| The fourth quarter of fiscal 2008 results for total Qualcomm (GAAP) and Qualcomm pro forma included $560 million in revenues, or $0.20 diluted earnings per share (EPS), as a result of the execution of new license and settlement agreements with Nokia Corporation/Nokia Inc. (Nokia). The fourth quarter of fiscal 2007 results for GAAP and pro forma did not include royalty revenues from Nokia for sales of Nokia products subsequent to April 9, 2007. | ||
| The fourth quarter of fiscal 2008 results included $327 million in other-than-temporary impairments of marketable securities, or $0.15 negative GAAP impact and $0.14 negative pro forma impact on diluted EPS, related to the impact of the recent disruption in the financial markets on our marketable securities portfolio. | ||
| The fourth quarter of fiscal 2007 included a $331 million tax benefit, or $0.20 in GAAP diluted EPS, as a result of completing audits of prior years tax returns. |
| Revenues: $3.33 billion, up 45 percent year-over-year and 21 percent sequentially. | ||
| Net income: $878 million, down 22 percent year-over-year and up 17 percent sequentially. |
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| Diluted earnings per share: $0.52, down 22 percent year-over-year and up 16 percent sequentially. | ||
| Effective tax rate: 21 percent. | ||
| Estimated share-based compensation: $98 million, net of tax, up 26 percent year-over-year and 4 percent sequentially. | ||
| Operating cash flow: $990 million, down 5 percent year-over-year; 30 percent of revenues. | ||
| Return of capital to stockholders: $266 million cash dividends in the fourth quarter, or $0.16 per share. |
| Revenues: $11.14 billion, up 26 percent year-over-year. | ||
| Net income: $3.16 billion, down 4 percent year-over-year. | ||
| Diluted earnings per share: $1.90, down 3 percent year-over-year. | ||
| Effective tax rate: 17 percent. | ||
| Estimated share-based compensation: $367 million, net of tax, up 13 percent year-over-year. | ||
| Operating cash flow: $3.56 billion, down 7 percent year-over-year; 32 percent of revenues. | ||
| Return of capital to stockholders: $2.65 billion, including $982 million of cash dividends, or $0.60 per share, and $1.67 billion to repurchase 43 million shares of our common stock. |
| Revenues: $3.33 billion, up 44 percent year-over-year and 21 percent sequentially. | ||
| Net income: $1.06 billion, up 16 percent year-over-year and sequentially. | ||
| Diluted earnings per share: $0.63, up 17 percent year-over-year and 15 percent sequentially; excludes $0.05 loss per share attributable to the QSI segment and $0.06 loss per share attributable to certain estimated share-based compensation. | ||
| Effective tax rate: 22 percent. | ||
| Free cash flow: $796 million, down 13 percent year-over-year; 24 percent of revenues (defined as net cash from operating activities less capital expenditures). |
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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| Revenues: $11.13 billion, up 25 percent year-over-year. | ||
| Net income: $3.74 billion, up 10 percent year-over-year. | ||
| Diluted earnings per share: $2.25, up 12 percent year-over-year; excludes $0.12 loss per share attributable to the QSI segment, $0.22 loss per share attributable to certain estimated share-based compensation and $0.01 loss per share attributable to acquired in-process R&D. | ||
| Effective tax rate: 20 percent. | ||
| Free cash flow: $3.52 billion, even year-over-year; 32 percent of revenues. |
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Estimated | ||||||||||||||||
Qualcomm Pro | Share-Based | Total Qualcomm | ||||||||||||||
($ in millions) | Forma | Compensation | QSI | (GAAP) | ||||||||||||
Fourth quarter fiscal 2008 |
$ | 528 | $ | 69 | $ | 24 | $ | 621 | ||||||||
As a % of
revenues |
16 | % | N/M | 19 | % | |||||||||||
Fourth quarter fiscal 2007 |
$ | 410 | $ | 55 | $ | 16 | $ | 481 | ||||||||
As a % of
revenues |
18 | % | N/M | 21 | % | |||||||||||
