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QCOM · QUALCOMM INC/DE

29 filings

10-K

QCOM 10-K Annual Reports

QUALCOMM INC/DE - 29 annual reports

Filing record · 2016–202610-K1010-Q338-K138

2025
QUALCOMM INC/DE Annual Report, Year Ended Sep 28, 2025
Qualcomm's fiscal 2025 (ended September 28, 2025) was a tale of two very different stories. Revenue grew 14% to $44.3 billion, driven by a 16% increase in QCT (semiconductor) revenue to $38.4 billion, led by higher handset ASPs and premium-tier Snapdragon mix, plus strong IoT and automotive growth. Operating income rose to $12.4 billion from $10.1 billion, and QTL licensing was roughly flat at $5.6 billion. However, GAAP net income fell 45% to $5.5 billion, almost entirely because of a $5.7 billion non-cash income tax charge to establish a valuation allowance against most federal deferred tax assets, following the OBBB tax legislation and Qualcomm's expectation of being perpetually subject to the corporate alternative minimum tax. Excluding this charge, earnings would have been meaningfully higher, though the effective tax rate was 56%. The filing also highlights structural risks investors should weigh. Management explicitly states that Apple will increasingly use its own modem, which it expects to have a significant negative impact on QCT revenues, and Chinese OEMs and U.S./China trade tensions add further concentration risk. Customer concentration remains high, with three customers each above 10% of revenue, and the Huawei export license revocation removed a meaningful revenue source. Gross margin slipped to 55% from 56%, and R&D spending was roughly flat, with R&D falling to 20% of revenue. Management is pursuing diversification into automotive, IoT and data center, and is pending the acquisition of Alphawave IP for approximately $2.4 billion, expected to close in calendar Q1 2026. Capital returns remained substantial: $12.6 billion was returned in fiscal 2025 through $8.8 billion of buybacks and $3.8 billion of dividends, with $7.2 billion remaining under the repurchase authorization. Operating cash flow rose to $14.0 billion. Cash and marketable securities of $12.5 billion (including $2.3 billion of restricted cash for Alphawave) compare with $14.8 billion of debt. The company also faces ongoing litigation, notably the Arm dispute over Nuvia-derived CPU designs (a final judgment in Qualcomm's favor was entered September 30, 2025, but Arm has appealed), and ParkerVision. Management expects a favorable cash tax impact in fiscal 2026 because domestic R&D expensing is permanently reinstated.
Nov 5, 2025
2024
QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 2024
QUALCOMM's fiscal 2024 (ended September 29, 2024, a 53-week year) was a strong year on the top and bottom lines. Revenue rose 9% to $39.0 billion and net income jumped 40% to $10.1 billion, with diluted EPS of $8.97 versus $6.42 a year earlier. Growth came mainly from QCT (semiconductors), where revenue rose 9% to $33.2 billion on higher handset chipset shipments as OEM inventories normalized, plus automotive growth of 56%. IoT revenue fell 9%, reflecting unfavorable product mix. QTL (licensing) revenue rose 5% to $5.6 billion, and segment EBT margin improved to 72%. Gross margin was flat at 56%, and R&D fell as a share of revenue to 23%. Operating income rose 29% to $10.1 billion, and investment income increased sharply on higher interest rates and gains on strategic investments.
Nov 6, 2024
2023
QUALCOMM INC/DE Annual Report, Year Ended Sep 24, 2023
QUALCOMM's fiscal 2023 10-K (year ended September 24, 2023) shows a sharp earnings downturn driven by a weak smartphone market and customer inventory drawdowns. Revenue fell 19% to $35.8 billion from $44.2 billion, and net income fell 44% to $7.2 billion from $12.9 billion. QCT (semiconductor) revenue dropped 19% to $30.4 billion, mainly from $7.9 billion lower chipset shipments to major OEMs, while QTL (licensing) revenue fell 17% to $5.3 billion. Gross margin compressed to 56% from 58%, and operating income dropped roughly 51% to $7.8 billion. Restructuring charges of $712 million and a $150 million IPR&D impairment, along with an unusually low 1% effective tax rate from FDII deductions, partly shaped the bottom line. The balance sheet and cash flow picture is more resilient. Operating cash flow rose to $11.3 billion, cash and marketable securities increased to $11.3 billion from $6.4 billion, and total debt was about $15.4 billion. Management returned $6.4 billion to shareholders through $3.0 billion in buybacks and $3.5 billion in dividends. Management expects consumer smartphone demand to decline again in calendar 2023 and warns that customer vertical integration (notably Apple and Samsung, and Chinese OEMs), U.S./China tensions, and the cash tax impact of R&D capitalization will weigh on results. For investors, the central questions are how quickly handset demand and customer inventories normalize, whether diversification into automotive and IoT can offset premium handset volatility, and whether licensing revenue holds up amid litigation and royalty challenges. Automotive revenue grew 24% to $1.9 billion, a bright spot, but IoT declined 19%, and the company's concentration in a few large customers remains a significant risk.
Nov 1, 2023
2022
QUALCOMM INC/DE Annual Report, Year Ended Sep 25, 2022
QUALCOMM's fiscal 2022 (ended September 25, 2022) was a strong year on the top and bottom lines but showed clear signs of a coming slowdown. Revenue rose 32% to $44.2 billion and net income rose 43% to $12.9 billion, with diluted EPS of $11.37. Growth was driven by QCT (semiconductor) revenue, up 39% to $37.7 billion, on higher average selling prices, a richer mix of premium 5G products, and strong IoT and automotive growth. Gross margin held flat at 58%, and operating income reached $15.9 billion. QTL licensing revenue was broadly stable at $6.4 billion, and QSI investment results swung to a $279 million EBT loss from a $916 million gain a year earlier. Management's outlook is more cautious. It expects continued macroeconomic weakness, elevated customer inventory that will weigh on chip purchases for the next couple of quarters, and a sharp drop in handset volumes for calendar 2022. Free cash flow also weakened: operating cash flow fell to $9.1 billion from $10.5 billion, reflecting $2.3 billion in advance payments to chip suppliers and higher working capital. Cash, equivalents and marketable securities fell to $6.4 billion from $12.4 billion, largely due to the $4.7 billion Veoneer acquisition, $3.2 billion in dividends and $3.1 billion in buybacks. Total debt is about $15 billion. The filing's most important risks are concentration and vertical integration. Apple and Samsung each accounted for at least 10% of revenue, and China generated $28.1 billion, about 64% of revenue. Apple is developing its own modem, and Chinese OEMs are pursuing domestic chip self-sufficiency. The licensing business also faces ongoing antitrust and royalty challenges worldwide. A positive one-time item was the June 2022 EU General Court annulment of the EC's €997 million fine, which added a $1.1 billion other-income benefit in fiscal 2022. Excluding that item, the operating picture is less flattering than the headline growth suggests.
