Qualcomm Announces Third Quarter Fiscal 2012 Results
Revenues $4.6 Billion
GAAP EPS $0.69, Non-GAAP EPS $0.85
SAN DIEGO, July 18, 2012 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2012 ended June 24, 2012.
"Adoption of 3G and 3G/4G technologies continues around the world, driving strong year-over-year growth in our chipset and licensing businesses this quarter," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
Third Quarter Results (GAAP)*
- Revenues: (1) $4.63 billion, up 28 percent year-over-year (y-o-y) and down 6 percent sequentially.
- Operating income: (1) $1.38 billion, up 24 percent y-o-y and down 9 percent sequentially.
- Net income: (2) $1.21 billion, up 17 percent y-o-y and down 46 percent sequentially.
- Diluted earnings per share: (2) $0.69, up 13 percent y-o-y and down 46 percent sequentially.
- Effective tax rate: (1) 24 percent for the quarter.
- Operating cash flow: $922 million, down 27 percent y-o-y; 20 percent of revenues.
- Return of capital to stockholders: $802 million, including $429 million, or $0.25 per share, of cash dividends paid, and $373 million to repurchase 6.6 million shares of our common stock.
(1) The results of FLO TV are presented as discontinued operations. Revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates throughout this news release are from continuing operations (i.e., before discontinued operations and the adjustment for noncontrolling interests), unless otherwise stated.
(2) Net income and diluted earnings per share throughout this news release are attributable to Qualcomm (i.e., after discontinued operations and adjustment for noncontrolling interests), unless otherwise stated.
Non-GAAP Third Quarter Results*
Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain acquisition-related items and certain tax items.
- Revenues: $4.63 billion, up 28 percent y-o-y and down 6 percent sequentially.
- Operating income: $1.72 billion, up 23 percent y-o-y and down 10 percent sequentially.
- Net income: $1.49 billion, up 20 percent y-o-y and down 16 percent sequentially.
- Diluted earnings per share: $0.85, up 16 percent y-o-y and down 16 percent sequentially. Excludes $0.01 loss per share attributable to the QSI segment, $0.12 loss per share attributable to certain share-based compensation and $0.03 loss per share attributable to certain acquisition-related items.
- Effective tax rate: 23 percent for the quarter.
- Free cash flow (defined as net cash from operating activities less capital expenditures): $658 million, down 43 percent y-o-y; 14 percent of revenues.
Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and Non-GAAP results are included within this news release.
* Note: The following should be considered with regard to the above results and comparisons - the second quarter of fiscal 2012 GAAP results included $761 million in earnings, net of income taxes, for discontinued operations (as a result of a $1.2 billion gain associated with the sale of substantially all of our 700 MHz spectrum), as compared to a $3 million loss, net of income taxes, for discontinued operations in the third quarter of fiscal 2012. Additionally, the third quarter of fiscal 2012 GAAP and Non-GAAP results included Qualcomm Atheros, Inc., which was acquired on May 24, 2011, as compared to the third quarter of fiscal 2011 GAAP and Non-GAAP results which only included Qualcomm Atheros, Inc. from the date of the acquisition.
Third Quarter Key Business Metrics
- MSM™ chip shipments: 141 million units, up 18 percent y-o-y and down 7 percent sequentially.
- March quarter total reported device sales: approximately $47.8 billion, up 31 percent y-o-y and down 8 percent sequentially.
- March quarter estimated 3G/4G device shipments: approximately 206 to 211 million units, at an estimated average selling price of approximately $226 to $232 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $26.5 billion at the end of the third quarter of fiscal 2012, compared to $20.2 billion a year ago and $26.6 billion at the end of the second quarter of fiscal 2012. On July 6, 2012, we announced a cash dividend of $0.25 per share payable on September 26, 2012 to stockholders of record as of September 7, 2012. Since June 24, 2012, we repurchased and retired 11.3 million shares of our common stock for $617 million.
Research and Development
|
($ in millions) |
Non-GAAP |
QSI |
Share-Based Compensation |
Acquisition- Related Items |
GAAP | |||||||
|
Third quarter fiscal 2012 |
$ 832 |
$ 1 |
$ 141 |
$ - |
$ 974 | |||||||
|
As % of revenues |
18% |
21% | ||||||||||
|
Third quarter fiscal 2011 |
$ 661 |
$ 1 |
$ 95 |
$ - |
$ 757 | |||||||
|
As % of revenues |
18% |
21% | ||||||||||
|
Year-over-year change ($) |
26% |
N/M |
48% |
N/M |
29% | |||||||
|
N/M - Not Meaningful |
||||||||||||
Non-GAAP research and development (R&D) expenses increased 26 percent y-o-y primarily due to an increase in investments in the development of integrated circuit products (including connectivity products), next-generation technologies and other initiatives to support the acceleration of advanced wireless products and services.
Selling, General and Administrative
|
($ in millions) |
Non-GAAP |
QSI |
Share-Based Compensation |
Acquisition-Related Items |
GAAP | ||||||
|
Third quarter fiscal 2012 |
$ 423 |
$ 10 |
$ 104 |
$ 7 |
$ 544 | ||||||
|
As % of revenues |
9% |
12% | |||||||||
|
Third quarter fiscal 2011 |
$ 365 |
$ 8 |
$ 84 |
$ 18 |
$ 475 | ||||||
|
As % of revenues |
10% |
13% | |||||||||
|
Year-over-year change ($) |
16% |
N/M |
24% |
N/M |
15% | ||||||
|
N/M - Not Meaningful | |||||||||||
Non-GAAP selling, general and administrative (SG&A) expenses increased 16 percent y-o-y primarily due to increases in costs relating to legal matters, employee-related expenses and patent-related expenses.
Effective Income Tax Rates
Our estimated fiscal 2012 effective income tax rates increased to approximately 20 percent for both GAAP and Non-GAAP, as compared to our prior estimates of approximately 18 percent for GAAP and approximately 18 to 19 percent for Non-GAAP, primarily due to changes in our estimates related to foreign earnings taxed at rates that are less than the United States federal tax rate. As a result, the third quarter GAAP tax rate of 24 percent and Non-GAAP tax rate of 23 percent were higher than the expected annual effective tax rates.