Year-over-year change ($) |
29 | % | 25 | % | 50 | % | 29 | % |
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Estimated | ||||||||||||||||
Qualcomm Pro | Share-Based | Total Qualcomm | ||||||||||||||
($ in millions) | Forma | Compensation | QSI | (GAAP) | ||||||||||||
Fourth quarter fiscal 2008 |
$ | 346 | $ | 67 | $ | 43 | $ | 456 | ||||||||
As a % of
revenues |
10 | % | N/M | 14 | % | |||||||||||
Fourth quarter fiscal 2007 |
$ | 248 | $ | 53 | $ | 22 | $ | 323 | ||||||||
As a % of
revenues |
11 | % | N/M | 14 | % | |||||||||||
Year-over-year change ($) |
40 | % | 26 | % | 95 | % | 41 | % |
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Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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Q108 | Current Guidance | |||||||
Results (2) | Q109 Estimates (3) | |||||||
Qualcomm Pro Forma |
||||||||
Revenues |
$ | 2.44 | B | $ | 2.3B - $2.5 | B | ||
Year-over-year change |
decrease 6% - increase 3 | % | ||||||
Diluted earnings per share (EPS) |
$ | 0.52 | $ | 0.46 - $0.50 | ||||
Year-over-year change |
decrease 4% - 12 | % | ||||||
Total Qualcomm (GAAP) |
||||||||
Revenues |
$ | 2.44 | B | $ | 2.3B - $2.5 | B | ||
Year-over-year change |
decrease 6% - increase 2 | % | ||||||
Diluted earnings per share (EPS) |
$ | 0.46 | $ | 0.35 - $0.39 | ||||
Year-over-year change |
decrease 15% - 24 | % | ||||||
Diluted EPS attributable to QSI |
$ | (0.01 | ) | $ | (0.04 | ) | ||
Diluted EPS attributable to estimated share-based compensation |
$ | (0.05 | ) | $ | (0.07 | ) | ||
Metrics |
||||||||
MSM shipments |
approx. 79M | approx. 60M - 65M | ||||||
CDMA/WCDMA devices shipped (1) |
approx. 95M | * | approx. 121M - 126M | * | ||||
CDMA/WCDMA device wholesale average selling price (1) |
approx. $211 | * | approx. $205 | * |
* | Shipments in September quarter, reported in December quarter |
FY 2008 | Current Guidance | |||||||
Results | FY 2009 Estimates (3) | |||||||
Qualcomm Pro Forma |
||||||||
Revenues |
$ | 11.13 | B | $ | 10.2B - $10.8 | B | ||
Year-over-year change |
decrease 3% - 8 | % | ||||||
Diluted earnings per share (EPS) |
$ | 2.25 | $ | 2.00 - $2.10 | ||||
Year-over-year change |
decrease 7% - 11 | % | ||||||
Total Qualcomm (GAAP) |
||||||||
Revenues |
$ | 11.14B | $ | 10.2B - $10.8 | B | |||
Year-over-year change |
decrease 3% - 8 | % | ||||||
Diluted earnings per share (EPS) |
$ | 1.90 | $ | 1.61 - $1.71 | ||||
Year-over-year change |
decrease 10% - 15 | % | ||||||
Diluted EPS attributable to QSI |
$ | (0.12 | ) | $ | (0.14 | ) | ||
Diluted EPS attributable to estimated share-based compensation |
$ | (0.22 | ) | $ | (0.25 | ) | ||
Diluted EPS attributable to in-process R&D |
$ | (0.01 | ) | n/a | ||||
Metrics |
||||||||
Fiscal year* CDMA/WCDMA device wholesale average selling price (1) |
approx. $219 | approx. $195 |
* | Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters |
Prior Guidance | Current Guidance | Current Guidance | ||||||||||
Calendar 2008 | Calendar 2008 | Calendar 2009 | ||||||||||
CDMA/WCDMA device shipments | Estimates | Estimates | Estimates | |||||||||
March quarter |
approx. 107M | approx. 107M | not provided | |||||||||
June quarter |
approx. 114M - 118M | approx. 119M | not provided | |||||||||
September quarter |
not provided | approx. 121M - 126M | not provided | |||||||||
December quarter |
not provided | not provided | not provided | |||||||||
Calendar year range (approx.) |
488M - 518M | 475M - 485M | 580M - 620M | |||||||||
Midpoint |
Midpoint |
Midpoint |
||||||||||
CDMA/WCDMA units |
approx. 503M | approx. 480M | approx. 600M | |||||||||
CDMA units |
approx. 229M | approx. 213M | approx. 230M | |||||||||
WCDMA units |
approx. 274M | approx. 267M | approx. 370M |
(1) | CDMA/WCDMA device shipments and average selling prices are for estimated worldwide device shipments, including shipments not reported to Qualcomm. | |
(2) | Our Q108 results do not include royalty revenues attributable to Nokias sales after April 9, 2007. | |