Nov 2, 2022
2021
QUALCOMM INC/DE Annual Report, Year Ended Sep 26, 2021
QUALCOMM's fiscal 2021 10-K (fiscal year ended September 26, 2021) reflects a sharp rebound from the COVID-19 downturn. Revenues rose 43% to $33.6 billion from $23.5 billion, and net income rose 74% to $9.0 billion, or $7.87 diluted EPS. The growth was driven mainly by QCT (semiconductor) revenue, which increased 64% to $27.0 billion on stronger 5G handset demand, higher RFFE sales, and growth in automotive and IoT. QCT segment EBT margin improved to 29% from 17%. QTL licensing revenue grew 26% in segment terms to $6.3 billion, though total licensing revenue fell to $6.8 billion because fiscal 2020 included $1.8 billion of one-time Huawei settlement and license revenue. Gross margin declined to 58% from 61%, largely for that Huawei-related reason and a mix shift away from higher-margin licensing. The balance sheet strengthened, with cash and marketable securities of $12.4 billion and operating cash flow of $10.5 billion. Total debt is about $15.5 billion in principal. Management returned $6.4 billion to shareholders through $3.4 billion of buybacks and $3.0 billion of dividends. Capital intensity is rising: capex was $1.9 billion, and the company has $23.5 billion of purchase obligations, mainly multi-year foundry capacity commitments, $12.9 billion of which is due within 12 months. Investors should weigh the strong earnings momentum against a heavy concentration in a few customers (Apple, Samsung, Xiaomi each at 10% or more of revenue, and heavy exposure to China), ongoing vertical integration by large customers, active antitrust and royalty litigation, and the pending $4.5 billion Veoneer/Arriver acquisition announced in October 2021.
Nov 3, 2021
2020
QUALCOMM INC/DE Annual Report, Year Ended Sep 27, 2020
QUALCOMM's fiscal 2020 10-K (fiscal year ended September 27, 2020) shows revenue of $23.5 billion, down 3% from $24.3 billion, while net income rose 19% to $5.2 billion, helped by a $1.8 billion one-time revenue recognition from the Huawei settlement and new license agreement. Excluding that settlement, the year reflects a COVID-19 demand headwind for smartphones and related devices, partly offset by a 5G-driven mix shift in QCT, where revenue grew to $16.5 billion and segment EBT margin improved to 17%. QTL licensing revenue excluding unallocated items was $5.0 billion, with EBT margin of 68%, though total licensing revenue fell to $7.2 billion from $9.7 billion because fiscal 2019 included a $4.7 billion Apple settlement. The filing also highlights ongoing regulatory exposure. The Ninth Circuit reversed the FTC antitrust judgment in August 2020, which is a significant positive for the licensing model, although the FTC petitioned for rehearing en banc and that petition was denied in October 2020. Several other matters remain open, including EC fines of roughly $1.5 billion accrued (under appeal), a new EC investigation into RFFE practices, a new KFTC investigation, and consumer class actions. Management states that losses are reasonably possible but not probable for most of these, so no further accruals were recorded beyond the EC fines. Capital returns continued with $2.9 billion in dividends and $2.4 billion in buybacks, and the company expects to resume repurchases in fiscal 2021. Long-term debt is about $15.5 billion in principal, and cash, cash equivalents and marketable securities totaled $11.2 billion. Investors should weigh the strength of the 5G ramp and licensing reversals against customer concentration (Apple, Chinese OEMs), China and U.S.-China trade exposure, the risk that customers vertically integrate their own modems, and the $405 million of investment impairments, which include OneWeb.
Nov 4, 2020
2019
QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 2019
QUALCOMM's fiscal 2019 (ended September 29, 2019) was a year of two sharply different halves. Reported revenue rose 7% to $24.3 billion and net income swung to $4.4 billion from a $5.0 billion loss in fiscal 2018. That headline recovery is largely driven by a one-time $4.7 billion licensing settlement with Apple and its contract manufacturers, recognized in Q3. Underneath, the core business weakened: QCT (chip) revenue fell 15% to $14.6 billion on lower modem sales to Apple and softer demand from Chinese OEMs, and QTL (licensing) royalties fell 9% to $4.6 billion. Operating income of $7.7 billion is inflated by the settlement, and income tax expense of $3.1 billion includes a $2.5 billion non-cash charge tied to derecognizing a deferred tax asset. The filing also highlights significant forward risks. The FTC lawsuit produced a May 2019 ruling against the company, with injunctive relief partly stayed by the Ninth Circuit pending appeal. The EC fined the company about 242 million euros over predatory pricing claims, and roughly $1.4 billion in EC fines is accrued and under appeal. A second interim agreement with Huawei ended without a final license deal, so no Huawei royalties were recognized in Q4. Management expects smartphone unit demand to remain weak into calendar 2020 as replacement cycles lengthen during the 5G transition, and it noted that Apple now uses a competitor's modem in its latest iPhone, with new chipset revenue from Apple not expected until the second half of fiscal 2020. Capital allocation remains aggressive. The company returned about $4.8 billion to shareholders in fiscal 2019 through buybacks and dividends, paid down debt, and kept $12.3 billion in cash and marketable securities. Total stockholders' equity fell to $4.9 billion from $0.8 billion a year earlier, reflecting the large repurchase program authorized in 2018. Investors should therefore weigh the reported earnings rebound against the one-time nature of the Apple settlement, ongoing regulatory exposure to the licensing model, and the cyclical pressure on chip volumes.
