QUALCOMM Announces Third Quarter Fiscal 2006 Results
San Diego (ots/PRNewswire)
Revenues US$1.95 Billion, Diluted EPS US$0.37
Pro Forma Revenues US$1.95 Billion, Diluted EPS US$0.42
Fourth Consecutive Quarter of Record Revenues and Chip
Shipments; Financial Guidance Increased for Fiscal 2006QUALCOMM Incorporated (Nasdaq: QCOM) today announced results for the third fiscal quarter ended June 25, 2006.
Total QUALCOMM (GAAP) Third Quarter Results:
Total QUALCOMM results are reported in accordance with Generally Accepted Accounting Principles (GAAP).
- Revenues: US$1.95 billion, up 44 percent year-over-year and 6 percent
sequentially.
- Net income: US$643 million, up 15 percent year-over-year and 8 percent
sequentially.
- Diluted earnings per share: US$0.37, up 12 percent year-over-year and
9 percent sequentially.
- Effective tax rate: 22 percent for the quarter and estimated for
fiscal 2006.
- Estimated share-based compensation: US$83 million, net of tax.
- Operating cash flow: US$816 million, up 56 percent year-over-year;
42 percent of revenue.
- Return of capital to stockholders: US$1.37 billion in the third
quarter, including US$202 million of cash dividends, or US$0.12 per
share, and US$1.17 billion to repurchase 26.4 million shares of our
common stock. After the end of the third fiscal quarter, we repurchased
an additional 5.6 million shares for US$238 million, with fiscal 2006
repurchases to date totaling 32.0 million shares for US$1.40 billion.QUALCOMM Pro Forma Third Quarter Results:
Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI) segment, estimated share-based compensation, tax benefits related to prior years and acquired in-process research and development (R&D) expense.
- Revenues: US$1.95 billion, up 44 percent year-over-year and 6 percent
sequentially.
- Net income: US$726 million, up 56 percent year-over-year and 3 percent
sequentially.
- Diluted earnings per share: US$0.42, up 50 percent year-over-year and
2 percent sequentially; excludes US$0.05 loss per share attributable to
estimated share-based compensation.
- Effective tax rate: 26 percent for the quarter and estimated for
fiscal 2006.
- Free cash flow: US$795 million, up 116 percent year-over-year;
41 percent of revenue. (Defined as net cash from operating activities
less capital expenditures)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.
"Our results this quarter were driven by continued customer demand for our broadly segmented chipsets with particular strength in 1xEV-DO and WCDMA," said Dr. Paul E. Jacobs, chief executive officer of QUALCOMM. "WCDMA handset shipments continue to increase and WCDMA Mobile Station Modem(TM) (MSM(TM)) unit shipments increased 24 percent from the March quarter."
"We shipped a record number of cell site modem voice-equivalent channel elements in the quarter, which was primarily driven by demand for our EV-DO Rev A CSM6800(TM) solution. Several operators, including KDDI, Sprint Nextel, Telecom New Zealand and Verizon have announced plans to upgrade their CDMA networks to EV-DO Rev A technology as early as this calendar year. CDMA subscribers and enterprise customers worldwide will soon benefit from the unmatched broadband performance of EV-DO Rev A. In addition, voice over internet protocol (VoIP) on EV-DO Rev A will enable in-band migration to fully packet-based networks and ultimately to much higher data rates via EV-DO Rev B multi-carrier operation. We are currently developing VoIP capabilities and data rate enhancement techniques for WCDMA/HSPA networks as well."
"This quarter also demonstrated QUALCOMM's continued focus on enhancing stockholder value. Our balance sheet strength and unique business model provide significant financial flexibility to increase cash dividends and repurchase shares while we continue to grow our R&D investments for the many business opportunities we see ahead."
Cash and Marketable Securities
QUALCOMM's cash, cash equivalents and marketable securities totaled approximately US$9.5 billion at the end of the third quarter of fiscal 2006, compared to US$10.2 billion at the end of the prior quarter and US$7.9 billion a year ago. The decrease from the prior quarter was primarily attributable to stock repurchases in the third quarter. We also sold four put options in connection with our stock repurchase program which, if exercised, will require us to repurchase an additional 4 million shares of our common stock for US$182 million, net of premiums received. On July 7, 2006, we announced a cash dividend of US$0.12 per common share payable on September 22, 2006 to stockholders of record at the close of business on August 25, 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 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 third quarter of fiscal 2006 included estimated share-based compensation of US$83 million, net of tax, or US$0.05 per share.
