| Revenues: $3.35 billion, up 25 percent year-over-year (y-o-y) and 13 percent sequentially. |
| Operating income: $1.11 billion, up 26 percent y-o-y and 33 percent sequentially. |
| Net income: $1.17 billion, up 39 percent y-o-y and 35 percent sequentially. |
| Diluted earnings per share: $0.71, up 42 percent y-o-y and 34 percent sequentially. |
| Effective tax rate: 12 percent for the quarter. |
| Operating cash flow: $48 million, down 96 percent y-o-y due to a $1.5 billion income tax payment.* | ||
| Return of capital to stockholders: $309 million, or $0.19 per share, of cash dividends paid. |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 2 of 19 |
| Revenues: $3.35 billion, up 25 percent y-o-y and 13 percent sequentially. |
| Operating income: $1.42 billion, up 25 percent both y-o-y and sequentially. |
| Net income: $1.35 billion, up 29 percent y-o-y and 22 percent sequentially. |
| Diluted earnings per share: $0.82, up 32 percent y-o-y and 21 percent sequentially. The current quarter excludes $0.05 loss per share attributable to the QSI segment, $0.07 loss per share attributable to certain share-based compensation and $0.02 earnings per share attributable to certain tax items (the sum of Non-GAAP earnings per share and items excluded do not equal GAAP earnings per share due to rounding). |
| Effective tax rate: 19 percent for the quarter. |
| Free cash flow: $127 million, down 90 percent y-o-y due to a $1.5 billion income tax payment* (defined as net cash from operating activities less capital expenditures). |
* | The $1.5 billion income tax payment primarily related to the 2008 license and settlement agreements with Nokia. |
| CDMA-based Mobile Station ModemTM (MSMTM) shipments: approximately 118 million units, up 28 percent y-o-y and 6 percent sequentially. |
| September quarter total reported device sales: approximately $34.0 billion, up 39 percent y-o-y and 20 percent sequentially. |
| September quarter estimated CDMA-based device shipments: approximately 165 to 169 million units at an estimated average selling price of approximately $201 to $207 per unit. |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 3 of 19 |
Share-Based | ||||||||||||||||
($ in millions) | Non-GAAP | Compensation | QSI | GAAP | ||||||||||||
First quarter fiscal 2011 |
$ | 560 | $ | 86 | $ | 25 | $ | 671 | ||||||||
As a % of revenues |
17 | % | N/M | 20 | % | |||||||||||
First quarter fiscal 2010 |
$ | 503 | $ | 72 | $ | 21 | $ | 596 | ||||||||
As a % of revenues |
19 | % | N/M | 22 | % | |||||||||||
Year-over-year change ($) |
11 | % | 19 | % | 19 | % | 13 | % |
N/M | Not Meaningful |
Share-Based | ||||||||||||||||
($ in millions) | Non-GAAP | Compensation | QSI | GAAP | ||||||||||||
First quarter fiscal 2011 |
$ | 343 | $ | 72 | $ | 22 | $ | 437 | ||||||||
As a % of revenues |
10 | % | N/M | 13 | % | |||||||||||
First quarter fiscal 2010 |
$ | 272 | $ | 68 | $ | 39 | $ | 379 | ||||||||
As a % of revenues |
10 | % | N/M | 14 | % | |||||||||||
Year-over-year change ($) |
26 | % | 6 | % | (44 | %) | 15 | % |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 4 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 5 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 6 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 7 of 19 |
