Alle Storys
Folgen
Keine Story von Qualcomm Incorporated mehr verpassen.

Qualcomm Incorporated

QUALCOMM Announces Record Third Quarter Fiscal 2007 Results

San Diego (ots/PRNewswire)

Revenues US$2.33 Billion, Diluted EPS US$0.47
             Pro Forma Revenues US$2.33 Billion, Diluted EPS US$0.55
                  Financial Guidance Increased for Fiscal 2007
QUALCOMM Incorporated (Nasdaq: QCOM) today announced record
results for  the third quarter of fiscal 2007 ended July 1, 2007.
Total QUALCOMM (GAAP) Third Quarter Results
Total QUALCOMM results are reported in accordance with generally
accepted accounting principles (GAAP).
    --  Revenues:  US$2.33 billion, up 19 percent year-over-year and 5
        percent sequentially.
    --  Net income:  US$798 million, up 24 percent year-over-year and 10
        percent sequentially.
    --  Diluted earnings per share:  US$0.47, up 27 percent year-over-year
        and 9 percent sequentially.
    --  Effective tax rate:  18 percent for the quarter.  Fiscal 2007
        estimated tax rate of approximately 19 percent.
    --  Estimated share-based compensation:  US$76 million, net of tax, down
        8 percent year-over-year and 10 percent sequentially.
    --  Operating cash flow:  US$988 million, up 21 percent year-over-year;
        42 percent of revenues.
    --  Return of capital to stockholders:  US$363 million in the third
        quarter, including US$234 million of cash dividends, or US$0.14 per
        share, and US$129 million to repurchase 3.1 million shares of our
        common stock.
QUALCOMM Pro Forma Third Quarter Results
Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI)
segment, certain estimated share-based compensation, certain tax
adjustments related to prior years and acquired in-process research
and development (R&D) expense.
    --  Revenues:  US$2.33 billion, up 19 percent year-over-year and 5
        percent sequentially.
    --  Net income:  US$934 million, up 29 percent year-over-year and 11
        percent sequentially.
    --  Diluted earnings per share:  US$0.55, up 31 percent year-over-year
        and 10 percent sequentially; excludes US$0.04 loss per share
        attributable to the QSI segment and US$0.04 loss per share
        attributable to certain estimated share-based compensation.
    --  Effective tax rate:  21 percent for the quarter.  Fiscal 2007
        estimated tax rate of approximately 23 percent.
    --  Free cash flow:  US$977 million, up 23 percent year-over-year; 42
        percent of revenues.  (Defined as net cash from operating activities
        less capital expenditures).
Detailed reconciliations between total QUALCOMM (GAAP) results and
QUALCOMM pro forma results, and cash flow are included at the end of
this news release. Prior period reconciliations are presented on our
Investor Relations web page at www.qualcomm.com.
"We had another tremendous quarter, providing market validation
for the innovative products and solutions delivered by our employees
and partners worldwide," said Dr. Paul E. Jacobs, chief executive
officer of QUALCOMM. "The fundamental drivers of our business remain
very strong. Our record revenue and earnings this quarter reflect
continued worldwide demand for innovative third-generation devices
and services. We shipped a record 65 million CDMA-based MSM(TM)
chipsets in the third quarter representing strong year-over-year
growth in both 1xEV-DO and WCDMA. Strong March quarter handset
shipments demonstrate the continued global adoption of CDMA-based
technologies with over 30% growth from the year ago quarter."
"In addition to continued excellent business and financial
performance, we also see traction for our initiatives to expand the
wireless market. Multiple WCDMA operators have adopted the BREW
platform, our MediaFLO(TM) system continues to grow as we expand our
service footprint in the United States and conduct new trials around
the world, and our Snapdragon(TM) processor is building momentum in
the computing and consumer electronics markets."
"While we continue to execute well and the future of CDMA-based
technology is very bright, we are also expending a great amount of
time and resources defending our business model. In the most recent
quarter, we have made progress in some of these battles, while losing
ground in others. We were disappointed with the rulings on behalf of
Broadcom, both in the California litigation and in front of the ITC.
We continue to believe that the rulings were wrong and are pursuing
all avenues to reverse and to mitigate the effect of those rulings,
including working with our partners who may obtain a license from
Broadcom. While we are increasing our guidance for the year, ITC and
litigation outcomes are uncertain and could have a material impact on
our business and results of operations."
Cash and Marketable Securities
QUALCOMM's cash, cash equivalents and marketable securities
totaled approximately US$12.3 billion at the end of the third quarter
of fiscal 2007, compared to US$11.3 billion at the end of the second
quarter of fiscal 2007 and US$9.5 billion a year ago. As of July 1,
2007, US$2.6 billion remains authorized for repurchases under our
stock repurchase program, net of put options outstanding. On July 13,
2007, we announced a cash dividend of US$0.14 per share payable on
September 28, 2007 to stockholders of record at the close of business
on August 31, 2007.
Estimated Share-Based Compensation
Total QUALCOMM (GAAP) net income for the third quarter of fiscal
2007 includes estimated share-based compensation, net of tax, of
US$76 million, or US$0.04 per diluted share, compared to US$83
million, or US$0.05 per diluted share in the prior year quarter.
    Research and Development
    (All currency expressed in US$ unless otherwise noted)
                                             Estimated                 Total
                                QUALCOMM    Share-Based              QUALCOMM
     ($ in millions)            Pro Forma   Compensation    QSI       (GAAP)
    Third quarter fiscal 2007     $385         $50          $19         $454
    As a % of revenue               17%                                   20%
    Third quarter fiscal 2006     $322         $56          $17         $395
    As a % of revenue               17%                                   20%
    Year-over-year change ($)       20%        (11%)         12%          15%
Pro forma R&D expenses increased 20 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 multi-mode, multi-band, multi-network products
and technologies. QSI R&D expenses are related to MediaFLO USA.
    Selling, General and Administrative
                                               Estimated               Total
                                  QUALCOMM    Share-Based            QUALCOMM
    ($ in millions)               Pro Forma   Compensation   QSI      (GAAP)
    Third quarter fiscal 2007       $307         $54         $40       $401
    As a % of revenue                 13%                                17%
    Third quarter fiscal 2006       $214         $60         $19       $293
    As a % of revenue                 11%                                15%
    Year-over-year change ($)         43%        (10%)       111%        37%
Pro forma selling, general and administrative (SG&A) expenses
increased 43 percent year-over-year, largely attributable to
