Summary
QUALCOMM Incorporated (QCOM) reported its third quarter fiscal year 2009 results, ending June 28, 2009. The company demonstrated resilience with total revenues of $2.75 billion, nearly flat year-over-year, and net income of $737 million. Despite a challenging macroeconomic environment, QCOM saw growth in its core chipset business, with a 9% increase in MSM integrated circuit shipments. Licensing and royalty fees remained a strong contributor, underscoring the value of QCOM's intellectual property. Key financial highlights include robust operating income and significant cash generation from operations, contributing to a healthy balance sheet with substantial cash and marketable securities. The company also returned capital to shareholders through dividends and share repurchases. However, investors should note the ongoing legal proceedings, particularly the significant potential fine from the Korea Fair Trade Commission, and the impact of market volatility on the value of marketable securities. Management expressed confidence in their strategic investments and future growth driven by the ongoing transition to 3G technologies.
Financial Highlights
48 data points| Revenue | $2.75B |
| Cost of Revenue | $864.00M |
| Gross Profit | $1.89B |
| R&D Expenses | $618.00M |
| SG&A Expenses | $377.00M |
| Operating Income | $894.00M |
| Interest Expense | -$8.00M |
| Net Income | $737.00M |
| EPS (Basic) | $0.45 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 1.66B |
| Shares Outstanding (Diluted) | 1.68B |
Key Highlights
- 1Total revenues for the quarter were $2.75 billion, a slight decrease from $2.76 billion in the prior year quarter.
- 2Net income for the quarter was $737 million, or $0.44 per diluted share, compared to $748 million, or $0.45 per diluted share, in the prior year quarter.
- 3MSM integrated circuit shipments increased by 9% year-over-year, indicating strength in the core chipset business.
- 4Licensing and royalty fees remained a significant revenue driver, totaling $891 million.
- 5The company generated strong operating cash flow of $5.9 billion for the nine months ended June 28, 2009.
- 6As of June 28, 2009, QCOM held $15.7 billion in cash, cash equivalents, and marketable securities.
- 7The company recorded a $748 million pre-tax litigation settlement charge in the quarter related to an agreement with Broadcom.