Nov 6, 2019
2018
QUALCOMM INC/DE Annual Report, Year Ended Sep 30, 2018
QUALCOMM's fiscal 2018 10-K (fiscal year ended September 30, 2018, a 53-week year) shows a sharp swing to a net loss of $4.9 billion, versus net income of $2.5 billion in fiscal 2017, even though revenue rose 2% to $22.7 billion. The loss is driven mainly by a one-time $5.7 billion income tax charge from U.S. tax reform (the Toll Charge plus deferred tax remeasurement), a $2.0 billion NXP termination fee, a $1.2 billion European Commission fine, and $629 million in Cost Plan restructuring charges. Operating income fell to $742 million from $2.6 billion, and gross margin slipped to 55%. Excluding one-time items, the core businesses look steadier: QCT revenue grew 5% on higher China OEM demand and RF360 contributions, while QTL licensing revenue fell 20% to $5.2 billion because royalties from Apple's contract manufacturers stopped being recorded and another licensee is in dispute. The balance sheet and capital allocation changed dramatically. Cash and marketable securities dropped 69% to $12.1 billion after a $30 billion buyback authorization, including a $16.0 billion accelerated share repurchase and a $5.1 billion tender offer, along with $5.5 billion in debt repayment. Total stockholders' equity fell to $928 million from $30.7 billion, and long-term debt is $15.4 billion. Management expects a $1 billion annual cost reduction to be fully realized in fiscal 2019, and the company faces a $2.5 billion Toll Charge payment schedule and an upcoming change in revenue recognition (ASC 606) that will accelerate royalty recognition. The main risks for investors are the ongoing Apple dispute, which has cut off royalty revenue and modem sales, the antitrust and patent-licensing investigations in multiple jurisdictions (including the FTC case and the Chinese and European proceedings), customer concentration in Chinese OEMs and Samsung, and the company's shift toward 5G and adjacent markets such as automotive and IoT. Management says 5G commercial launches are expected in calendar 2019.
Nov 7, 2018
2017
QUALCOMM INC/DE Annual Report, Year Ended Sep 24, 2017
QUALCOMM's fiscal 2017 10-K (year ended September 24, 2017) shows a company under significant financial and legal pressure. Revenue fell 5% to $22.3 billion and net income attributable to Qualcomm dropped 57% to $2.5 billion, reflecting lower licensing revenue (down 30% to $5.6 billion) and a $940 million BlackBerry arbitration payment recorded as a revenue reduction. Operating income fell to $2.6 billion from $6.5 billion, weighed down by a $927 million Korean Fair Trade Commission fine and a $778 million Taiwan Fair Trade Commission fine. Diluted EPS was $1.65 versus $3.81 a year earlier. QTL licensing was hurt by Apple's contract manufacturers underpaying royalties and another licensee's non-payment, while QCT revenue rose 7% to $16.5 billion on RF360 Holdings and adjacent-market growth, partially offset by reduced Apple modem share. The balance sheet changed materially. Cash, equivalents and marketable securities rose to $38.6 billion, but this was largely funded by $11.0 billion of new notes issued in May 2017, which lifted long-term debt to $19.4 billion. These proceeds and cash are earmarked for the pending $38 billion NXP Semiconductors acquisition, which management now expects to close by the end of calendar 2017 or in early 2018. The deal carries a $2.0 billion reverse termination fee exposure and a $1.25 billion fee payable to Qualcomm if NXP terminates. Days sales outstanding rose to 56 from 33, driven by unpaid Apple-related royalties. The filing also details a heavy and growing litigation and regulatory docket, including Apple's lawsuits in the U.S., China, UK, Japan and Taiwan, the FTC antitrust suit (trial set for January 2019), EU Commission investigations, and consumer and securities class actions. Management states that, other than the TFTC fine, no loss accrual is recorded because losses, while possible, are not probable. The company continued its quarterly dividend, raising it to $0.57 per share, and repurchased $1.3 billion of stock during the year.
Nov 1, 2017
2016
QUALCOMM INC/DE Annual Report, Year Ended Sep 25, 2016
QUALCOMM's fiscal 2016 10-K (year ended September 25, 2016) shows a company under pressure in its core chip business but with a strong licensing franchise and a large pending acquisition. Revenue fell 7% to $23.6 billion, while net income attributable to Qualcomm rose 8% to $5.7 billion, helped by a $380 million gain on the sale of wireless spectrum, lower R&D spending, and a lower effective tax rate of 17%. QCT (chipsets) revenue declined 10% to $15.4 billion, with EBT margin compressing to 12% from 14%, reflecting share loss among premium-tier customers, a weaker position at large customers, and competition in China. QTL (licensing) revenue fell 4% to $7.7 billion, but its EBT margin remained very high at 85%, and the company continues to report under-reporting and disputes with some licensees, especially in China. The dominant event for investors is the October 27, 2016 agreement to acquire NXP Semiconductors for $110 per share in cash, an estimated $38 billion. Qualcomm secured $13.6 billion of committed financing and plans to fund the deal with offshore cash and new debt, which will consume a substantial portion of its $32.4 billion in cash and marketable securities and sharply raise leverage from the current $11.8 billion of total debt. The filing identifies a $2.0 billion reverse termination fee if the deal fails on regulatory grounds, and it notes that the company expects to sell much of its marketable securities portfolio before closing, which may produce losses. The company also faces a large set of antitrust and regulatory matters in the EU, Korea, Japan, the U.S. FTC, and China, along with ParkerVision and Meizu litigation. Capital returns remain significant: $6.9 billion was returned in fiscal 2016 through buybacks and dividends, the quarterly dividend was raised to $0.53 per share, and $3.0 billion remains under the repurchase authorization. Management says future buybacks will focus on offsetting dilution rather than large-scale repurchases while the NXP deal is pending. Investors will need to weigh the near-term strain on the balance sheet and the pressure on the chip franchise against the durability of the licensing business and the strategic logic of expanding into automotive, IoT, and RF front-end products.
