Qualcomm Incorporated

QUALCOMM Announces Second Quarter Fiscal 2006 Results

    San Diego (ots/PRNewswire) -

    - Revenues US$1.83 Billion, Diluted EPS US$0.34

SAN DIEGO, April 19 /PRNewswire/ --

    - Pro Forma Revenues US$1.83 Billion, Diluted EPS US$0.41

SAN DIEGO, April 19 /PRNewswire/ --

    - Third Consecutive Quarter of Record Revenues and Chip Shipments; Financial Guidance Increased for Fiscal 2006

    QUALCOMM Incorporated (Nasdaq: QCOM) today announced results for the second fiscal quarter ended March 26, 2006.

    Total QUALCOMM (GAAP) Second Quarter Results:

    Total QUALCOMM results are reported in accordance with Generally Accepted Accounting Principles (GAAP).

@@start.t1@@      - Revenues: US$1.83 billion, up 34 percent year-over-year and 5 percent
         sequentially.
      - Net income: US$593 million, up 11 percent year-over-year and down
         4 percent sequentially.
      - Diluted earnings per share: US$0.34, up 10 percent year-over-year and
         down 6 percent sequentially.
      - Effective tax rate: 25 percent for the quarter. Fiscal 2006 estimate of
         approximately 22 percent.
      - Estimated share-based compensation: US$78 million, net of tax.
      - Operating cash flow: US$889 million, up 8 percent year-over-year;
         48 percent of revenue.
      - Return of capital to stockholders: US$298 million in cash dividends
         paid.@@end@@

    QUALCOMM Pro Forma Second Quarter Results:

    Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI) segment, estimated share-based compensation, acquired in-process research and development (R&D) expense and tax benefits related to prior years.

@@start.t2@@      - Revenues: US$1.83 billion, up 34 percent year-over-year and 5 percent
         sequentially.
      - Net income: US$706 million, up 45 percent year-over-year and 6 percent
         sequentially.
      - Diluted earnings per share: US$0.41, up 41 percent year-over-year and
         5 percent sequentially; excludes US$0.01 loss per share attributable to
         the QSI segment, US$0.05 loss per share attributable to estimated
         share-based compensation and US$0.01 loss per share related to acquired
         in-process R&D expense.
      - Effective tax rate: 27 percent for the quarter and estimated for
         fiscal 2006.
      - Free cash flow: US$947 million, up 28 percent year-over-year; 52
         percent of revenue. (Defined as net cash from operating activities less
         capital expenditures)@@end@@

    Detailed reconciliations between total QUALCOMM (GAAP) results and QUALCOMM pro forma results and cash flows are included at the end of this news release. Prior period reconciliations are presented on our Investor Relations web page at www.qualcomm.com.

    "QUALCOMM's record revenue this quarter was driven by greater overall CDMA handset shipments and record demand for our chipsets," said Dr. Paul E. Jacobs, CEO of QUALCOMM. "I am pleased that demand for our chipsets was spread across our broadly segmented products with particular strength in higher tier chipsets for CDMA2000(R) 1xEV-DO and WCDMA/HSPDA and in the lower tier MSM6000(R) chipsets for CDMA2000 emerging markets. This broad demand is testimony to the fact that CDMA-based networks enable advanced data capabilities for developed markets as well as effectively serving more voice centric developing markets. CDMA market growth is an important goal for QUALCOMM and a key ingredient to increasing shareholder value. We will focus on that goal by enabling our partners with products and services to meet the increasing needs of their customers."

    "While we continue to execute well on meeting the needs of our partners with existing products and services, I am optimistic about the market acceptance of new and future products including DO Revision A and B, HSDPA, HSUPA, MediaFLO(TM), single chip solutions and uiOne(TM) for customizing the user interface on a wireless handset. Being first to market with chipsets for DO, DO Revision A, HSDPA and HSUPA is indicative of our technology leadership and our ability to execute on our research and development investments."

    Cash and Marketable Securities

    QUALCOMM's cash, cash equivalents and marketable securities totaled approximately US$10.2 billion at the end of the second quarter of fiscal 2006, compared to US$9.4 billion at the end of the prior quarter and US$8.3 billion a year ago. During the second quarter of fiscal 2006, we paid US$285 million in cash for acquisitions, and we announced a 33 percent increase in our quarterly dividend from US$0.09 to US$0.12 per share. A cash dividend of US$0.12 per common share is payable on June 23, 2006 to stockholders of record at the close of business on May 26, 2006.

    Estimated Share-Based Compensation

    In the first quarter of fiscal 2006, we adopted the revised Statement of Financial Accounting Standards No. 123, Share-Based Payment (FAS 123R), which requires that share-based compensation be recorded in our financial statements. We have implemented FAS 123R using the modified prospective method. Under this method, prior periods are not revised for comparative purposes. Estimated share-based compensation is included in operating expenses, however, it is not allocated to business segments or included in pro forma results because we do not consider it relevant when evaluating the operating performance of our business. Total QUALCOMM (GAAP) net income for the second quarter of fiscal 2006 included estimated share-based compensation of US$78 million, net of tax, or US$0.05 per share.

@@start.t3@@      Research and Development
      (US$ in millions)                    Estimated                                        Total
                                 QUALCOMM      Share-Based    In-Process                QUALCOMM
                                Pro Forma    Compensation    R&D Expense      QSI    (GAAP)
      Second quarter
        fiscal 2006          $302                $52                 $21            $15      $390
      Second quarter
        fiscal 2005          $242                $--                 $--            $10      $252
      Year-over-year
        change                      25%                                                        50%        55%@@end@@

    Pro forma R&D expenses increased 25 percent year-over-year, primarily due to additional engineering resources for the development of integrated circuit products and other initiatives to support low-cost phones, multimedia applications, high-speed wireless Internet access and multimode, multiband, multinetwork products and technologies, including CDMA2000, 1xEV-DO, DO Revision A, WCDMA (including GSM/GPRS/EDGE), HSDPA, HSUPA and OFDMA, and the development of our iMoD(TM) display products using MEMS technology. QSI R&D expenses increased year-over-year primarily due to increased R&D activities related to MediaFLO USA.

@@start.t4@@      Selling, General and Administrative
      (US$ in millions)                          Estimated                              Total
                                    QUALCOMM         Share-Based                         QUALCOMM
                                  Pro Forma        Compensation            QSI          (GAAP)
      Second quarter
        fiscal 2006              $188                  $58                  $17            $263
      Second quarter
        fiscal 2005              $149                  $--                    $6            $155
      Year-over-year
        change                         26%                                         183%              70%@@end@@

    Pro forma selling, general and administrative (SG&A) expenses increased 26 percent year-over-year, largely attributable to increases in employee related expenses to support our growing worldwide customer base, and professional fees related to legal activities. The year-over-year increase in QSI SG&A expenses is primarily related to MediaFLO USA.

