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Abonner Qualcomm Incorporated

Qualcomm Incorporated

QUALCOMM Announces First Quarter Fiscal 2006 Results

San Diego (ots/PRNewswire)

- Revenues US$1.74 Billion, Diluted EPS US$0.36
    - Pro Forma Revenues US$1.74 Billion, Diluted EPS US$0.39
    - Reaffirms Fiscal 2006 Guidance
QUALCOMM Incorporated (Nasdaq: QCOM) today announced results for
its first quarter of fiscal 2006 ended December 25, 2005.
Total QUALCOMM (GAAP) First Quarter Results:
Total QUALCOMM results are reported in accordance with Generally
Accepted Accounting Principles (GAAP).
- Revenues: US$1.74 billion, up 25 percent year-over-year and 12 percent
      sequentially.
    - Net income: US$620 million, up 21 percent year-over-year and 15 percent
      sequentially.
    - Diluted earnings per share: US$0.36, up 20 percent year-over-year and
      13 percent sequentially.
    - Effective tax rate: 16 percent for the quarter. Fiscal 2006 estimated
      tax rate of approximately 22 percent.
    - Estimated share-based compensation: US$82 million, net of tax.
    - Operating cash flow: US$596 million, up 50 percent year-over-year;
      34 percent of revenue.
    - Return of capital to stockholders: In the quarter, we announced a new
      US$2.5 billion stock repurchase program to replace the prior program
      which had US$1 billion of repurchase authority remaining, and announced
      dividends totaling US$148 million, or US$0.09 per share, which were
      paid on January 4, 2006.
QUALCOMM Pro Forma First Quarter Results:
Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI)
segment, estimated share-based compensation and tax benefits related
to prior years.
- Revenues: US$1.74 billion, up 25 percent year-over-year and 12 percent
      sequentially.
    - Net income: US$667 million, up 41 percent year-over-year and 23 percent
      sequentially.
    - Diluted earnings per share: US$0.39, up 39 percent year-over-year and
      22 percent sequentially, excludes US$0.01 loss per share attributable
      to the QSI segment, US$0.05 loss per share attributable to estimated
      share-based compensation and US$0.03 earnings per share attributable to
      tax benefits related to prior years.
    - Effective tax rate: 26 percent for the quarter and estimated for fiscal
      2006.
    - Free cash flow: US$531 million, up 93 percent year-over-year; 30
      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.
"We delivered record first quarter revenue and strong
year-over-year growth led by demand for our chips," said Dr. Paul E.
Jacobs, CEO of QUALCOMM. "I'm pleased to see continued execution on
our product roadmaps as we partner with manufacturers, operators and
developers to bring new innovations to market. In emerging wireless
markets like China and India, demand for low-end CDMA phones is
increasing; in more established markets like the United States, South
Korea, Japan and Europe, subscribers continue to migrate and upgrade
to feature rich 3G devices and services."
"Looking forward, we expect continued growth of CDMA2000(R)
1xEV-DO products in North America, Japan, South Korea and Latin
America. We remain encouraged by the consumer uptake of WCDMA
services in Japan and Europe, and will continue working closely with
operators during their ongoing WCDMA and HSDPA network deployment and
optimization efforts. We remain well positioned to capitalize on the
growth of 3G, thanks to the extensive value chain of partnerships
that exists to rapidly bring new innovations to consumers and
enterprise customers."
"QUALCOMM has a proven history of bringing the most advanced
wireless technologies to market for large-scale deployments. The
recent closure of the Flarion acquisition enhances QUALCOMM's strong
position in OFDMA and further demonstrates our commitment to
consistently add to our intellectual property (IP) portfolio through
internal research and development and acquisition. Our research and
development activities combined with our unique business model help
enable our partners to supply wireless products and services with new
features and functionality that drive incremental revenue growth for
the industry."
Cash and Marketable Securities
QUALCOMM's cash, cash equivalents and marketable securities
totaled approximately US$9.4 billion at the end of the first quarter
of fiscal 2006, compared to US$8.7 billion at the end of the prior
quarter and US$8.0 billion a year ago. On January 12, 2006, we
announced a quarterly cash dividend of US$0.09 per common share,
payable on March 24, 2006 to stockholders of record on February 24,
2006.
Estimated Share-Based Compensation
In the first quarter of fiscal 2006, we adopted 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. Historically, this had been identified in
the footnote disclosures to our financial statements in accordance
with FAS 123. We have implemented FAS 123R using the modified
prospective method. Under this method, prior periods are not revised
for comparative purposes. Our share-based compensation is estimated
utilizing a lattice binomial option valuation model and has been
classified in the appropriate categories of our operating expenses.