increases in costs related to litigation and other legal matters and
employee related expenses. The year-over-year increase in QSI SG&A
expenses is primarily related to MediaFLO USA cooperative marketing
expenses.
Effective Income Tax Rate
Our fiscal 2007 effective income tax rate is estimated to be 19
percent for total QUALCOMM (GAAP) compared to our prior estimate of
21 percent. Our fiscal 2007 QUALCOMM pro forma effective income tax
rate is estimated to be 23 percent, compared to our previous estimate
of 24 percent. The third quarter QUALCOMM (GAAP) and pro forma
effective tax rates of 18 percent and 21 percent, respectively, are
lower than the expected annual effective tax rates primarily due to
our estimate of additional foreign earnings taxed at less than the
United States federal tax rate.
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 third quarter of fiscal 2007 include
US$0.04 loss per share for the QSI segment. The third quarter of
fiscal 2007 QSI results include US$95 million in operating expenses,
primarily related to MediaFLO  USA.
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, asset
impairments or the impact of the resolution of income tax audits,
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. In addition, our outlook provides
for legal costs which are reasonably consistent with our experience
over the past year but does not include any provision for the
consequences of injunctions or significant damages or costs related
to litigation matters, including support we may agree to provide to
our customers. Although Verizon announced it has entered into a
license agreement with Broadcom eliminating risk of not being able to
import handsets using our chips for use in Verizon's network, a
comprehensive settlement between us and Broadcom is unlikely given
Broadcom's insistence on terms which could have a material impact on
our licensing business. As a result, over the next few months, we
will be defending ourselves from Broadcom's attempts to obtain an
injunction precluding the sale of certain of our chips sold in
handsets for use in the U.S. other than in Verizon's network.
The following table summarizes total QUALCOMM (GAAP) and QUALCOMM
pro forma guidance for the fourth fiscal quarter and fiscal 2007
based on the current business outlook. The pro forma business outlook
provided below is presented consistent with the presentation of pro
forma results provided elsewhere herein.
We are engaged in multiple disputes with Nokia Corp., including
litigation over Nokia's obligation to pay royalties for the use of
certain of our patents. As a result, under generally accepted
accounting principles, we do not expect to be able to record royalty
revenue attributable to Nokia's sales starting in the fourth quarter
of fiscal 2007 until an arbitrator (or court) awards damages or the
disputes are otherwise resolved by agreement with Nokia. Our estimate
of royalties which we believe will be owed by Nokia in the fourth
quarter of fiscal year 2007 for June quarter shipments is
approximately US$0.05 diluted earnings per share, which we have
excluded from our current fourth fiscal quarter and fiscal 2007
guidance, compared to our prior estimate of approximately US$0.04 to
US$0.05 diluted earnings per  share.
The following estimates are approximations and are based on the
current business outlook:
                            Business Outlook Summary
    FOURTH FISCAL QUARTER
                                                           Current Guidance
                                              Q4'06              Q4'07
                                             Results         Estimates (1)
      QUALCOMM Pro Forma
      Revenues                                $2.00B      $2.15B - $2.25B
      Year-over-year change                             increase 8% - 13%
      Diluted earnings per share (EPS)         $0.42        $0.48 - $0.50
      Year-over-year change                            increase 14% - 19%
      Total QUALCOMM (GAAP)
      Revenues                                $2.00B      $2.15B - $2.25B
      Year-over-year change                             increase 8% - 13%
      Diluted earnings per share (EPS)         $0.36        $0.41 - $0.43
      Year-over-year change                            increase 14% - 19%
      Diluted EPS attributable to QSI          $0.00               ($0.02)
      Diluted EPS attributable to
       estimated share-based
       compensation                           ($0.05)              ($0.05)
      Metrics
      MSM Shipments                       approx. 56M    approx. 65M - 68M
      CDMA/WCDMA handset units
       shipped(2)                         approx. 70M(i) approx. 90M - 94M(i)
      CDMA/WCDMA handset unit wholesale
       average selling price (2)         approx. $223(i)       approx.$222(i)
      (i) Shipments in June quarter,
          reported in Sept. quarter
    FISCAL YEAR
                                            Prior                Current
                                           Guidance             Guidance
                             FY 2006       FY 2007               FY 2007
                             Results      Estimates(1)         Estimates(1)
      QUALCOMM Pro Forma
      Revenues              $7.53B        $8.4B - $8.7B      $8.72B - $8.82B
      Year-over-year change          increase 12% - 16%   increase 16% - 17%
      Diluted earnings per
       share (EPS)           $1.64        $1.84 - $1.88        $1.95 - $1.97
      Year-over-year change          increase 12% - 15%   increase 19% - 20%
      Total QUALCOMM (GAAP)
      Revenues              $7.53B        $8.4B - $8.7B      $8.72B - $8.82B
      Year-over-year change          increase 12% - 16%   increase 16% - 17%
      Diluted earnings per
       share (EPS)           $1.44        $1.57 - $1.61        $1.69 - $1.71
      Year-over-year change           increase 9% - 12%   increase 17% - 19%
      Diluted EPS
       attributable to
       in-process R&D       ($0.01)              ($0.01)              ($0.01)
      Diluted EPS
       attributable
       to QSI               ($0.02)              ($0.09)              ($0.08)
      Diluted EPS
       attributable to
       estimated
       share-based
       compensation         ($0.19)              ($0.20)              ($0.19)
      Diluted EPS
       attributable to
       tax items related
       to prior years        $0.02                $0.02                $0.02
      Metrics
      Fiscal year(i)
       CDMA/WCDMA handset
       unit wholesale
       average
       selling
       price (2)      approx. $215         approx. $208         approx. $216
     (i) Shipments in
        Sept. to June
        quarters,
        reported in
        Dec. to Sept.
        quarters
    CALENDAR YEAR Handset Estimates(2)
                                        Prior Guidance      Current Guidance
    CDMA/WCDMA handset                   Calendar 2007        Calendar 2007
     unit shipments       Calendar 2006    Estimates            Estimates
    March quarter         approx. 66M   approx. 81M - 85M         approx. 88M
    June quarter          approx. 70M        not provided   approx. 90M - 94M
    September quarter     approx. 76M        not provided        not provided
    December quarter      approx. 91M        not provided        not provided
    Calendar year range
    (approx.)                    301M         373M - 393M         378M - 398M
