What is the primary reason for the decrease in revenue compared to the previous year?

The decrease in revenue is primarily due to the divestiture of QUALCOMM's terrestrial CDMA wireless consumer products business to Kyocera in February 2000 and the sale of its terrestrial CDMA wireless infrastructure business to Ericsson in May 1999.

How has the acquisition of SnapTrack impacted the company's financials?

The acquisition of SnapTrack for approximately $1 billion in March 2000 significantly increased the company's assets, specifically adding $948 million in goodwill and $60 million in purchased in-process technology, which was expensed upon acquisition.

What is the company's current liquidity position?

QUALCOMM maintains a strong liquidity position, with cash and cash equivalents and marketable securities totaling $2.268 billion as of June 25, 2000. The company also has access to a $400 million unsecured credit facility.

What are the key risks and uncertainties highlighted in the report?

Key risks include the pace of CDMA subscriber growth, challenges in scaling and adopting new technologies like 1xEV, component shortages, the success of strategic investments and acquisitions, potential litigation outcomes, and competition in the wireless communications industry.

QCOM 10-Q Quarterly Report Q3 FY2000 — Revenue, Net Income, EPS

Summary

QUALCOMM INC/DE (QCOM) reported its financial results for the quarter ended June 25, 2000. The company's revenue for the three months ended June 25, 2000, was $713.5 million, a decrease from $1.004 billion in the same period of the prior year. This decline was primarily attributed to the sale of the terrestrial CDMA wireless consumer products business and the wireless infrastructure business. Despite the revenue decrease, the company demonstrated significant operational improvements, with net income more than doubling to $154.7 million from $58.9 million in the prior year's quarter. The company continues to make substantial investments in strategic acquisitions and research and development, notably the acquisition of SnapTrack, Inc. for approximately $1 billion, which significantly increased goodwill on the balance sheet. QUALCOMM's balance sheet remains strong, with total assets growing to $6.37 billion, supported by substantial cash and marketable securities. The company is also actively managing its diverse portfolio of investments and strategic partnerships, including its involvement with Globalstar L.P., which has recently experienced financial difficulties.

Key Highlights

1Revenue for the three months ended June 25, 2000, decreased to $713.5 million from $1.004 billion in the prior year, largely due to divestitures of consumer products and infrastructure businesses.
2Net income for the quarter more than doubled year-over-year, reaching $154.7 million ($0.19 per diluted share) compared to $58.9 million ($0.09 per diluted share) in the prior year's quarter.
3The acquisition of SnapTrack, Inc. for approximately $1 billion in March 2000 significantly impacted the balance sheet, resulting in $948 million in acquired goodwill.
4Total assets increased substantially to $6.37 billion from $4.53 billion in the prior fiscal year-end, bolstered by strong cash and marketable securities positions.
5The company experienced a notable increase in investment income, driven by realized gains on marketable securities and interest income.
6Globalstar L.P. defaulted on a $250 million bank facility in June 2000, which QUALCOMM partially guaranteed, leading to a $22 million payment by QUALCOMM and the issuance of a subordinated note from Globalstar.
7QUALCOMM announced plans to spin off its integrated circuit and system software solutions business.

QUALCOMM INC/DE Quarterly Report for Q3 Ended Jun 25, 2000

Summary

Key Highlights

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