    Effective Income Tax Rate

    Our fiscal 2006 effective income tax rate is estimated to be approximately 22 percent. The second quarter tax rate of 25 percent for total QUALCOMM is higher than the estimated annual effective tax rate due primarily to US$56 million of tax benefits recorded in the first quarter related to the expected impact of prior year tax audits completed during that quarter. Our fiscal 2006 QUALCOMM pro forma effective tax rate is estimated to be approximately 27 percent, compared to our previous estimate of approximately 26 percent.

    QUALCOMM Strategic Initiatives

    The QSI segment includes our strategic investments, including our MediaFLO USA subsidiary, and related income and expenses. Total QUALCOMM (GAAP) results for the second quarter of fiscal 2006 included US$0.01 loss per share for the QSI segment consistent with the second quarter of fiscal 2005. The second quarter fiscal 2006 QSI results include US$32 million of operating expenses, primarily related to MediaFLO USA, and US$10 million of equity in losses of investees, partially offset by US$6 million of realized gains on investments.

    Business Outlook

    The following statements are forward-looking and actual results may differ materially. Please see "Note Regarding Forward-Looking Statements" at the end of this news release for a description of certain risk factors and QUALCOMM's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks. Due to their nature, certain income and expense items, such as realized investment gains or losses in QSI, gains and losses on certain derivative instruments or asset impairments, cannot be accurately forecast. Accordingly, the Company excludes forecasts of such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.

    The following table summarizes total QUALCOMM (GAAP) and QUALCOMM pro forma guidance for the third quarter of fiscal 2006 based on the current business outlook. Total QUALCOMM (GAAP) guidance for the third fiscal quarter of 2006 includes approximately US$0.05 diluted loss per share related to estimated share-based compensation. Estimated share-based compensation in future periods may vary materially from the business outlook as the methodology used to calculate this estimate is dependent on a variety of assumptions which are subject to market fluctuations and other factors. A pro forma business outlook is provided below consistent with the presentation of pro forma results provided elsewhere herein.

    Our updated guidance, as compared to our prior guidance, reflects an increase in our revenue and earnings guidance for fiscal 2006. In addition, we are increasing our estimate for calendar 2006 handset shipments by approximately 8%, which is based on indications of increased market demand. Our handset shipment forecast will be discussed in more detail during our second quarter conference call. This call is scheduled for 1:45pm (PDT) on Wednesday, April 19, 2006. Refer to conference call dial-in information included at the end of this press release.

    The following estimates are approximations and are based on the current business outlook:

@@start.t5@@      (All figures are in US$)
                                          Business Outlook Summary
      THIRD QUARTER
                                                                                          Current Guidance
                                                                        Q3'05                  Q3'06
                                                                      Results                Estimates
      QUALCOMM Pro Forma
      Revenues                                                  $1.36B              $1.77B - $1.87B
      Year-over-year change                                                 increase 30% - 38%
      Diluted earnings per share (EPS)              $0.28                 $0.36 - $0.38
      Year-over-year change                                                 increase 29% - 36%
      Total QUALCOMM (GAAP)
      Revenues                                                  $1.36B              $1.77B - $1.87B
      Year-over-year change                                                 increase 30% - 38%
      Diluted earnings per share (EPS)              $0.33                 $0.30 - $0.32
      Year-over-year change                                                    decrease 3% - 9%
      Diluted EPS attributable to QSI                $0.05                          ($0.01)
      Diluted EPS attributable to
         estimated share-based compensation          n/a                          ($0.05)
      EPS attributable to tax benefit
         related to prior years                          $0.01                                 n/a
      Metrics
      MSM Shipments                                  approx. 36M          approx. 50M - 53M
      CDMA/WCDMA handset units
         shipped                                         approx. 43M(i)      approx. 62M - 64M(i)
      CDMA/WCDMA handset unit
         wholesale average
         selling price                              approx. $231(i)              approx. $203(i)
        (i) Shipments in Mar. quarter, reported in Jun. quarter
      FISCAL YEAR
                                                            Prior Guidance         Current Guidance
                                        FY 2005                FY 2006                        FY 2006
                                        Results              Estimates                    Estimates
      QUALCOMM Pro Forma
      Revenues                      $5.67B              $6.7B - $7.1B            $7.1B - $7.4B
      Year-over-year
        change                                        increase 18% - 25%    increase 25% - 30%
      Diluted earnings
        per share (EPS)          $1.16              $1.43 - $1.47            $1.53 - $1.57
      Year-over-year
        change                                        increase 23% - 27%    increase 32% - 35%
      Total QUALCOMM
        (GAAP)
      Revenues                      $5.67B              $6.7B - $7.1B            $7.1B - $7.4B
      Year-over-year
        change                                        increase 18% - 25%    increase 25% - 30%
      Diluted earnings
        per share (EPS)          $1.26              $1.19 - $1.23            $1.31 - $1.35
      Year-over-year
        change                                          decrease 2% - 6%        increase 4% - 7%
      Diluted EPS
        attributable
        to in-process R&D         n/a                          ($0.01)                      ($0.01)
      Diluted EPS
        attributable
        to QSI                        $0.06                          ($0.06)                      ($0.04)
      Diluted EPS
        attributable
        to estimated
        share-based
        compensation                 n/a                          ($0.20)                      ($0.20)
      Diluted EPS
        attributable
        to tax benefit
        related to prior
        years                         $0.04                            $0.03                         $0.03
      Metrics
      Fiscal year(ii)
        CDMA/WCDMA
        handset unit
        wholesale average
        selling price        approx. $215            approx. $210            approx. $207
        (ii)Shipments in Sep. to June quarters, reported in Dec. to Sep.
              quarters
      CALENDAR YEAR  Handset Estimates
      CDMA/WCDMA handset
        unit shipments                                      Prior Guidance  Current Guidance
                                                                      Calendar 2006        Calendar 2006
                                  Calendar 2005                  Estimates                Estimates
      March quarter          approx. 43M              not provided    approx. 62 - 64M
      June quarter            approx. 48M              not provided          not provided
      September quarter    approx. 52M              not provided          not provided
      December quarter      approx. 67M              not provided          not provided
      Calendar year
        range                    approx. 210M  approx. 255M - 270M  approx. 275M - 290M
                                         Midpoint                         Midpoint                 Midpoint
      CDMA/WCDMA units    approx. 210M                  approx. 262M         approx. 283M
      CDMA units              approx. 160M                  approx. 176M         approx. 187M
      WCDMA units              approx. 50M                    approx. 86M          approx. 96M
      Sums may not equal totals due to rounding@@end@@

