| ||||||||||||||
| ||||||||||||||
Selling, General and Administrative | ||||||||||||||
|
| |||||||||||||
($ in millions) |
Non-GAAP |
|
QSI |
|
Share-Based
|
|
Acquisition-
|
|
GAAP | |||||
Fourth quarter fiscal 2013 |
$ |
547 |
|
$ |
10 |
|
$ |
94 |
|
$ |
6 |
|
$ |
657 |
As % of revenues |
8% |
|
|
|
|
|
|
|
10% | |||||
Fourth quarter fiscal 2012 |
$ |
491 |
|
$ |
3 |
|
$ |
112 |
|
$ |
21 |
|
$ |
627 |
As % of revenues |
10% |
|
|
|
|
|
|
|
13% | |||||
Year-over-year change ($) |
11% |
|
N/M |
|
(16%) |
|
N/M |
|
5% |
|
Certain prior period amounts have been reclassified to conform to the current period presentation. |
N/M - Not Meaningful |
Non-GAAP selling, general and administrative (SG&A) expenses increased 11 percent y-o-y primarily due to increases in selling and marketing, patent-related and employee-related expenses.
Effective Income Tax Rates
Our fiscal 2013 annual effective income tax rates were 16 percent for GAAP and 17 percent for Non-GAAP. The fiscal 2013 GAAP effective tax rate included a tax benefit of $64 million related to the retroactive extension of the United States federal research and development tax credit related to fiscal 2012. This benefit was excluded from our Non-GAAP results.
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.
Our outlook for fiscal 2014 diluted earnings per share includes an estimate of the benefit related to approximately $4 billion in stock repurchases that we plan to complete over the course of fiscal 2014 under our current stock repurchase program.
On August 21, 2013, we entered into a definitive agreement under which we agreed to sell the North and Latin American operations of our Omnitracs division for $800 million, subject to closing conditions, including receipt of regulatory approvals. We expect the transaction to close in the first quarter of fiscal 2014. Upon close, we expect to record a gain on sale of approximately $0.22 to $0.25 earnings per share, which has been excluded from our fiscal first quarter and fiscal 2014 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 | |||||||
|
|
|
|
|
|
|
|
FIRST FISCAL QUARTER | |||||||
|
|
Q1 FY13 Results |
Current Guidance Q1 FY14 Estimates (2) | ||||
|
Revenues |
|
$6.02B |
|
$6.3B - $6.9B |
| |
|
Year-over-year change |
|
increase 5% - 15% |
| |||
|
Non-GAAP diluted earnings per share (EPS) |
|
$1.26 |
|
$1.10 - $1.20 |
| |
|
Year-over-year change |
|
decrease 5% - 13% |
| |||
|
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 |
|
($0.04) |
|
|
($0.04) |
|
|
GAAP diluted EPS |
|
$1.09 |
|
$0.92 - $1.02 |
| |
|
Year-over-year change |
|
decrease 6% - 16% |
| |||
|
Metrics |
|
| ||||
|
MSM chip shipments |
182M |
|
195M - 210M |
| ||
|
Year-over-year change |
|
increase 7% - 15% |
| |||
|
Total reported device sales (1) |
approx. $53.3B* |
|
approx. $57.5B - $63.5B* |
| ||
|
Year-over-year change |
|
increase 8% - 19% |
| |||
|
*Est. sales in September quarter, reported in December quarter |
|
| ||||