Nov 2, 2016
2015
QUALCOMM INC/DE Annual Report, Year Ended Sep 27, 2015
QUALCOMM's fiscal 2015 (ended September 27, 2015) was a year of margin compression and heavy capital return. Revenue fell 5% to $25.3 billion and net income attributable to Qualcomm fell 34% to $5.3 billion, with diluted EPS of $3.22 versus $4.65 in fiscal 2014. The decline was concentrated in QCT (chipsets), where revenue dropped 8% to $17.2 billion and segment EBT margin fell from 20% to 14%, driven by share shifts among premium-tier customers, a share decline at a large customer, and competitive pressure in China. QTL (licensing) was the profit engine: revenue rose 5% to $7.9 billion and EBT margin held at 87%, though licensee underreporting in China remains an open issue. The year also included several one-time and strategic items. Qualcomm paid a $975 million fine to China's NDRC, took $1.3 billion in other expenses (including the fine, goodwill impairments, and $190 million in restructuring charges), and announced a Strategic Realignment Plan targeting about $1.1 billion in annual cost reductions by the end of fiscal 2016, plus a roughly 15% workforce reduction. It also closed the $2.3 billion cash acquisition of CSR plc in August 2015. Management guided that QCT results would remain pressured into fiscal 2016. For capital allocation, Qualcomm returned $14.1 billion to stockholders in fiscal 2015, including $11.2 billion of buybacks (including $5.0 billion of accelerated share repurchases) and $2.9 billion of dividends. This was funded in part by a $10 billion bond issuance and $1.0 billion of commercial paper. Shares outstanding fell 9% to 1.52 billion, cash and marketable securities declined to $30.9 billion, and total debt rose to about $11.0 billion. Management reaffirmed a commitment to return at least 75% of free cash flow, and the dividend was raised to $0.48 per quarter. Operating cash flow fell 38% to $5.5 billion, and the return of capital equaled 313% of free cash flow, which makes the pace of buybacks and dividends a key area for investors to monitor.
Nov 4, 2015
2014
QUALCOMM INC/DE Annual Report, Year Ended Sep 28, 2014
QUALCOMM's fiscal 2014 (ended September 28, 2014) was a strong year on the top and bottom line. Revenues rose 7% to $26.5 billion and net income attributable to Qualcomm rose 16% to $8.0 billion, with diluted EPS of $4.65. Growth was driven by QCT (Qualcomm CDMA Technologies), whose revenues increased 12% to $18.7 billion on higher MSM chip shipments (approximately 861 million units, up 20%), largely from 4G LTE adoption in China. QTL (licensing) revenues were flat at $7.6 billion, and reported licensee device sales rose about 5% to $243.6 billion. Operating income increased 4% to $7.55 billion, though QCT gross margin compressed on lower average selling prices and product mix, and the company took $607 million of impairment charges on its QMT display unit as it shifts to an IP licensing model. The main investor concerns are regulatory and legal rather than financial. The China NDRC antitrust investigation is ongoing, and the company has stated that a loss there is probable but cannot yet be estimated. Other open matters include an SEC FCPA enforcement recommendation (Wells Notice), a European Commission investigation into baseband chip pricing and rebates, an FTC investigation of FRAND licensing practices, and a Japanese cease-and-desist order. Management also flagged that some Chinese licensees are underreporting royalty-bearing device sales. Capital return remained strong: $7.1 billion (93% of free cash flow) was returned through buybacks and dividends, and the quarterly dividend was raised to $0.42. The pending $2.5 billion CSR acquisition, expected to close in summer 2015, adds automotive and IoT exposure. Overall, the filing shows a profitable, cash-rich company (cash and marketable securities of $32.0 billion) whose growth depends on continued 4G/LTE migration in China and on defending its licensing model against regulators and litigants.
Nov 5, 2014
2013
QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 2013
QUALCOMM's fiscal 2013 10-K (fiscal year ended September 29, 2013) shows a business at a high point of growth. Revenue rose about 30% to $24.9 billion from $19.1 billion, and net income attributable to Qualcomm rose about 12% to $6.9 billion, or $3.91 diluted EPS. Growth was driven by QCT (chips), whose revenue grew 38% to $16.7 billion as MSM shipments reached about 716 million units (up 21%). QCT margins compressed, however: segment EBT as a percentage of revenue stayed flat at about 19%, and gross margin declined on lower average selling prices and unfavorable product mix. QTL (licensing) remains the high-margin engine, earning $6.6 billion of EBT on $7.6 billion of revenue, roughly 87% margin, and benefiting from CDMA device growth. Licensing still represents 30% of revenue, down from 33% a year earlier, because chip revenue is growing faster. Capital returns were substantial. Qualcomm repurchased $4.6 billion of stock, paid $2.1 billion in dividends, and raised the quarterly dividend 40% to $0.35 per share. About $4.9 billion remained under a new $5.0 billion buyback authorization, with at least $4 billion of repurchases planned for fiscal 2014. Cash and marketable securities totaled $29.4 billion. Operating cash flow rose to $8.8 billion from $6.0 billion. Key risks are concentration and legal exposure. Samsung and the Apple supplier group (Foxconn/Hon Hai) together accounted for 43% of consolidated revenue. China alone represented 49% of revenue. A $173 million ParkerVision patent verdict was recorded as a charge, and several antitrust and regulatory matters remain open in the EU, Korea, and Japan, along with SEC and DOJ FCPA investigations. Management also flagged R&D rising to $5.0 billion, a 27% increase, which weighs on near-term margins as the company pursues new segments such as small cells, IMOD display, and the Internet of Everything.
Nov 6, 2013
2012
QUALCOMM INC/DE Annual Report, Year Ended Sep 30, 2012
QUALCOMM's fiscal 2012 (53 weeks ended September 30, 2012) was a record year: revenues rose 28% to $19.1 billion and net income attributable to Qualcomm reached $6.1 billion, up from $4.3 billion, though the net income figure includes a $776 million benefit from discontinued operations, mainly a $1.2 billion pre-tax gain on the sale of 700 MHz spectrum for $1.9 billion. Continuing-operations income was $5.3 billion, up 16%. Growth was driven by the QCT chipset segment, whose revenue rose 37% to $12.1 billion on roughly 590 million MSM shipments (up 22%), and by QTL licensing, which rose 17% to $6.3 billion on higher CDMA device sales. Reported 3G/4G device sales reached about $187 billion, up 25%, and China, South Korea and Taiwan together accounted for 78% of revenue. The balance sheet strengthened materially, with cash, cash equivalents and marketable securities of $26.8 billion and total equity of $33.5 billion. Management returned capital through $1.3 billion of buybacks and $1.6 billion of dividends, and raised the quarterly dividend to $0.25. Cash from operations was $6.0 billion. Offsetting these strengths are heavy spending, with R&D up 31% to $3.9 billion, a 28-nanometer supply shortfall that constrained fiscal 2012 shipments, and a more concentrated customer base in which Samsung and Hon Hai/Foxconn (Apple supply chain) each exceeded 10% of revenue. Investors should also weigh a sizable set of legal and regulatory matters, including patent suits (Tessera, MicroUnity, MOSAID, ParkerVision), antitrust proceedings in Europe, Korea and Japan, and an SEC and DOJ investigation under the FCPA concerning benefits provided to individuals at Chinese state-owned companies. The company has not accrued for these matters because it considers losses possible but not probable. Also noted is the QMT display unit, which still lacks operating income and carries $1.2 billion of assets, and an India BWA spectrum venture with roughly $1.1 billion of loans and debentures classified as held for sale.
