Qualcomm Announces Fourth Quarter and Fiscal 2013 Results



Selling, General and Administrative



($ in millions)

Non-GAAP


QSI


Share-Based
Compensation


Acquisition-
Related
Items


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
2014 Estimates (2) (3)


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
operations,
net of tax


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
operations,
net of tax


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.


« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »
Featured Video
Jobs
CAD Engineer for Nvidia at Santa Clara, California
Design Verification Engineer for Blockwork IT at Milpitas, California
Sr. Silicon Design Engineer for AMD at Santa Clara, California
GPU Design Verification Engineer for AMD at Santa Clara, California
Senior Firmware Architect - Server Manageability for Nvidia at Santa Clara, California
Senior Platform Software Engineer, AI Server - GPU for Nvidia at Santa Clara, California
Upcoming Events
SEMICON Japan 2024 at Tokyo Big Sight Tokyo Japan - Dec 11 - 13, 2024
PDF Solutions AI Executive Conference at St. Regis Hotel San Francisco - Dec 12, 2024
DVCon U.S. 2025 at United States - Feb 24 - 27, 2025



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise