10-KPeriod: FY2013

QUALCOMM INC/DE Annual Report, Year Ended Sep 29, 2013

Filed November 6, 2013For Securities:QCOM

Summary

Qualcomm Inc. (QCOM) demonstrated robust revenue growth in its fiscal year ending September 29, 2013, reaching $24.9 billion, a significant increase driven by its core semiconductor (QCT) and licensing (QTL) segments. The company's strategic focus on CDMA and OFDMA technologies, particularly for mobile devices, continues to be a primary revenue driver. Significant growth in MSM integrated circuit shipments and strong performance in the smartphone market contributed to these results. Qualcomm's substantial investment in research and development, totaling $5.0 billion in fiscal 2013, underscores its commitment to innovation in evolving wireless technologies. While the company faces intense competition and potential regulatory challenges, its strong intellectual property portfolio and leading market position in mobile chipsets and licensing provide a solid foundation for future growth. The company also returned significant capital to shareholders through dividends and share repurchases.

Financial Highlights

54 data points
Beta

Revenue

$24.87B

60.5% Gross Margin

Net Income

$6.85B

27.6% Net Margin

EPS (Diluted)

$3.91

Total Assets

$45.52B

Cash & Equivalents

$6.14B

Free Cash Flow

$8.78B

Financial Statements
Beta
Revenue$24.87B
Cost of Revenue$9.82B
Gross Profit$15.05B
R&D Expenses$4.97B
SG&A Expenses$2.52B
Operating Expenses$17.64B
Operating Income$7.23B
Interest Expense$23.00M
Net Income$6.85B
EPS (Basic)$3.99
EPS (Diluted)$3.91
Shares Outstanding (Basic)1.72B
Shares Outstanding (Diluted)1.75B

Key Highlights

  • 1Revenue increased by 30% year-over-year to $24.9 billion in fiscal 2013.
  • 2Qualcomm shipped approximately 716 million MSM integrated circuits for wireless devices, a 21% increase from the prior year.
  • 3Research and development expenses grew to $5.0 billion, reflecting a strong commitment to technological advancement.
  • 4The company repurchased $4.6 billion of its common stock and paid $2.1 billion in dividends, demonstrating a focus on shareholder returns.
  • 5International customers and licensees accounted for 97% of total revenues, highlighting the global nature of Qualcomm's business.
  • 6Key customers like Samsung Electronics and suppliers to Apple Inc. represented significant portions of revenue.
  • 7The company is actively investing in next-generation technologies including LTE, small cells, and the 'Internet of Everything'.

Frequently Asked Questions

Qualcomm's primary revenue streams come from two main segments: Qualcomm CDMA Technologies (QCT), which designs and sells integrated circuit products and system software for mobile devices and wireless networks, and Qualcomm Technology Licensing (QTL), which generates revenue through licensing its extensive intellectual property portfolio, including fees and royalties from manufacturers of wireless products.

Qualcomm invests heavily in research and development to maintain its leadership in wireless communication technologies, including CDMA and OFDMA (like LTE). The company focuses on developing new versions of these technologies, creating innovative integrated circuit products (such as Snapdragon processors), and expanding its intellectual property portfolio to support the evolving mobile industry and emerging segments like the Internet of Everything.

Qualcomm faces several risks, including intense competition in the semiconductor industry, rapid technological change requiring continuous innovation, reliance on a few key customers and licensees, potential legal and regulatory challenges related to its intellectual property and business practices, and global economic conditions that can impact demand for its products and services.

Qualcomm maintains substantial cash, cash equivalents, and marketable securities, with a significant portion held by foreign subsidiaries. The company utilizes cash generated from operations and proceeds from equity plans for liquidity. It actively returns capital to shareholders through share repurchases and quarterly dividends, demonstrating a commitment to shareholder value.