Research and Development
Estimated Total
QUALCOMM Share-Based QUALCOMM
(US$ in millions) Pro Forma Compensation QSI (GAAP)
Third quarter fiscal 2006 $322 $56 $17 $395
Third quarter fiscal 2005 $246 $-- $13 $259
Year-over-year change 31% 31% 53%Pro forma R&D expenses increased 31 percent year-over-year, primarily due to additional engineering resources for the development of integrated circuit products and other initiatives to support low-cost phones, multimedia applications, high-speed wireless Internet access and multimode, multiband, multinetwork products and technologies, including CDMA2000, 1xEV-DO, EV-DO Rev. A, WCDMA (including GSM/GPRS/EDGE), HSDPA, HSUPA and OFDMA, and the development of our iMoD(TM) display products using MEMS technology. QSI R&D expenses increased year-over-year primarily due to increased R&D activities related to MediaFLO(TM) USA.
Selling, General and Administrative
Estimated Total
QUALCOMM Share-Based QUALCOMM
(US$ in millions) Pro Forma Compensation QSI (GAAP)
Third quarter fiscal 2006 $214 $60 $19 $293
Third quarter fiscal 2005 $151 $-- $(1) $150
Year-over-year change 42% N/M 95%Pro forma selling, general and administrative (SG&A) expenses increased 42 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 and the effect of other income in the prior year's quarter.
Effective Income Tax Rate
Our fiscal 2006 estimated annual effective income tax rates and our third quarter effective income tax rates are approximately 22 percent for total QUALCOMM (GAAP) and 26 percent for QUALCOMM pro forma.
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 2006 included break-even results for the QSI segment compared to US$0.05 diluted earnings per share in the third quarter of fiscal 2005. The third quarter of fiscal 2006 QSI results included US$36 million in operating expenses, primarily related to MediaFLO USA, and US$4 million in other-than-temporary losses on other investments, partially offset by US$12 million in realized gains on investments. In addition to the tax benefit applicable to its loss before tax, the QSI segment includes the tax benefit resulting from an increase in the forecast of our ability to use capital loss carryforwards.
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 fourth quarter of fiscal 2006 based on the current business outlook. Total QUALCOMM (GAAP) guidance for the fourth fiscal quarter of 2006 includes approximately US$0.05 diluted loss per share related to estimated share-based compensation. Estimated share-based compensation in future periods may vary materially from the business outlook as the methodology used to calculate this estimate is dependent on a variety of assumptions which are subject to market fluctuations and other factors. A pro forma business outlook is provided below consistent with the presentation of pro forma results provided elsewhere herein.
The following estimates are approximations and are based on the current business outlook:
(All figures are in US$)
Business Outlook Summary
FOURTH QUARTER
Current Guidance
Q4'05 Q4'06
Results Estimates
QUALCOMM Pro Forma
Revenues $1.56B $1.88B - $1.98B
Year-over-year change increase 21% - 27%
Diluted earnings per share (EPS) $0.32 $0.39 - $0.41
Year-over-year change increase 22% - 28%
Total QUALCOMM (GAAP)
Revenues $1.56B $1.88B - $1.98B
Year-over-year change increase 21% - 27%
Diluted earnings per share (EPS) $0.32 $0.33 - $0.35
Year-over-year change increase 3% - 9%
Diluted EPS attributable to QSI $0.00 ($0.01)
Diluted EPS attributable to estimated
share-based compensation n/a ($0.05)
Metrics
MSM Shipments approx. 40M approx. 53M - 56M
CDMA/WCDMA handset units shipped approx. 48M(A) approx. 67M - 70M(A)
CDMA/WCDMA handset unit wholesale
average selling price approx. $213(A) approx. $215(A)
(A)Shipments in June quarter, reported in Sept. quarter
FISCAL YEAR
Prior Current
Guidance Guidance
FY 2005 FY 2006 FY 2006
Results Estimates Estimates
QUALCOMM Pro Forma
Revenues $5.67B $7.1B - $7.4B $7.4B - $7.5B
Year-over-year
change increase 25% - 30% increase 30% - 32%
Diluted earnings
per share (EPS) $1.16 $1.53 - $1.57 $1.61 - $1.63
Year-over-year
change increase 32% - 35% increase 39% - 41%
Total QUALCOMM (GAAP)
Revenues $5.67B $7.1B - $7.4B $7.4B - $7.5B
Year-over-year
change increase 25% - 30% increase 30% - 32%
Diluted earnings
per share (EPS) $1.26 $1.31 - $1.35 $1.40 - $1.42
Year-over-year
change increase 4% - 7% increase 11% - 13%
Diluted EPS
attributable to
in-process R&D n/a ($0.01) ($0.01)
Diluted EPS
attributable to
QSI $0.06 ($0.04) ($0.03)
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(B)
CDMA/WCDMA
handset unit
wholesale
average
selling price approx. $215 approx. $207 approx. $213
(B)Shipments in Sept. to June quarters, reported in Dec. to Sept.
