiscal 2011 ending with almost 15 billion dollar revenue, nearly a 50% growth from the fiscal 2010. The company started the fiscal 2012 with a bang, beating the analyst expectations by quite a lot. The company reported 4.68 billion U.S. dollar revenue with 1.4 billion in profits i.e. a 20% growth when looking year-on-year and 33% quarter-on-quarter.
All in all, the company had spectacular financial results, but there was one thing mentioned which was very intriguing. It turns out that the United States Attorney's Office and the Department of Justice initiated investigation regarding compliance with the Foreign Corrupt Practices Act of 1977. This is a U.S. federal law which checks for company's business practices in the country and abroad.
Will the regulators find irregularities that would be the reason for launching an official indictment – it is too early to tell.