10-KPeriod: FY2021

QUALCOMM INC/DE Annual Report, Year Ended Sep 26, 2021

Filed November 3, 2021For Securities:QCOM

Summary

Qualcomm Inc./DE (QCOM) reported strong performance for the fiscal year ended September 25, 2021, with revenues increasing by 43% to $33.6 billion and net income soaring by 74% to $9.0 billion. This growth was driven by a significant rebound in its semiconductor business (QCT), which saw a 64% revenue increase, fueled by strong demand for 5G products across handsets, automotive, and IoT sectors. The company's technology licensing segment (QTL) also contributed positively with a 26% revenue increase, reflecting the ongoing recovery and adoption of 3G/4G/5G multimode products. Qualcomm is strategically positioned to capitalize on the ongoing transition to 5G technology, which is not only transforming the mobile industry but also expanding into new applications like automotive and the Internet of Things (IoT). The company's continued investment in research and development, particularly in areas like 5G, AI, and advanced processors, is crucial for maintaining its leadership position and driving future growth. Despite ongoing competition and potential regulatory challenges, Qualcomm's diversified revenue streams and strong product portfolio, highlighted by the Snapdragon platform, position it for continued success in the evolving technology landscape.

Financial Highlights

52 data points
Beta

Revenue

$33.57B

57.5% Gross Margin

Net Income

$9.04B

26.9% Net Margin

EPS (Diluted)

$7.87

Total Assets

$41.24B

Cash & Equivalents

$7.12B

Free Cash Flow

$10.54B

Financial Statements
Beta
Revenue$33.57B
Cost of Revenue$14.26B
Gross Profit$19.30B
R&D Expenses$7.18B
SG&A Expenses$2.34B
Operating Expenses$23.78B
Operating Income$9.79B
Interest Expense$559.00M
Net Income$9.04B
EPS (Basic)$7.99
EPS (Diluted)$7.87
Shares Outstanding (Basic)1.13B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Revenue surged by 43% to $33.6 billion in fiscal year 2021, indicating strong market demand and recovery.
  • 2Net income more than doubled, increasing by 74% to $9.0 billion, demonstrating improved profitability.
  • 3QCT (semiconductor) segment revenues grew by a remarkable 64%, driven by strong demand for 5G products across handsets, automotive, and IoT.
  • 4QTL (licensing) segment revenues increased by 26%, reflecting broad adoption of 3G/4G/5G technologies.
  • 5The company completed the acquisition of NUVIA for $1.1 billion, strengthening its expertise in high-performance processors and SoCs.
  • 6Qualcomm announced a definitive agreement to acquire Veoneer's Arriver business for approximately $4.5 billion, aiming to enhance its automotive ADAS platform.
  • 7The company announced a new $10.0 billion stock repurchase authorization, signaling confidence and commitment to returning value to shareholders.

Frequently Asked Questions

Qualcomm's revenue growth in fiscal year 2021 was primarily driven by a substantial increase in its QCT segment (semiconductors), which saw a 64% rise due to strong demand for 5G products in handsets, automotive, and IoT. The QTL segment (licensing) also contributed positively with a 26% increase, reflecting the broader adoption of 3G/4G/5G multimode products. This growth signifies a recovery from the impacts of COVID-19 and strong market positioning in advanced wireless technologies.

Qualcomm is heavily investing in research and development to maintain its leadership in 5G technology development, standardization, and intellectual property creation. The company is also focused on expanding its product offerings and extending its technologies into new and growing markets beyond mobile handsets, such as automotive and the Internet of Things (IoT). Strategic acquisitions, like NUVIA and Veoneer's Arriver business, are aimed at bolstering capabilities in key areas like high-performance processors and automotive technologies, respectively.

Key risks highlighted in the filing include significant customer concentration, with a few major customers accounting for a substantial portion of revenue. There are also ongoing risks related to intense competition in the semiconductor industry, rapid technological changes, potential impacts from U.S.-China trade and national security tensions, and legal and regulatory challenges concerning patent licensing practices. Additionally, supply chain constraints within the semiconductor industry remain a concern.

Qualcomm is committed to returning capital to shareholders through dividends and stock repurchases. The company announced a new $10.0 billion stock repurchase authorization in addition to its existing program, indicating confidence in its financial position and future prospects. It also continues to pay regular quarterly cash dividends.