@@start.t6@@      Results of Business Segments
      (dollars in millions, except per share data):
      Second Quarter - Fiscal Year 2006
                                                                                                          QUALCOMM
                                                                              Reconciling                Pro
      Segments                          QCT      QTL    QWI         Items(1)                Forma
      Revenues                         $1,018  $679  $162            $(25)              $1,834
      Change from prior year        36%    38%      7%              N/M                    34%
      Change from prior
        quarter                              (1%)  20%    (2%)            N/M                      5%
      EBT                                    $252  $626    $16              $68                  $962
      Change from prior year        59%    40%  100%              N/M                    44%
      Change from prior
        quarter                            (16%)  21%    (6%)            N/M                      6%
      Net income (loss)                                                                                706
      Change from prior year                                                                        45%
      Change from prior
        quarter                                                                                                6%
      Diluted EPS                                                                                      $0.41
      Change from prior year                                                                        41%
      Change from prior
        quarter                                                                                                5%
      Diluted shares used                                                                         1,721
      Second Quarter - Fiscal Year 2006
                                                        Estimated
                                                          Share-                                         Total
                                                          Based         In-Process                QUALCOMM
      Segments                                Compensation(2)      R&D(3)    QSI(4)    (GAAP)
      Revenues                                          $-                    $-          $-      $1,834
      Change from prior year                      -                      -            -          34%
      Change from prior quarter                 -                      -            -            5%
      EBT                                                $(120)              $(21)      $(36)        $785
      Change from prior year                    N/M                 N/M         N/M          24%
      Change from prior quarter                N/M                 N/M         N/M            7%
      Net income (loss)                            (78)                (21)        (14)        $593
      Change from prior year                    N/M                 N/M         N/M          11%
      Change from prior quarter                N/M                 N/M         N/M          (4%)
      Diluted EPS                                 $(0.05)          $(0.01)  $(0.01)      $0.34
      Change from prior year                    N/M                 N/M         N/M          10%
      Change from prior quarter                N/M                 N/M         N/M          (6%)
      Diluted shares used                      1,721              1,721      1,721        1,721
      First Quarter - Fiscal Year 2006
                                                                                                          QUALCOMM
                                                                                    Reconciling         Pro
      Segments                              QCT        QTL        QWI        Items(1)         Forma
      Revenues                         $1,033      $564      $166          $(22)          $1,741
      EBT                                      300        517         17              72                 906
      Net income (loss)                                                                                 667
      Diluted EPS                                                                                        $0.39
      Diluted shares used                                                                          1,702
      First Quarter - Fiscal Year 2006
                                          Estimated
                                              Share-                                                      Total
                                              Based                  Tax                              QUALCOMM
      Segments                    Compensation(2)    Adjustment(5)    QSI(4)        (GAAP)
      Revenues                              $-                      $-                 $-         $1,741
      EBT                                    (122)                    -                (48)          $736
      Net income (loss)                (82)                  56                (21)            620
      Diluted EPS                    $(0.05)              $0.03          $(0.01)         $0.36
      Diluted shares used         1,702                1,702            1,702          1,702
      Second Quarter - Fiscal Year 2005
      Segments                                                                            Reconciling
                                                 QCT          QTL          QWI            Items(1)
      Revenues                              $746         $493         $151                 $(25)
      EBT                                        158          448              8                    52
      Net income (loss)
      Diluted EPS
      Diluted shares used
      Second Quarter - Fiscal Year 2005
                                                                                                              Total
      Segments                        QUALCOMM          Tax                                QUALCOMM
                                         Pro Forma        Adjustments(6)      QSI(4)      (GAAP)
      Revenues                          $1,365                 $-                    $-        $1,365
      EBT                                        666                  -                  (33)         $633
      Net income (loss)                 487                 55                  (10)         $532
      Diluted EPS                        $0.29            $0.03              $(0.01)        $0.31
      Diluted shares used          1,704            1,704                1,704         1,704
      Third Quarter - Fiscal Year 2005
      Segments                                                                            Reconciling
                                                 QCT          QTL          QWI            Items(1)
      Revenues                            $766         $448         $164                $(20)
      EBT                                      186          407            12                  51
      Net income
      Diluted EPS
      Diluted shares used
      Third Quarter - Fiscal Year 2005
      Segments                                                                                         Total
                                         QUALCOMM              Tax                                QUALCOMM
                                        Pro Forma      Adjustments(7)      QSI(4)         (GAAP)
      Revenues                        $1,358                 $-                    $-          $1,358
      EBT                                    656                  -                    30              $686
      Net income                         465                 16                    79              $560
      Diluted EPS                    $0.28            $0.01                $0.05            $0.33
      Diluted shares used        1,683            1,683                1,683            1,683
      Twelve Months - Fiscal Year 2005
      Segments                              QCT            QTL            QWI         Reconciling
                                                                                                      Items (1)
      Revenues                         $3,290        $1,839          $644                $(100)
      EBT                                      852         1,663              57                  227
      Net income
      Diluted EPS
      Diluted shares used
      Twelve Months - Fiscal Year 2005
      Segments                                                                                         Total
                                        QUALCOMM          Tax                                    QUALCOMM
                                      Pro Forma    Adjustments(6)(7)      QSI(4)        (GAAP)
      Revenues                    $5,673                 $-                        $-         $5,673
      EBT                              2,799                  -                        10         $2,809
      Net income                  1,970                 71                      102         $2,143
      Diluted EPS                 $1.16            $0.04                  $0.06          $1.26
      Diluted shares used    1,694            1,694                  1,694          1,694
      Six Months - Fiscal Year 2006
                                                                                                            QUALCOMM
                                                                                    Reconciling          Pro
      Segments                                 QCT         QTL      QWI    Items(1)         Forma
      Revenues                            $2,051    $1,243    $328      $(47)          $3,575
      Change from prior year          27%         39%        6%        N/M                 30%
      EBT                                        $552    $1,143      $34      $139            $1,868
      Change from prior year          38%         42%      42%        N/M                 41%
      Net income (loss)                                                                            1,373
      Change from prior year                                                                        43%
      Diluted EPS                                                                                      $0.80
      Change from prior year                                                                        43%
      Diluted shares used                                                                         1,711
      Six Months - Fiscal Year 2006
                                        Estimated
                                          Share-                                    In-                 Total
                                          Based                 Tax            Process            QUALCOMM
      Segments                 Compensation(2)  Adjustment(5)  R&D(3)  QSI(4)  (GAAP)
      Revenues                          $-                    $-                $-         $-      $3,575
      Change from prior
        year                                 -                      -                 -          -          30%
      EBT                              $(242)                  $-            $(21)    $(84)    $1,521
      Change from prior
        year                              N/M                      -                 -        N/M          14%
      Net income (loss)         (160)                  56              (21)      (35)    $1,213
      Change from prior
        year                              N/M                  N/M              N/M        N/M          16%
      Diluted EPS                $(0.09)              $0.03         $(0.01) $(0.02)      $0.71
      Change from prior
        year                              N/M                  N/M              N/M        N/M          16%
      Diluted shares
        used                          1,711                1,711          1,711    1,711        1,711
      Six Months - Fiscal Year 2005
      Segments                            QCT          QTL              QWI            Reconciling
                                                                                                         Items(1)
      Revenues                        $1,611         $893            $310                 $(60)
      EBT                                    400          805                24                    100
      Net income
      Diluted EPS
      Diluted shares used
      Six Months - Fiscal Year 2005
      Segments                                                                                        Total
                                        QUALCOMM              Tax                                 QUALCOMM
                                      Pro Forma      Adjustments(6)      QSI(4)         (GAAP)
      Revenues                      $2,754                 $-                    $-            $2,754
      EBT                                1,329                  -                      8              1,337
      Net income                        961                 55                    29              1,045
      Diluted EPS                  $0.56            $0.03                $0.02              $0.61
      Diluted shares used      1,704            1,704                1,704              1,704@@end@@