(3) | While we do not forecast impairments, our net unrealized losses on marketable securities have increased to $1.26 billion at October 31, 2008, and portions of that amount could be impaired in future periods if market conditions do not improve. |
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Estimated | Total | |||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | Qualcomm | |||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | QSI (4) | (GAAP) | ||||||||||||||||||||||||
Revenues |
$ | 1,761 | $ | 1,374 | $ | 190 | $ | 4 | $ | 3,329 | $ | | $ | 5 | $ | 3,334 | ||||||||||||||||
Change from prior year |
24 | % | 112 | % | (22 | %) | N/M | 44 | % | 400 | % | 45 | % | |||||||||||||||||||
Change from prior quarter |
0 | % | 71 | % | 0 | % | N/M | 21 | % | 25 | % | 21 | % | |||||||||||||||||||
EBT |
$ | 449 | $ | 1,247 | $ | (24 | ) | $ | (315 | ) | $ | 1,357 | $ | (146 | ) | $ | (104 | ) | $ | 1,107 | ||||||||||||
Change from prior year |
6 | % | 132 | % | (177 | %) | N/M | 20 | % | (25 | %) | (63 | %) | 17 | % | |||||||||||||||||
Change from prior quarter |
(8 | %) | 86 | % | N/M | N/M | 22 | % | (5 | %) | (27 | %) | 26 | % | ||||||||||||||||||
EBT as a % of revenues |
25 | % | 91 | % | (13 | %) | N/M | 41 | % | N/M | N/M | 33 | % | |||||||||||||||||||
Net income (loss) |
$ | 1,058 | $ | (98 | ) | $ | (82 | ) | $ | 878 | ||||||||||||||||||||||
Change from prior year |
16 | % | (27 | %) | (141 | %) | (22 | %) | ||||||||||||||||||||||||
Change from prior quarter |
16 | % | (4 | %) | (37 | %) | 17 | % | ||||||||||||||||||||||||
Diluted EPS |
$ | 0.63 | $ | (0.06 | ) | $ | (0.05 | ) | $ | 0.52 | ||||||||||||||||||||||
Change from prior year |
17 | % | (20 | %) | (150 | %) | (22 | %) | ||||||||||||||||||||||||
Change from prior quarter |
15 | % | 0 | % | (25 | %) | 16 | % | ||||||||||||||||||||||||
Diluted shares used |
1,678 | 1,678 | 1,678 | 1,678 |
Estimated | Total | |||||||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | In-Process | Qualcomm | ||||||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | R&D | QSI (4) | (GAAP) | |||||||||||||||||||||||||||
Revenues |
$ | 1,762 | $ | 803 | $ | 190 | $ | 3 | $ | 2,758 | $ | | $ | | $ | 4 | $ | 2,762 | ||||||||||||||||||
EBT |
487 | 670 | (1 | ) | (40 | ) | 1,116 | (139 | ) | (13 | ) | (82 | ) | 882 | ||||||||||||||||||||||
Net income (loss) |
915 | (94 | ) | (13 | ) | (60 | ) | 748 | ||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.55 | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.45 | |||||||||||||||||||||||
Diluted shares used |
1,654 | 1,654 | 1,654 | 1,654 | 1,654 |
Estimated | Total | |||||||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | Qualcomm | |||||||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | Tax Items (3) | QSI (4) | (GAAP) | |||||||||||||||||||||||||||
Revenues |
$ | 1,419 | $ | 647 | $ | 245 | $ | (6 | ) | $ | 2,305 | $ | | $ | | $ | 1 | $ | 2,306 | |||||||||||||||||
EBT |
424 | 537 | 31 | 137 | 1,129 | (117 | ) | | (64 | ) | 948 | |||||||||||||||||||||||||
Net income (loss) |
911 | (77 | ) | 331 | (34 | ) | 1,131 | |||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.54 | $ | (0.05 | ) | $ | 0.20 | $ | (0.02 | ) | $ | 0.67 | ||||||||||||||||||||||||
Diluted shares used |
1,689 | 1,689 | 1,689 | 1,689 | 1,689 |
Estimated | Total | |||||||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | In-Process | Qualcomm | ||||||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | R&D | QSI (4) | (GAAP) | |||||||||||||||||||||||||||
Revenues |
$ | 1,574 | $ | 650 | $ | 210 | $ | 5 | $ | 2,439 | $ | | $ | | $ | 1 | $ | 2,440 | ||||||||||||||||||
EBT |
470 | 541 | 24 | 76 | 1,111 | (124 | ) | (2 | ) | (55 | ) | 930 | ||||||||||||||||||||||||
Net income (loss) |
872 | (84 | ) | (1 | ) | (20 | ) | 767 | ||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.52 | $ | (0.05 | ) | $ | | $ | (0.01 | ) | $ | 0.46 | ||||||||||||||||||||||||
Diluted shares used |
1,664 | 1,664 | 1,664 | 1,664 | 1,664 |