Nov 7, 2012
2011
QUALCOMM INC/DE Annual Report, Year Ended Sep 25, 2011
QUALCOMM's fiscal 2011 10-K (fiscal year ended September 25, 2011) shows a company at a financial high point: revenues rose 36% to $14.96 billion, operating income grew 35% to $5.03 billion, and net income attributable to Qualcomm reached $4.26 billion ($2.52 diluted EPS). Growth was driven by the 3G/CDMA device cycle, with 483 million MSM chip shipments (up 21%), estimated CDMA-based handset unit growth of 28%, and a $1.76 billion increase in QTL licensing revenue that included a $401 million catch-up from settled licensee disputes. QTL, the licensing segment, earned a remarkable 88% operating margin, and the company's cash, cash equivalents and marketable securities reached $20.9 billion. The filing also flags several items that investors should weigh. The Atheros acquisition ($3.1 billion net cash, closed May 2011) expanded QCT into WLAN and networking, and the company recorded a $114 million goodwill impairment on its Firethorn/SWAGG mobile commerce unit after weak consumer adoption. The FLO TV business was shut down in March 2011, with the 700 MHz spectrum sale to AT&T ($1.9 billion, pending FCC approval) expected to produce a roughly $1.2 billion gain. Management disclosed a $994 million India BWA spectrum position whose licenses were rejected by the Indian DoT in September 2011, and it is being contested before the TDSAT, with bank waivers in place only through April 2012. Ongoing regulatory and legal matters include an SEC formal investigation, European Commission and Japan Fair Trade Commission proceedings, and several patent suits. Concentration and structural risks remain significant. Revenue is highly dependent on a few customers (two customers each represented 13% of fiscal 2011 revenue), and China, South Korea, Taiwan and Japan together generated about 76% of revenue. QCT is fabless and relies on third-party foundries and assemblers, and the company's licensing model faces continuing challenges from some licensees, regulators and standards-related policy proposals. Management intends to keep paying quarterly dividends ($0.215 per share, up from $0.19) and to continue repurchasing shares, with about $1.0 billion of authorization remaining.
Nov 2, 2011
2010
QUALCOMM INC/DE Annual Report, Year Ended Sep 26, 2010
QUALCOMM's fiscal 2010 10-K (fiscal year ended September 26, 2010) shows a company whose revenue base is split between a chipset business (QCT) and a high-margin patent licensing business (QTL). Total revenue rose about 5.5% to $10.99 billion from $10.42 billion, and net income more than doubled to $3.25 billion from $1.59 billion. That jump was helped by the absence of fiscal 2009's $783 million Broadcom settlement charge and $230 million Korean fine, and by a swing in investment income from a $150 million loss to $751 million of income. Operating income rose to $3.28 billion from $2.23 billion, with QCT contributing $1.69 billion of pre-tax earnings and QTL $3.02 billion. The filing points to strong volume growth alongside pressure on pricing and rising costs. QCT shipped about 399 million MSM chips, up 26%, but its gross margin benefited from lower unit costs rather than higher prices. Research and development spending reached $2.55 billion, or 23% of revenue, and management expects heavy continued investment. The company is also exiting the FLO TV mobile broadcast service, with restructuring charges of $125–175 million expected in fiscal 2011, and it is taking on a $1.1 billion Indian-rupee bank loan to fund a BWA spectrum license it won in India. Cash, equivalents and marketable securities total $18.4 billion, but $12.1 billion of that is held by foreign subsidiaries, which matters for capital returns because the domestic cash must also cover a $1.4 billion Nokia-related tax payment. Investors should weigh the company's dominant CDMA patent position and cash generation against several overhangs: multiple antitrust proceedings in Korea, Japan and the European Commission, the Panasonic royalty arbitration (for which revenue recognition has been deferred), an SEC formal investigation opened in September 2010, and the Tessera ITC matter. Management says it does not expect these to be material, though the company has not recorded accruals for most of them.
Nov 3, 2010
2009-A
QUALCOMM INC/DE Annual Report (Amendment), Year Ended Sep 27, 2009
QUALCOMM Incorporated (QCOM) is filing an amendment (10-K/A) to its annual report for the fiscal year ended September 27, 2009. The primary purpose of this amendment is to furnish Schedule II, "Valuation and Qualifying Accounts," which was inadvertently omitted from the original interactive data submission. This filing does not introduce new financial performance information but rather corrects a procedural omission related to XBRL tagging.
Dec 22, 2009
2009
QUALCOMM INC/DE Annual Report, Year Ended Sep 27, 2009
QUALCOMM's fiscal 2009 10-K (fiscal year ended September 27, 2009) shows a company whose revenue fell 6.5% to $10.4 billion from $11.1 billion, while net income dropped roughly 50% to $1.6 billion from $3.2 billion. The decline was driven by a 6% drop in MSM chip shipments (317 million units), a $783 million charge tied to the Broadcom settlement, a $230 million accrual for the Korea Fair Trade Commission fine, and $743 million in net other-than-temporary impairment losses on marketable securities. Operating income fell 40% to $2.2 billion. Despite the earnings pressure, cash, cash equivalents and marketable securities rose to $17.7 billion, and operating cash flow nearly doubled to $7.2 billion, helped by collection of a $2.5 billion licensing receivable. The business mix remains concentrated and international. QCT (chips) contributed 59% of revenue and QTL (licensing) 35%, with QTL earning an 85% operating margin versus about 23% for QCT. Revenue from South Korea, China and Japan made up 69% of the total, and the four largest customers accounted for 49%. Management highlighted growth in CDMA device shipments (about 492 million units, up 14%) and 3G subscriber growth, but flagged significant regulatory risk: a Japan Fair Trade Commission cease-and-desist order, the pending European Commission investigation, and an ITC exclusion order affecting certain chip packages. For investors, the central questions are whether the licensing franchise can absorb rising legal and regulatory pressure, how quickly the chip business recovers from the 2009 inventory correction, and whether heavy R&D spending (about $2.4 billion) will translate into LTE and OFDMA revenue. The company also continued returning capital through $1.1 billion in dividends, $285 million in buybacks, and $1.7 billion remaining under its repurchase authorization.