However, estimated share-based compensation is not allocated to our
business segments because we do not consider it relevant when
evaluating the operating performance of our business segments, and is
also excluded from QUALCOMM pro forma results. Total QUALCOMM (GAAP)
net income for the first quarter of fiscal 2006 included estimated
share-based compensation of US$82 million, net of tax, or US$0.05 per
share.
    Research and Development
     (US$ in millions)                        Estimated             Total
                                QUALCOMM    Share-Based          QUALCOMM
                               Pro Forma   Compensation    QSI     (GAAP)
     First quarter fiscal 2006     $273          $52       $15      $340
     First quarter fiscal 2005     $219          $--        $9      $228
     Year-over-year change           25%                    67%       49%
Pro forma research and development (R&D) expenses increased 25
percent year-over-year, primarily due to additional engineering
resources for the development of integrated circuit products and
other initiatives to support low-cost phones, multimedia
applications, high-speed wireless access and multimode, multiband,
multinetwork products and technologies, including CDMA2000, 1xEV-DO,
WCDMA, HSDPA, GSM/GPRS/EDGE and OFDMA, and the development of our
iMoD display products. QSI R&D expenses increased year-over-year
primarily due to increased expenses related to MediaFLO USA.
    Selling, General and Administrative
     (US$ in millions)                        Estimated             Total
                                QUALCOMM    Share-Based          QUALCOMM
                               Pro Forma   Compensation    QSI     (GAAP)
     First quarter fiscal 2006    $168            $58       $13      $239
     First quarter fiscal 2005    $143            $--        $5      $148
     Year-over-year change          17%                     160%       61%
Pro forma selling, general and administrative (SG&A) expenses
increased 17 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 and
patent activities. QSI SG&A expenses increased year-over-year
primarily due to increased expenses related to MediaFLO USA.
Effective Income Tax Rate
Our fiscal 2006 effective income tax rate is estimated to be
approximately 22 percent, compared to 24 percent in fiscal 2005. Our
fiscal  2006 QUALCOMM pro forma effective tax rate is estimated to be
approximately  26 percent, compared to 30 percent in fiscal 2005. The
decrease in our fiscal  2006 estimated annual effective tax rates
compared to our fiscal 2005 tax rates for both total QUALCOMM (GAAP)
and QUALCOMM pro forma is primarily the  result of projected
increased foreign earnings in 2006 taxed at a lower rate.  A benefit
of approximately US$0.03 per share was recorded in the first  quarter
of fiscal 2006 related to the expected impact of prior year tax
audits completed during the quarter. This benefit reduced the rate
for the  first quarter of fiscal 2006 for total QUALCOMM (GAAP) to
approximately 16  percent. For fiscal 2006 QUALCOMM pro forma
presentation we excluded this  US$0.03 diluted earnings per share
benefit to provide a clearer understanding  of our ongoing tax rate
and after tax earnings.
QUALCOMM Strategic Initiatives
The QSI segment includes our strategic investments and related
income and expenses. Total QUALCOMM (GAAP) results for the first
quarter of fiscal 2006 include US$0.01 loss per share for the QSI
segment compared to US$0.02 diluted earnings per share for the first
quarter of fiscal 2005. The first quarter fiscal 2006 QSI results
include US$28 million of operating expenses, primarily related to
MediaFLO USA, and US$20 million of equity in losses of investees.
Business Outlook
The following statements are forward-looking and actual results
may differ materially. Please see "Note Regarding Forward-Looking
Statements" at  the end of this news release for a description of
certain risk factors and QUALCOMM's annual and quarterly reports on
file with the Securities and  Exchange Commission (SEC) for a more
complete description of risks. Due to  their nature, certain income
and expense items, such as realized investment gains or losses in
QSI, gains and losses on certain derivative instruments or asset
impairments, cannot be accurately forecast. Accordingly, the Company
excludes forecasts of such items from its business outlook, and
actual  results may vary materially from the business outlook if the
Company incurs  any such income or expense items.
Although estimated share-based compensation is included in the
business outlook for total QUALCOMM (GAAP), actual estimated
share-based compensation recorded under FAS 123R may vary materially
from the business outlook as the methodology used to calculate this
estimate is dependent on a variety of assumptions which are subject
to market fluctuations and other variable factors. A pro forma
business outlook is provided below consistent with the presentation
of pro forma results provided elsewhere herein and also excludes
in-process R&D expense related to acquisitions completed in the
second  quarter of fiscal 2006.
We continue to expect strong revenue, earnings and cash flow
growth in 2006 and are reaffirming our fiscal 2006 revenue and
earnings guidance for total QUALCOMM (GAAP), QUALCOMM pro forma and
our 2006 calendar year handset guidance.
