EXHIBIT 99.1

FOR IMMEDIATE RELEASE

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

QUALCOMM Announces Second Quarter Fiscal 2005 Results
Revenues $1.37 Billion, EPS $0.31
Pro Forma Revenues $1.37 Billion, EPS $0.29

SAN DIEGO – April 20, 2005 – QUALCOMM Incorporated (NASDAQ: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced results for its second fiscal quarter ended March 27, 2005.

Total QUALCOMM Second Quarter Results:

	•	Revenues: $1.37 billion, up 12 percent year-over-year and down 2 percent sequentially.
	•	Net income: $532 million, up 9 percent year-over-year and 4 percent sequentially.
	•	Diluted earnings per share: $0.31, up 7 percent year-over-year and 3 percent sequentially.
	•	Effective tax rate: approximately 16 percent for the quarter. Fiscal 2005 estimated tax rate of approximately 24 percent.
	•	Operating cash flow: $821 million, up 6 percent year-over year; 60 percent of revenue.
	•	Dividends: paid $230 million in cash dividends and announced a 29 percent increase in quarterly dividends payable starting in the third quarter.
	•	Stock repurchase: on March 8 announced a two-fold increase in stock repurchase authority to $2 billion. From the date of announcement through April 19, 2005, repurchased approximately 19.5 million shares at a net cost of approximately $688 million. Sold a put option that may, if exercised, require us to repurchase an additional 5.75 million shares at approximately $33.75 per share for a net cost of approximately $194 million.

QUALCOMM Pro Forma Second Quarter Results:

Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI) segment and a one-time tax benefit recorded in the second quarter of fiscal 2005 and are presented as if the “New Method”¹ of recording royalties had been in use in the prior year.

•

Revenues: $1.37 billion, up 15 percent year-over-year, and down 2 percent sequentially.

-more-

	•	Net income: $487 million, up 14 percent year-over-year and 3 percent sequentially.
	•	Diluted earnings per share: $0.29, up 12 percent year-over year and 4 percent sequentially.
	•	Effective tax rate: approximately 27 percent for the quarter. Fiscal 2005 estimated tax rate of approximately 28 percent.
	•	Free cash flow: $741 million, up 3 percent year over year; 54 percent of revenue. (Defined as net cash from operating activities less capital expenditures.)

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

“QUALCOMM’s second quarter results, highlighted by year-over-year growth in third generation (3G) chipsets and royalties for both CDMA2000® and WCDMA technologies, indicate increasing 3G market momentum,” said Irwin Mark Jacobs, chairman and CEO of QUALCOMM. “We continue our strategy of strong research and development investment and broad support of operators and manufacturers worldwide to foster our product leadership and industry growth. Customer acceptance of our CDMA2000 1xEV-DO chipset solutions continues to increase. More than 100 commercial devices are currently available or in design based on QUALCOMM’s latest Multimedia Platform Mobile Station Modem (MSM) MSM6500^™ and Enhanced Multimedia Platform MSM6550^™ chipset solutions. With devices powered by the Company’s 1xEV-DO chipsets, wireless consumers can download email and share files, photos, video and more on networks with broadband mobility speeds that rival fixed DSL connections.”

Jacobs added, “We are further enhancing our BREW wireless data platform to support an increased range of system capabilities and of applications supporting subscriber interest in multimedia and 3D gaming. QUALCOMM’s experience in pioneering mobile broadband 1xEV-DO has allowed us to accelerate our HSDPA (High Speed Downlink Packet Access for WCDMA) efforts versus our competition. We sampled the industry’s first HSDPA chipset, the MSM6275^™, in December 2004 and continue to expand our HSDPA chipset portfolio from entry-priced, MSM6260^™-enabled handsets to high-end devices enabled by the MSM6280^™ solution. The future possibilities supported by increasingly ubiquitous wireless broadband and increasingly powerful devices continue to excite and motivate our entire company.”