                             Midpoint            Midpoint            Midpoint
    CDMA/WCDMA units     approx. 301M        approx. 383M        approx. 388M
    CDMA units           approx. 200M        approx. 208M        approx. 208M
    WCDMA units          approx. 101M        approx. 175M        approx. 180M
    (1)  These estimates do not reflect the potential opportunity of Nokia
         paying royalties in the fourth quarter of fiscal 2007 for June
         quarter shipments. Our current estimate of such opportunity is
         approximately $0.05 diluted earnings per share, compared to our
         prior estimate of approximately $0.04 to $0.05 diluted earnings per
         share.
    (2)  CDMA/WCDMA handset unit shipments and average selling prices are
         provided for the total market.
    Sums may not equal totals due to rounding.
Results of Business Segments
The following tables, which present segment information, have been
adjusted to reflect the 2007 segment presentation (Note 1) (in
millions,  except per share data):
    Third Quarter - Fiscal Year 2007
                                                                 Reconciling
    Segments                        QCT       QTL      QWI         Items(2)
    Revenues                      $1,367     $766     $196          $(4)
    Change from prior year            21%      20%      10%         N/M
    Change from prior quarter          9%       1%      (1%)        N/M
    EBT                             $439     $668      $18          $52
    Change from prior year            27%      16%       0%         N/M
    Change from prior quarter         19%       5%     (10%)        N/M
    Net income (loss)
    Change from prior year
    Change from prior quarter
    Diluted EPS
    Change from prior year
    Change from prior quarter
    Diluted shares used
                                       Estimated                    Total
                       QUALCOMM       Share-Based                  QUALCOMM
    Segments           Pro Forma     Compensation(3)    QSI(4)      (GAAP)
    Revenues            $2,325            $--            $--        $2,325
    Change from
     prior year             19%                                         19%
    Change from
     prior quarter           5%                                          5%
    EBT                 $1,177          $(114)          $(91)         $972
    Change from
     prior year             21%           (10%)          250%           18%
    Change from
     prior quarter           6%           (10%)          117%            5%
    Net income (loss)     $934           $(75)          $(61)         $798
    Change from
     prior year             29%           (10%)          N/M            24%
    Change from
     prior quarter          11%           (10%)          205%           10%
    Diluted EPS          $0.55         $(0.04)        $(0.04)        $0.47
    Change from
     prior year             31%           (20%)          N/M            27%
    Change from
     prior quarter          10%           (20%)          300%            9%
    Diluted
     shares used         1,704          1,704          1,704         1,704
    Second Quarter - Fiscal Year 2007
                                                             Reconciling
    Segments                   QCT        QTL       QWI        Items (2)
    Revenues                 $1,259      $759      $198           $5
    EBT                        $368      $636       $20          $82
    Net income (loss)
    Diluted EPS
    Diluted shares used
                                Estimated
                    QUALCOMM   Share-Based    In-process              Total
    Segments       Pro Forma  Compensation(3)    R&D       QSI (4)   (GAAP)
    Revenues         $2,221        $--           $--        $--      $2,221
    EBT              $1,106      $(126)         $(10)      $(42)       $928
    Net income
     (loss)            $838       $(83)          $(9)      $(20)       $726
    Diluted EPS       $0.50     $(0.05)       $(0.01)    $(0.01)      $0.43
    Diluted shares
     used             1,693      1,693         1,693      1,693       1,693
    Third Quarter - Fiscal Year 2006
                                                                Reconciling
    Segments               QCT(1)(i)    QTL(1)(i)   QWI (1)(i) Items(1)(2)(i)
    Revenues               $1,133         $640         $178          $--
    EBT                       346          576           18           36
    Net income (loss)
    Diluted EPS
    Diluted shares used
                                        Estimated                   Total
                          QUALCOMM     Share-Based                 QUALCOMM
    Segments              Pro Forma   Compensation(3)   QSI(4)      (GAAP)
    Revenues                $1,951           $--          $--       $1,951
    EBT                        976          (126)         (26)         824
    Net income (loss)          726           (83)          --          643
    Diluted EPS              $0.42        $(0.05)         $--        $0.37
    Diluted shares used      1,728         1,728        1,728        1,728
    Fourth Quarter - Fiscal Year 2006
                                                               Reconciling
    Segments            QCT(1)(i)    QTL(1)(i)   QWI(1)(i)    Items(1)(2)(i)
    Revenues            $1,147        $661         $196            $(5)
    EBT                    323         591           26             21
    Net income (loss)
    Diluted EPS
    Diluted shares used
                             Estimated                                 Total
                QUALCOMM    Share-Based      Tax   In-Process        QUALCOMM
    Segments    Pro Forma  Compensation(3)  Items     R&D      QSI(4)  (GAAP)
    Revenues      $1,999        $--          $--      $--       $--    $1,999
    EBT              961       (127)          --       (1)      (23)      810
    Net income
     (loss)          705        (76)         (16)      (1)        2       614
    Diluted
     EPS           $0.42     $(0.05)      $(0.01)     $--       $--     $0.36
    Diluted
     shares
     used          1,693      1,693        1,693    1,693     1,693     1,693
    Twelve Months - Fiscal Year 2006
                                                               Reconciling
    Segments               QCT(1)(i)   QTL(1)(i)   QWI (1)(i)  Items(1)(2)(i)
    Revenues               $4,332       $2,467        $731         $(4)
    EBT                     1,298        2,233          78         197
    Net income (loss)
    Diluted EPS
    Diluted shares used
                             Estimated                                 Total
                QUALCOMM    Share-Based      Tax   In-Process        QUALCOMM
    Segments    Pro Forma  Compensation(3)  Items     R&D      QSI(4)  (GAAP)
    Revenues     $7,526        $--           $--      $--       $--    $7,526
    EBT           3,806       (495)           --      (22)     (133)    3,156
    Net income
    (loss)        2,804       (320)           40      (22)      (32)    2,470
    Diluted
     EPS          $1.64     $(0.19)        $0.02   $(0.01)   $(0.02)    $1.44
    Diluted
     shares
     used         1,711      1,711         1,711    1,711     1,711     1,711
    Nine Months - Fiscal Year 2007