Q2 FY10 | Current Guidance | |||||||
Results | Q2 FY11 Estimates | |||||||
Non-GAAP |
||||||||
Revenues |
$2.66 | B | $3.45B - $3.75 | B | ||||
Year-over-year change |
increase 30% - 41 | % | ||||||
Diluted earnings per share (EPS) |
$0.59 | $0.77 - $0.81 | ||||||
Year-over-year change |
increase 31% - 37 | % | ||||||
GAAP |
||||||||
Revenues |
$2.66 | B | $3.45B - $3.75 | B | ||||
Year-over-year change |
increase 30% - 41 | % | ||||||
Diluted EPS |
$0.46 | $0.50 - $0.54 | ||||||
Year-over-year change |
increase 9% - 17 | % | ||||||
Diluted EPS attributable to QSI |
($0.05 | ) | ($0.18 | ) | ||||
Diluted EPS attributable to share-based compensation |
($0.06 | ) | ($0.09 | ) | ||||
Diluted EPS attributable to certain tax items |
($0.02 | ) | $0.00 | |||||
Diluted EPS attributable to in-process R&D |
$0.00 | $0.00 | ||||||
Metrics |
||||||||
MSM shipments |
approx. 93 | M | approx. 113M - 117 | M | ||||
Year-over-year change |
increase 22% - 26 | % | ||||||
Total reported device sales (1) |
$27.7B | * | $36.5B - $38.5B | * | ||||
Year-over-year change |
increase 32% - 39 | % | ||||||
Est. CDMA-based devices shipped (1) |
approx. 148M - 152M | * | not provided | |||||
Est. CDMA-based device average selling price (1) |
approx. $182 - $188 | * | not provided |
* | Est. sales in December quarter, reported in March quarter |
FY 2010 | Prior Guidance | Current Guidance | ||||||||||
Results | FY 2011 Estimates | FY 2011 Estimates | ||||||||||
Non-GAAP |
||||||||||||
Revenues |
$10.98 | B | $12.4B - $13.0 | B | $13.6B - $14.2 | B | ||||||
Year-over-year change |
increase 13% - 18 | % | increase 24% - 29 | % | ||||||||
Diluted EPS |
$2.46 | $2.63 - $2.77 | $2.91 - $3.05 | |||||||||
Year-over-year change |
increase 7% - 13 | % | increase 18% - 24 | % | ||||||||
GAAP |
||||||||||||
Revenues |
$10.99 | B | $12.4B - $13.0 | B | $13.6B - $14.2 | B | ||||||
Year-over-year change |
increase 13% - 18 | % | increase 24% - 29 | % | ||||||||
Diluted EPS |
$1.96 | $2.08 - $2.22 | $2.32 - $2.46 | |||||||||
Year-over-year change |
increase 6% - 13 | % | increase 18% - 26 | % | ||||||||
Diluted EPS attributable to QSI |
($0.13 | ) | ($0.22 | ) | ($0.27 | ) | ||||||
Diluted EPS attributable to share-based compensation |
($0.27 | ) | ($0.32 | ) | ($0.33 | ) | ||||||
Diluted EPS attributable to certain tax items |
($0.10 | ) | ($0.01 | ) | $0.01 | |||||||
Diluted EPS attributable to in-process R&D |
$0.00 | $0.00 | $0.00 | |||||||||
Metrics |
||||||||||||
Est. fiscal year* CDMA-based device average selling price range (1) |
approx. $183 - $189 | approx. $185 - $195 | approx. $190 - $200 |
* | Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters |
Prior Guidance | Current Guidance | Prior Guidance | Current Guidance | |||||
Calendar 2010 | Calendar 2010 | Calendar 2011 | Calendar 2011 | |||||
Estimates | Estimates | Estimates | Estimates | |||||
Est. CDMA-based device shipments |
||||||||
March quarter
|
approx. 134M 138M | approx. 134M 138M | not provided | not provided | ||||
June quarter
|
approx. 153M 157M | approx. 153M 157M | not provided | not provided | ||||
September quarter
|
not provided | approx. 165M 169M | not provided | not provided | ||||
December quarter
|
not provided | not provided | not provided | not provided | ||||
Est. Calendar year range (approx.)