Qualcomm Strategic Initiatives
The QSI segment makes strategic investments, many of which are in early-stage companies, and holds wireless spectrum. QSI also includes the discontinued operations of our FLO TV business. GAAP results for the third quarter of fiscal 2012 included a $0.01 loss per share for the QSI segment.
Business Outlook
The following statements are forward looking, and actual results may differ materially. The "Note Regarding Forward-Looking Statements" in this news release provides a description of certain risks that we face, and our annual and quarterly reports on file with the Securities and Exchange Commission (SEC) provide a more complete description of risks.
Our outlook does not include provisions for future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as realized investment and certain derivative gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our business outlook to the extent they are reasonably certain; however, actual results may vary materially from the business outlook.
The following table summarizes GAAP and Non-GAAP guidance based on the current business outlook. The Non-GAAP business outlook presented below is consistent with the presentation of Non-GAAP results included elsewhere herein.
|
Qualcomm's Business Outlook Summary | ||||||||
|
FOURTH FISCAL QUARTER |
||||||||
|
Q4 FY11 |
Current Guidance | |||||||
|
Results |
Q4 FY12 Estimates | |||||||
|
Revenues |
$4.12B |
$4.45B - $4.85B | ||||||
|
Year-over-year change |
increase 8% - 18% | |||||||
|
Non-GAAP Diluted earnings per share (EPS) |
$0.80 |
$0.78 - $0.84 | ||||||
|
Year-over-year change |
decrease 3% - increase 5% | |||||||
|
Diluted EPS attributable to QSI |
($0.01) |
$0.01 | ||||||
|
Diluted EPS attributable to share-based compensation |
($0.12) |
($0.13) | ||||||
|
Diluted EPS attributable to acquisition-related items |
($0.07) |
($0.04) | ||||||
|
Diluted EPS attributable to tax items |
$0.02 |
n/a | ||||||
|
GAAP Diluted EPS |
$0.62 |
$0.62 - $0.68 | ||||||
|
Year-over-year change |
even - increase 10% | |||||||
|
Metrics |
||||||||
|
MSM chip shipments |
127M |
134M - 142M | ||||||
|
Year-over-year change |
increase 6% - 12% | |||||||
|
Total reported device sales (1) |
approx. $39.1B* |
approx. $43.5B - $47.5B* | ||||||
|
Year-over-year change |
increase 11% - 21% | |||||||
|
*Est. sales in June quarter, reported in September quarter |
||||||||
|
FISCAL YEAR |
||||||||
|
FY 2011 |
Prior Guidance |
Current Guidance | ||||||
|
Results |
FY 2012 Estimates (2) |
FY 2012 Estimates (2) | ||||||
|
Revenues |
$14.96B |
$18.7B - $19.7B |
$18.7B - $19.1B | |||||
|
Year-over-year change |
increase 25% - 32% |
increase 25% - 28% | ||||||
|
Non-GAAP Diluted EPS |
$3.20 |
$3.61 - $3.76 |
$3.61 - $3.67 | |||||
|
Year-over-year change |
increase 13% - 18% |
increase 13% - 15% | ||||||
|
Diluted EPS attributable to QSI |
($0.23) |
$0.39 |
$0.40 | |||||
|
Diluted EPS attributable to share-based compensation |
($0.37) |
($0.46) |
($0.47) | |||||
|
Diluted EPS attributable to acquisition-related items |
($0.12) |
($0.13) |
($0.13) | |||||
|
Diluted EPS attributable to tax items |
$0.04 |
n/a |
n/a | |||||
|
GAAP Diluted EPS |
$2.52 |
$3.41 - $3.56 |
$3.41 - $3.47 | |||||
|
Year-over-year change |
increase 35% - 41% |
increase 35% - 38% | ||||||
|
Metrics |
||||||||
|
Est. fiscal year* 3G/4G device average selling price range (1) |
approx. $203 - $209 |
approx. $207 - $217 |
approx. $216 - $222 | |||||
|
*Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters |
||||||||
|
CALENDAR YEAR Device Estimates (1) |
||||||||
|
Calendar 2011 |
Prior Guidance |
Current Guidance | ||||||
|
Est. 3G/4G device shipments |
||||||||
|
March quarter |
approx. 170M - 174M |
not provided |
approx. 206M - 211M | |||||
|
June quarter |
approx. 187M - 191M |
not provided |
not provided | |||||
|
September quarter |
approx. 191M - 195M |
not provided |
not provided | |||||
|
December quarter |
approx. 239M - 243M |
not provided |
not provided | |||||
|
Est. calendar year range (approx.) |
787M - 803M |
885M - 945M |
875M - 935M | |||||
|
Est. calendar year midpoint (approx.) (3) |
795M |
915M |
905M | |||||
|
(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, OFDMA-based and multimode CDMA/OFDMA subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, 3G/4G devices). The reported quarterly estimated ranges of average selling prices (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 was not reported by the licensee until such particular period. | |
|
(2) |
Fiscal 2012 guidance for QSI and GAAP includes $0.44 diluted earnings per share related to a $1.2 billion gain associated with the sale of substantially all of our 700 MHz spectrum, which was recognized in discontinued operations in the second quarter of fiscal 2012 and was excluded from Non-GAAP results. | |
|
(3) |
The midpoints of the estimated calendar year ranges are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints. | |
|
Sums may not equal totals due to rounding. |
||
Results of Business Segments
The following table reconciles our Non-GAAP results to our GAAP results (in millions, except per share data):
|
SEGMENTS |
QCT |
QTL |
QWI |
Non-GAAP Reconciling Items (1) |
Non-GAAP (2) |
QSI (2) |
|
Acquisition- Related Items (2) (3) |
Tax Items |
GAAP |
|
Q3 - FISCAL 2012 |
||||||||||
|
Revenues |
$2,869 |
$1,593 |
$160 |
$4 |
$4,626 |
$ - |
$ - |
$ - |
$ - |
$4,626 |
|
Change from prior year |
31% |
27% |
(2%) |
N/M |
28% |
28% | ||||
|
Change from prior quarter |
(6%) |
(8%) |
1% |
N/M |
(6%) |
(6%) | ||||
|
Operating income (loss) |
$1,718 |
($11) |
($264) |
($61) |
$ - |
$1,382 | ||||
|
Change from prior year |
23% |
(10%) |
(37%) |
21% |
24% | |||||
|