                                                                 Reconciling
    Segments                   QCT          QTL          QWI       Items(2)
    Revenues                $3,856       $2,125         $583           $1
    Change from prior year      21%          18%           9%         N/M
    EBT                     $1,123       $1,803          $58         $250
    Change from prior year      15%          10%          14%         N/M
    Net income (loss)
    Change from prior year
    Diluted EPS
    Change from prior year
    Diluted shares used
                              Estimated                                Total
                 QUALCOMM    Share-Based     Tax    In-Process       QUALCOMM
    Segments     Pro Forma  Compensation(3) Items(5)   R&D     QSI(4)  (GAAP)
    Revenues       $6,565        $--         $--       $--      $--   $6,565
    Change from
     prior year        19%                                                19%
    EBT            $3,234      $(370)        $--      $(10)   $(176)  $2,678
    Change from
     prior year        14%         1%                  (52%)     60%      14%
    Net income
     (loss)         2,494       (244)         33        (9)    (103)  $2,171
    Change from
     prior year        19%         0%        (41%)     (57%)    203%      17%
    Diluted EPS     $1.47     $(0.14)      $0.02    $(0.01)  $(0.06)   $1.28
    Change from
     prior year        20%         0%        (33%)       0%     200%      19%
    Diluted
     shares
     used           1,694      1,694       1,694     1,694    1,694    1,694
    Nine Months - Fiscal Year 2006
                                                                Reconciling
    Segments               QCT(1)(i)   QTL(1)(i)     QWI(1)(i) Items(1)(2)(i)
    Revenues                $3,184       $1,806         $535           $2
    EBT                        975        1,642           51          177
    Net income
    Diluted EPS
    Diluted shares used
                             Estimated                                 Total
                QUALCOMM    Share-Based      Tax   In-Process        QUALCOMM
    Segments    Pro Forma  Compensation(3)  Items     R&D      QSI(4)  (GAAP)
    Revenues      $5,527        $--          $--      $--       $--    $5,527
    EBT            2,845       (368)          --      (21)     (110)    2,346
    Net income     2,098       (243)          56      (21)      (34)    1,856
    Diluted EPS    $1.22     $(0.14)       $0.03   $(0.01)   $(0.02)    $1.08
    Diluted
     shares
     used          1,717      1,717        1,717    1,717     1,717     1,717
    (1)  During the first quarter of fiscal 2007, the Company reassessed the
         intersegment royalty charged to QCT by QTL and determined that the
         royalty should be eliminated starting in fiscal 2007 for management
         reporting purposes.  As a result, QCT did not record a royalty to
         QTL in the first nine months of fiscal 2007.  The Company also
         reorganized the QUALCOMM Wireless Systems (QWS) division into the
         QWBS division within the QWI segment.  Revenues and operating
         results relating to QWS were included in reconciling items through
         the end of fiscal 2006.  Prior period segment information has been
         adjusted to conform to the new segment presentation.
    (2)  Reconciling items related to revenues consist primarily of other
         nonreportable segment revenues less intersegment eliminations.
         Reconciling items related to earnings before taxes consist primarily
         of certain investment income, research and development expenses and
         marketing expenses that are not allocated to the segments for
         management reporting purposes, nonreportable segment results and the
         elimination of intersegment profit.
    (3)  Certain share-based compensation is included in operating expenses
         as part of employee-related costs but is not allocated to the
         Company's segments as such 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, equals 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 provisions related to estimated
         share-based compensation and in-process R&D from the tax provision
         for total QUALCOMM (GAAP).
    (5)  During the first quarter of fiscal 2007, the federal R&D tax credit
         that expired on December 31, 2005 was extended by Congress for a
         period of two years beyond the prior expiration date.  The Company
         recorded a tax benefit of $33 million, or $0.02 diluted earnings per
         share, related to fiscal 2006 in the first quarter of fiscal 2007
         due to this retroactive extension.  The effective tax rate for the
         first quarter of fiscal 2007 for total QUALCOMM (GAAP) was 17%
         primarily as a result of this benefit.  The first quarter fiscal
         2007 QUALCOMM pro forma results excluded this tax benefit
         attributable to 2006.
    N/M - Not Meaningful
    Sums may not equal totals due to rounding.
    (i)As adjusted to conform to 2007 segment presentation
Conference Call
QUALCOMM's third quarter fiscal 2007 earnings conference call will
be broadcast live on July 25, 2007 beginning at 1:45 p.m. Pacific
Daylight Time (PDT) 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 July 25, 2007 beginning at approximately 5:30 p.m. (PDT)
through August 25, 2007 at 9:00 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 6342604. 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.
Editor's Note: To view the web slides that accompany this earnings
release and conference call, please go to the QUALCOMM Investor
Relations website at http://investor.qualcomm.com/results.cfm.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing
and delivering innovative digital wireless communications products
and services based on CDMA and other advanced technologies.
Headquartered in San Diego, Calif., QUALCOMM is included in the S&P
500 Index and is a 2007 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.
Management is able to assess what it believes is a more meaningful
and comparable set of financial performance measures for the Company
and its business segments by using pro forma information. 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.
Pro forma information used by management excludes the QUALCOMM
Strategic Initiatives (QSI) segment, certain estimated share-based
compensation, certain tax adjustments related to prior years and
acquired in-process R&D. 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, other than amounts
related to share-based awards granted under the executive bonus
program, 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 the share-based
compensation 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 generally
not an expense that requires or will require cash payment by the
Company. Certain tax adjustments 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 is excluded
because such expense is viewed by management as unrelated to the
operating activities of the Company's ongoing core businesses.
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 evaluate the Company's performance, 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 cash flow 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; attacks on our licensing business model,
including results of current and future litigation and arbitration