| |||||||
|
|
|
|
|
|
|
|
FISCAL YEAR | |||||||
|
|
FY 2013 Results |
Current Guidance FY
| ||||
|
Revenues |
|
$24.87B |
|
$26.0B - $27.5B |
| |
|
Year-over-year change |
|
increase 5% - 11% |
| |||
|
Non-GAAP diluted EPS |
|
$4.51 |
|
$4.95 - $5.15 |
| |
|
Year-over-year change |
|
increase 10% - 14% |
| |||
|
Diluted EPS attributable to QSI |
|
$0.02 |
|
|
($0.03) |
|
|
Diluted EPS attributable to share-based compensation |
|
($0.51) |
|
|
($0.51) |
|
|
Diluted EPS attributable to acquisition-related items |
|
($0.16) |
|
|
($0.16) |
|
|
Diluted EPS attributable to tax items |
|
$0.04 |
|
N/A |
| |
|
GAAP diluted EPS |
|
$3.91 |
|
$4.25 - $4.45 |
| |
|
Year-over-year change |
|
increase 9% - 14% |
| |||
|
Metrics |
|
| ||||
|
Est. fiscal year* 3G/4G device average selling price range (1) |
approx. $223 - $229 |
|
approx. $216 - $230 |
| ||
|
*Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters |
|
|
| |||||
|
|
|
|
| |
CALENDAR YEAR Device Estimates (1) | |||||
|
|
Prior Guidance Calendar 2013 Estimates |
Current Guidance Calendar 2013 Estimates |
Current Guidance Calendar 2014 Estimates | |
|
Est. 3G/4G device shipments |
|
|
| |
|
March quarter |
approx. 244M - 248M |
approx. 244M - 248M |
not provided | |
|
June quarter |
not provided |
approx. 260M - 264M |
not provided | |
|
September quarter |
not provided |
not provided |
not provided | |
|
December quarter |
not provided |
not provided |
not provided | |
|
Est. calendar year range (approx.) |
1,015M - 1,085M |
1,075M - 1,125M |
1,220M - 1,300M | |
|
Est. calendar year midpoint (approx.) (4) |
1,050M |
1,100M |
1,260M | |
|
|
(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 CDMA/OFDMA multimode 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) |
Q1 and FY 2014 guidance excludes the expected gain on sale of the North and Latin American operations of our Omnitracs division. We expect the transaction to close in the first quarter of fiscal 2014. Upon close, we expect to record a gain on sale of approx. $0.22 to $0.25 EPS. |
(3) |
FY 2014 guidance includes an estimate of the benefit related to approx. $4 billion in stock repurchases that we plan to complete over the course of fiscal 2014 under our current stock repurchase program. FY 2014 guidance also reflects an annual effective tax rate that includes an estimate of the United States federal R&D tax credit expected to be generated through December 31, 2013, the date on which the credit will expire. |
(4) |
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. |
|
|
N/A - Not Applicable | |
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) |
Share-Based Compensation (2) |
Acquisition-Related Items (2) |
Tax Items |
GAAP | ||||||||||||||||
Q4 - FISCAL 2013 |
| |||||||||||||||||||||||||
Revenues |
$4,457 |
$1,874 |
$154 |
($5) |
$6,480 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$6,480 |
| |||||||||
Change from prior year |
|
42% |
|
19% |
(4%) |
N/M |
|
33% |
|
|
|
|
|
|
|
33% |
