San Diego-based mobile chip-maker Qualcomm announced Tuesday that it won't reorganize its corporate structure following a review prompted by plunging revenues and profits.
A special committee of members of the board of directors found that the current structure best positions the company in the marketplace and will provide the greatest shareholder value.
"The strategic benefits of the current structure will best fuel Qualcomm's growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries," said CEO Steve Mollenkopf.
"The strategic benefits and synergies of our model are not replicable through alternative structures," Mollenkopf said. "We therefore believe the current structure is the best way to execute on our strategy to build on our position in the ecosystem and deliver enhanced performance and returns."
He said the company had a plan in place that they believe will drive growth, and that implementation is off to a good start.
The decision comes just over a month after the company announced fiscal 2015 results that included a 5 percent reduction in revenue, a 34 percent drop in net income and 31 percent decline in earnings per share.
In July, Qualcomm executives decided to lay off about 15 percent of its global workforce of around 30,000, and said they would look into whether to break up the company, which is divided between its chip business and patent licensing.
The company has also faced regulatory pressure in Asian and Europe.
Last week, the Brussels, Belgium-based European Commission accused Qualcomm of illegally paying a major customer for exclusive use of its chipsets, and selling chipsets below cost with the aim of forcing a competitor out of the market. Qualcomm also announced it was facing an investigation by authorities in Taiwan.
Qualcomm said the decision to not reorganize was unanimous. The company's first quarter performance appears to be stronger than in previous guidance, according to Qualcomm.