quarters CALENDAR YEAR Handset Estimates
Prior Current
CDMA/WCDMA Guidance Guidance
handset unit Calendar 2006 Calendar 2006
shipments Calendar 2005 Estimates Estimates
March quarter
actuals approx. 43M approx. 65M - 66M approx. 66M
June quarter approx. 48M not provided approx. 67M - 70M
September
quarter approx. 52M not provided not provided
December
quarter approx. 67M not provided not provided
Calendar year
range approx. 210M approx. 275M - 290M approx. 285M - 295M
Midpoint Midpoint Midpoint
CDMA/WCDMA
units approx. 210M approx. 283M approx. 290M
CDMA units approx. 160M approx. 187M approx. 190M
WCDMA units approx. 50M approx. 96M approx. 100M
Sums may not equal totals due to rounding
Results of Business Segments (in millions, except per share data):
Third Quarter - Fiscal Year 2006
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $1,133 $683 $162 $(27) $1,951
Change from prior year 48% 52% (1%) N/M 44%
Change from prior quarter 11% 1% 0% N/M 6%
EBT $303 $619 $19 $35 $976
Change from prior year 63% 52% 58% N/M 49%
Change from prior quarter 20% (1%) 19% N/M 1%
Net income (loss) $726
Change from prior year 56%
Change from prior quarter 3%
Diluted EPS $0.42
Change from prior year 50%
Change from prior quarter 2%
Diluted shares used 1,728
Third Quarter - Fiscal Year 2006
Estimated Total
Share-Based QUALCOMM
Segments Compensation(2) QSI(4) (GAAP)
Revenues $-- $-- $1,951
Change from prior year -- -- 44%
Change from prior quarter -- -- 6%
EBT $(126) $(26) $824
Change from prior year N/M N/M 20%
Change from prior quarter N/M N/M 5%
Net income (loss) $(83) $-- $643
Change from prior year N/M N/M 15%
Change from prior quarter N/M N/M 8%
Diluted EPS $(0.05) $-- $0.37
Change from prior year N/M N/M 12%
Change from prior quarter N/M N/M 9%
Diluted shares used 1,728 1,728 1,728 Second Quarter - Fiscal Year 2006
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $1,018 $679 $162 $(25) $1,834
EBT 252 626 16 68 962
Net income (loss) 706
Diluted EPS $0.41
Diluted shares used 1,721
Second Quarter - Fiscal Year 2006
Segments Estimated Total
Share-Based In-Process QUALCOMM
Compensation(2) R&D(3) QSI(4) (GAAP)
Revenues $-- $-- $-- $1,834
EBT (120) (21) (36) 785
Net income (loss) (78) (21) (14) 593
Diluted EPS $(0.05) $(0.01) $(0.01) $0.34
Diluted shares used 1,721 1,721 1,721 1,721
Third Quarter - Fiscal Year 2005
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $766 $448 $164 $(20) $1,358
EBT 186 407 12 51 656
Net income 465
Diluted EPS $0.28
Diluted shares used 1,683
Third Quarter - Fiscal Year 2005
Total
Tax QUALCOMM
Segments Adjustments(5) QSI(4) (GAAP)
Revenues $-- $-- $1,358
EBT -- 30 686
Net income 16 79 560
Diluted EPS $0.01 $0.05 $0.33
Diluted shares used 1,683 1,683 1,683
Fourth Quarter - Fiscal Year 2005
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $912 $497 $170 $(19) $1,560
EBT 266 451 21 75 813
Net income (loss) 543
Diluted EPS $0.32
Diluted shares used 1,686
Fourth Quarter - Fiscal Year 2005
Total
QUALCOMM
Segments QSI(4) (GAAP)
Revenues $-- $1,560
EBT (27) 786
Net income (loss) (5) 538
Diluted EPS $-- $0.32
Diluted shares used 1,686 1,686
Twelve Months - Fiscal Year 2005
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $3,290 $1,839 $644 $(100) $5,673
EBT 852 1,663 57 227 2,799
Net income 1,970
Diluted EPS $1.16
Diluted shares used 1,694
Twelve Months - Fiscal Year 2005
Total
Tax QUALCOMM
Segments Adjustments(5)(6) QSI(4) (GAAP)
Revenues $-- $-- $5,673
EBT -- 10 2,809
Net income 71 102 2,143
Diluted EPS $0.04 $0.06 $1.26
Diluted shares used 1,694 1,694 1,694 Nine Months - Fiscal Year 2006