| |||||||||
Change from prior quarter |
|
6% |
|
—% |
(3%) |
N/M |
|
4% |
|
|
|
|
|
|
|
4% |
| |||||||||
Operating income (loss) |
|
|
|
|
$1,940 |
|
($11) |
($274) |
($67) |
|
$— |
|
$1,588 |
| ||||||||||||
Change from prior year |
|
|
|
|
|
20% |
|
N/M |
|
4% |
|
25% |
|
|
|
29% |
| |||||||||
Change from prior quarter |
|
|
|
|
(5%) |
|
(57%) |
|
2% |
|
6% |
|
|
|
(5%) |
| ||||||||||
EBT |
$702 |
$1,622 |
$12 |
($163) |
$2,173 |
|
($11) |
($274) |
($67) |
|
$— |
|
$1,821 |
| ||||||||||||
Change from prior year |
|
44% |
|
18% |
N/M |
N/M |
|
13% |
|
|
48% |
|
4% |
|
25% |
|
|
|
|
19% |
| |||||
Change from prior quarter |
(5%) |
(1%) |
N/M |
N/M |
(2%) |
|
N/M |
|
2% |
|
6% |
|
|
|
(5%) |
| ||||||||||
EBT as % of revenues |
|
16% |
|
87% |
|
8% |
N/M |
|
34% |
|
|
|
|
|
|
|
28% |
| ||||||||
Net income (loss) |
|
|
|
|
$1,818 |
|
($24) |
($226) |
($67) |
|
$— |
|
$1,501 |
| ||||||||||||
Change from prior year |
|
|
|
|
|
18% |
|
N/M |
(2%) |
|
14% |
N/M |
|
|
18% |
| ||||||||||
Change from prior quarter |
|
|
|
|
|
—% |
|
N/M |
(2%) |
(5%) |
N/A |
|
(5%) |
| ||||||||||||
Diluted EPS |
|
|
|
|
$1.05 |
|
($0.01) |
($0.13) |
($0.04) |
|
$— |
|
$0.86 |
| ||||||||||||
Change from prior year |
|
|
|
|
|
18% |
|
N/M |
|
—% |
|
—% |
N/M |
|
|
18% |
| |||||||||
Change from prior quarter |
|
|
|
|
|
2% |
|
N/M |
|
—% |
|
—% |
N/A |
|
(4%) |
| ||||||||||
Diluted shares used |
|
|
|
|
1,738 |
|
1,738 |
1,738 |
1,738 |
1,738 |
|
1,738 |
| |||||||||||||
Q3 - FISCAL 2013 |
| |||||||||||||||||||||||||
Revenues |
$4,222 |
$1,867 |
$158 |
($4) |
$6,243 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$6,243 |
| |||||||||
Operating income (loss) |
|
|
|
|
2,035 |
|
(7) |
(280) |
(71) |
— |
|
1,677 |
| |||||||||||||
EBT |
$738 |
$1,633 |
($16) |
($145) |
2,210 |
|
51 |
(280) |
(71) |
— |
|
1,910 |
| |||||||||||||
Net income (loss) |
|
|
|
|
1,823 |
|
43 |
(222) |
(64) |
— |
|
1,580 |
| |||||||||||||
Diluted EPS |
|
|
|
|
$1.03 |
|
$0.02 |
($0.13) |
($0.04) |
|
$— |
|
$0.90 |
| ||||||||||||
Diluted shares used |
|
|
|
|
1,765 |
|
1,765 |
1,765 |
1,765 |
1,765 |
|
1,765 |
| |||||||||||||
Q4 - FISCAL 2012 |
| |||||||||||||||||||||||||
Revenues |
$3,129 |
$1,572 |
$161 |
$9 |
$4,871 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$4,871 |
| |||||||||
Operating income (loss) |
|
|
|
|
1,612 |
|
(4) |
(284) |
(89) |
— |
|
1,235 |
| |||||||||||||
EBT |
$486 |
$1,370 |
($1) |
$65 |
1,920 |
|
(21) |
(284) |
(89) |
— |
|
1,526 |
| |||||||||||||
Discontinued
|
— |
|
23 |
— |
— |
— |
|
23 |
| |||||||||||||||||
Net income (loss) |
|
|
|
|
1,547 |
|
14 |
(222) |
(78) |
10 |
|
1,271 |
| |||||||||||||
Diluted EPS |
|
|
|
|
$0.89 |
|
$0.01 |
($0.13) |
($0.04) |
$0.01 |
|
$0.73 |
| |||||||||||||
Diluted shares used |
|
|
|
|
1,745 |
|
1,745 |
1,745 |
1,745 |
1,745 |
|
1,745 |
| |||||||||||||
Q1 - FISCAL 2013 |
| |||||||||||||||||||||||||
Revenues |
$4,120 |
$1,757 |
$146 |
($5) |
$6,018 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$6,018 |