Estimated | Total | |||||||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | In-Process | Qualcomm | ||||||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | R&D | QSI | (GAAP) | |||||||||||||||||||||||||||
Revenues |
$ | 6,717 | $ | 3,622 | $ | 785 | $ | 6 | $ | 11,130 | $ | | $ | | $ | 12 | $ | 11,142 | ||||||||||||||||||
Change from prior year |
27 | % | 31 | % | (5 | %) | N/M | 25 | % | N/M | 26 | % | ||||||||||||||||||||||||
EBT |
$ | 1,833 | $ | 3,142 | $ | (1 | ) | $ | (290 | ) | $ | 4,684 | $ | (540 | ) | $ | (14 | ) | $ | (304 | ) | $ | 3,826 | |||||||||||||
Change from prior year |
18 | % | 34 | % | (101 | %) | N/M | 7 | % | (11 | %) | (40 | %) | (27 | %) | 6 | % | |||||||||||||||||||
EBT as a % of revenues |
27 | % | 87 | % | 0 | % | N/M | 42 | % | N/M | N/M | N/M | 34 | % | ||||||||||||||||||||||
Net income (loss) |
$ | 3,740 | $ | (365 | ) | $ | (13 | ) | $ | (202 | ) | $ | 3,160 | |||||||||||||||||||||||
Change from prior year |
10 | % | (14 | %) | (44 | %) | (47 | %) | (4 | %) | ||||||||||||||||||||||||||
Diluted EPS |
$ | 2.25 | $ | (0.22 | ) | $ | (0.01 | ) | $ | (0.12 | ) | $ | 1.90 | |||||||||||||||||||||||
Change from prior year |
12 | % | (16 | %) | 0 | % | (50 | %) | (3 | %) | ||||||||||||||||||||||||||
Diluted shares used |
1,660 | 1,660 | 1,660 | 1,660 | 1,660 |
Estimated | Total | |||||||||||||||||||||||||||||||||||||||
Reconciling | Qualcomm | Share-Based | In-Process | Qualcomm | ||||||||||||||||||||||||||||||||||||
Segments | QCT | QTL | QWI | Items (1) | Pro Forma | Compensation (2) | Tax Items (3) | R&D | QSI | (GAAP) | ||||||||||||||||||||||||||||||
Revenues |
$ | 5,275 | $ | 2,772 | $ | 828 | $ | (5 | ) | $ | 8,870 | $ | | $ | | $ | | $ | 1 | $ | 8,871 | |||||||||||||||||||
EBT |
1,547 | 2,340 | 88 | 388 | 4,363 | (487 | ) | | (10 | ) | (240 | ) | 3,626 | |||||||||||||||||||||||||||
Net income (loss) |
3,406 | (321 | ) | 364 | (9 | ) | (137 | ) | 3,303 | |||||||||||||||||||||||||||||||
Diluted EPS |
$ | 2.01 | $ | (0.19 | ) | $ | 0.22 | $ | (0.01 | ) | $ | (0.08 | ) | $ | 1.95 | |||||||||||||||||||||||||
Diluted shares used |
1,693 | 1,693 | 1,693 | 1,693 | 1,693 | 1,693 |
(1) | Reconciling items related to revenues consist primarily of other nonreportable segment revenues less intersegment eliminations. Reconciling items related to earnings before taxes consist primarily of certain investment income, research and development expenses and marketing expenses that are not allocated to the segments for management reporting purposes, nonreportable segment results and the elimination of intersegment profit. | |
(2) | Certain share-based compensation is included in operating expenses as part of employee-related costs but is not allocated to the Companys segments as such costs are not considered relevant by management in evaluating segment performance. | |
(3) | During the fourth quarter of fiscal 2007, the Company recorded a $331 million tax benefit, or $0.20 diluted earnings per share, related to tax expense recorded in prior years resulting from the completion of tax audits during the fourth fiscal quarter. The fiscal 2007 Qualcomm pro forma results excluded this tax benefit attributable to prior years. | |
(4) | At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the tax |
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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provision for Qualcomm pro forma, the tax items column and the tax provisions related to estimated share-based compensation and in-process R&D from the tax provision for total Qualcomm (GAAP). |
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
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Page 13 of 18 |
Three Months Ended September 28, 2008 | ||||||||||||||||
Estimated | Total | |||||||||||||||
Qualcomm | Share-Based | Qualcomm | ||||||||||||||
Pro Forma | Compensation | QSI | (GAAP) | |||||||||||||
Revenues: |
||||||||||||||||
Equipment and services |
$ | 1,861 | $ | | $ | 5 | $ | 1,866 | ||||||||