The following estimates are approximations and are based on the
current business outlook:
                             Business Outlook Summary
     All figures in US$
     SECOND QUARTER
                                                            Current Guidance
                                                Q2'05             Q2'06
                                              Results           Estimates
     QUALCOMM Pro Forma
     Revenues                                  $1.37B      $1.63B - $1.73B
     Year-over-year change                                increase 19% - 27%
     Diluted earnings per
      share (EPS)                               $0.29       $0.35 - $0.37
     Year-over-year change                                increase 21% - 28%
     Total QUALCOMM (GAAP)
     Revenues                                  $1.37B      $1.63B - $1.73B
     Year-over-year change                                increase 19% - 27%
     Diluted earnings per share (EPS)           $0.31       $0.28 - $0.30
     Year-over-year change                                 decrease 3% - 10%
     Diluted EPS attributable to
      in-process R&D                              n/a            ($0.01)
     Diluted EPS attributable to QSI          ($0.01)            ($0.01)
     Diluted EPS attributable to
      estimated share-based compensation          n/a            ($0.05)
     EPS attributable to tax benefit
      related to prior years                    $0.03              n/a
     Metrics
     MSM Shipments                         approx. 37M          44M - 46M
     CDMA/WCDMA handset units shipped      approx. 52M(i)       59M - 61M(i)
     CDMA/WCDMA handset unit wholesale
      average selling price               approx. $207(i)            $209(i)
     (i)Shipments in Dec. quarter, reported in Mar. quarter
     FISCAL YEAR
                                             Prior              Current
                                           Guidance            Guidance
                            FY 2005         FY 2006             FY 2006
                            Results        Estimates           Estimates
     QUALCOMM Pro Forma
     Revenues                $5.67B     $6.7B - $7.1B        $6.7B - $7.1B
     Year-over-year
      change                         increase 18% - 25%    increase 18% - 25%
     Diluted earnings
      per share (EPS)         $1.16      $1.43 - $1.47       $1.43 - $1.47
     Year-over-year
      change                         increase 23% - 27%    increase 23% - 27%
     Total QUALCOMM (GAAP)
     Revenues                $5.67B      $6.7B - $7.1B       $6.7B - $7.1B
     Year-over-year
      change                         increase 18% - 25%    increase 18% - 25%
     Diluted earnings
      per share (EPS) (1)     $1.26      $1.19 - $1.23       $1.19 - $1.23
     Year-over-year
      change                           decrease 2% - 6%     decrease 2% - 6%
     Diluted EPS
      attributable to
      in-process R&D            n/a             n/a              ($0.01)
     Diluted EPS
      attributable to QSI     $0.06          ($0.06)             ($0.06)
     Diluted EPS
      attributable
      to estimated
      share-based
      compensation              n/a          ($0.18)             ($0.20)
     Diluted EPS
      attributable
      to tax benefit
      related to
      prior years             $0.04           $0.00               $0.03
     Metrics
     Fiscal year(ii)
      CDMA/WCDMA
      handset unit
      wholesale average
      selling price      approx. $215        approx. $210       approx. $210
     (ii)Shipments in Sep. to June quarters, reported in Dec. to Sep.
         quarters
     CALENDAR YEAR Handset Estimates
                        Prior        Current         Prior        Current
                       Guidance      Guidance       Guidance       Guidance
       CDMA/WCDMA      Calendar      Calendar       Calendar       Calendar
      handset unit       2005          2005           2006           2006
       shipments      Estimates     Estimates      Estimates      Estimates
     March quarter
      actuals       approx. 43M   approx. 43M   not provided   not provided
     June quarter
      actuals       approx. 48M   approx. 48M   not provided   not provided
     September
      quarter        51M - 53M    approx. 52M   not provided   not provided
     December
      quarter      not provided     59M - 61M   not provided   not provided
     Calendar year
      range         200M - 205M   202M - 204M    255M - 270M    255M - 270M
                       Midpoint      Midpoint       Midpoint       Midpoint
     CDMA/WCDMA units      202M          203M           262M           262M
     CDMA units            158M          158M           176M           176M
     WCDMA units            44M           45M            86M            86M
     (1) The dilution per share related to the acquired in-process R&D and
         the increased estimated share-based compensation for fiscal 2006
         are offset by tax benefits related to prior years, and as a result,
         fiscal 2006 guidance for total QUALCOMM has not changed from our
         prior guidance.