Change from prior quarter |
(10%) |
88% |
(10%) |
(7%) |
(9%) | |||||
|
EBT |
$472 |
$1,407 |
($6) |
$49 |
$1,922 |
($16) |
($264) |
($61) |
$ - |
$1,581 |
|
Change from prior year |
10% |
29% |
N/M |
N/M |
22% |
47% |
(37%) |
21% |
24% | |
|
Change from prior quarter |
(21%) |
(9%) |
N/M |
N/M |
(10%) |
84% |
(10%) |
(7%) |
(9%) | |
|
EBT as % of revenues |
16% |
88% |
N/M |
N/M |
42% |
34% | ||||
|
Discontinued operations, net of tax (4) |
$ - |
($3) |
$ - |
$ - |
$ - |
($3) | ||||
|
Net income (loss) |
$1,486 |
($11) |
($210) |
($58) |
$ - |
$1,207 | ||||
|
Change from prior year |
20% |
N/M |
(43%) |
21% |
N/M |
17% | ||||
|
Change from prior quarter |
(16%) |
N/M |
(14%) |
(12%) |
N/A |
(46%) | ||||
|
Diluted EPS |
$0.85 |
($0.01) |
($0.12) |
($0.03) |
$ - |
$0.69 | ||||
|
Change from prior year |
16% |
N/M |
(33%) |
25% |
N/M |
13% | ||||
|
Change from prior quarter |
(16%) |
N/M |
(9%) |
0% |
N/A |
(46%) | ||||
|
Diluted shares used |
1,758 |
1,758 |
1,758 |
1,758 |
1,758 |
1,758 | ||||
|
Q2 - FISCAL 2012 |
||||||||||
|
Revenues |
$3,059 |
$1,723 |
$159 |
$2 |
$4,943 |
$ - |
$ - |
$ - |
$ - |
$4,943 |
|
Operating income (loss) |
1,900 |
(89) |
(240) |
(57) |
- |
1,514 | ||||
|
EBT |
$599 |
$1,540 |
($10) |
$1 |
2,130 |
(99) |
(240) |
(57) |
- |
1,734 |
|
Discontinued operations, net of tax (4) |
- |
761 |
- |
- |
- |
761 | ||||
|
Net income (loss) |
1,759 |
707 |
(184) |
(52) |
- |
2,230 | ||||
|
Diluted EPS |
$1.01 |
$0.41 |
($0.11) |
($0.03) |
$ - |
$1.28 | ||||
|
Diluted shares used |
1,743 |
1,743 |
1,743 |
1,743 |
1,743 |
1,743 | ||||
|
Q3 - FISCAL 2011 |
||||||||||
|
Revenues |
$2,194 |
$1,257 |
$164 |
$8 |
$3,623 |
$ - |
$ - |
$ - |
$ - |
$3,623 |
|
Operating income (loss) |
1,393 |
(10) |
(193) |
(77) |
- |
1,113 | ||||
|
EBT |
$430 |
$1,092 |
($13) |
$65 |
1,574 |
(30) |
(193) |
(77) |
- |
1,274 |
|
Discontinued operations, net of tax (4) |
- |
44 |
- |
- |
- |
44 | ||||
|
Net income (loss) |
1,240 |
19 |
(147) |
(73) |
(4) |
1,035 | ||||
|
Diluted EPS |
$0.73 |
$0.01 |
($0.09) |
($0.04) |
$0.00 |
$0.61 | ||||
|
Diluted shares used |
1,709 |
1,709 |
1,709 |
1,709 |
1,709 |
1,709 | ||||
|
Q4 - FISCAL 2011 |
||||||||||
|
Revenues |
$2,587 |
$1,361 |
$163 |
$6 |
$4,117 |
$ - |
$ - |
$ - |
$ - |
$4,117 |
|
Operating income (loss) |
1,624 |
(9) |
(252) |
(125) |
- |
1,238 | ||||
|
EBT |
$569 |
$1,193 |
($5) |
($20) |
1,737 |
(34) |
(252) |
(125) |
- |
1,326 |
|
Discontinued operations, net of tax (4) |
- |
(5) |
(1) |
- |
- |
(6) | ||||
|
Net income (loss) |
1,372 |
(22) |
(214) |
(120) |
40 |
1,056 | ||||
|
Diluted EPS |
$0.80 |
($0.01) |
($0.12) |
($0.07) |
$0.02 |
$0.62 | ||||
|
Diluted shares used |
1,716 |
1,716 |
1,716 |
1,716 |
1,716 |
1,716 | ||||
|
SEGMENTS |
QCT |
QTL |
QWI |
Non-GAAP Reconciling Items (1) |
Non-GAAP (2) |
QSI (2) |
|
Acquisition- Related Items (2) (3) |
Tax Items |
GAAP |
|
9 MONTHS - FISCAL 2012 |
||||||||||
|
Revenues |
$9,012 |
$4,755 |
$471 |
$13 |
$14,251 |
$ - |
$ - |
$ - |
$ - |
$14,251 |
|
Change from prior year |
44% |
17% |
(4%) |
N/M |
31% |
31% | ||||
|
Operating income (loss) |
$5,489 |
($112) |
($751) |
($178) |
$ - |
$4,448 | ||||
|
Change from prior year |
23% |
N/M |
(34%) |
N/M |
17% | |||||
|
EBT |
$1,810 |
$4,215 |
($15) |
$105 |
$6,115 |
($149) |
($751) |
($178) |
- |
$5,037 |
|
Change from prior year |
22% |
18% |
N/M |
N/M |
20% |
(54%) |
(34%) |
N/M |
15% | |
|
EBT as % of revenues |
20% |
89% |
N/M |
N/M |
43% |
35% | ||||
|
Discontinued operations, net of tax (4) |
$ - |
$754 |
$(1) |
$ - |
$ - |
$753 | ||||
|
Net income (loss) |
$4,917 |
$675 |
($589) |
($165) |
$ - |
$4,838 | ||||
|
Change from prior year |
22% |
N/M |
(44%) |
N/M |
N/M |
51% | ||||
|
Diluted EPS |
$2.83 |
$0.39 |
($0.34) |
($0.09) |
$ - |
$2.78 | ||||
|
Change from prior year |
18% |
N/M |
(42%) |
N/M |
N/M |
46% | ||||
|
Diluted shares used |
1,740 |
1,740 |
1,740 |
1,740 |
1,740 |
1,740 | ||||
|
9 MONTHS - FISCAL 2011 |
||||||||||
|
Revenues |
$6,272 |
$4,061 |
$493 |
$14 |
$10,840 |
$ - |
$ - |
$ - |
$ - |
$10,840 |
|
Operating income (loss) |
4,461 |
(28) |
(561) |
(83) |
- |
3,789 | ||||
|
EBT |
$1,487 |
$3,559 |
($147) |
$205 |
5,104 |
(97) |
(561) |
(83) |
- |
4,363 |
|
Discontinued operations, net of tax (4) |
- |
(303) |
(4) |
- |
- |
(307) | ||||
|
Net income (loss) |
4,036 |
(364) |
(410) |
(79) |
21 |
3,204 | ||||
|
Diluted EPS |
$2.40 |
($0.22) |
($0.24) |
($0.05) |
$0.01 |
$1.90 | ||||
|
Diluted shares used |
1,682 |
1,682 |
1,682 |
1,682 |
1,682 |
1,682 | ||||
|
12 MONTHS - FISCAL 2011 |
||||||||||
|
Revenues |
$8,859 |
$5,422 |
$656 |
$20 |
$14,957 |
$ - |
$ - |
$ - |
$ - |
$14,957 |
|
Operating income (loss) |
6,084 |
(37) |
(813) |
(208) |
- |
5,026 | ||||
|
EBT |
$2,056 |
$4,753 |
($152) |
$183 |
6,840 |
(132) |
(813) |
(208) |
- |
5,687 |
|
Discontinued operations, net of tax (4) |
- |
(308) |
(5) |
- |
- |
(313) | ||||
|
Net income (loss) |
5,407 |
(385) |
(624) |
(200) |
62 |
4,260 | ||||
|
Diluted EPS |
$3.20 |
($0.23) |
($0.37) |
($0.12) |
$0.04 |
$2.52 | ||||
|
Diluted shares used |
1,691 |
1,691 |
1,691 |
1,691 |
1,691 |
1,691 | ||||
|
(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 costs of equipment and services revenues, research and development expenses, sales and marketing expenses, other operating expenses and certain investment income or losses and interest expense that are not allocated to the segments for management reporting purposes; nonreportable segment results; and the elimination of intersegment profit. |
|
(2) |
At fiscal year end, the sum of the quarterly tax provisions (benefits) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and starting in fiscal 2012, this difference is allocated to tax provisions (benefits) among the columns. In interim quarters of prior years, it was included in QSI because variability in QSI results was considered the primary driver of the difference. |