Licensing and royalty fees |
1,468 | | | 1,468 | ||||||||||||
Total revenues |
3,329 | | 5 | 3,334 | ||||||||||||
Operating expenses: |
||||||||||||||||
Cost of equipment and services revenues |
877 | 10 | 35 | 922 | ||||||||||||
Research and development |
528 | 69 | 24 | 621 | ||||||||||||
Selling, general and administrative |
346 | 67 | 43 | 456 | ||||||||||||
Total operating expenses |
1,751 | 146 | 102 | 1,999 | ||||||||||||
Operating income (loss) |
1,578 | (146 | ) | (97 | ) | 1,335 | ||||||||||
Investment loss, net |
(221 | )(a) | | (7 | ) (b) | (228 | ) | |||||||||
Income (loss) before income taxes |
1,357 | (146 | ) | (104 | ) | 1,107 | ||||||||||
Income tax (expense) benefit |
(299 | ) (c) | 48 | 22 | (d) | (229 | )(c) | |||||||||
Net income (loss) |
$ | 1,058 | $ | (98 | ) | $ | (82 | ) | $ | 878 | ||||||
Earnings (loss) per common share: |
||||||||||||||||
Diluted |
$ | 0.63 | $ | (0.06 | ) | $ | (0.05 | ) | $ | 0.52 | ||||||
Shares used in per share calculations: |
||||||||||||||||
Diluted |
1,678 | 1,678 | 1,678 | 1,678 | ||||||||||||
Supplemental Financial Data: |
||||||||||||||||
Operating Cash Flow |
$ | 1,153 | $ | (98 | )(f) | $ | (65 | ) | $ | 990 | ||||||
Operating Cash Flow as a % of Revenues |
35 | % | N/M | 30 | % | |||||||||||
Free Cash Flow (e) |
$ | 796 | $ | (98 | )(f) | $ | (122 | ) | $ | 576 | ||||||
Free Cash Flow as a % of Revenues |
24 | % | N/M | 17 | % |
(a) | Included $327 million in other-than-temporary losses on investments, which were not part of the Companys strategic investment portfolio, $4 million in net realized losses on investments and $2 million in interest expense, partially offset by $112 million in interest and dividend income related to cash, cash equivalents and marketable securities. | |
(b) | Included $5 million in other-than-temporary losses on investments, $2 million in interest expense and $1 million in equity in losses of investees, partially offset by $1 million in net realized gains on investments | |
(c) | The fourth quarter of fiscal 2008 effective tax rates were approximately 21% for total Qualcomm (GAAP) and approximately 22% for Qualcomm pro forma. | |
(d) | At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the tax provision for Qualcomm pro forma, the tax items column and the tax provisions related to estimated share-based compensation and in-process R&D 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 Reconciliation of Pro Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures for the three months ended September 28, 2008, included herein. | |
(f) | Incremental tax benefits from stock options exercised during the period. |
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Three Months Ended September 28, 2008 | ||||||||||||||||||||
Estimated | Total | |||||||||||||||||||
Share-Based | In-Process | Qualcomm | ||||||||||||||||||
Qualcomm Pro Forma | Compensation (a) | R&D | QSI | (GAAP) | ||||||||||||||||
Revenues: |
||||||||||||||||||||
Equipment and services |
$ | 7,148 | $ | | $ | | $ | 12 | $ | 7,160 | ||||||||||
Licensing and royalty fees |
3,982 | | | | 3,982 | |||||||||||||||
Total revenues |
11,130 | | | 12 | 11,142 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of equipment and services
revenues |
3,255 | 39 | | 120 | 3,414 | |||||||||||||||
Research and development |
1,926 | 250 | 14 | 91 | 2,281 | |||||||||||||||
Selling, general and administrative |
1,345 | 251 | | 121 | 1,717 | |||||||||||||||
Total operating expenses |
6,526 | 540 | 14 | 332 | 7,412 | |||||||||||||||
Operating income (loss) |
4,604 | (540 | ) | (14 | ) | (320 | ) | 3,730 | ||||||||||||
Investment income, net |
80 | (b) | | | 16 | (c) | 96 | |||||||||||||
Income (loss) before income taxes |
4,684 | (540 | ) | (14 | ) | (304 | ) | 3,826 | ||||||||||||
Income tax (expense) benefit |
(944 | )(d) | 175 | 1 | 102 | (666 | )(d) | |||||||||||||
Net income (loss) |
$ | 3,740 | $ | (365 | ) | $ | (13 | ) | $ | (202 | ) | $ | 3,160 | |||||||
Earnings (loss) per common share: |
