Qualcomm's fiscal fourth quarter and fiscal 2013 earnings conference call will be broadcast live on November 6, 2013, beginning at 1:45 p.m. Pacific Time (PT) at http://investor.qualcomm.com/events.cfm. 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 information reconciling these Non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as other 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 http://investor.qualcomm.com/events.cfm and via telephone following the live call for 30 days thereafter. 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 87075999.
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 QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QWI (Qualcomm Wireless & Internet) segments; and (iii) to compare the performance and efficiency of these segments against each other and against competitors. Non-GAAP measurements of the following financial data are used by the Company: revenues, cost of equipment and services revenues, R&D expenses, SG&A expenses, operating income, net investment income, income or earnings before income taxes, effective tax rate, net income, diluted earnings 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 QSI and certain share-based compensation, acquisition-related items and tax items.
- QSI 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.
- Share-based compensation expense primarily relates to restricted stock units and stock options. Certain share-based compensation is excluded because management views such expenses as unrelated to the operating activities of the Company's ongoing core businesses. Further, 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.
- Acquisition-related items relate to amortization and impairment 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 from restructuring the ownership of such acquired assets. Additionally, starting with acquisitions completed in the fourth quarter of fiscal 2012, the Company began excluding expenses related to the termination of contracts that limit the use of the acquired intellectual property. These acquisition-related items are excluded and are not allocated to the Company's segments because management views such expenses as unrelated to the operating activities of the Company's ongoing core businesses. In addition, these charges are impacted by the size and timing of acquisitions, potentially obscuring period to period comparisons of the Company's operating businesses.
- Certain tax items that are 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.
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. 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, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. 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 expected continued strong growth of 3G and 3G/4G multimode devices around the world, particularly in China; our being well positioned from a growth standpoint; expectations for double-digit compound annual growth rates for both revenues and earnings per share over the next five years; our business outlook; and our estimates and guidance related to revenues, GAAP and Non-GAAP diluted earnings per share, MSM chip shipments, total reported device sales, 3G/4G device average selling price ranges and 3G/4G device shipments, ranges and midpoints. Forward-looking statements are generally identified by words such as "estimates," "guidance," "expects," "anticipates," "intends," "plans," "believes," "seeks" 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 CDMA, OFDMA and other technologies, continuing growth in our customers' and licensees' sales of products and services based on these technologies and our ability to continue to drive customer demand for our products and services based on these technologies; competition; our dependence on a small number of customers and licensees; the continued and future success of our licensing programs; attacks on our licensing business model, including current and future legal proceedings or actions of governmental or quasi-governmental bodies or standards or industry organizations; the enforcement and protection of our intellectual property rights; the commercial success of our new technologies, products and services; claims by third parties that we infringe their intellectual property; our dependence on a limited number of third-party suppliers; our stock price and earnings volatility; government regulations and policies; strategic transactions and investments; global economic conditions that impact the mobile communications industry; foreign currency fluctuations; and failures in our products or services or in the products of our customers, including those resulting from security vulnerabilities, defects or errors. These and other risks are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended September 29, 2013 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 trademarks of Qualcomm Incorporated, registered in the United States and other countries. All other trademarks are the property of their respective owners.