@@start.t7@@      (1) Reconciling items related to revenues consist primarily of other non-
            reportable segment revenues less intersegment eliminations.
            Reconciling items related to earnings before taxes consist primarily
            of corporate expenses, charges that are not allocated to the segments
            for management reporting purposes, unallocated net investment income,
            non-reportable segment results, interest expense and the elimination
            of intercompany profit.
      (2) During the first quarter of fiscal 2006, the Company adopted the fair
            value recognition provisions of FAS 123R using a modified prospective
            application.  Under this method, prior periods are not revised for
            comparative purposes.  Share-based compensation is included in
            operating expenses as part of employee-related costs but is not
            allocated to our segments as these estimated costs are not considered
            relevant by management in evaluating segment performance.
      (3) During the second quarter of fiscal 2006, the Company recorded
            US$21 million of expenses related to acquired in-process R&D
            associated with the acquisitions of Berkana Wireless Inc. and Flarion
            Technologies, Inc.  For fiscal 2006 pro forma presentation, results
            have been adjusted to exclude these expenses as they are unrelated to
            the Company's ongoing core operating businesses and are also not
            allocated to our segments as these costs are not considered relevant
            by management in evaluating segment performance.
      (4) At fiscal year-end, the sum of the quarterly tax provisions for each
            column, including QSI, will equal the annual tax provisions for each
            column computed in accordance with GAAP.  In interim quarters, the
            tax provision for the QSI operating segment is computed by
            subtracting the tax provision for QUALCOMM pro forma, the tax
            adjustment column and the tax provision related to estimated share
            based compensation from the tax provision for total QUALCOMM (GAAP).
      (5) During the first quarter of fiscal 2006, the Company recorded a
            US$56 million tax benefit, or US$0.03 per share, related to the
            expected impact of prior year tax audits completed during the
            quarter.  For fiscal 2006 pro forma presentation, results have been
            adjusted to exclude this tax benefit attributable to prior years.
      (6) During the second quarter of fiscal 2005, the Company decreased its
            estimate of R&D costs allocable to the Company's foreign operations
            under an intercompany cost sharing agreement.  Due to this change in
            estimate, the effective tax rate in the second quarter for total
            QUALCOMM (GAAP) included a US$55 million benefit, or US$0.03 diluted
            earnings per share, related to fiscal 2004.  For fiscal 2005 pro
            forma presentation, results have been adjusted to exclude the tax
            benefit attributable to fiscal 2004.
      (7) During the third quarter of fiscal 2005, the Company made an election
            to compute its California tax on the basis of its U.S. operations
            only, which resulted in a US$38 million tax benefit.  Our effective
            tax rate in the third quarter of fiscal 2005 for total QUALCOMM
            (GAAP) includes a US$16 million tax benefit, or US$0.01 diluted
            earnings per share, for this California tax election related to
            fiscal 2004.  For fiscal 2005 pro forma presentation, results have
            been adjusted to exclude the tax benefit attributable to fiscal 2004.
        N/M - Not Meaningful
        Sums may not equal totals due to rounding.@@end@@

@@start.t8@@      Business Segment Information
      QUALCOMM CDMA Technologies (QCT)
        - For the third consecutive quarter, QCT shipped a record number of MSM
          chips. Approximately 49 million MSM chips were shipped to customers
          worldwide during the second quarter of fiscal 2006, compared to
          approximately 37 million units in the same quarter of fiscal 2005 and
          approximately 47 million units in the first quarter of fiscal 2006.
        - More than 30 equipment manufacturers are designing or offering
          more than 120 WCDMA devices based on our MSM chipsets.  We sampled the
          MSM7200(TM) chipset, which is the first to support HSUPA as well as
          WCDMA/HSDPA networks.
        - More than 250 devices are now in design or have been commercially
          launched based on our MSM solutions for 1xEV-DO.  QCT's 1xEV-DO
          portfolio was augmented with the sampling of the MSM6800(TM), our
          first 1xEV-DO Revision A product and the first chipset based on 65nm
          process technology.
        - More than five leading manufacturers are already designing devices
          featuring the first generation of QUALCOMM Single-Chip (QSC(TM))
          solutions, which integrate multiple components for slimmer and more
          cost-efficient handsets.  Handsets based on QSC products are expected
          to launch by the end of calendar year 2006.
      QUALCOMM Technology Licensing (QTL)
        - In the second quarter of fiscal 2006, five new licensees entered into
          CDMA license agreements including two licensed for CDMA2000, two
          licensed for WCDMA, and one licensed for both WCDMA and CDMA2000.
        - We entered into a royalty bearing license agreement with a licensee
          covering sales by that licensee of OFDM/OFDMA subscriber units and
          infrastructure equipment.
        - Licensee information for the first quarter of fiscal 2006 as reported
          by licensees in the second quarter of fiscal 2006:
            -- Worldwide shipments of approximately 67 million CDMA2000 and WCDMA
                 subscriber units at an average selling price of approximately
                 US$208 were reported.
            -- We estimate WCDMA royalties contributed approximately 46 percent
                 of total royalties reported compared to approximately 40 percent
                 reported in the prior quarter and approximately 32 percent in the
                 year ago quarter.
      QUALCOMM Wireless & Internet Group (QWI)
         QUALCOMM Internet Services (QIS)
            - QUALCOMM has 66 BREW(R) customers in 31 countries.
            - The BREW solution has driven a number of milestones for operators
                around the world including Verizon Wireless which stated the
                company saw a 36 percent growth in gaming downloads over the last
                year since launching premium BREW 3D games as part of their V CAST
                service.  KDDI announced that as of December 2005, their
                subscribers have downloaded more than 75 million data applications
                on more than 20 million BREW devices.
            - Asia Pacific Broadband Wireless Communication (APBW) commercially
                launched BREW services in Taiwan.
         QUALCOMM Wireless Business Solutions(R) (QWBS)
            - We shipped approximately 8,200 satellite-based systems
                (OmniTRACS(R), EutelTRACS(TM) and TruckMAIL(TM)) in the second
                quarter of fiscal 2006, compared to approximately 8,800 in the
                second quarter of fiscal 2005 and approximately 11,800 in the first
                quarter of fiscal 2006.  This brings the cumulative total
                satellite-based systems shipped worldwide to more than 586,000.
            - We shipped approximately 8,000 terrestrial-based systems
                (OmniExpress(R), GlobalTRACS(R) and T2 Untethered TrailerTRACS(TM))
                in the second quarter of fiscal 2006, compared to approximately
                13,800 terrestrial-based systems in the second quarter of fiscal
                2005 and approximately 15,100 terrestrial-based systems in the
                first quarter of fiscal 2006.  This brings the cumulative total
                terrestrial-based systems shipped worldwide to more than 108,000.
         QUALCOMM Strategic Initiatives (QSI)
            - MediaFLO USA and Network LIVE, a joint venture between AOL, XM
                Satellite Radio and AEG, announced an agreement to provide Network
                LIVE content and programming for MediaFLO USA's wireless multimedia
                service offering.
            - We provided city-wide coverage of FLO(TM) Technology and conducted
                live, over-the-air MediaFLO demonstrations at CTIA Wireless 2006 in
                Las Vegas. These demonstrations included nine channels of live
                video and datacasting applications on eight proof-of-concept
                devices (including one UMTS/FLO handset) from leading handset
                manufacturers including, Kyocera, LG Electronics, Motorola,
                Pantech, Samsung Electronics Co., Ltd. and Sharp Corporation.
            - The FLO Forum announced the ratification of key technical
                specifications developed by its Test and Certification Committee.
                The technical and performance requirements captured in the
                documents assure interoperability and compatibility for FLO based
                terrestrial mobile multimedia multicast devices and transmitters.
            - We announced a joint investment in China with TechFaith to found a
                new company, TechFaith Software (China) Limited or "TechSoft," that
                will develop application software for 3G CDMA devices.
         Other
            - We completed the acquisition of Flarion Technologies, Inc., a
                developer of OFDMA technology.
            - We completed the acquisition of Berkana Wireless Inc., a fabless
                semiconductor company that develops complementary metal oxide
                semiconductor (CMOS) radio frequency integrated circuits (RFICs).@@end@@