Nov 5, 2009
2008
QUALCOMM INC/DE Annual Report, Year Ended Sep 28, 2008
QUALCOMM's fiscal 2008 10-K (fiscal year ended September 28, 2008) shows a company at a financial high point, with revenue up 26% to $11.14 billion and net income of $3.16 billion, or $1.90 per diluted share. Growth was driven by strong CDMA device volumes (about 433 million CDMA-based units shipped, up 28%) and WCDMA adoption. Operating income rose 29% to $3.73 billion, and licensing and royalty revenue reached $3.98 billion. Results were lifted by a $560 million recognition related to the new Nokia license and settlement agreement, which also produced a $2.5 billion upfront payment (received in October 2008) and $3.9 billion of unearned revenue to be recognized over roughly 14 years. Net income was held back by $502 million of other-than-temporary impairment losses on marketable securities, and investment income fell sharply to $96 million from $743 million. The balance sheet strengthened, with total assets of $24.6 billion and stockholders' equity of $17.9 billion, although cash and marketable securities declined slightly to $11.3 billion. Unrealized losses on the securities portfolio widened to roughly $1.3 billion by October 31, 2008, reflecting the credit market disruption, and management characterizes these as temporary. The company repurchased $1.7 billion of stock, paid $982 million in dividends, and raised the quarterly dividend to $0.16. A new $2.0 billion repurchase authorization was in place with no shares bought under it by year-end. The main investor concerns are legal and regulatory. Broadcom litigation includes an ITC exclusion order and contempt proceedings, and the European Commission, Korea Fair Trade Commission, and Japan Fair Trade Commission are all investigating QUALCOMM's licensing practices. Concentration is also high: two customers, LG Electronics and Samsung, together represented 30% of revenue, and South Korea, China, and Japan supplied 70% of revenue. Management has not recorded accruals for most of these matters, so an adverse outcome could materially affect results.
Nov 6, 2008
2007
QUALCOMM INC/DE Annual Report, Year Ended Sep 30, 2007
QUALCOMM's fiscal 2007 10-K (52-53 week year ended September 30, 2007, which included 53 weeks) reports record results: revenues of $8.87 billion (up 18% from $7.53 billion), operating income of $2.88 billion, and net income of $3.30 billion, or $1.95 per diluted share, versus $2.47 billion in fiscal 2006. Revenue is split across QCT chipsets ($5.28 billion, 59% of total), QTL licensing and royalties ($2.77 billion segment revenue, about 31% of total), and QWI services and other businesses. Net income was lifted by a $331 million tax benefit from closing IRS audits, which pushed the effective tax rate down to 9%. Cash, cash equivalents and marketable securities reached $11.8 billion, and the company returned capital through $1.5 billion of buybacks and $862 million of dividends. The filing also flags material risk. Royalty revenue is under pressure from the Nokia dispute, where QUALCOMM is not recording royalties on Nokia sales after April 9, 2007 pending arbitration. Broadcom litigation includes an ITC exclusion order, with a stay in place, and a jury verdict of about $20 million that has been expensed. The European Commission, Korea Fair Trade Commission and Japan Fair Trade Commission are all reviewing QUALCOMM's licensing practices. Three customers accounted for 41% of revenue, and 87% of revenue came from international customers, concentrated in South Korea, China and Japan. For investors, the central question is whether the licensing model holds up. Fiscal 2007 shows strong growth in CDMA handset shipments (338 million units, up 34%) and 3G subscriber growth to about 530 million. Those gains depend on continued 3G deployments, the outcome of the antitrust reviews, and the resolution of the Nokia and Broadcom disputes, all of which remain open at filing.
Nov 8, 2007
2006
QUALCOMM INC/DE Annual Report, Year Ended Sep 24, 2006
QUALCOMM's fiscal 2006 10-K (year ended September 24, 2006) shows a company at a high point in financial performance. Revenue rose 33% to $7.53 billion from $5.67 billion, and net income climbed 15% to $2.47 billion, or $1.44 diluted EPS. Growth was driven by the QTL licensing segment, where royalty reports rose $774 million to $2.42 billion, and by the QCT chip business, which shipped about 207 million MSM chips, up 37%. QTL carried a roughly 91% operating margin and accounted for about 35% of revenue, which underscores how much earnings depend on CDMA royalty streams. Cash and marketable securities reached $9.9 billion, and the company returned capital through $1.5 billion of buybacks and $698 million of dividends. The filing also flags material risks that investors should weigh. Three customers (LG, Motorola, Samsung) represent a significant share of QCT revenue, and the top three customers together accounted for 39% of consolidated revenue. Nokia's license expires in part on April 9, 2007. If no extension is reached, Nokia's royalty payments would stop, and the company has stated that it cannot record royalty revenue on Nokia's sales until a dispute is resolved. The company also faces multiple antitrust complaints in Europe and Korea, and an ongoing patent and litigation campaign against Broadcom and Nokia. Management has recorded no accrual for these matters, calling a loss possible but not probable. Forward-looking items include the Flarion OFDMA acquisition, now part of the business at a total cost of about $810 million including milestone payments, and the MediaFLO USA nationwide multicast network, which has Verizon Wireless as a planned launch partner in early 2007. Both are early-stage and carry execution risk. Operating expenses are rising sharply, with R&D at $1.54 billion, up about 52%, and share-based compensation of $495 million following the FAS 123R adoption. The company is also expanding its San Diego facilities by roughly 800,000 square feet. Investors should evaluate whether the core licensing franchise can sustain its growth while these investments mature.
Nov 2, 2006
2005
QUALCOMM INC/DE Annual Report, Year Ended Sep 25, 2005
QUALCOMM's fiscal 2005 10-K (fiscal year ended September 25, 2005) reports record results: revenues of $5.67 billion (up 16% from $4.88 billion) and net income of $2.14 billion (up 25%), with diluted EPS of $1.26. Growth was driven mainly by licensing and royalty revenue, which rose to $1.93 billion from $1.37 billion as royalties reported by external licensees reached $1.64 billion, boosted by WCDMA sales growth. QCT (chips) revenue grew to $3.29 billion on roughly 151 million MSM shipments, but its operating margin fell to 26% from 34% as R&D rose 40% to $1.01 billion. QTL, the high-margin licensing segment, earned about 90% operating margins and accounted for much of the profit. The balance sheet is strong, with $8.7 billion in cash and marketable securities, no long-term debt, and $11.1 billion in stockholders' equity. The company repurchased $953 million of stock under a new $2 billion authorization, paid $524 million in dividends (raised to $0.09 per quarter), and announced the roughly $545 million Flarion OFDMA acquisition. Investors should weigh the concentration of revenue in a few customers (LG, Samsung, Motorola at 39% of revenue combined) and in South Korea and Japan (58% of revenue), plus a growing docket of litigation, including suits from Broadcom and a European Commission complaint over WCDMA licensing practices. Management also flagged that adopting FAS 123R in fiscal 2006 is expected to add roughly $394 million in unamortized option expense. The main forward-looking question is whether 3G CDMA2000 and WCDMA deployments keep growing fast enough to sustain royalty growth, given competition from GSM/GPRS/EDGE, intensifying chip-market pricing pressure, and rising R&D spending that compresses chip margins.