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $3,184 $1,926 $491 $(74) $5,527
Change from prior
year 34% 44% 4% N/M 34%
EBT $855 $1,762 $52 $176 $2,845
Change from prior
year 46% 45% 41% N/M 43%
Net income (loss) $2,098
Change from prior year 47%
Diluted EPS $1.22
Change from prior year 45%
Diluted shares used 1,717
Nine Months - Fiscal Year 2006
Estimated Total
Share-Based Tax In-Process QUALCOMM
Segments Compensation(2) Adjustments(7) R&D(3) QSI(4) (GAAP)
Revenues $-- $-- $-- $-- $5,527
Change
from
prior
year -- -- -- -- 34%
EBT $(368) $-- $(21) $(110) $2,346
Change
from
prior
year N/M -- -- N/M 16%
Net income
(loss) $(243) $56 $(21) $(34) $1,856
Change
from
prior
year N/M N/M N/M N/M 16%
Diluted
EPS $(0.14) $0.03 $(0.01) $(0.02) $1.08
Change
from
prior
year N/M N/M N/M N/M 14%
Diluted
shares
used 1,717 1,717 1,717 1,717 1,717
Nine Months - Fiscal Year 2005
Reconciling QUALCOMM
Segments QCT QTL QWI Items(1) Pro Forma
Revenues $2,378 $1,342 $473 $(81) $4,112
EBT 586 1,212 37 151 1,986
Net income 1,427
Diluted EPS $0.84
Diluted shares used 1,697
Nine Months - Fiscal Year 2005
Total
Tax QUALCOMM
Segments Adjustments(5)(6) QSI(4) (GAAP)
Revenues $-- $-- $4,112
EBT -- 37 2,023
Net income 71 107 1,605
Diluted EPS $0.04 $0.06 $0.95
Diluted shares used 1,697 1,697 1,697 (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 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.
(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 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.
N/M - Not Meaningful
Sums may not equal totals due to rounding. Business Segment Information
QUALCOMM CDMA Technologies (QCT)
- For the fourth consecutive quarter, we shipped a record number of MSM
chips. Approximately 55 million MSM chips were shipped to customers
worldwide during the third quarter of fiscal 2006, compared to
approximately 36 million units in the same quarter of fiscal 2005 and
approximately 49 million units in the second quarter of fiscal 2006.
- We shipped a record number of cell site modem voice-equivalent channel
elements in the quarter. This record was primarily driven by demand
for the EV-DO Rev. A CSM6800 solution.
- We sampled the first 65 nanometer (nm) chipset for EV-DO Rev. A ahead
of schedule. Commercial devices based on EV-DO Rev. A are expected
before the end of calendar year 2006.
- Our WCDMA product portfolio was reinforced by the early sampling of
three additional WCDMA/HSDPA chipsets in 65nm, which will help drive
the migration of wireless users to 3G.
- We introduced the Universal Broadcast Modem, or UBM product, that will
allow manufacturers to leverage a common platform that supports FLO(TM)
(Forward Link-Only), DVB-H, and one-segment ISDB-T for mobile TV on
wireless devices.
- We announced collaboration with Microsoft which features integrated
support for Windows Mobile on Convergence Platform chipsets for
EV-DO/EV-DO Rev. A and HSDPA/HSUPA networks. This joint effort will
result in a wider range of Windows Mobile Smartphones leveraging MSM
solutions to be available by early 2007.
QUALCOMM Technology Licensing (QTL)
- In the third quarter of fiscal 2006, five new licensees entered into
CDMA license agreements including our first licensee in India. Two
companies entered into licenses for CDMA2000 and three companies
entered into licenses for WCDMA. In addition, two existing CDMA2000
licensees signed amendments expanding their license to include WCDMA.
- We entered into a royalty bearing license agreement with a licensee
covering sales by that licensee of subscriber units implementing
OFDM/OFDMA technologies, including WiMax, for a total of two OFDM/OFDMA
licensees.