    Conference Call

    QUALCOMM's second quarter fiscal 2006 earnings conference call will be broadcast live on April 19, 2006 beginning at 1:45 p.m. Pacific Daylight Time on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on April 19, 2006 beginning at approximately 5:30 p.m. (PDT) through May 3, 2006 at 5:30 p.m. (PDT). To listen to the replay, U.S. callers may dial +1-800-642-1687 and international callers may dial +1-706-645-9291. U.S. and international callers should use reservation number 7286389. An audio replay of the conference call will be available on the Company's web site at www.qualcomm.com for two weeks following the live call.

    QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.

    Note Regarding Use of Non-GAAP Financial Measures

    The Company presents pro forma financial information that is used by management (i) to evaluate, assess and benchmark the Company's operating results on a consistent and comparable basis, (ii) to measure the performance and efficiency of the Company's ongoing core operating businesses, including the QUALCOMM CDMA Technologies, QUALCOMM Technology Licensing and QUALCOMM Wireless & Internet segments, and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Pro forma measurements of the following financial data are used by the Company's management: revenues, R&D expenses, SG&A expenses, total operating expenses, operating income, net investment income, income before income taxes, effective tax rate, net income, diluted earnings per share, operating cash flow and free cash flow.

    Pro forma information used by management excludes the QUALCOMM Strategic Initiatives (QSI) segment, estimated share-based compensation, certain tax benefits related to prior years and acquired in-process R&D expense. The QSI segment is excluded because the Company expects to exit its strategic investments at various times and the effects of fluctuations in the value of such investments are viewed by management as unrelated to the Company's operational performance. Estimated share-based compensation is excluded because management views the valuation of options and other share-based compensation as theoretical and unrelated to the Company's operational performance as it is affected by factors that are subject to change on each grant date including the Company's stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Moreover, it is not an expense that requires or will require cash payment by the Company. Certain tax benefits related to prior years are excluded in order to provide a clearer understanding of the Company's ongoing tax rate and after tax earnings. Acquired in-process R&D expense in fiscal 2006 is excluded because such expense is incurred infrequently and is viewed by management as unrelated to the operating activities of the Company's ongoing core businesses.

    Management is able to assess what it believes is a more fundamentally pure and comparable set of financial performance measures for the Company and its business segments by eliminating the episodic impact of strategic investments in QSI and items such as acquired in-process R&D, as well as the inherent, non-operational volatility of share-based compensation. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on pro forma financial measures applicable to the Company and its business segments.

    The Company's management uses pro forma cash flow information including marketable securities to analyze increases and decreases in certain of its liquid assets, comprised of cash, cash equivalents and marketable securities. Management views certain marketable securities as liquid assets available on short notice to fund operations, acquisitions, strategic initiatives, stock repurchases and dividends even though these marketable securities do not meet the definition of cash equivalents in accordance with Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows." The GAAP statements of cash flows report the purchases and sales of marketable securities as inflows and outflows. For internal analysis of the Company's cash position, management does not view these transactions as inflows and outflows from the business, but as cash management transactions. The Company believes that this non-GAAP presentation is a helpful and practical measure of the Company's liquidity.

    The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to value the Company and to compare its operating performance with other companies in the industry.

    The non-GAAP pro forma financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, pro forma is not a term defined by GAAP, and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies. Reconciliations between total QUALCOMM (GAAP) results and QUALCOMM pro forma results and total QUALCOMM (GAAP) cash flow and QUALCOMM pro forma changes in cash, cash equivalents and marketable securities are presented herein.

    Note Regarding Forward-Looking Statements

    In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA-based networks and CDMA-based technology, including CDMA2000 1X,

    1xEV-DO, WCDMA and HSDPA both domestically and internationally; our dependence on major customers and licensees; fluctuations in the demand for CDMA-based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the Company has or may pursue; our dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation; the development, deployment and commercial acceptance of the MediaFLO USA network and FLO technology; as well as the other risks detailed from time-to-time in the Company's SEC reports.

    (C) 2006 QUALCOMM Incorporated. All rights reserved. QUALCOMM is a registered trademark of QUALCOMM Incorporated. CDMA2000(R) is a registered trademark of the Telecommunications Industry Association. All other trademarks are the property of their respective owners.

