10-KPeriod: FY2009

QUALCOMM INC/DE Annual Report, Year Ended Sep 27, 2009

Filed November 5, 2009For Securities:QCOM

Summary

QUALCOMM INC/DE (QCOM) filed its 2009 10-K, reporting revenues of $10.42 billion and net income of $1.59 billion. The company's performance was impacted by a slowdown in the global economy, leading to lower demand for its core CDMA-based integrated circuits in the first half of fiscal 2009. Despite this, the company saw growth in overall CDMA-based device shipments and continued to invest heavily in research and development, particularly in next-generation technologies like OFDMA (LTE) and display technologies (mirasol). Key highlights for investors include the company's significant intellectual property portfolio in CDMA technology, which forms the basis of its robust licensing business. While facing competition and ongoing legal and regulatory challenges, particularly in Europe and Asia, Qualcomm demonstrated resilience with strong cash generation and a substantial cash reserve. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases.

Financial Highlights

49 data points
Beta

Revenue

$10.39B

70.9% Gross Margin

Net Income

$1.59B

15.3% Net Margin

EPS (Diluted)

$0.95

Total Assets

$27.45B

Cash & Equivalents

$2.72B

Free Cash Flow

$7.17B

Financial Statements
Beta
Revenue$10.39B
Cost of Revenue$3.02B
Gross Profit$7.36B
R&D Expenses$2.35B
SG&A Expenses$1.46B
Operating Income$2.54B
Interest Expense-$13.00M
Net Income$1.59B
EPS (Basic)$0.96
EPS (Diluted)$0.95
Shares Outstanding (Basic)1.66B
Shares Outstanding (Diluted)1.67B

Key Highlights

  • 1Revenues for fiscal year 2009 were $10.42 billion, with a net income of $1.59 billion.
  • 2The company experienced a slowdown in demand for CDMA-based integrated circuits due to the global economic climate but saw an increase in overall CDMA-based device shipments.
  • 3Qualcomm holds a significant intellectual property portfolio in CDMA and is investing heavily in next-generation technologies like OFDMA (LTE) and mirasol displays.
  • 4The licensing segment (QTL) remains a strong contributor, generating $3.95 billion in revenue.
  • 5The company possesses a strong liquidity position with $17.7 billion in cash, cash equivalents, and marketable securities as of September 27, 2009.
  • 6Qualcomm faces ongoing legal and regulatory scrutiny, including significant charges related to agreements with Broadcom and a fine from the Korea Fair Trade Commission.
  • 7The company continued to return capital to shareholders through dividends and share repurchases.

Frequently Asked Questions

Qualcomm generated revenue from two main segments: Qualcomm CDMA Technologies (QCT), which supplies integrated circuits and system software for wireless devices and infrastructure, and Qualcomm Technology Licensing (QTL), which generates revenue from licensing its intellectual property, including patent fees and royalties. QCT accounted for 59% of total consolidated revenues, while QTL accounted for 35% in fiscal 2009.

The primary challenges included a slowdown in the global economy, which reduced demand for CDMA-based integrated circuits, and significant legal and regulatory issues. These included a substantial charge related to a settlement with Broadcom, a fine from the Korea Fair Trade Commission, and ongoing investigations by the European Commission and Japan Fair Trade Commission concerning its licensing practices.

Qualcomm is heavily investing in research and development for next-generation technologies such as OFDMA (including LTE), advanced chipset platforms (Snapdragon), and new display technologies (mirasol). The company is also focusing on expanding its existing CDMA-based offerings and exploring new market opportunities for its wireless services and applications.

Qualcomm maintained a strong financial position, ending fiscal year 2009 with $17.7 billion in cash, cash equivalents, and marketable securities. The company generated substantial cash flow from operations and maintained a significant untapped debt capacity, indicating robust liquidity to fund ongoing operations, R&D, and strategic initiatives.