|
625M 650M | 640M 660M | 740M 790M | 750M 800M | ||||
Midpoint | Midpoint | Midpoint | Midpoint | |||||
Est. total CDMA-based units
|
approx. 638M | approx. 650M | approx. 765M | approx. 775M | ||||
Est. CDMA units
|
approx. 241M | approx. 238M | approx. 250M | approx. 250M | ||||
Est. WCDMA units
|
approx. 397M | approx. 412M | approx. 515M | approx. 525M |
(1) | Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period. The reported quarterly estimated ranges of ASPs and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same way (e.g., some licensees report selling prices net of permitted deductions, such as transportation, insurance and packing costs, while other licensees report selling prices and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. Total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that is reported with the activity for the particular period. |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 8 of 19 |
Non-GAAP | ||||||||||||||||||||||||||||||||||||||||
Reconciling | Share-Based | In-Process | ||||||||||||||||||||||||||||||||||||||
SEGMENTS | QCT | QTL | QWI | Items (1) | Non-GAAP | Compensation | Tax Items (2) | R&D | QSI (3) | GAAP | ||||||||||||||||||||||||||||||
Q1 - FISCAL 2011 |
||||||||||||||||||||||||||||||||||||||||
Revenues |
$ | 2,116 | $ | 1,057 | $ | 172 | $ | 3 | $ | 3,348 | $ | | $ | | $ | | $ | | $ | 3,348 | ||||||||||||||||||||
Change from prior year |
32 | % | 15 | % | 21 | % | N/M | 25 | % | (100 | %) | 25 | % | |||||||||||||||||||||||||||
Change from prior quarter |
14 | % | 15 | % | 1 | % | N/M | 13 | % | 0 | % | 13 | % | |||||||||||||||||||||||||||
Operating income (loss) |
$ | 1,416 | $ | (172 | ) | $ | | $ | | $ | (134 | ) | $ | 1,110 | ||||||||||||||||||||||||||
Change from prior year |
25 | % | (14 | %) | N/A | (29 | %) | 26 | % | |||||||||||||||||||||||||||||||
Change from prior quarter |
25 | % | (7 | %) | N/A | (2 | %) | 33 | % | |||||||||||||||||||||||||||||||
EBT |
$ | 640 | $ | 892 | $ | | $ | 128 | $ | 1,660 | $ | (172 | ) | $ | | $ | | $ | (159 | ) | $ | 1,329 | ||||||||||||||||||
Change from prior year |
51 | % | 16 | % | N/M | N/M | 27 | % | (14 | %) | N/A | (49 | %) | 26 | % | |||||||||||||||||||||||||
Change from prior quarter |
23 | % | 18 | % | N/M | N/M | 22 | % | (7 | %) | N/A | (4 | %) | 27 | % | |||||||||||||||||||||||||
EBT as a % of revenues |
30 | % | 84 | % | 0 | % | N/M | 50 | % | N/M | N/A | N/M | 40 | % | ||||||||||||||||||||||||||
Net income (loss) |
$ | 1,345 | $ | (116 | ) | $ | 28 | $ | | $ | (87 | ) | $ | 1,170 | ||||||||||||||||||||||||||
Change from prior year |
29 | % | (2 | %) | N/M | N/A | (61 | %) | 39 | % | ||||||||||||||||||||||||||||||
Change from prior quarter |
22 | % | 3 | % | N/M | N/A | (9 | %) | 35 | % | ||||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.82 | $ | (0.07 | ) | $ | 0.02 | $ | | $ | (0.05 | ) | $ | 0.71 | ||||||||||||||||||||||||||
Change from prior year |
32 | % | 0 | % | N/M | N/A | (67 | %) | 42 | % | ||||||||||||||||||||||||||||||
Change from prior quarter |
21 | % | 0 | % | N/M | N/A | 0 | % | 34 | % | ||||||||||||||||||||||||||||||
Diluted shares used |
1,648 | 1,648 | 1,648 | 1,648 | 1,648 | 1,648 | ||||||||||||||||||||||||||||||||||
Q4 - FISCAL 2010 |
||||||||||||||||||||||||||||||||||||||||
Revenues |
$ | 1,860 | $ | 921 | $ | 171 | $ | | $ | 2,952 | $ | | $ | | $ | | $ | | $ | 2,952 | ||||||||||||||||||||
Operating income (loss) |
1,130 | (161 | ) | | | (132 | ) | 837 | ||||||||||||||||||||||||||||||||
EBT |
519 | 754 | (2 | ) | 90 | 1,361 | (161 | ) | | | (153 | ) | 1,047 | |||||||||||||||||||||||||||
Net income (loss) |
1,105 | (120 | ) | (40 | ) | | (80 | ) | 865 | |||||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.68 | $ | (0.07 | ) | $ | (0.02 | ) | $ | | $ | (0.05 | ) | $ | 0.53 | |||||||||||||||||||||||||
Diluted shares used |
