| From: The_Net | 11/5/2014 4:08:17 PM | | | | | | Qualcomm (QCOM) Misses Q4 EPS by 5c Qualcomm (NASDAQ: QCOM) reported Q4 EPS of $1.26, $0.05 worse than the analyst estimate of $1.31. Revenue for the quarter came in at $6 billion versus the consensus estimate of $7.02 billion.
Key Business Metrics
Fourth Quarter Fiscal 2014
MSM" chip shipments: 236 million units, up 24 percent y-o-y and 5 percent sequentially. June quarter total reported device sales: approximately $57.4 billion, down 5 percent y-o-y and 1 percent sequentially. Includes an estimated 256 to 260 million 3G/4G devices at an estimated average selling price of approximately $220 to $226 per unit. Fiscal 2014
MSM chip shipments: 861 million units, up 20 percent y-o-y. Total reported device sales (September quarter through June quarter): approximately $243.6 billion, up 5 percent y-o-y. Includes an estimated 1,077 to 1,093 million 3G/4G devices at an estimated average selling price of approximately $222 to $228 per unit. 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 most recent annual report on file with the Securities and Exchange Commission (SEC) provides 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 financial outlook to the extent they are reasonably certain; however, actual results may differ materially from the outlook.
Our outlook for fiscal 2015 diluted earnings per share includes an estimate of the benefit related to stock repurchases that we plan to complete over the course of fiscal 2015 under our current stock repurchase program.
China continues to present significant opportunities for us, particularly with the rollout of 3G/4G LTE multimode, but also presents significant challenges, as our business practices continue to be the subject of an investigation by the China National Development and Reform Commission (NDRC). Please refer to our Annual Report on Form 10-K for the year ended September 28, 2014 filed with the SEC for our most recent disclosures regarding the NDRC investigation.
We also believe that certain licensees in China currently are not fully complying with their contractual obligations to report their sales of licensed products to us (which includes certain licensees underreporting a portion of their 3G/4G device sales and a dispute with a licensee) and that unlicensed companies may seek to delay execution of new licenses while the NDRC investigation is ongoing. We expect calendar year 2014 and 2015 global 3G/4G device shipments to be approximately 1.3 billion and 1.5 billion, respectively. However, our estimate of calendar year 2014 3G/4G device shipments that we currently expect to be reported to us is approximately 1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to us, are in dispute or are currently unlicensed. We have not provided a forecast for calendar year 2015 reported 3G/4G device shipments at this time. We are providing a guidance range for estimated 3G/4G total reported device sales that we currently expect to be reported to us in our fiscal 2015 (for sales by licensees in the September quarter of calendar 2014 through the June quarter of calendar 2015), which does not include sales that we believe may not be reported to us or may be in dispute but does include an estimate for some prior period activity that may be reported to us during fiscal 2015. We are taking steps to address these issues, although the outcome and timing of any resolutions are uncertain.
We have not included any estimates related to the proposed acquisition of CSR plc in our fiscal 2015 outlook. The acquisition is expected to close by the end of the summer of 2015. We expect the acquisition to be accretive to Non-GAAP earnings per share in fiscal 2016, the first full year of combined operations. |
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| To: The_Net who wrote (122672) | 11/5/2014 4:27:09 PM | | From: Jim Mullens | | | | the net, re: QCOM reports...............................................................
05 QCOM Misses Q4 EPS by 5 cents
FY15 guidance does not include potentially ~ 400 million devices 1.1 /1.5 or ~ 27% shortfall…if I’m reading this correctly.
…………………….FY14 …..FY15
EPS
Non- GAAP………5.27……..5.05- 5.35
GAAP …………….4.65…….4.33- 4.63
I’m assuming FY 15 Guidance potentially could be 36% (0.4 /1.1) higher for QTL which represents 65% of EBT
Snip>>>>>>>>
We expect calendar year 2014 and 2015 global 3G/4G device shipments to be approximately 1.3 billion and 1.5 billion, respectively. However, our estimate of calendar year 2014 3G/4G device shipments that we currently expect to be reported to us is approximately 1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to us, are in dispute or are currently unlicensed. We have not provided a forecast for calendar year 2015 reported 3G/4G device shipments at this time. We are providing a guidance range for estimated 3G/4G total reported device sales that we currently expect to be reported to us in our fiscal 2015 (for sales by licensees in the September quarter of calendar 2014 through the June quarter of calendar 2015), which does not include sales that we believe may not be reported to us or may be in dispute but does include an estimate for some prior period activity that may be reported to us during fiscal 2015. We are taking steps to address these issues, although the outcome and timing of any resolutions are uncertain.
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| From: hedgefund | 11/5/2014 4:36:06 PM | | | | | | | There have been so many Q stock price killers/extortionists in the past that I can't recall all of them but I was content to think China might be the last on them. But then I thought about space exploration and it occurred to me that there could be many more out there in the billions of planets we have yet to explore. Yes, there may be an endless number of buying opportunities lurking in outer space. Hf |
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| To: Humble who wrote (122675) | 11/5/2014 4:48:49 PM | | From: Jim Mullens | | | | Humble, re CY not FY
Thanks for the clarification.
Should then say on a CY basis, (If they gave CY) Guidance potentially could be 36% (0.4 /1.1) higher for QTL which represents 65% of EBT
>>>>>>>>>>>>>>>>>>>>>>>>>
FY15 guidance does not include potentially ~ 400 million devices 1.1 /1.5 or ~ 27% shortfall…if I’m reading this correctly.
…………………….FY14 …..FY15
EPS
Non- GAAP………5.27……..5.05- 5.35
GAAP …………….4.65…….4.33- 4.63
I’m assuming CY 15 Guidance potentially could be 36% (0.4 /1.1) higher for QTL which represents 65% of EBT |
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| To: Humble who wrote (122675) | 11/5/2014 5:18:12 PM | | From: Jim Mullens | | | | Humble, CY guidance ...
OK, now got it. Not providing CY 15 guidance at this time. Please disregard prior 2 posts.
Don't know if FY15 guidance includes or does not include revenues / expenses for China device sales in dispute.
Per Q&A- high end of guidance assumes "some" net income of items in dispute. Very confusing. |
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| To: B. A. Wayne who wrote (122678) | 11/5/2014 5:54:01 PM | | From: Art Bechhoefer | | | | "Any way Q can book the losses for tax purposes until they are recovered?" I doubt it. What seems to happen is that Q is now reporting lower QTL revenues and royalties, producing less taxable revenue. At some later point, if Q can collect the revenues owed from either companies not licensed or companies that are licensed but still aren't paying, the additional revenues will simply add to total taxable income. The discrepancy between what Qualcomm estimates as "global" versus "reported" revenues accounts for the wider range of guidance for the coming quarter and fiscal year.
Art |
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| From: gutboy09 | 11/5/2014 6:22:00 PM | | | | | | And now this too?
Qualcomm also said it faces a new probe by the European Commission about rebates and other financial incentives in the sale of its chips. Another preliminary investigation by the U.S. Federal Trade Commission concerns Qualcomm's licensing business, including a potential breach of licensing terms, the company said. |
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