      QUALCOMM Contact:
      Bill Davidson
      Vice President, Investor Relations
      +1-858-658-4813 (ph) +1-858-651-9303 (fax)
      e-mail: ir@qualcomm.com

@@start.t9@@      (All figures are in US$)
                                                QUALCOMM Incorporated
                          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
                              PRO FORMA RESULTS TO TOTAL QUALCOMM RESULTS
                                  (In millions, except per share data)
                                                        (Unaudited)
                                                         Three Months Ended March 26, 2006
                                                            Estimated
                                                              Share-          In-                  Total
                                      QUALCOMM          Based         Process              QUALCOMM
                                      Pro Forma    Compensation      R&D        QSI      (GAAP)
      Revenues:
         Equipment and
          services                 $1,122              $-              $-          $-      $1,122
         Licensing and
          royalty fees                712                -                -            -          712
                                          1,834                -                -            -        1,834
      Operating expenses:
         Cost of equipment
          and services
          revenues                      511                10              -            -          521
         Research and
          development                 302                52            21          15          390
         Selling, general
          and administrative      188                58              -          17          263
                Total operating
                 expenses            1,001              120            21          32        1,174
      Operating income
        (loss)                            833            (120)         (21)        (32)         660
      Investment income
        (expense), net                129(a)            -              -          (4)(b)    125
      Income (loss) before
        income taxes                  962            (120)         (21)        (36)         785
      Income tax (expense)
        benefit                         (256)(c)         42              -          22(d)    (192)(c)
      Net income (loss)          $706            $(78)        $(21)      $(14)        $593
      Earnings (loss) per
        common share:
          Diluted                    $0.41         $(0.05)    $(0.01)  $(0.01)      $0.34
      Shares used in per
        share calculations:
          Diluted                    1,721          1,721        1,721      1,721        1,721
      Supplemental Financial
        Data:
      Operating Cash Flow    $1,072        $(172)(f)         $-        $(11)        $889
      Operating Cash Flow
        as a % of Revenue          58%                                                            48%
      Free Cash Flow (e)         $947        $(172)(f)         $-        $(47)        $728
      Free Cash Flow as
        a % of Revenue                52%                                                            40%
      (a) Includes US$102 million in interest and dividend income related to
            cash, cash equivalents and marketable securities, which are not part
            of the Company's strategic investment portfolio, US$34 million in net
            realized gains on investments and US$3 million in gains on derivative
            instruments, partially offset by US$9 million in other-than-temporary
            losses on investments and US$1 million of interest expense.
      (b) Includes US$10 million in equity in losses of investees, partially
            offset by US$6 million in realized gains on investments.
      (c) The second quarter of fiscal 2006 tax rate of 25% for total QUALCOMM
            (GAAP) is higher than the estimated annual effective tax rate of 22%
            due primarily to US$56 million of tax benefits recorded during the
            first quarter related to the expected impact of prior year tax audits
            completed in that quarter.  The fiscal year 2006 estimated effective
            tax rate is approximately 22% for total QUALCOMM (GAAP) and
            approximately 27% for QUALCOMM pro forma.
      (d) At fiscal year-end, the sum of the quarterly tax provisions for each
            column, including QSI, will equal the annual tax provisions for each
            column computed in accordance with GAAP.  In interim quarters, the
            tax provision for the QSI operating segment is computed by
            subtracting the tax provision for QUALCOMM pro forma and the tax
            provision related to estimated share-based compensation from the tax
            provision for total QUALCOMM (GAAP).
      (e) Free Cash Flow is calculated as net cash provided by operating
            activities less capital expenditures.  Reconciliation of these
            amounts is included in the Condensed Consolidated Statements of Cash
            Flows and Marketable Securities for the three months ended March 26,
            2006, included herein.
      (f) Tax benefits from stock options exercised during the quarter.@@end@@

@@start.t10@@                                                QUALCOMM Incorporated
                          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
                              PRO FORMA RESULTS TO TOTAL QUALCOMM RESULTS
                                  (In millions, except per share data)
                                                        (Unaudited)
                                                  Six Months Ended March 26, 2006
                                                 Estimated                         In-                Total
                            QUALCOMM      Share-Based        Tax         Process         QUALCOMM
                            Pro Forma  Compensation  Adjustment    R&D      QSI    (GAAP)
      Revenues:
         Equipment
          and
          services        $2,271              $-              $-            $-        $-      $2,271
         Licensing
          and royalty
          fees                1,304                -                -              -         -        1,304
                                 3,575                -                -              -         -        3,575
      Operating
        expenses:
         Cost of
          equipment
          and services
          revenues         1,015              22                -              -         -        1,037
         Research and
          development        575            104                -            21        31          731
         Selling,
          general
          and
          administrative  357            116                -              -        29          502
            Total
              operating
              expenses      1,947            242                -            21        60        2,270
      Operating income
        (loss)                1,628          (242)              -          (21)    (60)      1,305
      Investment
        income
        (expense), net    240(a)          -                 -            -        (24)(b)    216
      Income (loss)
        before income
        taxes                 1,868          (242)              -          (21)    (84)      1,521
      Income tax
        (expense)
        benefit              (495)(c)         82              56            -        49(d)  (308)(c)
      Net income
        (loss)              $1,373         $(160)          $56         $(21)  $(35)    $1,213
      Earnings (loss)
        per common
        share:
         Diluted            $0.80        $(0.09)        $0.03      $(0.01) $(0.02)    $0.71
      Shares used in
        per share
        calculations:
         Diluted            1,711         1,711         1,711        1,711  1,711        1,711
      Supplemental
        Financial Data:
      Operating Cash
        Flow                 $1,785    $(273)(f)            $-            $-    $(27)    $1,485
      Operating Cash
        Flow as a %
        of Revenue            50%                                                                          42%
      Free Cash
        Flow(e)            $1,478    $(273)(f)            $-            $-    $(94)    $1,111
      Free Cash Flow
        as a % of
        Revenue                 41%                                                                          31%
      (a) Includes US$192 million in interest and dividend income related to
            cash, cash equivalents and marketable securities, which are not part
            of the Company's strategic investment portfolio, US$54 million in
            net realized gains on investments and US$7 million in gains on
            derivative instruments, partially offset by US$12 million in
            other-than-temporary losses on investments and US$1 million of
            interest expense.
      (b) Includes US$30 million in equity in losses of investees, partially
            offset by US$6 million in net realized gains on investments.
      (c) The tax rate of 20% for the first six months of fiscal 2006 for total
            QUALCOMM (GAAP) is lower than the estimated annual effective tax rate
            of 22% due primarily to US$56 million of tax benefits recorded in the
            first quarter related to the expected impact of prior year tax audits
            completed in that quarter.
      (d) At fiscal year-end, the sum of the quarterly tax provisions for each
            column, including QSI, will equal the annual tax provisions for each
            column computed in accordance with GAAP.  In interim quarters, the
            tax provision for the QSI operating segment is computed by
            subtracting the tax provision for QUALCOMM pro forma, the tax
            adjustment column and the tax provision related to estimated
            share-based compensation from the tax provision for total QUALCOMM
            (GAAP).
      (e) Free Cash Flow is calculated as net cash provided by operating
            activities less capital expenditures.  Reconciliation of these
            amounts is included in the Condensed Consolidated Statements of Cash
            Flows and Marketable Securities for the six months ended March 26,
            2006, included herein.
      (f) Tax benefits from stock options exercised during the quarter.@@end@@