proceedings as well as actions of governmental or quasi-governmental
bodies, and the costs we incur in connection therewith; fluctuations
in the demand for CDMA-based products, services or applications;
outcomes of audits by taxing authorities; 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; the development,
deployment and commercial acceptance of the MediaFLO USA network and
FLO(TM) technology; as well as the other risks detailed from
time-to-time in the Company's SEC reports.
(C) 2007 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:
    John Gilbert
    Vice President of Investor and Industry Analyst Relations
    +1-858-658-4813 (ph) +1-858-651-9303 (fax)
    e-mail:  ir@qualcomm.com
                                  QUALCOMM Incorporated
                           CONSOLIDATED STATEMENTS OF OPERATIONS
                  THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
                     PRO FORMA RESULTS TO TOTAL QUALCOMM (GAAP) RESULTS
                           (In millions, except per share data)
                                      (Unaudited)
                                  Three Months Ended July 1, 2007
                                          Estimated               Total
                           QUALCOMM      Share-Based             QUALCOMM
                           Pro Forma   Compensation(a)     QSI    (GAAP)
    Revenues:
      Equipment and
       services             $1,484          $--            $--     $1,484
      Licensing and
       royalty fees            841           --             --        841
          Total revenues     2,325           --             --      2,325
    Operating expenses:
      Cost of equipment
       and services
       revenues                642           10             36        688
      Research and
       development             385           50             19        454
      Selling, general and
       administrative          307           54             40        401
          Total operating
           expenses          1,334          114             95      1,543
    Operating income
     (loss)                    991         (114)           (95)       782
    Investment income, net     186 (b)       --              4 (c)    190
    Income (loss) before
     income taxes            1,177         (114)           (91)       972
    Income tax (expense)
     benefit                  (243)(d)       39             30 (e)   (174)(d)
    Net income (loss)         $934         $(75)          $(61)      $798
    Earnings (loss) per
     common share:
       Diluted               $0.55       $(0.04)        $(0.04)     $0.47
    Shares used in per share
     calculations:
       Diluted               1,704        1,704          1,704      1,704
    Supplemental Financial
     Data:
    Operating Cash Flow     $1,122       $(80) (g)        $(54)      $988
    Operating Cash Flow as
     a % of Revenues            48%                                    42%
    Free Cash Flow (f)        $977       $(80) (g)        $(66)      $831
    Free Cash Flow as a % of
     Revenues                   42%                                    36%
    (a)  Estimated share-based compensation presented above and excluded from
         pro forma results does not include $1 million, net of tax, related
         to share-based awards granted under the executive bonus program.
    (b)  Includes $143 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, $41 million in net
         realized gains on investments and $2 million in gains on derivative
         instruments related to decreases in the fair value of the put option
         liabilities related to our share repurchase program.
    (c)  Includes $12 million in net realized gains on investments and $2
         million in interest and dividend income, partially offset by $8
         million in other-than-temporary losses on investments, $1 million in
         interest expense and $1 million in losses on derivative instruments.
    (d)  The third quarter of fiscal 2007 tax rates are approximately 18% for
         total QUALCOMM (GAAP) and approximately 21% for QUALCOMM pro forma.
    (e)  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
         provisions related to estimated share-based compensation and
         in-process R&D from the tax provision for total QUALCOMM (GAAP).
    (f)  Free Cash Flow is calculated as net cash provided by operating
         activities less capital expenditures.  Reconciliation of these
         amounts is included in the Reconciliation of Pro Forma Free Cash
         Flows to Total QUALCOMM (GAAP) Net Cash Provided by Operating
         Activities and Other Supplemental Disclosures for the three months
         ended July 1, 2007, included herein.
    (g)  Incremental tax benefits from stock options exercised during the
         period.
                                    QUALCOMM Incorporated
                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
                    PRO FORMA RESULTS TO TOTAL QUALCOMM (GAAP) RESULTS
                           (In millions, except per share data)
                                       (Unaudited)
                                Nine Months Ended July 1, 2007
                               Estimated     Tax      In-            Total
                    QUALCOMM  Share-Based   Adjust- Process         QUALCOMM
                   Pro Forma Compensation(a) ment     R&D     QSI    (GAAP)
    Revenues:
      Equipment
       and
       services       $4,196       $--       $--      $--      $--    $4,196
      Licensing
       and royalty
       fees            2,369        --        --       --       --     2,369
         Total
          revenues     6,565        --        --       --       --     6,565
    Operating
     expenses:
      Cost of
       equipment
       and services
       revenues        1,882        29        --       --       45     1,956
      Research and
       development     1,120       166        --       10       52     1,348
      Selling, general
       and
       administrative    890       175        --       --       90     1,155
         Total
          operating
          expenses     3,892       370        --       10      187     4,459
    Operating
     income
     (loss)            2,673      (370)       --      (10)    (187)    2,106
    Investment
     income
     (expense), net      561(b)     --        --       --       11(c)    572
    Income (loss)
     before income
     taxes             3,234      (370)       --      (10)    (176)    2,678
    Income tax
    (expense)
     benefit            (740)      126        33        1    73(e)   (507)(d)
    Net income
    (loss)            $2,494     $(244)      $33      $(9)  $(103)    $2,171
    Earnings (loss)
     per common share:
       Diluted         $1.47    $(0.14)    $0.02   $(0.01) $(0.06)     $1.28
    Shares used in
     per share
     calculations:
       Diluted        1,694      1,694     1,694    1,694   1,694      1,694
    Supplemental
     Financial
     Data:
    Operating Cash
     Flow            $3,116      $(199)(g)   $--     $(10)  $(139)    $2,768
    Operating
     Cash Flow
     as a % of
     Revenue             47%                                              42%
    Free Cash
     Flow(f)         $2,610      $(199)(g)   $--     $(10)  $(204)    $2,197
    Free Cash