||||||||||||||||||||
Diluted |
$ | 2.25 | $ | (0.22 | ) | $ | (0.01 | ) | $ | (0.12 | ) | $ | 1.90 | |||||||
Shares used in per share calculations: |
||||||||||||||||||||
Diluted |
1,660 | 1,660 | 1,660 | 1,660 | 1,660 | |||||||||||||||
Supplemental Financial Data: |
||||||||||||||||||||
Operating Cash Flow |
$ | 4,243 | $ | (408) | (f) | $ | (14 | ) | $ | (263 | ) | $ | 3,558 | |||||||
Operating Cash Flow as a % of Revenue |
38 | % | N/M | 32 | % | |||||||||||||||
Free Cash Flow (e) |
$ | 3,518 | $ | (408) | (f) | $ | (14 | ) | $ | (935 | ) | $ | 2,161 | |||||||
Free Cash Flow as a % of Revenue |
32 | % | N/M | 19 | % |
(a) | Estimated share-based compensation presented above and excluded from pro forma results did not include $2 million, net of tax, related to share-based awards granted under a bonus program. | |
(b) | Included $487 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of the Companys strategic investment portfolio, $104 million in net realized gains on investments and $6 million in gains on derivative instruments from put options related to our share repurchase program, partially offset by $502 million in other-than-temporary losses on investments and $15 million in interest expense. | |
(c) | Included $51 million in net realized gains on investments, $4 million in interest and dividend income and $1 million in equity in earnings of investees, partially offset by $33 million in other-than-temporary losses on investments and $7 million in interest expense. | |
(d) | The effective tax rates for the twelve months ended September 28, 2008 were approximately 17% for total Qualcomm (GAAP) and approximately 20% for Qualcomm pro forma. | |
(e) | Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures for the twelve months ended September 28, 2008, included herein. | |
(f) | Incremental tax benefits from stock options exercised during the period. |
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
|
Page 15 of 18 |
Three Months Ended September 28, 2008 | ||||||||||||||||
Estimated | Total | |||||||||||||||
Qualcomm | Share-Based | Qualcomm | ||||||||||||||
Pro Forma | Compensation | QSI | (GAAP) | |||||||||||||
Net cash provided (used) by operating activities |
$ | 1,153 | $ | (98 | )(a) | $ | (65 | ) | $ | 990 | ||||||
Less: capital expenditures |
(357 | ) | | (57 | ) | (414 | ) | |||||||||
Free cash flow |
$ | 796 | $ | (98 | ) | $ | (122 | ) | $ | 576 | ||||||
Other supplemental cash disclosures: |
||||||||||||||||
Cash transfers from QSI (1) |
$ | 2 | $ | | $ | (2 | ) | $ | | |||||||
Cash transfers to QSI (2) |
(128 | ) | | 128 | | |||||||||||
Net cash transfers |
$ | (126 | ) | $ | | $ | 126 | $ | | |||||||
Twelve Months Ended September 28, 2008 | ||||||||||||||||||||
Estimated | Total | |||||||||||||||||||
Qualcomm | Share-Based | In-Process | Qualcomm | |||||||||||||||||
Pro Forma | Compensation | R&D | QSI | (GAAP) | ||||||||||||||||
Net cash provided (used) by operating activities |
$ | 4,243 | $ | (408 | ) (a) | $ | (14 | ) | $ | (263 | ) | $ | 3,558 | |||||||
Less: capital expenditures |
(725 | ) | | | (672 | ) | (1,397 | ) | ||||||||||||
Free cash flow |
$ | 3,518 | $ | (408 | ) | $ | (14 | ) | $ | (935 | ) | $ | 2,161 | |||||||
Other supplemental cash disclosures: |
||||||||||||||||||||
Cash transfers from QSI (1) |
$ | 61 | $ | | $ | | $ | (61 | ) | $ | | |||||||||
Cash transfers to QSI (2) |
(970 | ) | | | 970 | | ||||||||||||||
Net cash transfers |
$ | (909 | ) | $ | | $ | | $ | 909 | $ | | |||||||||
(1) | Cash from sale of strategic debt and equity investments. | |
(2) | Funding for strategic debt and equity investments, capital expenditures and other QSI operating expenses. |
Three Months Ended September 30, 2007 | ||||||||||||||||
Estimated | Total | |||||||||||||||
Qualcomm | Share-Based | Qualcomm | ||||||||||||||
Pro Forma | Compensation | QSI | (GAAP) | |||||||||||||
Net cash provided (used)
by operating activities |
$ | 1,136 | $ | (41 | )(a) | $ | (52 | ) | $ | 1,043 | ||||||