@@start.t11@@                                                QUALCOMM Incorporated
      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
      THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING PRO FORMA CASH FLOWS
              FROM CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES TO TOTAL
                                                 QUALCOMM CASH FLOWS
                                                      (In millions)
                                                        (Unaudited)
                                                              Three Months Ended March 26, 2006
                                                                    Estimated
                                                  QUALCOMM      Share-         In-                 Total
                                                        Pro         Based        Process            QUALCOMM
                                                      Forma  Compensation    R&D      QSI      (GAAP)
      Earnings before taxes,
        depreciation,
        amortization and other
        adjustments(1)                         $980        $(172)          $-    $(30)        $778
      Working capital changes
        and taxes paid (2)                      92              -              -         19         111
      Net cash provided (used)
        by operating activities         1,072         (172)            -      (11)         889
      Capital expenditures                (125)              -              -      (36)        (161)
      Free cash flow (Net cash
        provided by operating
        activities less capital
        expenditures)                            947         (172)            -      (47)         728
      Net additional share capital      287              -              -          -         287
      Tax benefits from stock
        options exercised during
        the quarter                                  -          172              -          -         172
      Dividends paid                         (298)              -              -          -        (298)
      Other investments and
        acquisitions, net of
        cash acquired                         (259)              -              -        (5)        (264)
      Other items, net                         (3)              -              -          1          (2)
      Changes in fair value and
        other changes to
        marketable securities                 64              -              -         19          83
      Marketable securities pending
        settlement                                  63              -              -          -          63
      Transfer from QSI (3)                  13              -              -      (13)            -
      Transfer to QSI (4)                    (49)            -              -         49            -
      Net increase in cash, cash
        equivalents and marketable
        securities (5)                         $765            $-            $-         $4        $769
      (1) Reconciliation to GAAP:
                Net income (loss)          $706          $(78)        $(21)  $(14)        $593
                Share-based
                 compensation                      -                78            -          -          78
                Other non-cash
                 adjustments (a)              232        (172)(b)          21    (10)          71
                Net realized gains on
                  marketable securities
                  and other investments  (34)              -              -        (6)         (40)
                Net taxes paid                  76                -              -          -          76
                Earnings before taxes,
                  depreciation,
                  amortization
                  and other
                  adjustments                 $980         $(172)          $-    $(30)        $778
      (2) Reconciliation to GAAP:
                Increase in cash
                  resulting
                  from changes in
                  working capital          $168              $-            $-        $19        $187
                Net taxes paid                (76)                -              -          -         (76)
                Working capital changes
                  and taxes paid              $92              $-            $-        $19        $111
      (3) Cash from loan payments
              and sale of equity
              securities.
      (4) Funding for strategic
              debt and equity
              investments and
              other QSI operating
              expenses.
      (5) Reconciliation to GAAP
              cash flow statement:
                Net increase in cash
                 and cash equivalents
                 (GAAP)                          $202              $-            $-         $-        $202
                      Plus: Net purchases
                        and maturities
                        of marketable
                        securities                436                -              -      (15)         421
                      Plus: Net increase
                        in fair value and
                        other changes to
                        marketable
                        securities                 64                -              -         19          83
                      Plus: Net increase
                        in marketable
                        securities
                        pending settlement    63                -              -          -          63
                 Net increase in cash,
                  cash equivalents and
                  marketable
                  securities                  $765              $-            $-         $4        $769
      (a) See detail below.
      (b) Tax benefits from stock options exercised during the quarter.@@end@@

@@start.t12@@                                                QUALCOMM Incorporated
      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
      THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING PRO FORMA CASH FLOWS
              FROM CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES TO TOTAL
                                                 QUALCOMM CASH FLOWS
                                                      (In millions)
                                                        (Unaudited)
                                                              Six Months Ended March 26, 2006
                                                  Estimated                         In-                 Total
                                QUALCOMM      Share-Based      Tax         Process         QUALCOMM
                                Pro Forma  Compensation  Adjustment    R&D    QSI      (GAAP)
      Earnings
        before
        taxes,
        depreciation,
        amortization
        and other
        adjustments(1)      $1,907        $(273)         $-                $-    $(57)  $1,577
      Working capital
        changes and
        taxes paid(2)          (122)            -            -                 -        30        (92)
      Net cash provided
        (used) by
        operating
        activities              1,785         (273)          -                 -      (27)    1,485
      Capital
        expenditures          (307)              -            -                 -      (67)      (374)
      Free cash
        flow (Net cash
        provided by
        operating
        activities
        less capital
        expenditures)         1,478         (273)          -                 -      (94)    1,111
      Net additional
        share capital            468              -            -                 -        -          468
      Tax benefits
        from stock
        options exercised
        during the
        period                          -          273            -                 -        -          273
      Dividends paid          (298)            -            -                 -        -         (298)
      Other investments
        and acquisitions      (263)            -            -                 -      (7)        (270)
      Other items, net            -              -            -                 -        4              4
      Changes in fair
        value and other
        changes to
        marketable
        securities                 113              -            -                 -      25          138
      Marketable
        securities
        pending
        settlement                  60              -            -                 -        -            60
      Transfer from
        QSI(3)                         21              -            -                 -      (21)          -
      Transfer to
        QSI(4)                      (103)            -            -                 -      103            -
      Net increase in
        cash, cash
        equivalents and
        marketable
        securities(5)        $1,476            $-          $-                $-      $10    $1,486
      (1) Reconciliation
              to GAAP:
                Net income
                 (loss)         $1,373        $(160)        $56            $(21)  $(35)  $1,213
                Share-based
                 compensation        -          160            -                 -         -         160
                Other non
                 -cash
                 adjustments
                 (a)                  500         (273)(b)  (56)              21      (16)         176
                Net realized
                 gains on
                 marketable
                 securities
                 and other
                 investments      (54)            -            -                -         (6)        (60)
                Net taxes
                 paid                  88              -            -                -          -          88
                Earnings
                 before
                 taxes,
                 depreciation,
                 amortization
                 and other
                 adjustments $1,907        $(273)         $-              $-      $(57)  $1,577
      (2) Reconciliation
              to GAAP:
                Increase in
                 cash
                 resulting
                 from
                 changes in
                 working
                 capital          $(34)          $-          $-              $-        $30         $(4)
                Net taxes
                 paid                 (88)            -            -                -          -         (88)
                Working
                 capital
                 changes and
                 taxes
                 paid              $(122)          $-          $-              $-        $30        $(92)
      (3) Cash from
              loan payments
              and sale of
              equity
              securities.
      (4) Funding for
              strategic
              debt and equity
              investments
              and other QSI
              operating expenses.
      (5) Reconciliation
              to GAAP cash
              flow statement:
                Net increase
                 in cash and
                 cash
                 equivalents
                (GAAP)            $(291)          $-          $-              $-         $-      $(291)
                  Plus: Net
                    purchases
                    and
                    maturities
                    of
                    marketable
                    securities 1,594              -            -                -        (15)    1,579
                  Plus: Net
                    increase
                    in fair
                    value and
                    other
                    changes to
                    marketable
                    securities    113              -            -                -         25         138
                  Plus: Net
                    increase in
                    marketable
                    securities
                    pending
                    settlement
                    (receipt)        60              -            -                -          -          60
                Net increase
                 in cash,
                 cash
                 equivalents
                 and
                 marketable
                 securities  $1,476            $-          $-              $-        $10    $1,486
      (a) See detail below.
      (b) Tax benefits from stock options exercised during the period.@@end@@

