January 16, 2018 / 3:40 PM / a year ago

UPDATE 1-Qualcomm tries to win shareholder support, lays out lofty 2019 targets

(Adds details on cost reduction plan, background on Apple dispute, updates shares)

Jan 16 (Reuters) - Qualcomm Inc on Tuesday gave a lofty revenue, profit outlook for 2019 as the U.S. chipmaker looks to win over shareholder support to reject the hostile bid from Broadcom Ltd.

Qualcomm forecast adjusted per share profit to be between $6.75 and $7.50 on a revenue of $35 billion to $37 billion in 2019.

Analysts on an average expected a profit of $3.79 per share on revenue of $23.59 billion, according to Thomson Reuters I/B/E/S.

The company plans to achieve the profit target through a new $1 billion cost reduction plan, gains from the NXP Semiconductors NV deal and by resolving current licensing disputes, especially with Apple Inc.

Qualcomm said it saved $1.4 billion through its cost-cut plan announced in July 2015.

Apple and Qualcomm are locked in a multinational legal dispute over Qualcomm's licensing terms to the iPhone-maker.

Excluding the royalty revenues and certain product revenues from Apple and other licensee in dispute, Qualcomm's expects to earn $5.25 per share in 2019.

Regulators have also been scrutinizing Qualcomm's $38-billion acquisition of automotive chipmaker NXP Semiconductors NV.

Qualcomm said it would initiate a "large" share repurchase in a bid to drive up shareholder value if they fail to close the deal with NXP. "Our preference is to close NXP deal, but not at all costs," Qualcomm executive told shareholders in a video presentation.

In November, Qualcomm's board rejected Broadcom's $103 billion cash-and-stock bid, saying it dramatically undervalued the company.

Broadcom made its first formal move toward a hostile bid in December, laying out a slate of 11 nominees it wanted to put on Qualcomm's board. Qualcomm however rejected the nominations.

Qualcomm on Tuesday urged shareholders to re-elect its existing board and reject Broadcom's $70-per-share offer.

Shares of the San Diego, California-based Qualcomm rose nearly 3 percent to $67.22. (Reporting by Muvija M and Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur)

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