Qualcomm Contact:
Warren Kneeshaw
Phone: 1-858-658-4813
e-mail:
Email Contact
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| ||||||||||||||||||||||||||
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| ||||||||||||||||||||||||||
|
Supplemental Information | ||||||||||||||||||||||||||
|
(Unaudited) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 29, 2013 | ||||||||||||||||||||||||||
|
|
Non-GAAP
|
QSI |
Share-Based Compensation |
Acquisition-
|
GAAP Results | |||||||||||||||||||||
|
($ in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
Cost of equipment and services revenues |
|
$ |
2,638 |
|
|
$ |
— |
|
|
$ |
16 |
|
|
$ |
60 |
|
|
$ |
2,714 |
| |||||
|
|
R&D |
|
1,182 |
|
|
1 |
|
|
164 |
|
|
1 |
|
|
1,348 |
| ||||||||||
|
|
SG&A |
|
547 |
|
|
10 |
|
|
94 |
|
|
6 |
|
|
657 |
| ||||||||||
|
|
Other expenses |
|
173 |
(b) |
|
— |
|
|
— |
|
|
— |
|
|
173 |
| ||||||||||
|
|
Operating income (loss) |
|
1,940 |
|
|
(11) |
|
|
(274) |
|
|
(67) |
|
|
1,588 |
| ||||||||||
|
|
Investment income, net |
|
$ |
233 |
(c) |
|
$ |
— |
(d) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
233 |
| |||||
|
|
Tax rate |
|
16% |
|
|
N/M |
|
|
18% |
|
|
—% |
|
|
18% |
| ||||||||||
|
|
Net income (loss) |
|
$ |
1,818 |
|
|
$ |
(24) |
|
|
$ |
(226) |
|
|
$ |
(67) |
|
|
$ |
1,501 |
| |||||
|
|
Diluted EPS |
|
$ |
1.05 |
|
|
$ |
(0.01) |
|
|
$ |
(0.13) |
|
|
$ |
(0.04) |
|
|
$ |
0.86 |
| |||||
|
|
|
|
(a) |
Included amortization and impairment of certain intangible assets and the recognition of the step-up of inventories to fair value. |
|
(b) |
Included a $173 million charge, or $0.10 per share, related to the recent verdict in our litigation with ParkerVision. |
|
(c) |
Included $168 million in interest and dividend income, $112 million in net realized gains on investments and $7 million in gains on deconsolidation of subsidiaries, partially offset by $35 million in other-than-temporary losses on investments, $18 million in net losses on derivatives and $1 million in interest expense. |
|
(d) |
Included $17 million in net realized gains on investments and $1 million in interest and dividend income, offset by $16 million in losses on deconsolidation of subsidiaries, $1 million in other-than-temporary losses on investments and $1 million in equity in net losses of investees. |
|
| |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended September 29, 2013 | |||||||||||||||||||||||||||||||
|
|
Non-GAAP
|
QSI |
Share-Based Compensation |
Acquisition-
|
Tax Items (f) |
GAAP Results | |||||||||||||||||||||||||
|
($ in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
|
|
Cost of equipment and services revenues |
|
$ |
9,485 |
|
|
$ |
— |
|
|
$ |
71 |
|
|
$ |
264 |
|
|
$ |
— |
|
|
$ |
9,820 |
| ||||||
|
|
R&D |
|
4,318 |
|
|
4 |
|
|
642 |
|
|
3 |
|
|
— |
|
|
4,967 |
| ||||||||||||
|
|
SG&A |
|
2,075 |
|
|
27 |
|
|
390 |
|
|
26 |
|
|
— |
|
|
2,518 |
| ||||||||||||
|
|
Other expenses |
|
331 |
(g) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
331 |
| ||||||||||||
|
|
Operating income (loss) |
|
8,657 |
|
|
(31) |
|
|
(1,103) |