@@start.t13@@                                                QUALCOMM Incorporated
                                          SUPPLEMENTAL DETAIL TO THE
      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
                                                      (In millions)
                                                        (Unaudited)
                                                                 Three Months Ended March 26, 2006
                                                                  Estimated
                                                                      Share-         In-                 Total
                                              QUALCOMM          Based        Process            QUALCOMM
                                              Pro Forma  Compensation      R&D        QSI    (GAAP)
      (a) Other non-cash
              adjustments are
              comprised of:
            Depreciation and
              amortization                  $61                $-            $-         $2         $63
            Tax benefits from
              stock options exercised
              during the quarter            -              (172)          -          -        (172)
            Non-cash income tax
              expense (benefit)          180                 -              -         (22)      158
            Other non-cash charges
              and (credits)                  (9)                -            21          10         22
            Total non-cash
              adjustments                  $232            $(172)        $21        $(10)      $71
                                                        Six Months Ended March 26, 2006
                                                         Estimated
                                                         Share-                            In-            Total
                                    QUALCOMM        Based              Tax        Process      QUALCOMM
                                    Pro Forma  Compensation  Adjustment  R&D    QSI  (GAAP)
      (a) Other non-cash
              adjustments are
              comprised of:
            Depreciation and
              amortization         $118                $-            $-          $-      $3      $121
            Tax benefits
              from stock
              options
              exercised
              during
              the period                -              (273)            -            -        -      (273)
            Non-cash income
              tax expense
              (benefit)                407                 -          (56)          -      (49)    302
            Other non-cash
              charges and
              (credits)                (25)                -              -            21      30        26
            Total non-cash
              adjustments          $500          $(273)        $(56)         $21  $(16)  $176
                      RECONCILIATION OF PRIOR YEAR PRO FORMA FREE CASH FLOW
                              TO NET CASH PROVIDED BY OPERATING ACTIVITIES
                                                      (In millions)
                                                        (Unaudited)
                                                    Three Months Ended March 27, 2005
                                                                                                              Total
                                                            QUALCOMM         Tax                  QUALCOMM
                                                            Pro Forma  Adjustment  QSI      (GAAP)
      Net cash provided by operating
        activities                                         $833            $-         $(12)    $821
      Capital expenditures                            (92)            -            (2)      (94)
      Free cash flow (Net cash
        provided by operating activities
         less capital expenditures)              $741            $-         $(14)    $727
                                                                 Six Months Ended March 27, 2005
                                                                                                              Total
                                                            QUALCOMM         Tax                  QUALCOMM
                                                            Pro Forma  Adjustment  QSI      (GAAP)
      Net cash provided by operating
        activities                                      $1,220          $-          $(2)    $1,218
      Capital expenditures                          (204)          -          (78)        (282)
      Free cash flow (Net cash
        provided by operating
        activities less capital
        expenditures)                                 $1,016          $-         $(80)        $936@@end@@

@@start.t14@@                                                QUALCOMM Incorporated
                                  CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In millions, except per share data)
                                                        (Unaudited)
                                                          ASSETS
                                                                                March 26,        September 25,
                                                                                    2006                      2005
      Current assets:
         Cash and cash equivalents                                 $1,779                  $2,070
         Marketable securities                                         5,686                    4,478
         Accounts receivable, net                                        569                        544
         Inventories                                                            218                        177
         Deferred tax assets                                                280                        343
         Other current assets                                              130                        179
                      Total current assets                              8,662                    7,791
      Marketable securities                                            2,702                    2,133
      Property, plant and equipment, net                        1,275                    1,022
      Goodwill                                                                 1,018                        571
      Deferred tax assets                                                  548                        444
      Other assets                                                              654                        518
                      Total assets                                        $14,859                 $12,479
                                  LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities:
         Trade accounts payable                                         $459                      $376
         Payroll and other benefits related
          liabilities                                                          214                        196
         Unearned revenue                                                    160                        163
         Other current liabilities                                      309                        335
                    Total current liabilities                        1,142                    1,070
      Unearned revenue                                                        136                        146
      Other liabilities                                                      181                        144
                    Total liabilities                                    1,459                    1,360
      Stockholders' equity:
         Preferred stock, $0.0001 par value;
          issuable in series;
            8 shares authorized; none
              outstanding at
              March 26, 2006 and September 25,
              2005, respectively                                                -                          -
         Common stock, $0.0001 par value;
          6,000 shares authorized;
            1,673 and 1,640 shares issued and
              outstanding at March 26, 2006
              and September 25, 2005, respectively                  -                          -
         Paid-in capital                                                  8,099                    6,753
         Retained earnings                                                5,243                    4,328
         Accumulated other comprehensive
          income                                                                    58                         38
                    Total stockholders' equity                    13,400                  11,119
                    Total liabilities and
                      stockholders' equity                          $14,859                 $12,479
                                              QUALCOMM Incorporated
                         CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (In millions, except per share data)
                                                      (Unaudited)
                                                        Three Months Ended         Six Months Ended
                                                        March 26,  March 27,  March 26,  March 27,
                                                            2006         2005          2006          2005
      Revenues:
         Equipment and services              $1,122        $849          $2,271    $1,826
         Licensing and royalty fees            712         516            1,304         928
                                                            1,834      1,365            3,575      2,754
      Operating expenses:
         Cost of equipment and services
          revenues                                        521         386            1,037         815
         Research and development                390         252                731         480
         Selling, general and
          administrative                              263         155                502         303
      Total operating expenses                1,174         793            2,270      1,598
      Operating income                                660         572            1,305      1,156
      Investment income, net                      125          61                216         181
      Income before income taxes                785         633            1,521      1,337
            Income tax expense                  (192)      (101)              (308)      (292)
      Net income                                        $593        $532          $1,213    $1,045
      Basic earnings per common share    $0.36      $0.32            $0.73      $0.64
      Diluted earnings per common share $0.34      $0.31            $0.71      $0.61
      Shares used in per share
        calculations:
          Basic                                         1,664      1,646            1,655      1,643
          Diluted                                      1,721      1,704            1,711      1,704
      Dividends per share paid                $0.18      $0.14            $0.18      $0.14
      Dividends per share announced        $0.09      $0.07            $0.18      $0.14@@end@@

    Web site: http://www.qualcomm.com

ots Originaltext: Qualcomm Incorporated
Im Internet recherchierbar: http://www.presseportal.ch

Contact:
Bill Davidson, Vice President, Investor Relations of QUALCOMM,
+1-858-658-4813, fax, +1-858-651-9303, ir@qualcomm.com.  NOTE TO
EDITORS:  If you would like additional information on QUALCOMM,
please view the QUALCOMM press room at
http://www.qualcomm.com/press/index.html



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