    Results of Business Segments
    (US dollars in millions, except per share data):
     First Quarter - Fiscal Year 2006
                                                                     QUALCOMM
                                                        Reconciling     Pro
     Segments                     QCT      QTL    QWI    Items (1)     Forma
     Revenues                   $1,033    $564   $166      $(22)      $1,741
     Change from prior year         19%     41%     4%      N/M           25%
     Change from prior quarter      13%     13%    (2%)     N/M           12%
     EBT                          $300    $517    $17       $72         $906
     Change from prior year         24%     44%     6%      N/M           36%
     Change from prior quarter      13%     15%   (19%)     N/M           11%
     Net income (loss)                                                   667
     Change from prior year                                               41%
     Change from prior quarter                                            23%
     Diluted EPS                                                       $0.39
     Change from prior year                                               39%
     Change from prior quarter                                            22%
     Diluted shares used                                               1,702
     First Quarter - Fiscal Year 2006
                                  Estimated                            Total
                                 Share-Based       Tax               QUALCOMM
                               Compensation(2)  Adjustment(3)   QSI    (GAAP)
     Segments
     Revenues                        $--           $--         $--    $1,741
     Change from prior year           --            --          --        25%
     Change from prior quarter        --            --          --        12%
     EBT                           $(122)          $--        $(48)     $736
     Change from prior year          N/M            --         N/M         5%
     Change from prior quarter       N/M            --         N/M       (6%)
     Net income (loss)               (82)           56         (21)      620
     Change from prior year          N/M           N/M         N/M        21%
     Change from prior quarter       N/M           N/M         N/M        15%
     Diluted EPS                  $(0.05)        $0.03      $(0.01)    $0.36
     Change from prior year          N/M           N/M         N/M        20%
     Change from prior quarter       N/M           N/M         N/M        13%
     Diluted shares used           1,702         1,702       1,702     1,702
     Fourth Quarter - Fiscal Year 2005
                                                                        Total
                                         Reconciling  QUALCOMM       QUALCOMM
     Segments           QCT    QTL   QWI   Items(1)   Pro Forma   QSI  (GAAP)
     Revenues          $912   $497  $170    $(19)       $1,560    $--  $1,560
     EBT                266    451    21      75           813    (27)   $786
     Net income (loss)                                     543     (5)   $538
     Diluted EPS                                         $0.32    $--   $0.32
     Diluted shares used                                 1,686  1,686   1,686
    First Quarter - Fiscal Year 2005
                                 Reconciling                         Total
                                    Items      QUALCOMM             QUALCOMM
    Segments     QCT   QTL   QWI     (1)      Pro Forma     QSI      (GAAP)
    Revenues     $865  $400  $159   $(34)     $1,390        $--      $1,390
    EBT           242   358    16     48         664         40        $704
    Net income                                   474         39        $513
    Diluted EPS                                $0.28      $0.02       $0.30
    Diluted
     shares used                               1,704      1,704       1,704
    Second Quarter -- Fiscal Year 2005
                                                                Reconciling
    Segments                             QCT      QTL      QWI      Items(1)
    Revenues                            $746     $493     $151        $(25)
    EBT                                  158      448        8          52
    Net income (loss)
    Diluted EPS
    Diluted shares used
    Second Quarter -- Fiscal Year 2005
                                                                    Total
                          QUALCOMM        Tax                      QUALCOMM
    Segments             Pro Forma    Adjustments(4)       QSI      (GAAP)
    Revenues              $1,365           $--            $--       $1,365
    EBT                      666            --            (33)        $633
    Net income (loss)        487            55            (10)        $532
    Diluted EPS            $0.29         $0.03         $(0.01)       $0.31
    Diluted shares used    1,704         1,704          1,704        1,704
     Twelve Months -- Fiscal Year 2005
                                                            Reconciling
     Segments                QCT         QTL       QWI        Items (1)
     Revenues             $3,290      $1,839      $644         $(100)
     EBT                     852       1,663        57           227
     Net income
     Diluted EPS
     Diluted shares used
     Twelve Months -- Fiscal Year 2005
                                            Tax                     Total
     Segments               QUALCOMM    Adjustments               QUALCOMM
                           Pro Forma      (4)(5)         QSI       (GAAP)
     Revenues                $5,673         $--          $--       $5,673
     EBT                      2,799          --           10       $2,809
     Net income               1,970          71          102       $2,143
     Diluted EPS              $1.16       $0.04        $0.06        $1.26
     Diluted shares used      1,694       1,694        1,694        1,694
    (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 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.
    (4) 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.
    (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.
    N/M - Not Meaningful
    Sums may not equal totals due to rounding.
    Business Segment Information
     QUALCOMM CDMA Technologies (QCT)
    - QCT shipped a new record of approximately 47 million MSM chips to
      customers worldwide during the first quarter of fiscal 2006, compared
      to approximately 39 million units in the same quarter of fiscal 2005
      and approximately 40 million units in the fourth quarter of fiscal
      2005. As previously reported, we have surpassed 2 billion cumulative
      chip shipments since we shipped the first CDMA MSM chip in 1996.
    - We announced our DMMX (DO Multicarrier Multilink eXtensions) and HMMX
      (HSDPA Multicarrier Multilink eXtensions) platforms to support the
      long-term roadmaps of EV-DO and HSDPA.
    - The number of 3G CDMA-based devices commercially available
      incorporating our MSMs continues to grow at an accelerating pace, with
      154 1xEV-DO and 55 WCDMA commercial advanced 3G devices launched to
      date.