- Licensee information for the second quarter of fiscal 2006 as reported
by licensees in the third quarter of fiscal 2006:
- Worldwide shipments of approximately 66 million CDMA2000 and WCDMA
subscriber units at an average selling price of approximately
US$213 were reported.
- We estimate WCDMA royalties contributed approximately 47 percent of
total royalties reported compared to approximately 46 percent
reported in the prior quarter and approximately 36 percent in the
year ago quarter.
QUALCOMM Wireless & Internet Group (QWI)
QUALCOMM Internet Services (QIS)
- QUALCOMM has 69 BREW(R) customers in 31 countries. In June 2006, we
announced that publishers and developers have earned more than
US$700 million in revenues to date from the sale of BREW applications
and services, compared to the more than US$350 million announced in
June 2005, evidencing the continued growth and success of the entire
BREW wireless value chain.
QUALCOMM Wireless Business Solutions(R) (QWBS)
- We shipped approximately 10,700 satellite-based systems (OmniTRACS(R),
EutelTRACS(TM) and TruckMAIL(TM)) in the third quarter of fiscal 2006,
compared to approximately 13,800 in the third quarter of fiscal 2005
and approximately 8,200 in the second quarter of fiscal 2006. This
brings the cumulative total satellite-based systems shipped worldwide
to more than 597,000.
- We shipped approximately 5,500 terrestrial-based systems
(OmniExpress(R), GlobalTRACS(R) and T2 Untethered TrailerTRACS(TM)) in
the third quarter of fiscal 2006, compared to approximately
19,600 terrestrial-based systems in the third quarter of fiscal 2005
and approximately 8,000 terrestrial-based systems in the second quarter
of fiscal 2006. This brings the cumulative total terrestrial-based
systems shipped worldwide to nearly 114,000.
QUALCOMM Strategic Initiatives (QSI)
- QUALCOMM's subsidiary, MediaFLO USA Inc. (MediaFLO USA), opened its
Broadcast Operation Center (BOC) and Network Operations Center (NOC) in
San Diego. Currently, MediaFLO USA is using the BOC and NOC to conduct
service trials and in preparation for Verizon Wireless' expected launch
of MediaFLO services.
Other
- In July 2006, the Telecommunications Industry Association (TIA)
officially approved publication of the FLO Air Interface Specification
(AIS). The AIS was the first technical specification produced and
approved by the FLO Forum, an association of 45 wireless industry
leaders committed to advancing the global standardization of FLO
technology. The FLO Forum is playing a key role in making FLO
specifications open and uniform for developers, which aligns with the
TIA's desire to standardize the technologies needed by industry for use
in Terrestrial Mobile Multimedia Multicast.
- We entered into a nonbinding letter of intent with British Sky
Broadcasting Limited (BSkyB) in May 2006 to conduct technical trials of
our MediaFLO technology in the United Kingdom.
- In May 2006, we announced that the issuance of certain patents to our
subsidiary QUALCOMM Flarion Technologies triggered the payment of
additional consideration valued at approximately US$205 million to the
former stockholders and option holders of Flarion Technologies, Inc.,
of which US$197 million was recorded as goodwill with the remainder
expected to be recorded as share-based compensation over the vesting
periods of the related options.Conference Call
QUALCOMM's third quarter fiscal 2006 earnings conference call will be broadcast live on July 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 July 19, 2006 beginning at approximately 5:30 p.m. (PDT) through August 2, 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 7439642. 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 CDMA and other advanced technologies. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2006 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 meaningful 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 present 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 (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 June 25, 2006
Estimated Total
QUALCOMM Share-Based QUALCOMM
Pro Forma Compensation QSI (GAAP)
Revenues:
Equipment and services $1,240 $-- $-- $1,240
Licensing and royalty
fees 711 -- -- 711
Total revenues 1,951 -- -- 1,951
Operating expenses:
Cost of equipment and
services revenues 549 10 -- 559
Research and development 322 56 17 395
Selling, general and
administrative 214 60 19 293
Total operating
expenses 1,085 126 36 1,247
Operating income (loss) 866 (126) (36) 704
Investment income, net 110(a) -- 10(b) 120
Income (loss) before income
taxes 976 (126) (26) 824
Income tax (expense)
benefit (250)(c) 43 26(d) (181)(c)
Net income (loss) $726 $(83) $-- $643
Earnings (loss) per common
share:
Diluted $0.42 $(0.05) $-- $0.37
Shares used in per share
calculations:
Diluted 1,728 1,728 1,728 1,728
Supplemental Financial Data:
Operating Cash Flow $954 $(103)(f) $(35) $816
Operating Cash Flow as a %
of Revenue 49% 42%
Free Cash Flow (e) $795 $(103)(f) $(58) $634
Free Cash Flow as a % of
Revenue 41% 32%
(a) Includes US$117 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, and US$22 million
in net realized gains on investments, partially offset by US$24
million in losses on derivative instruments, primarily related to
the increase in the fair value of the put option liabilities related
to our share repurchase program, and US$5 million in other-than-
temporary losses on investments.