Cash and Marketable Securities

QUALCOMM’s cash, cash equivalents and marketable securities totaled approximately $8.3 billion at the end of the second quarter of fiscal 2005, compared to $7.6 billion on September 26, 2004 and $6.6 billion on March 28, 2004. During the second quarter of fiscal 2005, we announced a 29 percent increase in our quarterly dividend from $0.07 to $0.09 per share. The dividend increase will be effective for quarterly dividends payable starting in the third quarter. We also doubled the Company’s stock repurchase authority to $2 billion and, through March 27, 2005, repurchased approximately 6.2 million shares of stock at a net cost of approximately $230 million. The previous $1 billion stock repurchase plan expired February 9, 2005. In connection with the stock repurchase program, we sold a put option that may require us to repurchase an additional 5.75 million shares at approximately $33.75 per share for a net cost of approximately $194 million. In the second quarter of fiscal 2005, net cash transfers to QSI were $7 million. Detailed reconciliations between total QUALCOMM GAAP cash flow and QUALCOMM pro forma changes in cash, cash equivalents and marketable securities are included at the end of this news release.

Research and Development

Research and development (R&D) expenses were $252 million in the second fiscal quarter, up 49 percent year-over-year, largely attributable to increased headcount related to development of integrated circuit products and initiatives to support multimedia applications, high-speed wireless Internet access and multimode, multiband, multinetwork products including CDMA2000 1xEV-DO, WCDMA and HSDPA. This increase includes $10 million in R&D expenses attributable to MediaFLO™ USA in the QSI segment, as compared to $5 million in the prior year quarter.

Selling, General and Administrative

Selling, general and administrative (SG&A) expenses were $155 million in the second fiscal quarter, up 15 percent year-over-year, largely attributable to increases in headcount to support our growing worldwide customer base, professional fees related to legal, patent and audit activities, and the effect of other income in the prior year quarter related to the transfers of portions of our FCC Auction Discount Voucher. This increase includes $6 million in SG&A expenses attributable to the QSI segment, as compared to $4 million in the prior year quarter, which were more than offset by other income related to the FCC Auction Discount Voucher.

Effective Income Tax Rate

Our fiscal 2005 effective income tax rate is now estimated to be approximately 24 percent, compared to our previous estimate of approximately 28 percent. Our fiscal 2005 pro forma effective tax rate is now estimated to be approximately 28 percent, compared to our previous estimate of approximately 30 percent. The decrease in our estimated annual effective tax rates is primarily the result of a change in the estimate of the amount of R&D costs allocable to our foreign operations under an intercompany cost sharing agreement, resulting in increased foreign earnings taxed at less than the United States federal tax rate. Due to this change in estimate, our effective tax rate in the second quarter of fiscal 2005 for total QUALCOMM includes a $55 million tax benefit, or $0.03 diluted earnings per share, related to fiscal 2004 and a $17 million tax benefit, or $0.01 diluted earnings per share, related to the first quarter of fiscal 2005. For fiscal 2005 pro forma presentation, we excluded the tax benefit attributable to fiscal 2004. As a result of these tax benefits, the effective tax rates for the second quarter of fiscal 2005 of approximately 16% for total QUALCOMM and 27% for QUALCOMM pro forma are lower than the estimated annual effective rates.

QUALCOMM Strategic Initiatives

The QUALCOMM Strategic Initiatives (QSI) segment includes our strategic investments and related income and expenses. The second quarter of fiscal 2005 results consisted primarily of $18 million in equity losses and $16 million of operating expenses, including $10 million in R&D costs related to MediaFLO USA. Total QUALCOMM results for the second quarter of fiscal 2005 include $0.01 loss per share for the QSI segment, compared to $0.02 diluted earnings per share in the second quarter of fiscal 2004.

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 and 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.

A pro forma outlook is provided below consistent with the presentation of pro forma results provided elsewhere herein. Total QUALCOMM outlook for fiscal 2005 is compared to total QUALCOMM results for fiscal 2004 which reflect only partial economic performance of the Company’s licensing business in the fourth quarter due to the prospective change to the New Method during that period.