    - We actively supported the world's first widespread High-Speed Downlink
      Packet Access (HSDPA) deployment recently launched by Cingular Wireless
      in the United States in December 2005. We worked with several leading
      device manufacturers to develop and validate multiple mobile devices
      for the HSDPA network, including certain models based on our
      MSM6275(TM) chipset.
    QUALCOMM Technology Licensing (QTL)
    - In the first quarter of fiscal 2006, three new licensees entered into
      CDMA subscriber equipment license agreements. One of the three
      agreements was with a WCDMA licensee in China, bringing the total WCDMA
      agreements with Chinese manufacturers to seven, all at our standard
      royalty rates.
    - Licensee information for the fourth quarter of fiscal 2005 as reported
      by licensees in the first quarter of fiscal 2006:
      -- Worldwide shipments of approximately 52 million CDMA2000 and WCDMA
         subscriber units at an average selling price of approximately
         US$215 were reported.
      -- We estimate WCDMA royalties contributed approximately 40 percent of
         total royalties reported compared to approximately 32 percent in
         the year ago quarter and approximately 41 percent reported in the
         prior quarter.
      -- 22 handset suppliers actively supplied WCDMA products, compared to
         17 reported in the fourth quarter of fiscal 2005.
      -- 48 handset suppliers actively supplied CDMA2000 1x and 1xEV-DO
         products, compared to 46 reported in the fourth quarter of
         fiscal 2005.
    QUALCOMM Wireless & Internet Group (QWI)
    QUALCOMM Internet Services (QIS)
    - As of January 25, 2006, 59 wireless operators were offering BREW
      services in 28 countries, including new customers obtained as part of
      our ELATA acquisition.
    - Through December 2005, three operators, including ALLTEL, O2 and Sprint
      have entered into agreements to license the uiOne user interface
      offering.
    QUALCOMM Wireless Business Solutions(R) (QWBS)
    - We shipped approximately 11,800 satellite-based systems (OmniTRACS(R),
      EutelTRACS(TM) and TruckMAIL(TM)) in the first quarter of fiscal 2006
      compared to approximately 13,300 in the first quarter of fiscal 2005
      and approximately 11,000 in the fourth quarter of fiscal 2005. This
      brings the cumulative total satellite-based systems shipped worldwide
      to more than 578,000.
    - We shipped approximately 15,100 terrestrial-based systems
      (OmniExpress(R), GlobalTRACS(R) and T2 Untethered TrailerTRACS(TM)) in
      the first quarter of fiscal 2006 compared to approximately 11,600
      terrestrial-based systems in the first quarter of fiscal 2005 and
      approximately 17,500 terrestrial-based systems in the fourth quarter of
      fiscal 2005. This brings the cumulative total terrestrial-based
      systems shipped worldwide to more than 100,000.
    QUALCOMM Strategic Initiatives (QSI)
    MediaFLO USA
    - In December 2005, we announced plans to work with Verizon Wireless to
      bring its customers real-time mobile video over the MediaFLO(TM) USA
      network. We expect Verizon Wireless will be the first wireless service
      provider to use the MediaFLO USA network to deliver mobile TV services.
    - In January 2006, we conducted a live, over-the-air demonstration of FLO
      Technology with LG Electronics MobileComm (LG) and Samsung Electronics
      Co., Ltd., during the 2006 International Consumer Electronics Show in
      Las Vegas. The demonstrations were the first featuring FLO Technology
      on handsets from major device manufacturers.
    Other
    - In the second quarter of fiscal 2006, we completed the acquisition of
      Flarion Technologies, Inc., a developer of OFDMA technology.
    - In the second quarter of fiscal 2006 we also completed the acquisition
      of Berkana Wireless Inc., a fabless semiconductor company, that
      provides complementary metal oxide semiconductor (CMOS) radio frequency
      integrated circuits (RFICs).
Conference Call
QUALCOMM's first quarter fiscal 2006 earnings conference call will
be broadcast live on January 25, 2006 beginning at 2:30 p.m. Pacific
Standard 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 January
25, 2006 beginning at approximately 5:30 p.m. (PST) through February
8, 2006 at 5:30 p.m. (PST). 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 4046245. An audio replay of the conference call
will be available on the Company's web site at www.qualcomm.com for
two weeks following the live call.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing
and delivering innovative digital wireless communications products
and services based on the Company's CDMA digital technology.
