Summary
QUALCOMM Incorporated (QCOM) reported strong financial results for the second quarter and first six months of fiscal year 2011, driven by significant growth in both its equipment and services segment (QCT) and its technology licensing segment (QTL). Revenues saw a substantial increase year-over-year, bolstered by higher unit shipments of integrated circuits and increased licensing and royalty fees, partly due to the resolution of licensee disputes. The company's balance sheet shows a healthy cash position, with a significant increase in cash and cash equivalents and marketable securities, partly from proceeds from stock issuances. While the company is navigating some strategic shifts, including the shutdown of its FLO TV business and a significant goodwill impairment charge related to its Firethorn division, the core business segments demonstrate robust performance and growth. The proposed acquisition of Atheros Communications, Inc. is poised to further strengthen Qualcomm's market position.
Financial Highlights
49 data points| Revenue | $3.87B |
| Cost of Revenue | $1.06B |
| Gross Profit | $2.81B |
| R&D Expenses | $738.00M |
| SG&A Expenses | $529.00M |
| Operating Income | $1.43B |
| Interest Expense | $30.00M |
| Net Income | $999.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 1.65B |
| Shares Outstanding (Diluted) | 1.69B |
Key Highlights
- 1Total revenues for the second quarter of fiscal 2011 reached $3.88 billion, a substantial increase from $2.66 billion in the prior year period.
- 2Net income attributable to QUALCOMM increased to $999 million for the second quarter of fiscal 2011, up from $774 million in the same period last year.
- 3The company reported shipping approximately 118 million Mobile Station Modem (MSM) integrated circuits for CDMA- and OFDMA-based wireless devices, a 27% increase year-over-year.
- 4Licensing and royalty fees saw a significant jump to $1.83 billion in Q2 2011, compared to $1.07 billion in Q2 2010, partly due to resolved licensee disputes.
- 5Qualcomm has a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $22.1 billion as of March 27, 2011.
- 6The company announced a definitive agreement to acquire Atheros Communications, Inc. for approximately $3.1 billion, expected to close in the third quarter of fiscal 2011.
- 7Restructuring charges of $312 million were recorded in the second quarter of fiscal 2011 related to the shutdown of the FLO TV business and network.