     Flow as a
     % of Revenue        40%                                             33%
    (a)  Estimated share-based compensation presented above and excluded from
         pro forma results does not include $2 million, net of tax, related
         to share-based awards granted under the executive bonus program.
    (b)  Includes $409 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, $154 million in net
         realized gains on investments and $2 million in gains on derivative
         instruments related to decreases in the fair value of the put option
         liabilities related to our share repurchase program, partially
         offset by $2 million in other-than-temporary losses on investments
         and $2 million in interest expense.
    (c)  Includes $19 million in net realized gains on investments and $6
         million in interest and dividend income, partially offset by $9
         million in other-than-temporary losses on investments, $3 million in
         interest expense and $2 million in losses on derivative instruments.
    (d)  The tax rate of 19% for the first nine months of fiscal 2007 for
         total QUALCOMM (GAAP) is consistent with the estimated annual
         effective tax rate.
    (e)  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 provisions related to estimated share-
         based compensation and in-process R&D from the tax provision for
         total QUALCOMM (GAAP).
    (f)  Free Cash Flow is calculated as net cash provided by operating
         activities less capital expenditures.  Reconciliation of these
         amounts is included in the Reconciliation of Pro Forma Free Cash
         Flows to Total QUALCOMM (GAAP) Net Cash Provided by Operating
         Activities and Other Supplemental Disclosures for the nine months
         ended July 1, 2007, included herein.
    (g)  Incremental tax benefits from stock options exercised during the
         period.
                                  QUALCOMM Incorporated
                      RECONCILIATION OF PRO FORMA FREE CASH FLOWS TO
              TOTAL QUALCOMM (GAAP) NET CASH PROVIDED BY OPERATING ACTIVITIES
                          AND OTHER SUPPLEMENTAL DISCLOSURES
                                   (In millions)
                                    (Unaudited)
                                Three Months Ended July 1, 2007
                                       Estimated                  Total
                           QUALCOMM   Share-Based               QUALCOMM
                           Pro Forma  Compensation    QSI        (GAAP)
       Net cash provided
        (used) by
         operating
         activities         $1,122      $(80)(a)      $(54)        $988
       Less:  capital
        expenditures          (145)       --           (12)        (157)
       Free cash flow         $977      $(80)         $(66)        $831
       Other supplemental
        cash disclosures:
          Cash transfers
           from QSI (1)        $40       $--          $(40)         $--
          Cash transfers
           to QSI (2)          (70)       --            70           --
          Net cash
           transfers          $(30)      $--           $30          $--
                                  Nine Months Ended July 1, 2007
                                      Estimated                      Total
                         QUALCOMM    Share-Based  In-Process        QUALCOMM
                         Pro Forma   Compensation    R&D      QSI    (GAAP)
      Net cash provided
       (used) by
       operating
       activities          $3,116    $(199)(a)      $(10)    $(139)   $2,768
      Less:  capital
       expenditures          (506)      --            --       (65)     (571)
      Free cash flow       $2,610    $(199)         $(10)    $(204)   $2,197
      Other
       supplemental
       cash disclosures:
         Cash transfers
          from QSI(1)         $53      $--           $--      $(53)      $--
         Cash transfers
          to QSI(2)          (264)      --            --       264        --
         Net cash
          transfers         $(211)     $--           $--      $211       $--
      (1) Cash from loan payments and sale of equity securities.
      (2) Funding for strategic debt and equity investments, capital
          expenditures and other QSI operating expenses.
                                   Three Months Ended June 25, 2006
                                            Estimated              Total
                              QUALCOMM     Share-Based            QUALCOMM
                              Pro Forma   Compensation     QSI    (GAAP)
       Net cash provided
        (used) by
        operating activities    $954        $(103)(a)     $(35)    $816
       Less:  capital
        expenditures            (159)          --          (23)    (182)
       Free cash flow           $795        $(103)        $(58)    $634
                                     Nine Months Ended June 25, 2006
                                         Estimated                 Total
                            QUALCOMM    Share-Based              QUALCOMM
                            Pro Forma   Compensation     QSI      (GAAP)
      Net cash provided
       (used) by operating
       activities            $2,739       $(376)(a)     $(62)     $2,301
      Less:  capital
       expenditures            (466)         --          (90)       (556)
      Free cash flow         $2,273       $(376)       $(152)     $1,745
      (a) Incremental tax benefits from stock options exercised during the
          period.
                             QUALCOMM Incorporated
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In millions, except per share data)
                                 (Unaudited)
                                   ASSETS
                                                  July 1,       September 24,
                                                    2007              2006
          Current assets:
            Cash and cash equivalents               $3,716            $1,607
            Marketable securities                    3,592             4,114
            Accounts receivable, net                   764               700
            Inventories                                396               250
            Deferred tax assets                        185               235
            Other current assets                       395               143
                    Total current assets             9,048             7,049
          Marketable securities                      4,954             4,228
          Property, plant and equipment,
           net                                       1,631             1,482
          Goodwill                                   1,322             1,230
          Deferred tax assets                          451               512
          Other assets                               1,040               707
                    Total assets                   $18,446           $15,208
                         LIABILITIES AND STOCKHOLDERS' EQUITY
          Current liabilities:
            Trade accounts payable                    $566              $420
            Payroll and other benefits
             related liabilities                       255               273
            Unearned revenue                           275               197