1,621 | 1,621 | 1,621 | 1,621 | 1,621 | 1,621 | ||||||||||||||||||||||||||||||||||
Q2 - FISCAL 2010 |
||||||||||||||||||||||||||||||||||||||||
Revenues |
$ | 1,537 | $ | 974 | $ | 152 | $ | (2 | ) | $ | 2,661 | $ | | $ | | $ | | $ | 2 | $ | 2,663 | |||||||||||||||||||
Operating income (loss) |
1,065 | (154 | ) | | (3 | ) | (132 | ) | 776 | |||||||||||||||||||||||||||||||
EBT |
344 | 821 | (1 | ) | 94 | 1,258 | (154 | ) | | (3 | ) | (136 | ) | 965 | ||||||||||||||||||||||||||
Net income (loss) |
989 | (98 | ) | (33 | ) | (3 | ) | (81 | ) | 774 | ||||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.59 | $ | (0.06 | ) | $ | (0.02 | ) | $ | | $ | (0.05 | ) | $ | 0.46 | |||||||||||||||||||||||||
Diluted shares used |
1,678 | 1,678 | 1,678 | 1,678 | 1,678 | 1,678 | ||||||||||||||||||||||||||||||||||
Q1 - FISCAL 2010 |
||||||||||||||||||||||||||||||||||||||||
Revenues |
$ | 1,608 | $ | 917 | $ | 142 | $ | 1 | $ | 2,668 | $ | | $ | | $ | | $ | 2 | $ | 2,670 | ||||||||||||||||||||
Operating income (loss) |
1,134 | (151 | ) | | | (104 | ) | 879 | ||||||||||||||||||||||||||||||||
EBT |
425 | 772 | 9 | 104 | 1,310 | (151 | ) | | | (107 | ) | 1,052 | ||||||||||||||||||||||||||||
Net income (loss) |
1,041 | (114 | ) | (32 | ) | | (54 | ) | 841 | |||||||||||||||||||||||||||||||
Diluted EPS |
$ | 0.62 | $ | (0.07 | ) | $ | (0.02 | ) | $ | | $ | (0.03 | ) | $ | 0.50 | |||||||||||||||||||||||||
Diluted shares used |
1,691 | 1,691 | 1,691 | 1,691 | 1,691 | 1,691 | ||||||||||||||||||||||||||||||||||
12 MONTHS FISCAL 2010 |
||||||||||||||||||||||||||||||||||||||||
Revenues |
$ | 6,695 | $ | 3,659 | $ | 628 | $ | | $ | 10,982 | $ | | $ | | $ | | $ | 9 | $ | 10,991 | ||||||||||||||||||||
Operating income (loss) |
4,316 | (614 | ) | | (3 | ) | (416 | ) | 3,283 | |||||||||||||||||||||||||||||||
EBT |
1,693 | 3,020 | 12 | 361 | 5,086 | (614 | ) | | (3 | ) | (435 | ) | 4,034 | |||||||||||||||||||||||||||
Net income (loss) |
4,071 | (442 | ) | (159 | ) | (3 | ) | (220 | ) | 3,247 | ||||||||||||||||||||||||||||||
Diluted EPS |
$ | 2.46 | $ | (0.27 | ) | $ | (0.10 | ) | $ | | $ | (0.13 | ) | $ | 1.96 | |||||||||||||||||||||||||
Diluted shares used |
1,658 | 1,658 | 1,658 | 1,658 | 1,658 | 1,658 |
(1) | Non-GAAP reconciling items related to revenues consist primarily of other nonreportable segment revenues less intersegment eliminations. Non-GAAP reconciling items related to earnings before taxes consist primarily of certain investment income or losses, interest expense, research and development expenses, sales and marketing expenses and other operating expenses that are not allocated to the segments for management reporting purposes, nonreportable segment results and the elimination of intersegment profit. | |
(2) | During the first quarter of fiscal 2011, the Company recorded a tax benefit of $32 million, or $0.02 diluted earnings per share, related to fiscal 2010 due to the retroactive reenactment of the federal R&D tax credit. Also during the first quarter of fiscal 2011, the Company recorded $3 million in state tax expense because deferred revenue related to the license agreement signed in the first quarter of fiscal 2010 with Samsung is taxable in fiscal 2011 but the resulting deferred tax asset will reverse in future years when the Companys state tax rate will be lower. The Companys first quarter fiscal 2011 Non-GAAP results excluded these items. | |
(3) | At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the Non-GAAP tax provision, the tax items column and the tax provision related to share-based compensation from the GAAP tax provision. |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 9 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 10 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 11 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 12 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 13 of 19 |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 14 of 19 |