|
(3) |
In addition to our historical practice of excluding acquired in-process research and development expenses, starting with acquisitions completed in the third quarter of fiscal 2011, Non-GAAP results also exclude other items related to acquisitions. During fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets. |
|
(4) |
During fiscal 2011, we shut down the FLO TV business and network. The results of FLO TV are presented as discontinued operations. |
|
N/M – Not Meaningful | |
|
N/A – Not Applicable | |
|
Sums may not equal totals due to rounding. | |
Conference Call
Qualcomm's third quarter of fiscal 2012 earnings conference call will be broadcast live on July 18, 2012, beginning at 1:45 p.m. Pacific Time (PT) at www.qualcomm.com/investor. This conference call will include a discussion of "Non-GAAP financial measures" as defined in Regulation G. The most directly comparable GAAP financial measures and GAAP reconciliation information, as well as the other material financial and statistical information to be discussed on the conference call, will be posted at www.qualcomm.com/investor immediately prior to commencement of the call. An audio replay will be available at www.qualcomm.com/investor and via telephone for 30 days shortly following the live call. To listen to the replay via telephone, U.S. callers may dial (855) 859-2056, and international callers may dial (404) 537-3406. Callers should use reservation number 94423621.
Note Regarding Use of Non-GAAP Financial Measures
The Non-GAAP 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, "Non-GAAP" is not a term defined by GAAP, and as a result, the Company's measure of Non-GAAP results might be different than similarly titled measures used by other companies. Reconciliations between GAAP and Non-GAAP results are presented herein.
The Company uses Non-GAAP financial information (i) to evaluate, assess and benchmark the Company's operating results on a consistent and comparable basis; (ii) to measure the performance and efficiency of the Company's ongoing core operating businesses, including the Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Wireless & Internet segments; and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Non-GAAP measurements of the following financial data are used by the Company: revenues, cost of revenues, R&D expenses, SG&A expenses, other operating expenses, operating income (loss), net investment income (loss), income (loss) before income taxes, effective tax rate, net income (loss), diluted earnings (loss) per share, operating cash flow and free cash flow. The Company is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using Non-GAAP information. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on Non-GAAP financial measures applicable to the Company and its business segments. The Company presents Non-GAAP financial information to provide greater transparency to investors with respect to its use of such information in financial and operational decision-making.
Non-GAAP information used by management excludes the QSI segment, certain share-based compensation, certain acquisition-related items and certain tax items. The QSI segment is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments and realized gains or losses are viewed by management as unrelated to the Company's operational performance. Certain share-based compensation is excluded because management has concluded that such expenses should not be considered when assessing operational performance as they are deemed to be unrelated to the operating activities of the Company's ongoing core businesses. Further, share-based compensation expense relates primarily to restricted stock and stock option awards. The fair values of share-based awards are affected by factors that are variable on each grant date, which may include the Company's stock price, stock market volatility, expected award life, risk-free interest rates and expected dividend payouts in future years. In addition to its historical practice of excluding acquired in-process research and development expenses from Non-GAAP results, the Company began excluding amortization of certain intangible assets, recognition of the step-up of inventories to fair value and the related tax effects of these items starting with acquisitions completed in the third quarter of fiscal 2011, as well as any tax effects of restructuring the ownership of such acquired assets. These certain acquisition-related items are excluded and no longer allocated to the Company's segments because management has concluded that such expenses should not be considered when assessing segment performance as they are deemed to be unrelated to the operating activities of the Company's ongoing core businesses. In addition, these charges are significantly impacted by the size and timing of acquisitions, potentially obscuring period to period comparisons of the Company's operating businesses. Certain tax items that were recorded in each fiscal year presented, but that were unrelated to the fiscal year in which they were recorded, are excluded in order to provide a clearer understanding of the Company's ongoing Non-GAAP tax rate and after tax earnings. However, the Company excludes any benefit resulting from the retroactive extensions of the federal R&D tax credit from Non-GAAP results because the Company does not include the potential extension of the credit in its business outlook due to uncertainty as to whether and when the federal R&D tax credit will be retroactively extended.
