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10-QPeriod: Q2 FY2013

QUALCOMM INC/DE Quarterly Report for Q2 Ended Mar 31, 2013

Filed April 24, 2013For Securities:QCOM

Summary

QUALCOMM Incorporated's (QCOM) Q2 fiscal year 2013 report (ending March 30, 2013) showcases robust financial performance driven by strong growth in both its equipment and services (QCT) and licensing (QTL) segments. Total revenues surged by approximately 24% year-over-year to $6.12 billion, with net income reaching $1.86 billion. This growth was fueled by a significant increase in shipments of its MSM integrated circuits and a corresponding rise in reported device sales by licensees. The company also demonstrated a strong commitment to returning capital to shareholders through an increased dividend and an expanded share repurchase program. Key operational highlights include continued growth in worldwide wireless connections and 3G subscriptions, underscoring the expanding mobile ecosystem. QCOM's strategic investments in R&D remain substantial, focusing on next-generation technologies like 4G LTE and Snapdragon processors, positioning the company for future innovation. Despite ongoing legal proceedings and market competition, QCOM's financial strength, substantial cash reserves, and strategic focus indicate a resilient business poised for continued expansion in the dynamic wireless industry.

Financial Statements
Beta
Revenue$6.12B
Cost of Revenue$2.37B
Gross Profit$3.75B
R&D Expenses$1.21B
SG&A Expenses$661.00M
Operating Expenses$4.25B
Operating Income$1.88B
Interest Expense$7.00M
Net Income$1.87B
EPS (Basic)$1.08
EPS (Diluted)$1.06
Shares Outstanding (Basic)1.72B
Shares Outstanding (Diluted)1.76B

Key Highlights

  • 1Total revenues increased by 24% year-over-year to $6.12 billion for the quarter, driven by strong performance in both the QCT and QTL segments.
  • 2Net income attributable to Qualcomm was $1.86 billion, or $1.06 per diluted share, demonstrating solid profitability.
  • 3MSM integrated circuit shipments increased by 14% year-over-year to approximately 173 million units.
  • 4The company announced a 40% increase in its quarterly cash dividend, from $0.25 to $0.35 per share, signaling confidence in future cash flows.
  • 5A new $5.0 billion stock repurchase program was authorized, replacing the previous $4.0 billion program, indicating a commitment to shareholder returns.
  • 6Cash, cash equivalents, and marketable securities totaled $30.5 billion, providing substantial liquidity.
  • 7Research and development expenses increased by 27% year-over-year to $1.21 billion, reflecting continued investment in future technologies.

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