Less: capital expenditures |
(220 | ) | | (27 | ) | (247 | ) | |||||||||
Free cash flow |
$ | 916 | $ | (41 | ) | $ | (79 | ) | $ | 796 | ||||||
Twelve Months Ended September 30, 2007 | ||||||||||||||||||||
Estimated | Total | |||||||||||||||||||
Qualcomm | Share-Based | In-Process | Qualcomm | |||||||||||||||||
Pro Forma | Compensation | R&D | QSI | (GAAP) | ||||||||||||||||
Net cash provided (used)
by operating activities |
$ | 4,252 | $ | (240 | )(a) | $ | (10 | ) | $ | (191 | ) | $ | 3,811 | |||||||
Less: capital expenditures |
(726 | ) | | | (92 | ) | (818 | ) | ||||||||||||
Free cash flow |
$ | 3,526 | $ | (240 | ) | $ | (10 | ) | $ | (283 | ) | $ | 2,993 | |||||||
(a) | Incremental tax benefits from stock options exercised during the period. |
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
|
Page 16 of 18 |
September 28, | September 30, | |||||||
2008 | 2007 | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 1,840 | $ | 2,411 | ||||
Marketable securities |
4,571 | 4,170 | ||||||
Accounts receivable, net |
4,038 | 715 | ||||||
Inventories |
521 | 469 | ||||||
Deferred tax assets |
289 | 435 | ||||||
Collateral held under securities lending |
173 | 421 | ||||||
Other current assets |
291 | 200 | ||||||
Total current assets |
11,723 | 8,821 | ||||||
Marketable securities |
4,858 | 5,234 | ||||||
Deferred tax assets |
830 | 318 | ||||||
Property, plant and equipment, net |
2,162 | 1,788 | ||||||
Goodwill |
1,517 | 1,325 | ||||||
Other intangible assets, net |
3,104 | 664 | ||||||
Other assets |
369 | 345 | ||||||
Total assets |
$ | 24,563 | $ | 18,495 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Trade accounts payable |
$ | 570 | $ | 635 | ||||
Payroll and other benefits related liabilities |
406 | 311 | ||||||
Income taxes payable |
20 | 119 | ||||||
Unearned revenues |
394 | 218 | ||||||
Obligations under securities lending |
173 | 421 | ||||||
Other current liabilities |
728 | 554 | ||||||
Total current liabilities |
2,291 | 2,258 | ||||||
Unearned revenues |
3,768 | 142 | ||||||
Income taxes payable |
227 | | ||||||
Other liabilities |
333 | 260 | ||||||
Total liabilities |
6,619 | 2,660 | ||||||
Stockholders equity: |
||||||||
Preferred stock, $0.0001 par value; issuable in series; |
||||||||
8 shares authorized; none outstanding at
September 28, 2008 and September 30, 2007 |
| | ||||||
Common stock, $0.0001 par value; 6,000 shares
authorized; |
||||||||
1,656 and 1,646 shares issued and outstanding at
September 28, 2008 and September 30, 2007,
respectively |
| | ||||||
Paid-in capital |
7,511 | 7,057 | ||||||
Retained earnings |
10,717 | 8,541 | ||||||
Accumulated other comprehensive (loss) income |
(284 | ) | 237 | |||||
Total stockholders equity |
17,944 | 15,835 | ||||||
Total liabilities and stockholders equity |
$ | 24,563 | $ | 18,495 | ||||
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
|
Page 17 of 18 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
September 28, | September 30, | September 28, | September 30, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenues: |
||||||||||||||||
Equipment and services |
$ | 1,866 | $ | 1,569 | $ | 7,160 | $ | 5,765 | ||||||||
Licensing and royalty fees |
1,468 | 737 | 3,982 | 3,106 | ||||||||||||
Total revenues |
3,334 | 2,306 | 11,142 | 8,871 | ||||||||||||
Operating expenses: |
||||||||||||||||
Cost of equipment and services revenues |
922 | 725 | 3,414 | 2,681 | ||||||||||||
Research and development |
621 | 481 | 2,281 | 1,829 | ||||||||||||
Selling, general and administrative |
456 | 323 | 1,717 | 1,478 | ||||||||||||
Total operating expenses |
1,999 | 1,529 | 7,412 | 5,988 | ||||||||||||
Operating income |
1,335 | 777 | 3,730 | 2,883 | ||||||||||||
Investment (expense) income, net |
(228 | ) | 171 | 96 | 743 | |||||||||||
Income before income taxes |
1,107 | 948 | 3,826 | 3,626 | ||||||||||||
Income tax (expense) benefit |
(229 | ) | 183 | (666 | ) | (323 | ) | |||||||||
Net income |
$ | 878 | $ | 1,131 | $ | 3,160 | $ | 3,303 | ||||||||