The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term stockholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to evaluate the Company's performance and to compare its operating performance with other companies in the industry.
About Qualcomm
Qualcomm Incorporated (Nasdaq: QCOM) is a world leader in 3G and next-generation mobile technologies. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit www.qualcomm.com.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding the global adoption of 3G and 3G/4G technologies; the growth of 3G/4G device shipments in calendar 2012; expectations for the demand profile of the calendar year; expectations for the fourth fiscal quarter and December quarter for the Company's semiconductor business; the Company's business outlook; and estimates and guidance related to revenues, GAAP and Non-GAAP diluted earnings per share, effective income tax rates, MSM chip shipments, 3G/4G device shipments, device sales and 3G/4G device average selling price ranges. Forward-looking statements are generally identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "guidance" and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to risks associated with the commercial deployment of, and demand for, our technologies in communications products and services; the uncertainty of global economic conditions and their potential impacts on demand for our products, services or applications and on the value of our marketable securities; competition; our dependence on a small number of customers and licensees; attacks on our licensing business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; our dependence on third-party suppliers, including the potential impact of supply constraints; the commercial success of our QMT division's IMOD display technology; foreign currency fluctuations; strategic investments and transactions we have or may pursue, including our investment in the BWA spectrum in India; and failures and defects or errors in our products and services or in the products of our customers. These and other risks are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended September 25, 2011 and Quarterly Report on Form 10-Q for the fiscal quarter ended June 24, 2012 filed with the SEC. Our reports filed with the SEC are available on our website at www.qualcomm.com. We undertake no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
Qualcomm and MSM are registered trademarks of Qualcomm Incorporated, registered in the United States and other countries. All other trademarks are the property of their respective owners.
|
Qualcomm Incorporated | ||||||||||
|
Supplemental Information for the Three Months Ended June 24, 2012 | ||||||||||
|
(Unaudited) | ||||||||||
|
Acquisition- |
||||||||||
|
Non-GAAP |
Share-Based |
Related |
GAAP | |||||||
|
Results |
QSI |
Compensation |
Items (a) |
Results | ||||||
|
($ in millions, except per share data) |
||||||||||
|
Cost of equipment and services revenues |
$ 1,646 |
$ - |
$ 19 |
$ 54 |
$ 1,719 | |||||
|
R&D |
832 |
1 |
141 |
- |
974 | |||||
|
SG&A |
423 |
10 |
104 |
7 |
544 | |||||
|
Other operating expenses |
7 |
- |
- |
- |
7 | |||||
|
Operating income (loss) |
1,718 |
(11) |
(264) |
(61) |
1,382 | |||||
|
Investment income (loss), net |
$ 204 |
(b) |
$ (5) |
(c) |
$ - |
$ - |
$ 199 | |||
|
Tax rate |
23% |
25% |
20% |
5% |
24% | |||||
|
Net income (loss) |
$ 1,486 |
$ (11) |
$ (210) |
$ (58) |
$ 1,207 | |||||
|
Diluted earnings (loss) per share (EPS) |
$ 0.85 |
$ (0.01) |
$ (0.12) |
$ (0.03) |
$ 0.69 | |||||
|
Operating cash flow |
$ 972 |
$ (21) |
$ (29) |
$ - |
$ 922 | |||||
|
Operating cash flow as % of revenues |
21% |
N/A |
N/A |
N/A |
20% | |||||
|
Free cash flow(d) |
$ 658 |
$ (106) |
$ (29) |
$ - |
$ 523 | |||||
|
Free cash flow as % of revenues |
14% |
N/A |
N/A |
N/A |
11% | |||||
|
(a) |
During the third quarter of fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets. |
|
(b) |
Included $149 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of our strategic investments, $68 million in net realized gains on investments and $9 million in gains on derivatives, partially offset by $19 million in other-than-temporary losses on investments and $3 million in interest expense. |
|
(c) |
Included $15 million in interest expense, $2 million in other-than-temporary losses on investments and $1 million of equity in losses of investees, partially offset by $7 million in interest and dividend income related to cash, cash equivalents and marketable securities, $4 million in gains on derivatives and $2 million in net realized gains on investments. |
|
(d) |
Free cash flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the "Reconciliation of Non-GAAP Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and Other Supplemental Disclosures" for the three months ended June 24, 2012 included herein. |
|
N/A – Not Applicable | |
|
Sums may not equal totals due to rounding. | |
|
Qualcomm Incorporated | ||||||||||
|
Supplemental Information for the Nine Months Ended June 24, 2012 | ||||||||||
|
(Unaudited) | ||||||||||
