QUALCOMM INC/DE Quarterly Report for Q2 Ended Mar 25, 2012

Summary

Qualcomm Inc. reported strong financial performance for the quarter ended March 25, 2012, with total revenues of $4.94 billion, a significant increase from the prior year's $3.87 billion. Net income also saw a substantial jump to $2.2 billion, up from $995 million in the same period last year. This growth was driven by strong performance in the Equipment and Services segment, particularly from its Qualcomm CDMA Technologies (QCT) division, which saw a substantial increase in MSM integrated circuit shipments. A significant contributor to the quarter's results was the $1.2 billion gain recognized from the sale of 700 MHz spectrum, which boosted net income significantly. The company's balance sheet shows robust liquidity, with cash, cash equivalents, and marketable securities totaling $26.6 billion. Qualcomm continues to return capital to shareholders through dividends and share repurchases, announcing an increase in its quarterly dividend and a significant new stock repurchase authorization. Despite strong results, Qualcomm faces ongoing challenges related to intense competition, rapid technological change, and various legal and regulatory matters, as detailed in the filing.

Key Highlights

• 1Total revenues increased by 27.7% year-over-year to $4.94 billion for the quarter ended March 25, 2012.
• 2Net income attributable to Qualcomm surged by 123.2% to $2.23 billion, or $1.28 per diluted share.
• 3MSM integrated circuit shipments increased by 29% year-over-year to 152 million units.
• 4The company recognized a significant $1.2 billion gain from the sale of 700 MHz spectrum, contributing to the strong net income.
• 5Cash, cash equivalents, and marketable securities stood at $26.6 billion as of March 25, 2012, indicating strong liquidity.
• 6Qualcomm announced an increased quarterly dividend and a new $4.0 billion stock repurchase program authorization.

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