|Qualcomm Announces Second Quarter Fiscal 2012 Results|
Revenues $4.9 Billion 04/18 01:00 PM
GAAP EPS $1.28, Non-GAAP EPS $1.01
-- Record Quarterly Revenues and EPS --
SAN DIEGO, April 18, 2012 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (QCOM:$66.985,0$-0.245,0-0.36%) , a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the second quarter of fiscal 2012 ended March 25, 2012.
"I am pleased to report another quarter of record revenues and earnings per share, driven by strong demand for 3G- and 4G-enabled devices across both developed and emerging regions," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "We are excited to see the continued growth of 3G and 4G smartphones, as well as new mobile computing devices. We are increasing our operating expenses to facilitate additional 28 nanometer supply and to continue to position our industry-leading chipset solutions for the opportunities ahead."
Second Quarter Results (GAAP)
Revenues: (1) $4.94 billion, up 28 percent year-over-year (y-o-y) and 6 percent sequentially.
Operating income: (1) $1.51 billion, up 6 percent y-o-y and down 2 percent sequentially.
Net income: (2) $2.23 billion, up 123 percent y-o-y and 59 percent sequentially.
Diluted earnings per share: (2) $1.28, up 117 percent y-o-y and 58 percent sequentially.
Effective tax rate: (1) 17 percent for the quarter.
Operating cash flow: $1.89 billion, up 7 percent y-o-y; 38 percent of revenues.
Return of capital to stockholders: $366 million, or $0.215 per share, of cash dividends paid.
(1) The results of FLO TV are presented as discontinued operations, and prior period amounts have been adjusted accordingly. 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 (QCOM:$66.985,0$-0.245,0-0.36%) (i.e., after discontinued operations and adjustment for noncontrolling interests), unless otherwise stated.
Non-GAAP Second 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: $4.94 billion, up 28 percent y-o-y and 6 percent sequentially.
Operating income: $1.90 billion, up 15 percent y-o-y and 2 percent sequentially.
Net income: $1.76 billion, up 21 percent y-o-y and 5 percent sequentially.
Diluted earnings per share: $1.01, up 17 percent y-o-y and 4 percent sequentially. Excludes $0.41 earnings per share attributable to the QSI segment, $0.11 loss per share attributable to certain share-based compensation and $0.03 loss per share attributable to certain acquisition-related items.
Effective tax rate: 17 percent for the quarter.
Free cash flow (defined as net cash from operating activities less capital expenditures): $1.81 billion, down 2 percent y-o-y; 37 percent of revenues.
Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and Non-GAAP results are included at the end of 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, 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 $269 million loss, net of income taxes, for discontinued operations in the second quarter of fiscal 2011. Additionally, the second quarter of fiscal 2012 GAAP and Non-GAAP results included the results of Qualcomm Atheros, Inc., which was acquired in the third quarter of fiscal 2011. The second quarter of fiscal 2011 GAAP and Non-GAAP results included $401 million in revenues relating to prior quarters as a result of agreements entered into with two licensees to settle disputes.
Second Quarter Key Business Metrics
MSM™ chip shipments: 152 million units, up 29 percent y-o-y and down 3 percent sequentially.
December quarter total reported device sales: approximately $51.7 billion, up 29 percent y-o-y and 25 percent sequentially.
December quarter estimated 3G/4G device shipments: approximately 239 to 243 million units, at an estimated average selling price of approximately $211 to $217 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $26.6 billion at the end of the second quarter of fiscal 2012, compared to $22.1 billion a year ago and $22.0 billion at the end of the first quarter of fiscal 2012. During the second quarter of fiscal 2012, we received $1.9 billion in proceeds from the sale of substantially all of our 700 MHz spectrum. On April 3, 2012, we announced a cash dividend of $0.25 per share payable on June 20, 2012 to stockholders of record as of June 1, 2012.