|
Acquisition- |
||||||||||
|
Non-GAAP |
Share-Based |
Related |
GAAP | |||||||
|
Results |
QSI |
Compensation |
Items (a) |
Results | ||||||
|
($ in millions, except per share data) |
||||||||||
|
Cost of equipment and services revenues |
$ 5,043 |
$ - |
$ 55 |
$ 157 |
$ 5,255 | |||||
|
R&D |
2,401 |
6 |
394 |
- |
2,801 | |||||
|
SG&A |
1,295 |
25 |
302 |
21 |
1,643 | |||||
|
Other operating expenses |
23 |
81 |
(b) |
- |
- |
104 | ||||
|
Operating income (loss) |
5,489 |
(112) |
(751) |
(178) |
4,448 | |||||
|
Investment income (loss), net |
$ 626 |
(c) |
$ (37) |
(d) |
$ - |
$ - |
$ 589 | |||
|
Tax rate |
20% |
19% |
22% |
7% |
20% | |||||
|
Net income (loss) |
$ 4,917 |
$ 675 |
$ (589) |
$ (165) |
$ 4,838 | |||||
|
Diluted earnings (loss) per share (EPS) |
$ 2.83 |
$ 0.39 |
$ (0.34) |
$ (0.09) |
$ 2.78 | |||||
|
Operating cash flow |
$ 4,906 |
$ (190) |
$ (127) |
$ - |
$ 4,589 | |||||
|
Operating cash flow as % of revenues |
34% |
N/A |
N/A |
N/A |
32% | |||||
|
Free cash flow(e) |
$ 3,957 |
$ (275) |
$ (127) |
$ - |
$ 3,555 | |||||
|
Free cash flow as % of revenues |
28% |
N/A |
N/A |
N/A |
25% | |||||
|
(a) |
During fiscal 2012, acquisition-related items consisted of amortization of certain intangible assets. |
|
(b) |
QSI results for the first nine months of fiscal 2012 included $81 million in other operating expenses associated with a payment made to the Indian government in connection with the issuance of the BWA spectrum license. |
|
(c) |
Included $413 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of our strategic investments, $185 million in net realized gains on investments, $79 million in gains on derivatives (primarily due to gains from put options sold as part of our stock repurchase program) and $1 million of equity in earnings of investees, partially offset by $44 million in other-than-temporary losses on investments and $8 million in interest expense. |
|
(d) |
Included $66 million in interest expense, $20 million in other-than-temporary losses on investments and $6 million of equity in losses of investees, partially offset by $29 million in net realized gains on investments, $18 million in interest and dividend income related to cash, cash equivalents and marketable securities and $8 million in gains on derivatives. |
|
(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 Non-GAAP Free Cash Flows to Net Cash Provided by Operating Activities (GAAP) and Other Supplemental Disclosures" for the nine months ended June 24, 2012, included herein. |
|
N/A – Not Applicable | |
|
Sums may not equal totals due to rounding. | |
|
Qualcomm Incorporated | ||||||||
|
Reconciliation of Non-GAAP Free Cash Flows to | ||||||||
|
Net Cash Provided by Operating Activities (GAAP) | ||||||||
|
and Other Supplemental Disclosures | ||||||||
|
(In millions) | ||||||||
|
(Unaudited) | ||||||||
|
Three Months Ended June 24, 2012 | ||||||||
|
Share-Based |
||||||||
|
Non-GAAP |
QSI |
Compensation |
GAAP | |||||
|
Net cash provided (used) by operating activities |
$ 972 |
$ (21) |
$ (29) |
(a) |
$ 922 | |||
|
Less: capital expenditures |
(314) |
(85) |
- |
(399) | ||||
|
Free cash flow |
$ 658 |
$ (106) |
$ (29) |
$ 523 | ||||
|
Revenues |
$ 4,626 |
$ - |
$ - |
$ 4,626 | ||||
|
Free cash flow as % of revenues |
14% |
N/A |
N/A |
11% | ||||
|
Other supplemental cash disclosures: |
||||||||
|
Cash transfers from QSI (b) |
$ 132 |
$ (132) |
$ - |
$ - | ||||
|
Cash transfers to QSI (c) |
(137) |
137 |
- |
- | ||||
|
Net cash transfers |
$ (5) |
$ 5 |
$ - |
$ - | ||||
|
Nine Months Ended June 24, 2012 | ||||||||
|
Share-Based |
||||||||
|
Non-GAAP |
QSI |
Compensation |
GAAP | |||||
|
Net cash provided (used) by operating activities |
$ 4,906 |
$ (190) |
$ (127) |
(a) |
$ 4,589 | |||
|
Less: capital expenditures |
(949) |
(85) |
- |
(1,034) | ||||
|
Free cash flow |
$ 3,957 |
$ (275) |
$ (127) |
$ 3,555 | ||||
|
Revenues |
$ 14,251 |
$ - |
$ - |
$ 14,251 | ||||
|
Free cash flow as % of revenues |
28% |
N/A |
N/A |
25% | ||||
|
Other supplemental cash disclosures: |
||||||||
|
Cash transfers from QSI (d) |
$ 2,098 |
$ (2,098) |
$ - |
$ - | ||||
|
Cash transfers to QSI (c) |
(355) |
355 |
- |
- | ||||
|
Net cash transfers |
$ 1,743 |
$ (1,743) |
$ - |
$ - | ||||
|
Three Months Ended June 26, 2011 | ||||||||
|
Share-Based |
||||||||
|
Non-GAAP |
QSI |
Compensation |
GAAP | |||||
|
Net cash provided (used) by operating activities |
$ 1,379 |
$ (80) |
$ (35) |
(a) |
$ 1,264 | |||
|
Less: capital expenditures |
(219) |
- |
- |
(219) | ||||
|
Free cash flow |
$ 1,160 |
$ (80) |
$ (35) |
$ 1,045 | ||||
|
Nine Months Ended June 26, 2011 | ||||||||
|
Share-Based |
||||||||
|
Non-GAAP |
QSI |
Compensation |
GAAP | |||||
|
Net cash provided (used) by operating activities |
$ 3,532 |
$ (285) |
$ (167) |
(a) |
$ 3,080 | |||
|
Less: capital expenditures |
(394) |
(6) |
- |
(400) | ||||
|
Free cash flow |
$ 3,138 |
$ (291) |
$ (167) |
$ 2,680 | ||||
|
(a) Incremental tax benefits from stock options exercised during the period. |
||||||||
|
(b) Primarily cash from issuance of subsidiary shares to noncontrolling interest and borrowings under loans and debentures. | ||||||||
|
(c) Primarily funding for strategic debt and equity investments, other investing activities and QSI operating and capital expenditures. | ||||||||
|
(d) Primarily cash from sale of wireless spectrum, issuance of subsidiary shares to noncontrolling interest, borrowings under loans and debentures and sale of equity securities. | ||||||||
|
N/A - Not Applicable |
||||||||
|
Qualcomm Incorporated | |||||||||
|
Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a) | |||||||||
|
(in millions) | |||||||||
|
(Unaudited) | |||||||||
|
Three Months Ended June 24, 2012 | |||||||||
|
Acquisition- |
|||||||||
|
Non-GAAP |
Share-Based |
Related |
GAAP | ||||||
|
Results |
QSI |
Compensation |
Items |
Results | |||||
|
Income (loss) from continuing operations |
|||||||||
|
before income taxes |
$ 1,922 |
$ (16) |
$ (264) |
$ (61) |
$ 1,581 | ||||
|
Income tax (expense) benefit |
(436) |
4 |
54 |
3 |
(375) | ||||
|
Income (loss) from continuing operations |
$ 1,486 |
$ (12) |
$ (210) |
$ (58) |
$ 1,206 | ||||
|
Tax rate |
23% |
25% |
20% |
5% |
24% | ||||
|
Nine Months Ended June 24, 2012 | |||||||||
|
Acquisition- |
|||||||||
|
Non-GAAP |
Share-Based |
Related |
GAAP | ||||||
|
Results |
QSI |
Compensation |
Items |
Results | |||||
|
Income (loss) from continuing operations |
|||||||||
|
before income taxes |
$ 6,115 |
$ (149) |
$ (751) |
$ (178) |
$ 5,037 | ||||
|
Income tax (expense) benefit |
(1,198) |
29 |
163 |
13 |
(993) | ||||
|
Income (loss) from continuing operations |
$ 4,917 |
$ (120) |
$ (588) |
$ (165) |
$ 4,044 | ||||
|
Tax rate |
20% |
19% |
22% |
7% |
20% | ||||
|
(a) |
At fiscal year end, the sum of the quarterly tax provisions (benefits) for each column equals the annual tax provision (benefit) for each column computed in accordance with GAAP. In interim quarters, the sum of these provisions (benefits) may not equal the total GAAP tax provision, and this difference is allocated to tax provisions (benefits) among the columns. |
|
Sums may not equal totals due to rounding. | |
|
Qualcomm Incorporated | ||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
|
(In millions, except per share data) | ||||
|
(Unaudited) | ||||
|
ASSETS | ||||
|
June 24, |
September 25, | |||
|
2012 |
2011 | |||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ 3,412 |
$ 5,462 | ||
|
Marketable securities |
9,983 |
6,190 | ||
|
Accounts receivable, net |
1,250 |
993 | ||
|
Inventories |
820 |
765 | ||
|
Deferred tax assets |
512 |
537 | ||
|
Other current assets |
400 |
346 | ||
|
Total current assets |
16,377 |
14,293 | ||
|
Marketable securities |
13,152 |
9,261 | ||
|
Deferred tax assets |
1,677 |
1,703 | ||
|
Assets held for sale |
- |
746 | ||
|
Property, plant and equipment, net |
2,888 |
2,414 | ||
|
Goodwill |
3,843 |
3,432 | ||
|
Other intangible assets, net |
3,845 |
3,099 | ||
|
Other assets |
663 |
1,474 | ||
|
Total assets |
$ 42,445 |
$ 36,422 | ||
|
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
|
Current liabilities: |
||||
|
Trade accounts payable |
$ 1,116 |
$ 969 | ||
|
Payroll and other benefits related liabilities |
608 |
644 | ||
|
Unearned revenues |
547 |
610 | ||
|
Loans and debentures |
968 |
994 | ||
|
Other current liabilities |
2,277 |
2,072 | ||
|
Total current liabilities |
5,516 |
5,289 | ||
|
Unearned revenues |
3,809 |
3,541 | ||
|
Other liabilities |
515 |
620 | ||
|
Total liabilities |
9,840 |
9,450 | ||
|
Stockholders' equity: |
||||
|
Qualcomm stockholders' equity: |
||||
|
Preferred stock, $0.0001 par value; 8 shares authorized; none outstanding |
- |
- | ||
|
Common stock, $0.0001 par value; 6,000 shares authorized; 1,712 |
||||
|
and 1,681 shares issued and outstanding, respectively |
- |
- | ||
|
Paid-in capital |
12,096 |
10,394 | ||
|
Retained earnings |
19,868 |
16,204 | ||
|
Accumulated other comprehensive income |
620 |
353 | ||
|
Total Qualcomm stockholders' equity |
32,584 |
26,951 | ||
|
Noncontrolling interests |
21 |
21 | ||
|
Total stockholders' equity |
32,605 |
26,972 | ||
|
Total liabilities and stockholders' equity |
$ 42,445 |
$ 36,422 | ||
|
Qualcomm Incorporated | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
|
(In millions, except per share data) | |||||||||
|
(Unaudited) | |||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||
|
June 24, |
June 26, |
June 24, |
June 26, | ||||||
|
2012 |
2011 |
2012 |
2011 | ||||||
|
Revenues: |
|||||||||
|
Equipment and services |
$ 2,948 |
$ 2,297 |
$ 9,253 |
$ 6,550 | |||||
|
Licensing |
1,678 |
1,326 |
4,998 |
4,290 | |||||
|
Total revenues |
4,626 |
3,623 |
14,251 |
10,840 | |||||
|
Operating expenses: |
|||||||||
|
Cost of equipment and services revenues |
1,719 |
1,278 |
5,255 |
3,380 | |||||
|
Research and development |
974 |
757 |
2,801 |
2,144 | |||||
|
Selling, general and administrative |
544 |
475 |
1,643 |
1,413 | |||||
|
Other |
7 |
- |
104 |
114 | |||||
|
Total operating expenses |
3,244 |
2,510 |
9,803 |
7,051 | |||||
|
Operating income |
1,382 |
1,113 |
4,448 |
3,789 | |||||
|
Investment income, net |
199 |
161 |
589 |
574 | |||||
|
Income from continuing operations before income taxes |
1,581 |
1,274 |
5,037 |
4,363 | |||||
|
Income tax expense |
(375) |
(289) |
(993) |
(862) | |||||
|
Income from continuing operations |
1,206 |
985 |
4,044 |
3,501 | |||||
|
Discontinued operations, net of income taxes |
(3) |
44 |
753 |
(307) | |||||
|
Net income |
1,203 |
1,029 |
4,797 |
3,194 | |||||
|
Net loss attributable to noncontrolling interests |
4 |
6 |
41 |
10 | |||||
|
Net income attributable to Qualcomm |
$ 1,207 |
$ 1,035 |
$ 4,838 |
$ 3,204 | |||||
|
Basic earnings (loss) per share attributable to Qualcomm: |
|||||||||
|
Continuing operations |
$ 0.70 |
$ 0.59 |
$ 2.40 |
$ 2.13 | |||||
|
Discontinued operations |
- |
0.03 |
0.45 |
(0.19) | |||||
|
Net income |
$ 0.70 |
$ 0.62 |
$ 2.85 |
$ 1.94 | |||||
|
Diluted earnings (loss) per share attributable to Qualcomm: |
|||||||||
|
Continuing operations |
$ 0.69 |
$ 0.58 |
$ 2.35 |
$ 2.09 | |||||
|
Discontinued operations |
- |
0.03 |
0.43 |
(0.19) | |||||
|
Net income |
$ 0.69 |
$ 0.61 |
$ 2.78 |
$ 1.90 | |||||
|
Shares used in per share calculations: |
|||||||||
|
Basic |
1,715 |
1,673 |
1,699 |
1,650 | |||||
|
Diluted |
1,758 |
1,709 |
1,740 |
1,682 | |||||
|
Dividends per share announced |
$ 0.250 |
$ 0.215 |
$ 0.680 |
$ 0.595 | |||||
|
Qualcomm Incorporated | |||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
|
(In millions) | |||||||||
|
(Unaudited) | |||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||
|
June 24, |
June 26, |
June 24, |
June 26, | ||||||
|
Operating Activities: |
|||||||||
|
Net income |
$ 1,203 |
$ 1,029 |
$ 4,797 |
$ 3,194 | |||||
|
Adjustments to reconcile net income to net cash provided by |
|||||||||
|
operating activities: |
|||||||||
|
Depreciation and amortization |
221 |
185 |
640 |
820 | |||||
|
Gain on sale of spectrum |
- |
- |
(1,179) |
- | |||||
|
Goodwill impairment |
7 |
- |
23 |
114 | |||||
|
Revenues related to non-monetary exchanges |
(31) |
(31) |
(92) |
(93) | |||||
|
Income tax provision (less than) in excess of income tax payments |
(261) |
116 |
239 |
(1,218) | |||||
|
Non-cash portion of share-based compensation expense |
264 |
193 |
752 |
568 | |||||
|
Incremental tax benefit from stock options exercised |
(29) |
(35) |
(127) |
(167) | |||||
|
Net realized gains on marketable securities and other investments |
(70) |
(73) |
(214) |
(304) | |||||
|
Gains on derivative instruments |
(13) |
(1) |
(87) |
(1) | |||||
|
Other items, net |
44 |
16 |
90 |
50 | |||||
|
Changes in assets and liabilities, net of effects of acquisitions: |
|||||||||
|
Accounts receivable, net |
(54) |
(2) |
(249) |
21 | |||||
|
Inventories |
(32) |
38 |
(53) |
(43) | |||||
|
Other assets |
(21) |
(17) |
(31) |
(36) | |||||
|
Trade accounts payable |
(90) |
(46) |
197 |
(191) | |||||
|
Payroll, benefits and other liabilities |
(151) |
(59) |
(412) |
210 | |||||
|
Unearned revenues |
(65) |
(49) |
295 |
156 | |||||
|
Net cash provided by operating activities |
922 |
1,264 |
4,589 |
3,080 | |||||
|
Investing Activities: |
|||||||||
|
Capital expenditures |
(399) |
(219) |
(1,034) |
(400) | |||||
|
Purchases of available-for-sale securities |
(4,768) |
(2,426) |
(11,804) |
(8,271) | |||||
|
Proceeds from sale of available-for-sale securities |
2,231 |
3,888 |
5,774 |
9,355 | |||||
|
Purchase of trading securities |
(641) |
- |
(2,280) |
- | |||||
|
Proceeds from sale of trading securities |
646 |
- |
1,297 |
- | |||||
|
Proceeds from sale of spectrum |
- |
- |
1,925 |
- | |||||
|
Acquisitions and other investments, net of cash acquired |
(348) |
(3,136) |
(677) |
(3,225) | |||||
|
Other items, net |
(23) |
(45) |
(76) |
(22) | |||||
|
Net cash used by investing activities |
(3,302) |
(1,938) |
(6,875) |
(2,563) | |||||
|
Financing Activities: |
|||||||||
|
Borrowing under loans and debentures |
478 |
- |
710 |
1,260 | |||||
|
Repayment of loans payable |
(440) |
- |
(591) |
(1,260) | |||||
|
Proceeds from issuance of common stock |
223 |
368 |
1,358 |
2,392 | |||||
|
Incremental tax benefit from stock options exercised |
29 |
35 |
127 |
167 | |||||
|
Proceeds from issuance of subsidiary shares of noncontrolling interests |
85 |
- |
85 |
62 | |||||
|
Repurchase and retirement of common stock |
(373) |
- |
(472) |
- | |||||
|
Dividends paid |
(429) |
(360) |
(1,158) |
(985) | |||||
|
Change in obligation under securities lending |
242 |
12 |
203 |
42 | |||||
|
Other items, net |
(2) |
(2) |
(2) |
(6) | |||||
|
Net cash (used) provided by financing activities |
(187) |
53 |
260 |
1,672 | |||||
|
Effect of exchange rate changes on cash |
(19) |
- |
(24) |
10 | |||||
|
Net (decrease) increase in cash and cash equivalents |
(2,586) |
(621) |
(2,050) |
2,199 | |||||
|
Cash and cash equivalents at beginning of period |
5,998 |
6,367 |
5,462 |
3,547 | |||||
|
Cash and cash equivalents at end of period |
$ 3,412 |
$ 5,746 |
$ 3,412 |
$ 5,746 | |||||
Qualcomm Contact:
Warren Kneeshaw
Phone: 1-858-658-4813
e-mail: [email protected]
SOURCE Qualcomm Incorporated
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