(b) Includes US$12 million in net realized gains on investments and
US$3 million in interest and dividend income, partially offset by
US$4 million in other-than-temporary losses on investments and
US$1 million in interest expense.
(c) The third quarter of fiscal 2006 tax rate of 22% for total QUALCOMM
(GAAP) and 26% for QUALCOMM pro forma are consistent with the fiscal
year 2006 estimated effective tax rates.
(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 June 25,
2006, included herein.
(f) Tax benefits from stock options exercised during the quarter. 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)
Nine Months Ended June 25, 2006
Estimated In- Total
QUALCOMM Share-Based Tax Process QUALCOMM
Pro Forma Compensation Adjustment R&D QSI (GAAP)
Revenues:
Equipment
and
services $3,512 $-- $-- $-- $-- $3,512
Licensing
and
royalty
fees 2,015 -- -- -- -- 2,015
Total
revenues 5,527 -- -- -- -- 5,527
Operating
expenses:
Cost of
equipment
and
services
revenues 1,564 32 -- -- -- 1,596
Research and
development 897 160 -- 21 48 1,126
Selling,
general and
administrative 570 176 -- -- 49 795
Total
operating
expenses 3,031 368 -- 21 97 3,517
Operating
income
(loss) 2,496 (368) (21) (97) 2,010
Investment
income
(expense),
net 349(a) -- -- -- (13)(b) 336
Income (loss)
before income
taxes 2,845 (368) -- (21) (110) 2,346
Income tax
(expense)
benefit (747)(c) 125 56 -- 76(d) (490)
Net income
(loss) $2,098 $(243) $56 $(21) $(34) $1,856
Earnings (loss)
per common
share:
Diluted $1.22 $(0.14) $0.03 $(0.01) $(0.02) $1.08
Shares used
in per share
calculations:
Diluted 1,717 1,717 1,717 1,717 1,717 1,717
Supplemental
Financial
Data:
Operating
Cash Flow $2,739 $(376)(f) $-- $-- $(62) $2,301
Operating
Cash Flow as
a % of Revenue 50% 42%
Free Cash
Flow(e) $2,273 $(376)(f) $-- $-- $(152) $1,745
Free Cash Flow
as a % of
Revenue 41% 32%
(a) Includes US$309 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, and US$76 million
in net realized gains on investments, partially offset by US$17
million in losses on derivative instruments, primarily related to
the increase in the fair values of the put option liabilities
related to our share repurchase program, US$17 million in other-
than-temporary losses on investments and US$2 million of interest
expense.
(b) Includes US$30 million in equity in losses of investees, US$3
million in other-than-temporary losses on investments and US$1
million of interest expense, partially offset by US$18 million in
net realized gains on investments and US$3 million in interest and
dividend income.
(c) The tax rate of 21% for the first nine 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 nine months ended June 25,
2006, included herein.