Nov 2, 2005
2004
QUALCOMM INC/DE Annual Report, Year Ended Sep 26, 2004
QUALCOMM's fiscal 2004 10-K (year ended September 30, 2004) shows a company at a financial high point, with revenues of $4.88 billion (up 27% from $3.85 billion) and net income of $1.72 billion (diluted EPS $1.03, up from $0.51). Growth was driven by record shipments of about 137 million MSM chips and strong royalty income from CDMA licensees, with WCDMA and 1xEV-DO adoption accelerating. Operating income rose to $2.13 billion, and cash plus marketable securities reached $7.6 billion, supporting a dividend that was raised twice during the year to $0.07 per quarter. Investors should weigh several items. Royalty accounting changed in Q4 fiscal 2004: QUALCOMM stopped estimating royalties and now recognizes them only when licensees report them. This one-time change reduced reported royalty revenue, and the reported figures are not fully comparable with prior years. Customer concentration is high, with Samsung, LG and Motorola making up a large share of revenue, and supply constraints limited the company's ability to meet some customer demand. Strategic investments in CDMA operators and Inquam remain risky, though the sale of the Brazilian Vésper operations and the Pegaso prepayment improved the cash position. Management also announced MediaFLO USA, a roughly $800 million, four-to-five-year commitment to build a nationwide mediacast network. Litigation is extensive, including the Zoltar patent case that QUALCOMM won, the ongoing Texas Instruments and Conexant/Skyworks/Maxim matters, and former-employee stock option suits. The company has not accrued for these contingencies, and management believes they are without merit. Looking ahead, management expects continued growth in WCDMA and CDMA2000 and is investing heavily in R&D, which reached $720 million, or 15% of revenue.
Nov 3, 2004
2003
QUALCOMM INC/DE Annual Report, Year Ended Sep 28, 2003
QUALCOMM's fiscal 2003 10-K (fiscal year ended September 28, 2003, presented as September 30) shows a company at a strong inflection point. Revenue rose 31% to $3.97 billion from $3.04 billion, operating income more than doubled to $1.31 billion from $673 million, and net income reached $827 million, or $1.01 diluted EPS, versus $360 million ($0.44) a year earlier. The growth was driven mainly by QCT, the chipset business, whose revenue climbed 52% to $2.42 billion on higher MSM chip shipments (about 99 million units versus 65 million), and by QTL royalty revenue, which rose to $838 million from $725 million. Cash, cash equivalents and marketable securities reached $5.4 billion, and the company initiated its first quarterly dividend ($0.05, raised to $0.07 in July 2003) and a $1 billion, two-year buyback authorization. The main investor considerations are concentration and strategic exposure. Four customers accounted for 51% of consolidated revenue, South Korea alone for 43%, and Samsung, LG, Motorola and Kyocera are major accounts. Management notes that a significant share of 3G growth depends on CDMA2000 1X and 1xEV-DO deployments, while WCDMA and GSM competition is intensifying. The QSI segment remains a drag: it posted a $448 million pre-tax loss, driven by Vésper, the Brazilian carrier that is being sold to Embratel for nominal consideration and carries a $160 million impairment plus an expected $35 to $45 million loss on disposal, and by investment write-downs including KTF and Inquam. Finance receivables from Pegaso were largely repaid during the year, reducing that credit exposure. Litigation is ongoing, including the Zoltar patent case with trial set for February 2004 and a dispute with Texas Instruments. The effective tax rate was about 36%, and the valuation allowance reversal of roughly $1.1 billion was credited to equity rather than to earnings.
Nov 5, 2003
2002
QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 2002
QUALCOMM's fiscal 2002 10-K (fiscal year ended September 30, 2002) shows a strong operating recovery from fiscal 2001, which included a $518 million asset impairment tied to Globalstar. Revenue rose 13% to $3.04 billion from $2.68 billion, operating income rose to $673 million from $39 million, and net income swung to $360 million ($0.44 diluted EPS) from a $578 million loss. Growth was driven by the QCT chipset business (MSM shipments of about 65 million, with a richer mix toward CDMA2000 1X devices) and by royalty revenue at QTL, which carries an operating margin of roughly 89%. QTL revenue of $847 million at that margin is the highest-quality earnings stream in the company. The balance sheet is strong, with $3.18 billion in cash and marketable securities and stockholders' equity of $5.39 billion. The main investor concern is the Qualcomm Strategic Initiatives (QSI) segment, which posted a pre-tax loss of $507 million. That loss reflects consolidation of the Brazilian carrier Vésper Holding, equity losses in Inquam, and $180 million of other-than-temporary losses on Leap Wireless securities. Management flags continuing funding needs for Vésper and Inquam, substantial financing exposure to CDMA carriers (including a Pegaso bridge loan that was repaid in November 2002 after a Telefónica acquisition), and a $125 million Leap Wireless credit commitment that appears unlikely to be drawn. Concentration risk is significant. Three customers (Samsung, Kyocera and LG) accounted for 41% of fiscal 2002 revenue, and South Korea and Japan together accounted for 55%. The company also faces ongoing litigation, though none of the cases has an accrual recorded.