Non-GAAP | Share-Based | Tax | GAAP | |||||||||||||||||
Results | Compensation | Items | QSI | Results | ||||||||||||||||
($ in millions except per share data) |
||||||||||||||||||||
R&D |
$ | 560 | $ | 86 | $ | | $ | 25 | $ | 671 | ||||||||||
SG&A |
343 | 72 | | 22 | 437 | |||||||||||||||
Operating income (loss) |
1,416 | (172 | ) | | (134 | ) | 1,110 | |||||||||||||
Investment income (loss), net |
244 | (a) | | | (25 | ) (b) | 219 | |||||||||||||
Tax rate |
19 | % | N/M | N/M | N/M | 12 | % | |||||||||||||
Net income (loss) |
$ | 1,345 | $ | ( 116 | ) | $ | 28 | (c) | $ | ( 87 | ) | $ | 1,170 | |||||||
Diluted earnings (loss) per share (EPS) |
$ | 0.82 | $ | (0.07 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.71 | ||||||||
Operating cash flow |
$ | 227 | $ | (45 | )(d) | $ | | $ | (134 | ) | $ | 48 | ||||||||
Operating cash flow as % of revenues |
7 | % | N/A | N/A | N/M | 1 | % | |||||||||||||
Free cash flow (d) |
$ | 127 | $ | (45 | )(d) | $ | | $ | (136 | ) | $ | (54 | ) | |||||||
Free cash flow as a % of revenues |
4 | % | N/A | N/A | N/M | -2 | % |
(a) | Included $130 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of the Companys strategic investment portfolio, and $127 million in net realized gains on investments, partially offset by $8 million in other-than-temporary losses on investments and $5 million in interest expense. | |
(b) | Included $23 million in interest expense, $3 million in other-than-temporary losses on investments and $1 million in equity in losses of investees, partially offset by $1 million in gains on derivative instruments and $1 million in interest and dividend income related to cash, cash equivalents and marketable securities. | |
(c) | During the first quarter of fiscal 2011, the Company recorded a tax benefit of $32 million, or $0.02 diluted earnings per share, related to fiscal 2010 due to the retroactive reenactment of the federal R&D tax credit. Also during the first quarter of fiscal 2011, the Company recorded $3 million in state tax expense because deferred revenue related to the license agreement signed in the first quarter of fiscal 2010 with Samsung is taxable in fiscal 2011 but the resulting deferred tax asset will reverse in future years when the Companys state tax rate will be lower. The Companys first quarter fiscal 2011 Non-GAAP results excluded these items. | |
(d) | 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 Non-GAAP Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and Other Supplemental Disclosures for the three months ended December 26, 2010, included herein. |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 15 of 19 |
Three Months Ended December 26, 2010 | ||||||||||||||||||||||||
Share-Based | Tax | In-Process | ||||||||||||||||||||||
Non-GAAP | Compensation | Items | R&D | QSI | GAAP | |||||||||||||||||||
Net cash provided (used) by operating activities |
$ | 227 | $ | (45) | (a) | $ | | $ | | $ | (134 | ) | $ | 48 | ||||||||||
Less: capital expenditures |
(100 | ) | | | | (2 | ) | (102 | ) | |||||||||||||||
Free cash flow |
$ | 127 | $ | (45 | ) | $ | | $ | | $ | (136 | ) | $ | (54 | ) | |||||||||
Revenues |
$ | 3,348 | $ | | $ | | $ | | $ | | $ | 3,348 | ||||||||||||
Free cash flow as a % of revenues |
4 | % | N/A | N/A | N/A | N/M | -2 | % | ||||||||||||||||
Other supplemental cash disclosures: |
||||||||||||||||||||||||
Cash transfers from QSI (1) |
$ | 8 | $ | | $ | | $ | | $ | (8 | ) | $ | | |||||||||||
Cash transfers to QSI (2) |
(154 | ) | | | | 154 | | |||||||||||||||||
Net cash transfers |
$ | (146 | ) | $ | | $ | | $ | | $ | 146 | $ | | |||||||||||
Three Months Ended December 27, 2009 | ||||||||||||||||||||||||
Share-Based | Tax | In-Process | ||||||||||||||||||||||