            Income taxes payable                       303               137
            Other current liabilities                  707               395
                   Total current liabilities         2,106             1,422
          Unearned revenue                             146               141
          Other liabilities                            262               239
                   Total liabilities                 2,514             1,802
          Stockholders' equity:
            Preferred stock, $0.0001 par
             value; issuable in series;
             8 shares authorized; none
             outstanding at July 1, 2007
             and September 24, 2006                     --                --
            Common stock, $0.0001 par
             value; 6,000 shares
             authorized; 1,672 and 1,652 shares
             issued and outstanding at
             July 1, 2007 and September 24,
             2006, respectively                         --                --
            Paid-in capital                          8,034             7,242
            Retained earnings                        7,640             6,100
            Accumulated other
             comprehensive income                      258                64
                   Total stockholders' equity       15,932            13,406
                   Total liabilities and
                    stockholders' equity           $18,446           $15,208
                                QUALCOMM Incorporated
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                         (In millions, except per share data)
                                     (Unaudited)
                                       Three Months Ended  Nine Months Ended
                                          July 1, June 25,  July 1, June 25,
                                           2007     2006     2007     2006
          Revenues:
            Equipment and services        $1,484   $1,240   $4,196   $3,512
            Licensing and royalty fees       841      711    2,369    2,015
               Total revenues              2,325    1,951    6,565    5,527
          Operating expenses:
            Cost of equipment and
             services revenues               688      559    1,956    1,596
            Research and development         454      395    1,348    1,126
            Selling, general and
             administrative                  401      293    1,155      795
               Total operating expenses    1,543    1,247    4,459    3,517
          Operating income                   782      704    2,106    2,010
          Investment income, net             190      120      572      336
          Income before income taxes         972      824    2,678    2,346
          Income tax expense                (174)    (181)    (507)    (490)
          Net income                        $798     $643   $2,171   $1,856
          Basic earnings per common
           share                           $0.48    $0.38    $1.31    $1.12
          Diluted earnings per common
           share                           $0.47    $0.37    $1.28    $1.08
          Shares used in per share
           calculations:
             Basic                         1,670    1,675    1,661    1,661
             Diluted                       1,704    1,728    1,694    1,717
          Dividends per share paid         $0.14    $0.12    $0.38    $0.30
          Dividends per share announced    $0.14    $0.12    $0.38    $0.30
                              QUALCOMM Incorporated
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (In millions)
                                   (Unaudited)
                                         Three Months Ended  Nine Months Ended
                                          July 1,  June 25, July 1,  June 25,
                                             2007     2006     2007     2006
    Operating Activities:
    Net income                               $798     $643   $2,171   $1,856
    Adjustments to reconcile net income
     to net cash provided by
     operating activities:
       Depreciation and amortization           99       69      283      190
       Non-cash portion of share-based
        compensation expense                  114      126      371      368
       Incremental tax benefits from
        stock options exercised               (80)    (103)    (199)    (376)
       Net realized gains on marketable
        securities and other investments      (53)     (34)    (173)     (94)
       Non-cash income tax expense            136      155      365      375
       Other items, net                        15       22       16       57
    Changes in assets and liabilities,
     net of effects of acquisitions:
        Accounts receivable, net              (45)    (126)     (62)    (140)
        Inventories                           (49)     (42)    (147)     (81)
        Other assets                           10        3     (137)      15
        Trade accounts payable                 (7)      34      127      140
        Payroll, benefits and other
         liabilities                           68       45       69      (20)
        Unearned revenue                      (18)      24       84       11
      Net cash provided by operating
       activities                             988      816    2,768    2,301
    Investing Activities:
      Capital expenditures                   (157)    (182)    (571)    (556)
      Purchases of available-for-sale
       securities                          (2,340)  (3,548)  (5,921)  (9,610)
      Proceeds from sale of available-
       for-sale securities                  1,909    3,473    6,254    7,916
      Other investments and acquisitions,
       net of cash acquired                    (3)    (120)    (230)    (390)
      Change in collateral held under
       securities lending                    (153)      --     (153)      --
      Other items, net                         12       34       13       79
      Net cash used by investing
       activities                            (732)    (343)    (608)  (2,561)
    Financing Activities:
      Proceeds from issuance of common
       stock                                  220      155      474      623
      Incremental tax benefits from stock
       options exercised                       80      103      199      376
      Dividends paid                         (234)    (202)    (632)    (500)
      Change in obligation under
       securities lending                     153       --      153       --
      Proceeds from put options                17       11       17       11
      Repurchase and retirement of common
       stock                                 (129)  (1,165)    (264)  (1,165)
      Net cash provided (used) by
       financing activities                   107   (1,098)     (53)    (655)
      Effect of exchange rate changes on
       cash                                    --        1        2       --
    Net increase (decrease) in cash and
     cash equivalents                         363     (624)   2,109     (915)
    Cash and cash equivalents at
     beginning of period                    3,353    1,779    1,607    2,070
    Cash and cash equivalents at end of
     period                                $3,716   $1,155   $3,716   $1,155
Web site: http://www.qualcomm.com