|
|
(293) |
|
|
— |
|
|
7,230 |
| ||||||||||||
|
|
Investment income, net |
|
$ |
877 |
(h) |
|
$ |
87 |
(i) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
964 |
| ||||||
|
|
Tax rate |
|
|
17% |
|
|
|
38% |
|
|
|
20% |
|
|
|
5% |
|
|
N/A |
|
|
|
16% |
| |||||||
|
|
Net income (loss) |
|
$ |
7,911 |
|
|
$ |
43 |
|
|
$ |
(886) |
|
|
$ |
(279) |
|
|
$ |
64 |
|
|
$ |
6,853 |
| ||||||
|
|
Diluted EPS |
|
$ |
4.51 |
|
|
$ |
0.02 |
|
|
$ |
(0.51) |
|
|
$ |
(0.16) |
|
|
$ |
0.04 |
|
|
$ |
3.91 |
| ||||||
|
|
|
|
(e) |
Included amortization and impairment of certain intangible assets, expense associated with the termination of a contract and the recognition of the step-up of inventories to fair value. |
|
(f) |
Included a $64 million tax benefit as a result of the retroactive reinstatement of the federal R&D tax credit related to fiscal 2012. |
|
(g) |
Included a $173 million charge, or $0.10 per share, related to the recent verdict in our litigation with ParkerVision and a $158 million loss, or $0.06 per share, that resulted from an impairment charge on certain long-lived assets related to our QMT division. |
|
(h) |
Included $689 million in interest and dividend income, $259 million in net realized gains on investments and $6 million in gains on deconsolidation of subsidiaries, partially offset by $71 million in other-than-temporary losses on investments, $5 million in interest expense and $1 million in net losses on derivatives. |
|
(i) |
Included $110 million in net realized gains on investments, $8 million in interest and dividend income, $6 million in gains on deconsolidation of subsidiaries and $1 million in net gains on derivatives, partially offset by $18 million in interest expense, $14 million in other-than-temporary losses on investments and $6 million in equity in net losses of investees. |
|
|
|
|
N/M - Not Meaningful | |
|
N/A - Not Applicable | |
|
Sums may not equal totals due to rounding. | |
|
| |||||||||||||||
|
| |||||||||||||||
|
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 September 29, 2013 | ||||||||||||||
|
|
Non-GAAP |
|
QSI |
|
Share-Based
|
|
GAAP | ||||||||
|
Net cash provided (used) by operating activities |
$ |
2,583 |
|
|
$ |
(7) |
|
|
$ |
(53) |
|
(a) |
$ |
2,523 |
|
|
Less: capital expenditures |
(200) |
|
|
— |
|
|
— |
|
|
(200) |
| ||||
|
Free cash flow |
$ |
2,383 |
|
|
$ |
(7) |
|
|
$ |
(53) |
|
|
$ |
2,323 |
|
|
|
|
|
|
|
|
|
| ||||||||
|
Revenues |
$ |
6,480 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,480 |
|
|
Operating cash flow as % of revenues |
40% |
|
|
N/A |
|
|
N/A |
|
|
39% |
| ||||
|
Free cash flow as % of revenues |
37% |
|
|
N/A |
|
|
N/A |
|
|
36% |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
|
Twelve Months Ended September 29, 2013 | ||||||||||||||
|
|
Non-GAAP |
|
QSI |
|
Share-Based
|
|
GAAP | ||||||||
|
Net cash provided (used) by operating activities |
$ |
9,052 |
|
|
$ |
(43) |
|
|
$ |
(231) |
|
(a) |
$ |
8,778 |
|
|
Less: capital expenditures |
(973) |
|
|
(75) |
|
|
— |
|
|
(1,048) |
| ||||
|
Free cash flow |
$ |
8,079 |
|
|
$ |
(118) |
|
|
$ |