Non-GAAP | Compensation | Items | R&D | QSI | GAAP | |||||||||||||||||||
Net cash provided (used) by operating activities |
$ | 1,338 | $ | (13) | (a) | $ | | $ | | $ | (86 | ) | $ | 1,239 | ||||||||||
Less: capital expenditures |
(67 | ) | | | | (21 | ) | (88 | ) | |||||||||||||||
Free cash flow |
$ | 1,271 | $ | (13 | ) | $ | | $ | | $ | (107 | ) | $ | 1,151 | ||||||||||
(a) | Incremental tax benefits from stock options exercised during the period. | |
(1) | Cash primarily from the settlement of derivative contracts and sale of equity investments. | |
(2) | Primarily funding for strategic debt and equity investments and QSI operating expenses. | |
N/M | Not Meaningful | |
N/A | Not Applicable |
Qualcomm Announces First Quarter Fiscal 2011 Results | Page 16 of 19 |
Three Months Ended December 26, 2010 | ||||||||||||||||||||
Non-GAAP | Share-Based | GAAP | ||||||||||||||||||
Results | Compensation | Tax Items (a) | QSI (b) | Results | ||||||||||||||||
Income (loss) before income taxes |
$ | 1,660 | $ | ( 172 | ) | $ | | $ | ( 159 | ) | $ | 1,329 | ||||||||
Income tax (expense) benefit |
(315 | ) | 56 | 28 | 72 | (159 | ) | |||||||||||||
$ | ||||||||||||||||||||
Net income (loss) |
$ | 1,345 | $ | ( 116 | ) | $ | 28 | $ | ( 87 | ) | $ | 1,170 | ||||||||
Tax rate |
19 | % | 33 | % | N/A | N/M | 12 | % |
(a) | During the first quarter of fiscal 2011, the Company recorded a tax benefit of $32 million, or $0.02 diluted earnings per share, related to fiscal 2010 due to the retroactive reenactment of the federal R&D tax credit. Also during the first quarter of fiscal 2011, the Company recorded $3 million in state tax expense because deferred revenue related to the license agreement signed in the first quarter of fiscal 2010 with Samsung is taxable in fiscal 2011 but the resulting deferred tax asset will reverse in future years when the Companys state tax rate will be lower. The Companys first quarter fiscal 2011 Non-GAAP results excluded these items. | |
(b) | 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 Non-GAAP tax provision, the tax items column and the tax provision related to share-based compensation from the GAAP tax provision. |
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 17 of 19 |
December 26, | September 26, | |||||||
2010 | 2010 | |||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 4,711 | $ | 3,547 | ||||
Marketable securities |
5,798 | 6,732 | ||||||
Accounts receivable, net |
657 | 730 | ||||||
Inventories |
574 | 528 | ||||||
Deferred tax assets |
336 | 321 | ||||||
Other current assets |
255 | 275 | ||||||
Total current assets |
12,331 | 12,133 | ||||||
Marketable securities |
8,598 | 8,123 | ||||||
Deferred tax assets |
1,979 | 1,922 | ||||||
Property, plant and equipment, net |
2,361 | 2,373 | ||||||
Goodwill |
1,519 | 1,488 | ||||||
Other intangible assets, net |
2,983 | 3,022 | ||||||
Other assets |
1,520 | 1,511 | ||||||
Total assets |
$ | 31,291 | $ | 30,572 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Trade accounts payable |
$ | 522 | $ | 764 | ||||
Payroll and other benefits related liabilities |
480 | 467 | ||||||
Unearned revenues |
631 | 623 | ||||||
Loans payable |
1,089 | 1,086 | ||||||
Income taxes payable |
10 | 1,443 | ||||||
Other current liabilities |
1,211 | 1,085 | ||||||
Total current liabilities |
3,943 | 5,468 | ||||||
Unearned revenues |
3,821 | 3,485 | ||||||
Other liabilities |
791 | 761 | ||||||
Total liabilities |
8,555 | 9,714 | ||||||
Stockholders equity: |
||||||||
Preferred stock, $0.0001 par value; issuable in series;
8 shares authorized; none outstanding at
December 26, 2010 and September 26, 2010 |
| | ||||||
Common stock, $0.0001 par value; 6,000 shares authorized;
1,634 and 1,612 shares issued and outstanding at
December 26, 2010 and September 26, 2010, respectively |
| | ||||||
Paid-in capital |