Headquartered in San Diego, Calif., QUALCOMM is included in the S&P
500 Index and is a 2005 FORTUNE 500(R) company traded on The Nasdaq
Stock Market(R) under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
The Company presents pro forma financial information that excludes
the QUALCOMM Strategic Initiatives (QSI) segment, estimated
share-based compensation, tax benefits related to prior years, and
acquired in-process  R&D expense. Pro forma financial measures used
by the Company's management include pro forma revenues, pro forma
cost of equipment and services revenues, pro forma R&D expenses, pro
forma SG&A expenses, pro forma total operating expenses, pro forma
operating income (loss), pro forma net  investment income, pro forma
income before income taxes, pro forma income tax  expense, pro forma
effective tax rate, pro forma diluted earnings per share,  pro forma
operating cash flow, and pro forma free cash flow. Pro forma
information is used by management to evaluate, assess and benchmark
the  Company's operating results, and the Company believes that pro
forma  reporting represents relevant and useful information that is
widely used by  analysts, investors and other interested parties in
its industry.
The Company's management uses pro forma financial information
excluding QSI and share-based compensation to evaluate, assess and
benchmark the Company's operating results because the effects of
fluctuations in the Value of investments and share-based compensation
are viewed by management as unrelated to the Company's operational
performance, and share-based compensation is not an expense that
requires or will require cash payment by the Company. QSI results
relate to strategic investments for which the Company has exit
strategies of varying durations. The Company believes That financial
data excluding the QSI segment and the estimate of share-based
compensation provides investors with meaningful information about the
Company's ongoing core operating businesses, including QUALCOMM CDMA
Technologies, QUALCOMM Technology Licensing and QUALCOMM Wireless &
Internet. This presentation is also useful to investors in evaluating
performance on a basis that is consistent and comparable with periods
prior to the adoption of FAS 123R in the first quarter of fiscal
2006.
The Company presents pro forma results excluding certain tax
benefits related to prior years to provide management, as well as
investors, a clearer understanding of its ongoing tax rate and after
tax earnings. The Company believes that this presentation is useful
in evaluating performance on a consistent and comparable basis.
The Company presents pro forma financial information for fiscal
2006 excluding acquired in-process R&D expense to evaluate, assess
and benchmark the Company's operating performance because acquired
in-process R&D expense  is viewed by management as unrelated to the
operating activities of the Company's ongoing core businesses.
Management believes that this presentation  Is useful to evaluate
performance on a consistent and comparable basis.
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 to fund operations, which result from cash
management strategies designed to increase yields. However, 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." Since the GAAP statements of cash
flows reconcile the Company's beginning and ending cash  and cash
equivalents balances, the purchases and sales of marketable
securities are presented as inflows and outflows. For purposes of
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. If required, most of
such investments could be  settled relatively quickly as additional
cash resources are needed. The  Company believes that this non-GAAP
presentation is a helpful measure of the  Company's liquidity.
The Company presents free cash flow, defined as net cash provided
by operating activities less capital expenditures, for the first
quarter of fiscal 2006 and 2005, 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 and investors use 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.
QUALCOMM, Mobile Station Modem, MSM, FLO, MediaFLO, MSM6275,
OmniTRACS, EutelTRACS, TruckMAIL, OmniExpress, GlobalTRACS, T2
Untethered TrailerTRACS and BREW are trademarks and/or service marks
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
                              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 US$ millions, except per share data)
                                   (Unaudited)
                            Three Months Ended December 25, 2005
                                    Estimated                        Total
                      QUALCOMM    Share-Based       Tax            QUALCOMM
                     Pro Forma   Compensation   Adjustment   QSI     (GAAP)
     Revenues:
      Equipment and
       services         $1,150           $--         $--     $--    $1,150
      Licensing and
       royalty fees        591            --          --      --       591
                         1,741            --          --      --     1,741
     Operating expenses:
      Cost of equipment
       and services
       revenues            505            12          --      --       517
      Research and
       development         273            52          --      15       340
      Selling, general
       and
       administrative      168            58          --      13       239
      Total operating
       expenses            946           122          --      28     1,096
     Operating income
      (loss)               795          (122)                (28)      645
     Investment income
      (expense), net       111(a)        --           --     (20)(b)    91
     Income (loss) before
      income taxes         906          (122)         --     (48)      736
     Income tax (expense)
      benefit             (239)(c)        40          56      27     (116)(c)
     Net income (loss)    $667          $(82)        $56    $(21)     $620
     Earnings (loss)
      per common share:
       Diluted           $0.39        $(0.05)      $0.03  $(0.01)    $0.36
     Shares used in
      per share
      calculations:
       Diluted           1,702         1,702       1,702   1,702     1,702
     Supplemental
      Financial
      Data:
     Operating Cash Flow  $713         $(101)(e)     $--    $(16)     $596
     Operating Cash Flow
      as a % of Revenue     41%                                         34%
     Free Cash Flow (d)   $531         $(101)(e)     $--    $(47)     $383
     Free Cash Flow as
      a % of Revenue        30%                                        22%
    (a) Includes US$91 million in interest income related to cash, cash
        equivalents and marketable securities, which are not part of the
        Company's strategic investment portfolio, US$20 million in net
        realized gains on marketable securities and US$4 million in net gains
        on derivative instruments, partially offset by US$3 million in other-
        than-temporary losses on marketable securities and US$1 million of
        interest expense.
