Qualcomm Announces Fourth Quarter and Fiscal 2009 Results
Fiscal 2009 Revenues $10.4 Billion, EPS $0.95
Pro Forma EPS $1.31.
SAN DIEGO -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, announced results for the fourth fiscal quarter and year ended September 27, 2009.
"I am very pleased with the performance of our businesses this past year, despite a challenging and uncertain global economic environment," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our revenues for fiscal year 2009 were in line with our guidance at the outset of the year. Our operating performance remained strong, driven by continued 3G growth, execution in our chipset business and disciplined management of operating expenses. I am also pleased to announce that we recently extended our license agreement with Samsung, covering both 3G and 4G."
"We continue to forecast growth for 3G CDMA in 2009, despite industry forecasts of a decline in the total handset market. We anticipate accelerated CDMA device growth in calendar year 2010 as the global migration to 3G continues. Our broad chipset portfolio continues to expand, including additional low-cost single-chip solutions to further enable the 3G migration as well as increased investments in software and application processors to strengthen our leadership position in supporting higher-end, feature-rich devices. We remain well positioned to drive innovation given our strong balance sheet and operating cash flow while maintaining our focus on overall operating expenses."
For comparison purposes, we note the following items:
•The fourth quarter of fiscal 2009 results included a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission.
•Fiscal 2009 results included a $783 million charge, or $0.45 diluted loss per share, related to a litigation settlement and patent agreement with Broadcom Corporation, including $748 million, or $0.43 diluted loss per share, recorded in the second quarter of fiscal 2009 and $35 million, or $0.02 diluted loss per share, recorded in the fourth quarter of fiscal 2009 resulting from the write-off of assets that were initially capitalized.
•The fourth quarter of fiscal 2008 results included $560 million in revenues, or $0.20 diluted earnings per share, as a result of the execution of license and settlement agreements with Nokia Corporation/Nokia Inc. (Nokia).
•The fourth quarter of fiscal 2009 GAAP results included a $155 million tax benefit, or $0.09 diluted earnings per share, related to prior years as a result of tax audits. The tax benefit was excluded from our pro forma results.
GAAP Results
Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).
Fourth Quarter
•Revenues: $2.69 billion, down 19 percent year-over-year and 2 percent sequentially.
•Operating income: $597 million, down 55 percent year-over-year and 33 percent sequentially.
•Net income: $803 million, down 9 percent year-over-year and up 9 percent sequentially.
•Diluted earnings per share: $0.48, down 8 percent year-over-year and up 9 percent sequentially.
•Effective tax rate: Negative 8 percent for the quarter, primarily due to the $155 million tax benefit related to prior years.
•Operating cash flow: $1.32 billion, up 33 percent year-over-year; 49 percent of revenues.
•Return of capital to stockholders: $283 million, or $0.17 per share, of cash dividends paid.
Fiscal 2009
•Revenues: $10.42 billion, down 7 percent year-over-year.
•Operating income: $2.23 billion, down 40 percent year-over-year.
•Net income: $1.59 billion, down 50 percent year-over-year.
•Diluted earnings per share: $0.95, down 50 percent year-over-year.
•Effective tax rate: 23 percent.
•Operating cash flow: $7.17 billion, including a $2.5 billion payment received from Nokia related to the license and settlement agreements.
•Return of capital to stockholders: $1.38 billion, including $1.09 billion of cash dividends, or $0.66 per share; and $284 million to repurchase 8.9 million shares of our common stock.
Click to read full press release
Pro Forma EPS $1.31.
SAN DIEGO -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, announced results for the fourth fiscal quarter and year ended September 27, 2009.
"I am very pleased with the performance of our businesses this past year, despite a challenging and uncertain global economic environment," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our revenues for fiscal year 2009 were in line with our guidance at the outset of the year. Our operating performance remained strong, driven by continued 3G growth, execution in our chipset business and disciplined management of operating expenses. I am also pleased to announce that we recently extended our license agreement with Samsung, covering both 3G and 4G."
"We continue to forecast growth for 3G CDMA in 2009, despite industry forecasts of a decline in the total handset market. We anticipate accelerated CDMA device growth in calendar year 2010 as the global migration to 3G continues. Our broad chipset portfolio continues to expand, including additional low-cost single-chip solutions to further enable the 3G migration as well as increased investments in software and application processors to strengthen our leadership position in supporting higher-end, feature-rich devices. We remain well positioned to drive innovation given our strong balance sheet and operating cash flow while maintaining our focus on overall operating expenses."
For comparison purposes, we note the following items:
•The fourth quarter of fiscal 2009 results included a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission.
•Fiscal 2009 results included a $783 million charge, or $0.45 diluted loss per share, related to a litigation settlement and patent agreement with Broadcom Corporation, including $748 million, or $0.43 diluted loss per share, recorded in the second quarter of fiscal 2009 and $35 million, or $0.02 diluted loss per share, recorded in the fourth quarter of fiscal 2009 resulting from the write-off of assets that were initially capitalized.
•The fourth quarter of fiscal 2008 results included $560 million in revenues, or $0.20 diluted earnings per share, as a result of the execution of license and settlement agreements with Nokia Corporation/Nokia Inc. (Nokia).
•The fourth quarter of fiscal 2009 GAAP results included a $155 million tax benefit, or $0.09 diluted earnings per share, related to prior years as a result of tax audits. The tax benefit was excluded from our pro forma results.
GAAP Results
Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).
Fourth Quarter
•Revenues: $2.69 billion, down 19 percent year-over-year and 2 percent sequentially.
•Operating income: $597 million, down 55 percent year-over-year and 33 percent sequentially.
•Net income: $803 million, down 9 percent year-over-year and up 9 percent sequentially.
•Diluted earnings per share: $0.48, down 8 percent year-over-year and up 9 percent sequentially.
•Effective tax rate: Negative 8 percent for the quarter, primarily due to the $155 million tax benefit related to prior years.
•Operating cash flow: $1.32 billion, up 33 percent year-over-year; 49 percent of revenues.
•Return of capital to stockholders: $283 million, or $0.17 per share, of cash dividends paid.
Fiscal 2009
•Revenues: $10.42 billion, down 7 percent year-over-year.
•Operating income: $2.23 billion, down 40 percent year-over-year.
•Net income: $1.59 billion, down 50 percent year-over-year.
•Diluted earnings per share: $0.95, down 50 percent year-over-year.
•Effective tax rate: 23 percent.
•Operating cash flow: $7.17 billion, including a $2.5 billion payment received from Nokia related to the license and settlement agreements.
•Return of capital to stockholders: $1.38 billion, including $1.09 billion of cash dividends, or $0.66 per share; and $284 million to repurchase 8.9 million shares of our common stock.
Click to read full press release
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