7,818 | 6,856 | ||||||
Retained earnings |
14,161 | 13,305 | ||||||
Accumulated other comprehensive income |
757 | 697 | ||||||
Total stockholders equity |
22,736 | 20,858 | ||||||
Total liabilities and stockholders equity |
$ | 31,291 | $ | 30,572 | ||||
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 18 of 19 |
Three Months Ended | ||||||||
December 26, | December 27, | |||||||
2010 | 2009 | |||||||
Revenues: |
||||||||
Equipment and services |
$ | 2,213 | $ | 1,663 | ||||
Licensing and royalty fees |
1,135 | 1,007 | ||||||
Total revenues |
3,348 | 2,670 | ||||||
Operating expenses: |
||||||||
Cost of equipment and services revenues |
1,130 | 816 | ||||||
Research and development |
671 | 596 | ||||||
Selling, general and administrative |
437 | 379 | ||||||
Total operating expenses |
2,238 | 1,791 | ||||||
Operating income |
1,110 | 879 | ||||||
Investment income, net |
219 | 173 | ||||||
Income before income taxes |
1,329 | 1,052 | ||||||
Income tax expense |
(159 | ) | (211 | ) | ||||
Net income |
$ | 1,170 | $ | 841 | ||||
Basic earnings per common share |
$ | 0.72 | $ | 0.50 | ||||
Diluted earnings per common share |
$ | 0.71 | $ | 0.50 | ||||
Shares used in per share calculations: |
||||||||
Basic |
1,623 | 1,672 | ||||||
Diluted |
1,648 | 1,691 | ||||||
Dividends per share paid |
$ | 0.19 | $ | 0.17 | ||||
Dividends per share announced |
$ | 0.19 | $ | 0.17 | ||||
Qualcomm Announces First Quarter Fiscal 2011 Results
|
Page 19 of 19 |
Three Months Ended | ||||||||
December 26, | December 27, | |||||||
2010 | 2009 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 1,170 | $ | 841 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||
Depreciation and amortization |
201 | 162 | ||||||
Revenues related to non-monetary exchanges |
(31 | ) | (37 | ) | ||||
Income tax provision (less than) in excess of income tax payments |
(1,474 | ) | 32 | |||||
Non-cash portion of share-based compensation expense |
174 | 151 | ||||||
Incremental tax benefit from stock options exercised |
(45 | ) | (13 | ) | ||||
Net realized gains on marketable securities and other investments |
(127 | ) | (102 | ) | ||||
Net impairment losses on marketable securities and other investments |
11 | 57 | ||||||
Other items, net |
(2 | ) | 4 | |||||
Changes in assets and liabilities, net of effects of acquisitions: |
||||||||
Accounts receivable, net |
76 | 87 | ||||||
Inventories |
(45 | ) | 101 | |||||
Other assets |
(23 | ) | (32 | ) | ||||
Trade accounts payable |
(234 | ) | (226 | ) | ||||
Payroll, benefits and other liabilities |
21 | (124 | ) | |||||
Unearned revenues |
376 | 338 | ||||||
Net cash provided by operating activities |
48 | 1,239 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(102 | ) | (88 | ) | ||||
Purchases of available-for-sale securities |
(2,309 | ) | (2,098 | ) | ||||
Proceeds from sale of available-for-sale securities |
3,024 | 2,013 | ||||||
Other investments and acquisitions, net of cash acquired |
(66 | ) | (6 | ) | ||||
Other items, net |
7 | 7 | ||||||
Net cash provided (used) by investing activities |
554 | (172 | ) | |||||
Financing Activities: |
||||||||
Borrowing under loans payable |
1,083 | | ||||||
Repayment of loans payable |
(1,083 | ) | | |||||
Proceeds from issuance of common stock |
791 | 152 | ||||||
Incremental tax benefit from stock options exercised |
45 | 13 | ||||||
Dividends paid |
(309 | ) | (284 | ) | ||||
Change in obligation under securities lending |
38 | | ||||||
Other items, net |
(4 | ) | (1 | ) | ||||
Net cash provided (used) by financing activities |
561 | (120 | ) | |||||
Effect of exchange rate changes on cash |
1 | (4 | ) | |||||
Net increase in cash and cash equivalents |
1,164 | 943 | ||||||
Cash and cash equivalents at beginning of period |
3,547 | 2,717 | ||||||
Cash and cash equivalents at end of period |
$ | 4,711 | $ | 3,660 | ||||