    (b) Includes US$20 million in equity in losses of investees.
    (c) The first quarter of fiscal 2006 tax rate of 16% for total QUALCOMM
        (GAAP) is lower than the estimated annual effective tax rate of 22%
        due primarily to US$56 million of tax benefits recorded in the first
        quarter related to the expected impact of prior year tax audits
        completed in the quarter. The fiscal year 2006 estimated effective
        tax rate is approximately 22% for total QUALCOMM (GAAP) and
        approximately 26% for QUALCOMM pro forma.
    (d) Free Cash Flow is calculated as net cash provided by operating
        activities less capital expenditures. Reconciliation of these
        amounts is included in the Condensed Consolidated Statements of Cash
        Flows and Marketable Securities for the three months ended
        December 25, 2005, included herein.
    (e) Tax benefits from stock options exercised during the quarter.
                            QUALCOMM Incorporated
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
    THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING PRO FORMA CASH FLOWS
    FROM CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES TO TOTAL QUALCOMM
                                  CASH FLOWS
                              (In US$ millions)
                                 (Unaudited)
                              Three Months Ended December 25, 2005
                                    Estimated                        Total
                        QUALCOMM  Share-Based       Tax            QUALCOMM
                       Pro Forma  Compensation   Adjustment  QSI    (GAAP)
     Earnings before
      taxes,
      depreciation,
      amortization
      and other
      adjustments (1)       $927     $(101)(b)      $--     $(27)     $799
     Working capital
      changes and taxes
      paid (2)              (214)       --           --       11      (203)
     Net cash provided
      (used) by operating
      activities             713      (101)          --      (16)      596
     Capital
      expenditures          (182)       --           --      (31)     (213)
     Free cash flow
      (Net cash provided
      by operating
      activities less
      capital
      expenditures)          531      (101)          --      (47)      383
     Net additional
      share capital          181        --           --        --      181
     Tax benefits
      from stock
      options exercised
      during the quarter      --       101(b)        --        --      101
     Other investments
      and acquisitions        (4)       --           --        (2)      (6)
     Other items, net          3        --           --         3        6
     Changes in fair
      value and other
      changes to
      marketable
      securities              49        --           --         6       55
     Marketable
      securities pending
      settlement              (3)       --           --        --       (3)
     Transfer from
      QSI (3)                  8        --           --        (8)      --
     Transfer to
      QSI (4)                (54)       --           --        54       --
     Net increase in
      cash, cash
      equivalents and
      marketable
      securities (5)        $711       $--          $--        $6     $717
     (1) Reconciliation
          to GAAP:
           Net income
            (loss)          $667      $(82)         $56      $(21)    $620
           Share-based
            compensation      --        82           --        --       82
           Other non-cash
            adjustments (a)  268      (101)(b)      (56)       (6)     105
           Net realized
            gains on
            marketable
            securities
            and other
            investments      (20)       --           --        --      (20)
           Net taxes paid     12        --           --        --       12
           Earnings before
            taxes,
            depreciation,
            amortization
            and other
            adjustments     $927     $(101)         $--      $(27)    $799
     (2) Reconciliation
          to GAAP:
           Increase in
            cash resulting
            from changes
            in working
            capital        $(202)      $--          $--       $11    $(191)
           Net taxes paid    (12)       --           --        --      (12)
           Working capital
            changes and
            taxes paid     $(214)      $--          $--       $11    $(203)
     (3) Cash from loan
          payments and
          sale of equity
          securities.
     (4) Funding for
          strategic debt
          and equity
          investments and
          other QSI
          operating expenses.
     (5) Reconciliation to
          GAAP cash flow
          statement:
           Net increase
            in cash and cash
            equivalents
            (GAAP)         $(493)      $--         $--       $--    $(493)
             Plus: Net
              purchases of
              marketable
              securities   1,158        --          --        --    1,158
             Plus: Net
              increase in
              fair value
              and other
              changes to
              marketable
              securities      49        --          --         6       55
             Less: Net
              decrease in
              marketable
              securities
              pending
              settlement      (3)       --          --        --       (3)
           Net increase in
            cash, cash
            equivalents and
            marketable
            securities      $711       $--         $--        $6     $717
     (a) See detail on the following page.
     (b) Tax benefits from stock options exercised during the quarter.