(231) |
|
|
$ |
7,730 |
|
|
|
|
|
|
|
|
|
| ||||||||
|
Revenues |
$ |
24,866 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
24,866 |
|
|
Operating cash flow as % of revenues |
36% |
|
|
N/A |
|
|
N/A |
|
|
35% |
| ||||
|
Free cash flow as % of revenues |
32% |
|
|
N/A |
|
|
N/A |
|
|
31% |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended September 30, 2012 | ||||||||||||||
|
|
Non-GAAP |
|
QSI |
|
Share-Based
|
|
GAAP | ||||||||
|
Net cash provided (used) by operating activities |
$ |
1,476 |
|
|
$ |
(26) |
|
|
$ |
(41) |
|
(a) |
$ |
1,409 |
|
|
Less: capital expenditures |
(234) |
|
|
(16) |
|
|
— |
|
|
(250) |
| ||||
|
Free cash flow |
$ |
1,242 |
|
|
$ |
(42) |
|
|
$ |
(41) |
|
|
$ |
1,159 |
|
|
|
|
|
|
|
|
|
| ||||||||
|
Revenues |
$ |
4,871 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,871 |
|
|
Operating cash flow as % of revenues |
30% |
|
|
N/A |
|
|
N/A |
|
|
29% |
| ||||
|
Free cash flow as % of revenues |
25% |
|
|
N/A |
|
|
N/A |
|
|
24% |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
|
Twelve Months Ended September 30, 2012 | ||||||||||||||
|
|
Non-GAAP |
|
QSI |
|
Share-Based
|
|
GAAP | ||||||||
|
Net cash provided (used) by operating activities |
$ |
6,382 |
|
|
$ |
(216) |
|
|
$ |
(168) |
|
(a) |
$ |
5,998 |
|
|
Less: capital expenditures |
(1,183) |
|
|
(101) |
|
|
— |
|
|
(1,284) |
| ||||
|
Free cash flow |
$ |
5,199 |
|
|
$ |
(317) |
|
|
$ |
(168) |
|
|
$ |
4,714 |
|
|
|
|
|
|
|
|
|
| ||||||||
|
Revenues |
$ |
19,121 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19,121 |
|
|
Operating cash flow as % of revenues |
33% |
|
|
N/A |
|
|
N/A |
|
|
31% |
| ||||
|
Free cash flow as % of revenues |
27% |
|
|
N/A |
|
|
N/A |
|
|
25% |
| ||||
|
|
|
|
(a) |
Incremental tax benefits from share-based compensation during the period. |
|
N/A - Not Applicable | |
|
| |||||||||||||||||||||||
|
| |||||||||||||||||||||||
|
Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a) | |||||||||||||||||||||||
|
(In millions) | |||||||||||||||||||||||
|
(Unaudited) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 29, 2013 | ||||||||||||||||||||||
|
|
Non-GAAP Results |
|
QSI |
|
Share-Based Compensation |
|
Acquisition-
|
|
Tax Items |
|
GAAP
| ||||||||||||
|
Income (loss) from continuing operations before income taxes |
$ |
2,173 |
|
|
$ |
(11) |
|
|
$ |
(274) |
|
|
$ |
(67) |
|
|
$ |
— |
|
|
$ |
1,821 |
|
|
Income tax (expense) benefit |
(354) |
|
|
(14) |
|
|
48 |
|
|
— |
|
|
— |
|
|
(320) |
| ||||||
|
Income (loss) from continuing operations |
$ |
1,819 |
|
|
$ |
(25) |
|
|
$ |
(226) |
|
|
$ |
(67) |
|
|
$ |
— |
|
|
$ |
1,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Tax rate |
16% |
|
|
N/M |
|
|
18% |
|
|
—% |
|
|
N/A |
|
|
18% |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
Twelve Months Ended September 29, 2013 | ||||||||||||||||||||||
|
|
Non-GAAP Results |
|
QSI |
|
Share-Based Compensation |
|
Acquisition-
|
|
Tax Items (b) |
|
GAAP
| ||||||||||||
|
Income (loss) from continuing operations before income taxes |
$ |
9,534 |
|
|
$ |
56 |
|
|
$ |
(1,103) |
|
|
$ |
(293) |
|
|