| |||||||||
Operating income (loss) |
|
|
|
|
2,447 |
|
(8) |
(281) |
(70) |
— |
|
2,088 |
| |||||||||||||
EBT |
$1,068 |
$1,532 |
($3) |
$98 |
2,695 |
|
(17) |
(281) |
(70) |
— |
|
2,327 |
| |||||||||||||
Net income (loss) |
|
|
|
|
2,204 |
|
(12) |
(219) |
(67) |
— |
|
1,906 |
| |||||||||||||
Diluted EPS |
|
|
|
|
$1.26 |
|
($0.01) |
($0.12) |
($0.04) |
|
$— |
|
$1.09 |
| ||||||||||||
Diluted shares used |
|
|
|
|
1,751 |
|
1,751 |
1,751 |
1,751 |
1,751 |
|
1,751 |
|
| ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTS |
QCT |
QTL |
QWI |
Non-GAAP Reconciling Items (1) |
Non-GAAP (2) |
QSI (2) |
Share-Based Compensation (2) |
Acquisition-Related Items (2) |
Tax Items |
GAAP | ||||||||||||||||
12 MONTHS - FISCAL 2013 |
| |||||||||||||||||||||||||
Revenues |
$16,715 |
$7,554 |
$613 |
($16) |
$24,866 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$24,866 |
| |||||||||
Change from prior year |
|
38% |
|
19% |
(3%) |
N/M |
|
30% |
|
|
|
|
|
|
|
30% |
| |||||||||
Operating income (loss) |
|
|
|
|
$8,657 |
|
($31) |
($1,103) |
($293) |
|
$— |
|
$7,230 |
| ||||||||||||
Change from prior year |
|
|
|
|
|
22% |
|
|
73% |
(7%) |
(10%) |
|
|
|
27% |
| ||||||||||
EBT |
$3,189 |
$6,590 |
($8) |
($237) |
$9,534 |
|
$56 |
($1,103) |
($293) |
|
$— |
|
$8,194 |
| ||||||||||||
Change from prior year |
|
39% |
|
18% |
|
47% |
N/M |
|
19% |
|
N/M |
(7%) |
(10%) |
|
|
|
25% |
| ||||||||
EBT as % of revenues |
|
19% |
|
87% |
(1%) |
N/M |
|
38% |
|
|
|
|
|
|
|
33% |
| |||||||||
Net income (loss) |
|
|
|
|
$7,911 |
|
$43 |
($886) |
($279) |
$64 |
|
$6,853 |
| |||||||||||||
Change from prior year |
|
|
|
|
|
22% |
|
(94%) |
(9%) |
(15%) |
N/M |
|
|
12% |
| |||||||||||
Diluted EPS |
|
|
|
|
$4.51 |
|
$0.02 |
($0.51) |
($0.16) |
$0.04 |
|
$3.91 |
| |||||||||||||
Change from prior year |
|
|
|
|
|
22% |
|
(95%) |
(9%) |
(14%) |
N/M |
|
|
11% |
| |||||||||||
Diluted shares used |
|
|
|
|
1,754 |
|
1,754 |
1,754 |
1,754 |
1,754 |
|
1,754 |
| |||||||||||||
12 MONTHS - FISCAL 2012 |
| |||||||||||||||||||||||||
Revenues |
$12,141 |
$6,327 |
$633 |
$20 |
$19,121 |
|
|
$— |
|
$— |
|
$— |
|
$— |
|
$19,121 |
| |||||||||
Operating income (loss) |
|
|
|
|
7,100 |
|
(116) |
(1,035) |
(267) |
— |
|
5,682 |
| |||||||||||||
EBT |
$2,296 |
$5,585 |
($15) |
$168 |
8,034 |
|
(170) |
(1,035) |
(267) |
— |
|
6,562 |
| |||||||||||||
Discontinued
|
— |
|
777 |
(1) |
— |
— |
|
776 |
| |||||||||||||||||
Net income (loss) |
|
|
|
|
6,463 |
|
690 |
(811) |
(243) |
10 |
|
6,109 |
| |||||||||||||
Diluted EPS |
|
|
|
|
$3.71 |
|
$0.40 |
($0.47) |
($0.14) |
$0.01 |
|
$3.51 |
| |||||||||||||
Diluted shares used |
|
|
|
|
1,741 |
|
1,741 |
1,741 |
1,741 |
1,741 |
|
1,741 |
|
|
|
(1) |
Non-GAAP reconciling items related to revenues consisted primarily of 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 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. |
|
|
N/M - Not Meaningful | |
N/A - Not Applicable | |
Sums may not equal totals due to rounding. |