Our revised guidance, as compared to our prior fiscal year 2005 guidance, reflects a lower acceleration of WCDMA handset sales as operators optimize their WCDMA networks, anticipate future lower-priced handsets, and work to identify successful pricing and marketing strategies for new wireless voice and data services. We are reducing our calendar 2005 handset estimate by approximately five percent due to a slower WCDMA ramp-up in Western Europe and anticipated channel inventory adjustments in CDMA2000, notably for Latin America and Southeast Asia. However, we expect increasing market share for our WCDMA chipsets. This will be discussed in more detail during our second quarter conference call. This call is scheduled for 3:00pm (PDT) on Wednesday April 20, 2005. See the end of this press release for conference call dial-in information.

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

Business Outlook Summary

Sums may not equal totals due to rounding

Second Quarter — Fiscal Year 2005

First Quarter — Fiscal Year 2005

Second Quarter — Fiscal Year 2004

Six Months — Fiscal Year 2005

Six Months — Fiscal Year 2004

		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.
(3)		The Company effected a two-for-one stock split in August 2004. All references to number of shares and per share amounts reflect the stock split.
(4)		QTL’s results in the fourth quarter of fiscal 2004 reflect the Company’s decision to make the prospective change to the New Method of recording royalties based solely on reports received from licensees for royalty bearing sales of equipment in the prior quarter. This change had the one-time effect of reducing royalty revenues in the fourth quarter of fiscal 2004. Results using the New Method of recording royalties are presented for prior periods to illustrate the differences between the Prior Method of recording royalties and the New Method implemented during the fourth quarter of fiscal 2004. The QTL percentage increases over the prior year quarter on a GAAP basis are as follows: Q2 Revenues, 26% increase, Q2 EBT, 24% increase, 6 month revenues, 20% increase, 6 month EBT, 17% increase.
(5)		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 includes a $55 million benefit, or $0.03 diluted earnings per share, related to fiscal 2004 and a $17 million benefit, or $0.01 diluted earnings per share, related to the first quarter of fiscal 2005. 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 approximately 37 million MSM phone chips to customers worldwide during the second fiscal quarter, compared to approximately 32 million units in the year ago quarter and approximately 39 million units in the first quarter of fiscal 2005.
	•	Seven wireless device manufacturers have selected the MSM6275 chipset solution to develop devices for WCDMA (UMTS)/HSDPA with support for GSM/GPRS/EDGE (EGPRS) markets worldwide. The MSM6275 chipset maximizes the capabilities of 3G wireless multimedia to help drive demand for next-generation wireless multimedia applications and devices. The MSM6275 chipset, which initially sampled to customers in December 2004, powers a handset that completed the industry’s first end-to-end HSDPA call on a commercial network.
	•	QCT expanded its chipset portfolio addressing the differing needs of WCDMA and HSDPA markets with significant milestones. QUALCOMM introduced the MSM6260 chipset and system software solution for WCDMA (UMTS)/HSDPA and GSM/GPRS/EDGE (EGPRS) to increase the reach of cost-effective, higher-speed wireless data solutions.
	•	QCT demonstrated its leadership in CDMA2000 solutions with the shipment of samples to customers of the first chipset for CDMA2000 1xEV-DO Revision A, the MSM6800 chipset, optimized to drive demand for data-intensive wireless multimedia. The fully integrated

MSM6800 single-chip solution provides integrated multimedia features to deliver increased processing capacity and optimized audio, video, camera and graphics capabilities.

QUALCOMM Technology Licensing (QTL)

•

Licensee information for the first quarter of fiscal 2005 as reported by licensees and included in revenue in the second quarter of fiscal 2005:

	o	We estimate WCDMA royalties contributed approximately 32 percent of total royalties compared to approximately 12 percent of total royalties in the year ago quarter.
	o	Shipments of approximately 52 million units at an average selling price of approximately $207.
	o	45 subscriber licensees reported sales of CDMA2000 1X products and 14 subscriber licensees reported sales of WCDMA products, as compared to 9 WCDMA subscriber licensees that reported in the year ago period.
	o	13 infrastructure licensees reported sales of CDMA2000 1X products and 13 infrastructure licensees reported sales of WCDMA products, as compared to 8 WCDMA infrastructure licensees that reported in the year ago period.