Nov 26, 2002
2001
QUALCOMM INC/DE Annual Report, Year Ended Sep 30, 2001
QUALCOMM Incorporated's fiscal year 2001 filing reflects a company at a pivotal moment, navigating the transition to third-generation (3G) wireless technologies amidst a challenging global economic climate. While revenues saw a decline compared to the prior year, this was partly attributed to the divestiture of the consumer phone business and the adoption of new accounting standards. However, the company demonstrated resilience with growth in its core CDMA Technologies (QCT) segment due to increased shipments of integrated circuits and infrastructure products, and a notable rise in Technology Licensing (QTL) revenues driven by global demand for CDMA technology. Significant investments were made in research and development to maintain leadership in evolving wireless standards like CDMA2000 1X and 1xEV-DO. The company also faced strategic challenges and financial risks, particularly related to its substantial investments and financing extended to CDMA carriers, some of which experienced financial difficulties. Despite these headwinds, QUALCOMM remained focused on its long-term strategy of driving the adoption of its core CDMA technologies and expanding its intellectual property portfolio, positioning itself for future growth in the rapidly advancing wireless telecommunications industry.
Nov 9, 2001
2000
QUALCOMM INC/DE Annual Report, Year Ended Sep 24, 2000
QUALCOMM's fiscal 2000 10-K (fiscal year ended September 2000) shows a company in a major transition. Revenue fell to $3.20 billion from $3.94 billion, largely because the company sold its terrestrial CDMA consumer phone business to Kyocera (February 2000) and its infrastructure business to Ericsson (May 1999). Profitability improved sharply: net income rose to $670 million from $201 million, helped by a $270 million realized gain on securities and a 47% cost of revenues ratio versus 63% a year earlier. Diluted EPS was $0.85 versus $0.31. Results were flattered by non-recurring items, including $494 million of investment income, and the effective tax rate rose to 44%. The balance sheet strengthened considerably. Stockholders' equity reached $5.5 billion, up from $2.9 billion, mainly from share issuance tied to the $1 billion SnapTrack acquisition and conversion of the trust preferred securities. Cash and marketable securities totaled $2.5 billion. Management also disclosed significant risk exposures: about $618 million of net asset exposure to Globalstar, which has defaulted on a bank facility; up to $500 million in planned Pegaso financing; a $200 million Inquam venture commitment; and a $125 million Wingcast contribution. The planned spin-off of the integrated circuit and system software business (QUALCOMM Spinco) is a key strategic event for investors to watch. Beyond these items, the filing emphasizes the dependence of royalty revenue on CDMA adoption against GSM and TDMA, and on 3G deployment timing (cdma2000 1x in South Korea and planned U.S. launch in 2001). Customer concentration is high: Samsung, LG and Hyundai made up 39% of QCT revenue, and South Korea accounted for 22% of total revenue. Pending litigation, including the GTE Wireless patent suit and the ETRI arbitration, adds further uncertainty.
Nov 3, 2000
1998
QUALCOMM INC/DE Annual Report, Year Ended Sep 27, 1998
QUALCOMM's fiscal 1998 10-K (year ended September 27/30, 1998) shows a company in rapid expansion: total revenues rose 60% to $3.35 billion from $2.10 billion, driven mainly by a 65% jump in communications systems revenue (CDMA handsets, infrastructure, ASICs and OmniTRACS). Net income grew 18% to $108.5 million, and diluted EPS was $1.47 versus $1.28. However, profitability is thin, with a net margin of about 3%, and operating income of $243 million was only 7% of revenue. Operating cash flow was negative ($25 million) because of heavy working-capital needs from receivables, finance receivables and inventory. Capital spending was $322 million, and cash and investments fell to $303 million from $809 million. The filing also reveals meaningful balance-sheet and risk exposure. QUALCOMM has $499 million in unfunded vendor-financing commitments, $289 million of finance receivables, a $265 million secured credit facility to Leap Wireless following the September 1998 spin-off, and a $660 million convertible trust preferred issue. Revenue concentration is high, with Globalstar accounting for 11% of revenue and one Korean customer for 11%. Asian and emerging-market exposure is significant, with 34% of revenue from international customers and $697 million from Asia. Ongoing litigation with Ericsson and Motorola, and the ETRI arbitration, add uncertainty. For investors, the story is a strong CDMA royalty and product franchise, with growth and a 2,800-engineer R&D base, offset by working-capital intensity, vendor-financing risk, and dependence on the pace of CDMA adoption against GSM. Management guided to higher R&D spending and a WirelessKnowledge joint venture with Microsoft that is slated for commercial availability in the first half of 1999.
Nov 23, 1998
1996
QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 1996
QUALCOMM's fiscal 1996 10-K (year ended September 1996) shows a company in the midst of a sharp commercialization pivot. Revenue rose 111% to $813.9 million from $386.6 million, driven by communications systems sales (up 136% to $583.0 million), which include CDMA subscriber handsets, infrastructure, ASICs and OmniTRACS. Contract services (Globalstar development work) grew 38% to $131.0 million, and license, royalty and development fees rose 125% to $99.9 million. However, profitability weakened sharply: the company posted an operating loss of $7.4 million versus operating income of $20.6 million in fiscal 1995, and net income fell 30% to $21.0 million ($0.30 per share) from $30.2 million. The decline reflects low-margin start-up manufacturing of CDMA equipment (communications systems costs rose to 76% of that segment's revenue from 58%), heavy R&D spending ($162.3 million, up roughly 100%), and a large increase in operating costs. Net income was supported by $24.2 million of interest income and a $13.2 million minority interest benefit from Sony's share of QPE losses. The balance sheet and cash flow reveal the cost of this growth. Operating cash flow was negative $69.8 million, driven by a $134.7 million increase in receivables and a $127.5 million increase in inventories. Capital expenditures reached $216.6 million. Cash and equivalents fell to $110.1 million, though total cash plus investments of $354.3 million remained substantial. The company carries a growing vendor-financing exposure: it has committed to arrange or provide financing for large PCS infrastructure projects, including up to $200 million for Sprint Spectrum equipment, and has guaranteed $17 million of Globalstar vendor financing obligations plus $25.5 million of bank borrowings. Performance guarantees tied to CDMA delivery schedules could become significant if commitments slip. Backlog and contracts subject to contingencies were approximately $1.7 billion at September 1996. For investors, the thesis rests on CDMA adoption becoming the leading digital standard in North America and expanding internationally, with royalties and licensing (21 subscriber, 9 infrastructure and other licensees) providing high-margin future income. Key risks identified in the filing include dependence on a few large customers, C-Block PCS licensee creditworthiness, pending Ericsson patent litigation, vendor financing exposure, manufacturing execution, competition from GSM and TDMA, and stock price volatility (a 52-week range of $30.38 to $54.50). Management expects to need additional capital, potentially through bank facilities, preferred securities or convertible debt.
Dec 3, 1996