Basic earnings per common share |
$ | 0.53 | $ | 0.68 | $ | 1.94 | $ | 1.99 | ||||||||
Diluted earnings per common share |
$ | 0.52 | $ | 0.67 | $ | 1.90 | $ | 1.95 | ||||||||
Shares used in per share calculations: |
||||||||||||||||
Basic |
1,650 | 1,660 | 1,632 | 1,660 | ||||||||||||
Diluted |
1,678 | 1,689 | 1,660 | 1,693 | ||||||||||||
Dividends per share paid |
$ | 0.16 | $ | 0.14 | $ | 0.60 | $ | 0.52 | ||||||||
Dividends per share announced |
$ | 0.16 | $ | 0.14 | $ | 0.60 | $ | 0.52 | ||||||||
Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
|
Page 18 of 18 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
September 28, | September 30, | September 28, | September 30, | |||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Operating Activities: |
||||||||||||||||
Net income |
$ | 878 | $ | 1,131 | $ | 3,160 | $ | 3,303 | ||||||||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||||||||||
Depreciation and amortization |
120 | 100 | 456 | 383 | ||||||||||||
Revenues related to non-monetary exchanges |
(172 | ) | (172 | ) | | |||||||||||
Non-cash income tax expense (benefit) |
158 | (274 | ) | 306 | 91 | |||||||||||
Non-cash portion of share-based compensation expense |
148 | 117 | 541 | 488 | ||||||||||||
Incremental tax benefits from stock options exercised |
(98 | ) | (41 | ) | (408 | ) | (240 | ) | ||||||||
Net realized losses (gains) on marketable securities
and other investments |
3 | (49 | ) | (155 | ) | (222 | ) | |||||||||
Other-than-temporary losses on marketable securities
and other investments |
332 | 16 | 535 | 27 | ||||||||||||
Other items, net |
2 | (47 | ) | 3 | (43 | ) | ||||||||||
Changes in assets and liabilities, net of effects of acquisitions: |
||||||||||||||||
Accounts receivable, net |
(475 | ) | 46 | (653 | ) | (16 | ) | |||||||||
Inventories |
95 | (87 | ) | (47 | ) | (234 | ) | |||||||||
Other assets |
(52 | ) | 41 | (17 | ) | (96 | ) | |||||||||
Trade accounts payable |
(59 | ) | 82 | (63 | ) | 209 | ||||||||||
Payroll, benefits and other liabilities |
149 | 70 | 161 | 139 | ||||||||||||
Unearned revenues |
(39 | ) | (62 | ) | (89 | ) | 22 | |||||||||
Net cash provided by operating activities |
990 | 1,043 | 3,558 | 3,811 | ||||||||||||
Investing Activities: |
||||||||||||||||
Capital expenditures |
(414 | ) | (247 | ) | (1,397 | ) | (818 | ) | ||||||||
Purchases of available-for-sale securities |
(2,736 | ) | (2,571 | ) | (7,680 | ) | (8,492 | ) | ||||||||
Proceeds from sale of available-for-sale securities |
1,141 | 1,744 | 6,689 | 7,998 | ||||||||||||
Increase in receivables for settlement of investments |
(406 | ) | | (406 | ) | | ||||||||||
Other investments and acquisitions, net of cash acquired |
(15 | ) | (19 | ) | (298 | ) | (249 | ) | ||||||||
Change in collateral held under securities lending |
153 | (268 | ) | 248 | (421 | ) | ||||||||||
Other items, net |
(5 | ) | 71 | 25 | 84 | |||||||||||
Net cash used by investing activities |
(2,282 | ) | (1,290 | ) | (2,819 | ) | (1,898 | ) | ||||||||
Financing Activities: |
||||||||||||||||
Proceeds from issuance of common stock |
484 | 82 | 1,184 | 556 | ||||||||||||
Incremental tax benefits from stock options exercised |
98 | 41 | 408 | 240 | ||||||||||||
Repurchase and retirement of common stock |
| (1,218 | ) | (1,670 | ) | (1,482 | ) | |||||||||
Dividends paid |
(266 | ) | (230 | ) | (982 | ) | (862 | ) | ||||||||
Change in obligations under securities lending |
(153 | ) | 268 | (248 | ) | 421 | ||||||||||
Other items, net |
2 | (1 | ) | 1 | 16 | |||||||||||
Net cash provided (used) by financing activities |
165 | (1,058 | ) | # (1,307 | ) | (1,111 | ) | |||||||||
Effect of exchange rate changes on cash |
(3 | ) | | (3 | ) | 2 | ||||||||||
Net (decrease) increase in cash and cash equivalents |
(1,130 | ) | (1,305 | ) | (571 | ) | 804 | |||||||||
Cash and cash equivalents at beginning of period |
2,970 | 3,716 | 2,411 | 1,607 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 1,840 | $ | 2,411 | $ | 1,840 | $ | 2,411 | ||||||||