                                QUALCOMM Incorporated
                             SUPPLEMENTAL DETAIL TO THE
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE
                                     SECURITIES
                                  (In US$ millions)
                                     (Unaudited)
                                Three Months Ended December 25, 2005
                                      Estimated                      Total
                         QUALCOMM    Share Based      Tax           QUALCOMM
                         Pro Forma   Compensation  Adjustment  QSI   (GAAP)
     (a) Other non-cash
          adjustments
          are comprised
          of:
         Depreciation
          and amortization   $57         $--         $--       $1      $58
         Gain or loss on
          derivative
          instruments         (4)         --          --       --       (4)
         Other-than-temporary
          losses on
          marketable
          securities and
          other investments    3          --          --       --        3
         Equity in losses
          of investees        --          --          --       20       20
         Tax benefits from
          stock options
          exercised during
          the quarter         --        (101)         --       --     (101)
         Non-cash income
          tax expense
          (benefit)          227          --         (56)     (27)     144
         Other non-cash
          charges and
          (credits)          (15)         --          --       --      (15)
         Total non-cash
          adjustments       $268       $(101)       $(56)     $(6)    $105
             RECONCILIATION OF PRIOR YEAR PRO FORMA FREE CASH FLOW
                  TO NET CASH PROVIDED BY OPERATING ACTIVITIES
                                 (In US$ millions)
                                    (Unaudited)
                                        Three Months Ended December 26, 2004
                                                                      Total
                                            QUALCOMM                QUALCOMM
                                           Pro Forma        QSI      (GAAP)
      Net cash provided by operating
       activities                             $387          $10       $397
      Capital expenditures                    (112)         (76)      (188)
      Free cash flow (Net cash provided
       by operating activities less
       capital expenditures)                  $275         $(66)      $209
                                 QUALCOMM Incorporated
                         CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In US$ millions, except per share data)
                                      (Unaudited)
                                        ASSETS
                                                  December 25,  September 25,
                                                      2005              2005
          Current assets:
            Cash and cash equivalents               $1,577            $2,070
            Marketable securities                    5,407             4,478
            Accounts receivable, net                   728               544
            Inventories                                195               177
            Deferred tax assets                        351               343
            Other current assets                       141               179
                    Total current assets             8,399             7,791
          Marketable securities                      2,414             2,133
          Property, plant and equipment,
           net                                       1,154             1,022
          Goodwill                                     571               571
          Deferred tax assets                          405               444
          Other assets                                 486               518
                    Total assets                   $13,429           $12,479
                         LIABILITIES AND STOCKHOLDERS' EQUITY
          Current liabilities:
            Trade accounts payable                    $431              $376
            Payroll and other benefits
             related liabilities                       179               196
            Dividends payable                          148                --
            Unearned revenue                           149               163
            Other current liabilities                  253               335
                   Total current
                    liabilities                      1,160             1,070
          Unearned revenue                             141               146
          Other liabilities                            156               144
                   Total liabilities                 1,457             1,360
          Stockholders' equity:
            Preferred stock, $0.0001 par
             value; issuable in series;
             8 shares authorized; none
             outstanding at
             December 25, 2005 and
             September 25, 2005,
             respectively                               --                --
            Common stock, $0.0001 par
             value; 6,000 shares
             authorized; 1,650 and 1,641
             shares issued and outstanding
             at December 25, 2005 and
             September 25, 2005,
             respectively                               --                --
            Paid-in capital                          7,134             6,753
            Retained earnings                        4,800             4,328
            Accumulated other
             comprehensive income                       38                38
                   Total stockholders'
                    equity                          11,972            11,119
                   Total liabilities and
                    stockholders' equity           $13,429           $12,479
                                 QUALCOMM Incorporated
                    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                          (In US$ millions, except per share data)
                                      (Unaudited)
                                                    Three Months Ended
                                              December 25,       December 26,
                                                  2005               2004
          Revenues:
            Equipment and services               $1,150              $978
            Licensing and royalty fees              591               412
                                                  1,741             1,390
          Operating expenses:
            Cost of equipment and
             services revenues                      517               430
            Research and development                340               228
            Selling, general and
             administrative                         239               148
          Total operating expenses                1,096               806
          Operating income                          645               584
          Investment income, net                     91               120
          Income before income taxes                736               704
              Income tax expense                   (116)             (191)
          Net income                               $620              $513
          Basic earnings per common share         $0.38             $0.31
          Diluted earnings per common
           share                                  $0.36             $0.30
          Shares used in per share
           calculations:
             Basic                                1,645             1,639
             Diluted                              1,702             1,704
          Dividends per share announced           $0.09             $0.07
SAN DIEGO, January 25 /PRNewswire/ --
Web site:  http://www.qualcomm.com

Contact:

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

Plus de actualités: Qualcomm Incorporated
Plus de actualités: Qualcomm Incorporated
  • 08.11.2005 – 08:33

    QUALCOMM Announces Leading Operator O2 to Deploy uiOne(TM) Platform

    London, November 8 (ots/PRNewswire) - QUALCOMM Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that it has signed a definitive agreement with O2 UK, a leading provider of mobile services to consumers and businesses in the United Kingdom. O2 UK will use ...