$ |
— |
|
|
$ |
8,194 |
|
|
Income tax (expense) benefit |
(1,623) |
|
|
(21) |
|
|
217 |
|
|
14 |
|
|
64 |
|
|
(1,349) |
| ||||||
|
Income (loss) from continuing operations |
$ |
7,911 |
|
|
$ |
35 |
|
|
$ |
(886) |
|
|
$ |
(279) |
|
|
$ |
64 |
|
|
$ |
6,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
Tax rate |
17% |
|
|
38% |
|
|
20% |
|
|
5% |
|
|
N/A |
|
|
16% |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
(a) |
At fiscal year end, the sum of the quarterly tax provision (benefit) 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. |
|
(b) |
During fiscal 2013, we recorded a tax benefit of $64 million related to fiscal 2012 due to the retroactive reinstatement of the United States federal R&D tax credit. |
|
|
|
|
N/M - Not Meaningful | |
|
N/A - Not Applicable | |
|
| |||||||
|
| |||||||
|
Qualcomm Incorporated | |||||||
|
CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions, except per share data) | |||||||
|
(Unaudited) | |||||||
|
|
|
|
|
|
|
|
|
|
|
September 29,
|
|
September 30,
| ||||
|
ASSETS | |||||||
|
Current assets: |
|
|
| ||||
|
Cash and cash equivalents |
$ |
6,142 |
|
|
$ |
3,807 |
|
|
Marketable securities |
8,824 |
|
|
8,567 |
| ||
|
Accounts receivable, net |
2,142 |
|
|
1,459 |
| ||
|
Inventories |
1,302 |
|
|
1,030 |
| ||
|
Deferred tax assets |
573 |
|
|
309 |
| ||
|
Other current assets |
572 |
|
|
473 |
| ||
|
Total current assets |
19,555 |
|
|
15,645 |
| ||
|
Marketable securities |
14,440 |
|
|
14,463 |
| ||
|
Deferred tax assets |
1,059 |
|
|
1,412 |
| ||
|
Assets held for sale |
72 |
|
|
1,109 |
| ||
|
Property, plant and equipment, net |
2,995 |
|
|
2,851 |
| ||
|
Goodwill |
3,976 |
|
|
3,917 |
| ||
|
Other intangible assets, net |
2,553 |
|
|
2,938 |
| ||
|
Other assets |
866 |
|
|
677 |
| ||
|
Total assets |
$ |
45,516 |
|
|
$ |
43,012 |
|
|
|
|
|
| ||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
|
Current liabilities: |
|
|
| ||||
|
Trade accounts payable |
$ |
1,554 |
|
|
$ |
1,298 |
|
|
Payroll and other benefits related liabilities |
839 |
|
|
664 |
| ||
|
Unearned revenues |
501 |
|
|
545 |
| ||
|
Liabilities held for sale |
43 |
|
|
1,072 |
| ||
|
Other current liabilities |
2,276 |
|
|
1,723 |
| ||
|
Total current liabilities |
5,213 |
|
|
5,302 |
| ||
|
Unearned revenues |
3,666 |
|
|
3,739 |
| ||
|
Other liabilities |
550 |
|
|
426 |
| ||
|
Total liabilities |
9,429 |
|
|
9,467 |
| ||
|
|
|
|
| ||||
|
Stockholders' equity: |
|
|
| ||||
|
Qualcomm stockholders' equity: |
|
|
| ||||
|
Preferred stock, $0.0001 par value; issuable in series; 8 shares authorized; none outstanding |
— |
|
|
— |
| ||
|
Common stock, $0.0001 par value; 6,000 shares authorized; 1,685 and 1,706 shares issued and outstanding, respectively |
— |
|
|
— |
| ||
|
Paid-in capital |
9,874 |
|
|
11,956 |
| ||
|
Retained earnings |
25,461 |
|
|
20,701 |
| ||
|
Accumulated other comprehensive income |
753 |
|
|
866 |
| ||
|
Total Qualcomm stockholders' equity |
36,088 |
|
|
33,523 |
| ||
|
Noncontrolling interests |
(1) |
|
|
22 |
| ||
|
Total stockholders' equity |
36,087 |
|
|
33,545 |
| ||
|
