10-QPeriod: Q1 FY2013

QUALCOMM INC/DE Quarterly Report for Q1 Ended Dec 30, 2012

Filed January 30, 2013For Securities:QCOM

Summary

Qualcomm Inc./DE (QCOM) reported strong financial results for the quarter ending December 30, 2012, showcasing significant year-over-year growth in both revenue and net income. Total revenues reached $6.018 billion, a substantial increase from $4.681 billion in the prior year quarter, driven by robust performance in its Equipment and Services segment, particularly from its QCT (Qualcomm CDMA Technologies) division. This growth was fueled by a 17% increase in MSM integrated circuit shipments, alongside a 29% rise in total reported device sales by licensees. The company's profitability also saw a marked improvement, with net income attributable to Qualcomm rising to $1.906 billion, translating to diluted earnings per share of $1.09, up from $0.81 in the same period last year. This performance highlights Qualcomm's continued dominance in mobile technology and its ability to capitalize on the ongoing global transition to 3G and 3G/4G networks. The company's strong cash position, coupled with consistent dividend payments and share repurchases, further underscores its financial health and commitment to returning value to shareholders.

Financial Highlights

49 data points
Beta

Revenue

$6.02B

62.8% Gross Margin

Net Income

$1.91B

31.7% Net Margin

EPS (Diluted)

$1.09

Total Assets

$44.84B

Cash & Equivalents

$4.29B

Free Cash Flow

$1.98B

Financial Statements
Beta
Revenue$6.02B
Cost of Revenue$2.24B
Gross Profit$3.78B
R&D Expenses$1.11B
SG&A Expenses$587.00M
Operating Income$2.09B
Interest Expense$8.00M
Net Income$1.91B
EPS (Basic)$1.12
EPS (Diluted)$1.09
Shares Outstanding (Basic)1.71B
Shares Outstanding (Diluted)1.75B

Key Highlights

  • 1Total revenues increased by approximately 29% year-over-year to $6.018 billion.
  • 2Net income attributable to Qualcomm grew significantly to $1.906 billion, a substantial increase from $1.401 billion in the prior year period.
  • 3Diluted earnings per share increased to $1.09 from $0.81 year-over-year.
  • 4MSM integrated circuit shipments increased by 17% to approximately 182 million units.
  • 5Total reported device sales by licensees increased by approximately 29% to $53.3 billion.
  • 6The company returned $428 million to shareholders through dividends and repurchased $250 million in stock during the quarter.
  • 7Cash, cash equivalents, and marketable securities totaled $28.4 billion, demonstrating strong liquidity.

Frequently Asked Questions

Qualcomm's revenue growth was primarily driven by a significant increase in its Equipment and Services segment, largely attributable to the QCT division. This was fueled by a 17% increase in shipments of Mobile Station Modem (MSM) integrated circuits and a 29% rise in total reported device sales by its licensees, indicating strong demand for mobile devices utilizing Qualcomm's technologies.

Profitability saw a substantial improvement. Net income attributable to Qualcomm increased by approximately 36% year-over-year to $1.906 billion. Diluted earnings per share also rose significantly to $1.09, up from $0.81 in the same quarter last year, reflecting strong operational performance and efficient cost management.

Qualcomm continues to return capital to shareholders through both dividends and share repurchases. In this quarter, the company paid $428 million in dividends and repurchased $250 million of its common stock. Approximately $2.5 billion remained available under its stock repurchase program.

Qualcomm maintains a strong liquidity position. As of December 30, 2012, cash, cash equivalents, and marketable securities totaled $28.4 billion, an increase of $1.5 billion from the previous quarter. This robust financial footing provides flexibility for future investments and operations.