QUALCOMM Wireless & Internet Group (QWI)

     QUALCOMM Internet Services (QIS)

•

As of April 2005, 41 wireless operators were offering BREW services in 24 countries and cumulative BREW application downloads exceeded 300 million worldwide. This is an increase of more than 100 million BREW downloads from what was reported in November of 2004.

     QUALCOMM Wireless Business Solutions ^® (QWBS)

•

QWBS shipped approximately 8,800 satellite-based systems (OmniTRACS®, TruckMAILtm) and nearly 13,800 terrestrial-based systems (OmniExpress®, GlobalTRACS®, T2tm Untethered TrailerTRACS® and LINQ tm) in the second quarter of fiscal 2005. This compares to approximately 9,400 satellite-based systems and nearly 1,800 terrestrial-based systems in the second quarter of fiscal 2004 and approximately 13,300 satellite-based systems and more than 11,600 terrestrial-based systems in the first quarter of fiscal 2005. This brings the

cumulative total to approximately 542,000 satellite-based systems and over 48,000 terrestrial-based systems shipped worldwide.

Conference Call

QUALCOMM’s second quarter fiscal 2005 earnings conference call will be broadcast live on April 20, 2005 beginning at 3:00 p.m. (PDT) on the Company’s web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of “non-GAAP financial measures” as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company’s Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on April 20, 2005 beginning at approximately 4:30 p.m. (PDT) through May 5, 2005 at 4:30 p.m. (PDT). To listen to the replay, U.S. callers may dial (800) 633-8284 and international callers may dial (402) 977-9140. U.S. and international callers should use reservation number 21240100. An audio replay of the conference call will be available on the Company’s web site at www.qualcomm.com for two weeks following the live call.

Editor’s Note: if you would like additional information on QUALCOMM, please view the QUALCOMM press room at http://www.qualcomm.com/press/index.html.

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 2004 FORTUNE 500^® company traded on The Nasdaq Stock Market^® under the ticker symbol QCOM.

Note Regarding Use of Non-GAAP Financial Measures

The Company presents pro forma financial information excluding the QUALCOMM Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including QUALCOMM CDMA Technologies (QCT), QUALCOMM Technology Licensing (QTL) and QUALCOMM Wireless & Internet (QWI). QSI

results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating and liquidity performance of the Company because it excludes the effect of fluctuations in value of investments that are unrelated to the Company’s operational performance.

The Company presents pro forma financial results as though the New Method of recording royalties had been in effect for prior periods to facilitate evaluation by management, investors and analysts of the results for these periods on a comparable basis to the Company’s current results, current guidance and future periods. The Company believes that this presentation is useful in evaluating performance on a consistent and comparable basis.

The Company presents pro forma results for fiscal 2005 excluding a one-time tax benefit related to fiscal 2004 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’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 instruments do not meet the definition of cash equivalents in accordance with Statement of Financial Accounting Standards No. 95, “Statement of Cash Flows” and must be excluded from the GAAP statements 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 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, 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 non-GAAP pro forma financial information presented herein should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Reconciliations between total QUALCOMM results and QUALCOMM pro forma results and total QUALCOMM cash flow and cash, cash equivalents and marketable securities and total QUALCOMM excluding the QSI segment 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 and WCDMA, 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, as well as the other risks detailed from time-to-time in the Company’s SEC reports.

###

QUALCOMM®, QUALCOMM Wireless Business Solutions®, Mobile Station Modem™, MSM™, FLO™, MediaFLO™ , gpsOne®, CSM™, Qtv™ MSM6260™, MSM6275™, MSM6280™, MSM6500™, MSM6550™, MSM6800™, BREW®, TruckMAIL™, OmniTRACS®, OmniExpress®, GlobalTRACS®, T2™, LINQ™ and TrailerTRACS® are trademarks and/or service marks of QUALCOMM Incorporated. CDMA2000® is a registered trademark of the Telecommunications Industry Association. All other trademarks are the property of their respective owners.

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)

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)

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)

(a)

See detail on the following page.

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)

(a)

See detail on the following page.

QUALCOMM Incorporated
SUPPLEMENTAL DETAIL TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
(In millions)
(Unaudited)