(f) Tax benefits from stock options exercised during the quarter. 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 June 25, 2006
Estimated Total
QUALCOMM Share-Based QUALCOMM
Pro Forma Compensation QSI (GAAP)
Earnings before taxes,
depreciation,
amortization and other
adjustments(1) $1,035 $(103) $(29) $903
Working capital changes
and taxes paid(2) (81) -- (6) (87)
Net cash provided (used)
by operating activities 954 (103) (35) 816
Capital expenditures (159) -- (23) (182)
Free cash flow (Net cash
provided by operating
activities less capital
expenditures) 795 (103) (58) 634
Net additional share
capital 155 -- -- 155
Repurchase and retirement
of common stock (1,165) -- -- (1,165)
Tax benefits from stock
options exercised during
the quarter -- 103 -- 103
Dividends paid (202) -- -- (202)
Other investments and
acquisitions, net of cash
acquired (113) -- (7) (120)
Other items, net 11 -- 5 16
Changes in fair value and
other changes to
marketable securities (102) -- 23 (79)
Marketable securities
pending settlement (31) -- -- (31)
Transfer from QSI(3) 20 -- (20) --
Transfer to QSI(4) (67) -- 67 --
Net (decrease) increase
in cash, cash equivalents
and marketable
securities(5) $(699) $-- $10 $(689)
(1) Reconciliation to GAAP:
Net income (loss) $726 $(83) $-- $643
Share-based
compensation, net of
tax benefit -- 83 -- 83
Other non-cash
adjustments (a) 305 (103)(b) (17) 185
Net realized gains on
marketable securities
and other investments (22) -- (12) (34)
Net taxes paid 26 -- -- 26
Earnings before taxes,
depreciation,
amortization and
other adjustments $1,035 $(103) $(29) $903
(2) Reconciliation to GAAP:
Increase in cash
resulting from
changes in working
capital (55) $-- $(6) $(61)
Net taxes paid (26) -- -- (26)
Working capital
changes and taxes
paid $(81) $-- $(6) $(87)
(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 decrease in cash
and cash equivalents
(GAAP) $(624) $-- $-- $(624)
Net purchases
and maturities of
marketable
securities 58 -- (13) 45
Net (decrease)
increase in
fair value and
other changes to
marketable
securities (102) -- 23 (79)
Net decrease
in marketable
securities pending
settlement (31) -- -- (31)
Net (decrease)
increase in cash,
cash equivalents and
marketable
securities $(699) $-- $10 $(689)
(a) See detail below.
(b) Tax benefits from stock options exercised during the quarter. 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)
Nine Months Ended June 25, 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) $2,942 $(376) $-- $-- $(86) $2,480
Working capital
changes and
taxes paid (2) (203) -- -- -- 24 (179)
Net cash
provided (used)
by operating
activities 2,739 (376) -- -- (62) 2,301
Capital
expenditures (466) -- -- -- (90) (556)
Free cash flow
(Net cash
provided by
operating
activities less
capital
expenditures) 2,273 (376) -- -- (152) 1,745
Net additional
share capital 623 -- -- -- -- 623
Repurchase and
retirement of
common stock (1,165) -- -- -- -- (1,165)
Tax benefits
from stock
options
exercised
during the
period -- 376 -- -- -- 376
Dividends paid (500) -- -- -- -- (500)
Other
investments
and
acquisitions,
net of cash
acquired (376) -- -- -- (14) (390)
Other items, net 11 -- -- -- 9 20
Changes in fair
value and other
changes to
marketable
securities 11 -- -- -- 48 59
Marketable
securities
pending
settlement 29 -- -- -- -- 29
Transfer from
QSI(3) 41 -- -- -- (41) --
Transfer to
QSI(4) (170) -- -- -- 170 --
Net increase in
cash, cash
equivalents and
marketable
securities(5) $777 $-- $-- $-- $20 $797
(1) Reconciliation
to GAAP:
Net income
(loss) $2,098 $(243) $56 $(21) $(34) $1,856
Share-based
compensation,
net of tax
benefit -- 243 -- -- -- 243
Other
non-cash
adjustments
(a) 806 (376)(b) (56) 21 (34) 361
Net realized
gains on
marketable
securities
and other
investments (76) -- -- -- (18) (94)
Net taxes
paid 114 -- -- -- -- 114
Earnings
before taxes,
depreciation,
amortization
and other
adjustments $2,942 $(376) $-- $-- $(86) $2,480
(2) Reconciliation
to GAAP:
Increase
in cash
resulting
from changes
in working
capital $(89) $-- $-- $-- $24 $(65)
Net taxes
paid (114) -- -- -- -- (114)
Working
capital
changes
and taxes
paid $(203) $-- $-- $-- $24 $(179)
(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 decrease
in cash and
cash
equivalents
(GAAP) $(915) $-- $-- $-- $-- $(915)
Net
purchases
and
maturities of
marketable
securities 1,652 -- -- -- (28) 1,624
Net
increase in
fair value
and other
changes to
marketable
securities 11 -- -- -- 48 59
Net
increase in
marketable
securities
pending
settlement 29 -- -- -- -- 29
Net increase
in cash, cash
equivalents
and
marketable
securities $777 $-- $-- $-- $20 $797
(a) See detail below.