Contact:

John Gilbert, Vice President of Investor and Industry Analyst
Relations of QUALCOMM, +1-858-658-4813, or fax, +1-858-651-9303,
ir@qualcomm.com

Weitere Storys: Qualcomm Incorporated
Weitere Storys: Qualcomm Incorporated
  • 25.04.2007 – 23:30

    QUALCOMM Announces Record Second Quarter Fiscal 2007 Results

    San Diego (ots/PRNewswire) - - Revenues US$2.22 Billion, Diluted EPS US$0.43 - Pro Forma Revenues US$2.22 Billion, Diluted EPS US$0.50 - Financial Guidance Increased for Fiscal 2007 QUALCOMM Incorporated (Nasdaq: QCOM) today announced record results for the second quarter of fiscal 2007 ended April 1, 2007. Total QUALCOMM (GAAP) Second Quarter Results Total QUALCOMM results are reported in ...

  • 24.01.2007 – 22:25

    QUALCOMM Announces First Quarter Fiscal 2007 Results

    San Diego (ots/PRNewswire) - - Revenues US$2.02 Billion, Diluted EPS US$0.38 - Pro Forma Revenues US$2.02 Billion, Diluted EPS US$0.43 - QUALCOMM Reaffirms Most Recent Fiscal 2007 Revenue and Pro Forma Earnings Guidance QUALCOMM Incorporated (Nasdaq: QCOM) today announced results for the first quarter of fiscal 2007 ended December 31, 2006. Total QUALCOMM (GAAP) First Quarter Results Total ...

  • 22.12.2006 – 03:31

    QUALCOMM Updates Financial Guidance for the First Fiscal Quarter of 2007

    San Diego (ots/PRNewswire) - QUALCOMM Incorporated (Nasdaq: QCOM) today updated its financial guidance for the first fiscal quarter ending December 31, 2006. 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 ...