Total liabilities and stockholders' equity |
$ |
45,516 |
|
|
$ |
43,012 |
|
|
| |||||||||||||||
|
| |||||||||||||||
|
Qualcomm Incorporated | |||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
(In millions, except per share data) | |||||||||||||||
|
(Unaudited) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended | ||||||||||||
|
|
September 29,
|
|
September 30,
|
|
September 29,
|
|
September 30,
| ||||||||
|
Revenues: |
|
|
|
|
|
|
| ||||||||
|
Equipment and services |
$ |
4,513 |
|
|
$ |
3,213 |
|
|
$ |
16,988 |
|
|
$ |
12,465 |
|
|
Licensing |
1,967 |
|
|
1,658 |
|
|
7,878 |
|
|
6,656 |
| ||||
|
Total revenues |
6,480 |
|
|
4,871 |
|
|
24,866 |
|
|
19,121 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
Costs and expenses: |
|
|
|
|
|
|
| ||||||||
|
Cost of equipment and services revenues |
2,714 |
|
|
1,841 |
|
|
9,820 |
|
|
7,096 |
| ||||
|
Research and development |
1,348 |
|
|
1,114 |
|
|
4,967 |
|
|
3,915 |
| ||||
|
Selling, general and administrative |
657 |
|
|
627 |
|
|
2,518 |
|
|
2,270 |
| ||||
|
Other |
173 |
|
|
54 |
|
|
331 |
|
|
158 |
| ||||
|
Total costs and expenses |
4,892 |
|
|
3,636 |
|
|
17,636 |
|
|
13,439 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
Operating income |
1,588 |
|
|
1,235 |
|
|
7,230 |
|
|
5,682 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
Investment income, net |
233 |
|
|
291 |
|
|
964 |
|
|
880 |
| ||||
|
Income from continuing operations before income taxes |
1,821 |
|
|
1,526 |
|
|
8,194 |
|
|
6,562 |
| ||||
|
Income tax expense |
(320) |
|
|
(286) |
|
|
(1,349) |
|
|
(1,279) |
| ||||
|
Income from continuing operations |
1,501 |
|
|
1,240 |
|
|
6,845 |
|
|
5,283 |
| ||||
|
Discontinued operations, net of income taxes |
— |
|
|
23 |
|
|
— |
|
|
776 |
| ||||
|
Net income |
1,501 |
|
|
1,263 |
|
|
6,845 |
|
|
6,059 |
| ||||
|
Net loss attributable to noncontrolling interests |
— |
|
|
8 |
|
|
8 |
|
|
50 |
| ||||
|
Net income attributable to Qualcomm |
$ |
1,501 |
|
|
$ |
1,271 |
|
|
$ |
6,853 |
|
|
$ |
6,109 |
|
|
|
|
|
|
|
|
|
| ||||||||
|
Basic earnings per share attributable to Qualcomm: |
|
|
|
|
|
|
| ||||||||
|
Continuing operations |
$ |
0.88 |
|
|
$ |
0.73 |
|
|
$ |
3.99 |
|
|
$ |
3.14 |
|
|
Discontinued operations |
— |
|
|
0.02 |
|
|
— |
|
|
0.45 |
| ||||
|
Net income |
$ |
0.88 |
|
|
$ |
0.75 |
|
|
$ |
3.99 |
|
|
$ |
3.59 |
|
|
Diluted earnings per share attributable to Qualcomm: |
|
|
|
|
|
|
| ||||||||
|
Continuing operations |
$ |
0.86 |
|
|
$ |
0.72 |
|
|
$ |
3.91 |
|
|
$ |
3.06 |
|
|
Discontinued operations |
— |
|
|
0.01 |
|
|
— |
|
|
0.45 |
| ||||
|
Net income |
$ |
0.86 |
|
|
$ |
0.73 |
|
|
$ |
3.91 |
|
|
$ |
3.51 |
|
|
Shares used in per share calculations: |
|
|
|
|
|
|
| ||||||||
|
Basic |
1,703 |
|
|
1,704 |
|
|
1,715 |
|
|
1,700 |
| ||||
|
Diluted |
1,738 |
|
|
1,745 |
|
|
1,754 |
|
|
1,741 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
|
Dividends per share announced |
$ |
0.35 |
|
|
$ |
0.25 |
|
|
$ |
1.20 |
|
|
$ |
0.93 |
|
Certain prior period amounts have been reclassified to conform to the current period presentation.