(b) Tax benefits from stock options exercised during the period. QUALCOMM Incorporated
SUPPLEMENTAL DETAIL TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
(In millions)
(Unaudited)
Three Months Ended June 25, 2006
Estimated Total
QUALCOMM Share-Based QUALCOMM
Pro Forma Compensation QSI (GAAP)
(a) Other non-cash
adjustments are
comprised of:
Depreciation and
amortization $66 $-- $3 $69
Tax benefits from stock
options exercised during
the quarter -- (103) -- (103)
Non-cash income tax
expense (benefit) 224 -- (26) 198
Other non-cash charges 15 -- 6 21
Total non-cash adjustments $305 $(103) $(17) $185
Nine Months Ended June 25, 2006
Estimated In- Total
QUALCOMM Share-Based Tax Process QUALCOMM
Pro Forma Compensation Adjustment R&D QSI (GAAP)
(a) Other
non-cash
adjustments
are
comprised
of:
Depreciation
and
amortization $184 $-- $-- $-- $6 $190
Tax benefits
from stock
options
exercised
during the
period -- (376) -- -- -- (376)
Non-cash
income tax
expense
(benefit) 632 -- (56) -- (76) 500
Other
non-cash
charges and
(credits) (10) -- -- 21 36 47
Total
non-cash
adjustments $806 $(376) $(56) $21 $(34) $361 RECONCILIATION OF PRIOR YEAR PRO FORMA FREE CASH FLOW
TO NET CASH PROVIDED BY OPERATING ACTIVITIES
(In millions)
(Unaudited)
Three Months Ended June 26, 2005
Total
QUALCOMM QUALCOMM
Pro forma QSI (GAAP)
Net cash provided by operating activities $520 $3 $523
Capital expenditures (152) (4) (156)
Free cash flow (Net cash provided by
operating activities less capital
expenditures) $368 $(1) $367
Nine Months Ended June 26, 2005
Total
QUALCOMM QUALCOMM
Pro Forma QSI (GAAP)
Net cash provided by operating activities $1,741 $-- $1,741
Capital expenditures (356) (82) $(438)
Free cash flow (Net cash provided by
operating activities less capital
expenditures) $1,385 $(82) $1,303
QUALCOMM Incorporated
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)
ASSETS
June 25, September 25,
2006 2005
Current assets:
Cash and cash equivalents $1,155 $2,070
Marketable securities 4,716 4,478
Accounts receivable, net 695 544
Inventories 259 177
Deferred tax assets 316 343
Other current assets 133 179
Total current assets 7,274 7,791
Marketable securities 3,607 2,133
Property, plant and equipment, net 1,420 1,022
Goodwill 1,236 571
Deferred tax assets 483 444
Other assets 693 518
Total assets $14,713 $12,479
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $501 $376
Payroll and other benefits related
liabilities 241 196
Unearned revenue 176 163
Other current liabilities 418 335
Total current liabilities 1,336 1,070
Unearned revenue 144 146
Other liabilities 235 144
Total liabilities 1,715 1,360
Stockholders' equity:
Preferred stock, $0.0001 par value;
issuable in series; 8 shares authorized;
none outstanding at June 25, 2006 and
September 25, 2005, respectively -- --
Common stock, $0.0001 par value;
6,000 shares authorized; 1,656 and
1,640 shares issued and outstanding
at June 25, 2006 and September 25, 2005,
respectively -- --
Paid-in capital 7,325 6,753
Retained earnings 5,684 4,328
Accumulated other comprehensive (loss)
income (11) 38
Total stockholders' equity 12,998 11,119
Total liabilities and stockholders'
equity $14,713 $12,479 QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
June 25, June 26, June 25, June 26,
2006 2005 2006 2005
Revenues:
Equipment and services $1,240 $882 $3,512 $2,708
Licensing and royalty fees 711 476 2,015 1,404
Total revenues 1,951 1,358 5,527 4,112
Operating expenses:
Cost of equipment and services
revenues 559 389 1,596 1,204
Research and development 395 259 1,126 740
Selling, general and
administrative 293 150 795 452
Total operating expenses 1,247 798 3,517 2,396
Operating income 704 560 2,010 1,716
Investment income, net 120 126 336 307
Income before income taxes 824 686 2,346 2,023
Income tax expense (181) (126) (490) (418)
Net income $643 $560 $1,856 $1,605
Basic earnings per common share $0.38 $0.34 $1.12 $0.98
Diluted earnings per common share $0.37 $0.33 $1.08 $0.95
Shares used in per share
calculations:
Basic 1,675 1,633 1,661 1,640
Diluted 1,728 1,683 1,717 1,697
Dividends per share paid $0.12 $0.09 $0.30 $0.23
Dividends per share announced $0.12 $0.09 $0.30 $0.23Web site: http://www.qualcomm.com
Contact:
Bill Davidson, Vice President, Investor Relations of QUALCOMM
Incorporated, +1-858-658-4813, or 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 .