What were the main drivers of revenue growth for QUALCOMM in this quarter?

Revenue growth was primarily driven by increases in both the Equipment and Services segment (QCT), which saw higher unit shipments of MSM integrated circuits and favorable product mix changes, and the Technology Licensing segment (QTL), which benefited from increased sales of CDMA-based devices by licensees. QCT revenues increased by $1.34 billion and QTL revenues by $275 million year-over-year for the quarter.

How is QUALCOMM returning capital to shareholders?

QUALCOMM is actively returning capital through both dividends and share repurchases. The company paid dividends totaling $615 million in the third quarter of fiscal 2013 and announced a further dividend of $0.35 per share. Additionally, QUALCOMM repurchased $1.3 billion of its common stock in the first nine months of fiscal 2013 and had $4.0 billion remaining under its $5.0 billion repurchase authorization as of June 30, 2013.

What is the status of the BWA subsidiaries in India?

The BWA subsidiaries in India have been deconsolidated from QUALCOMM's financial statements as of June 25, 2013, due to a change in control resulting from Bharti Airtel increasing its ownership. Prior to deconsolidation, their assets and liabilities were classified as held for sale. This deconsolidation resulted in a non-cash gain recognized in investment income.

Are there any significant legal or regulatory challenges facing QUALCOMM?

Yes, QUALCOMM is involved in several legal proceedings, including patent infringement lawsuits and investigations by regulatory bodies like the European Commission and the Korea Fair Trade Commission. While the company is vigorously defending itself, the outcomes of these matters are uncertain and could potentially have a material adverse effect on its business, results of operations, financial condition, or cash flows. The company had not recorded any accrual for contingent losses as of June 30, 2013, stating that losses were not probable and a range could not be reasonably estimated.

QCOM 10-Q Quarterly Report Q3 FY2013 — Revenue, Net Income, EPS

Summary

QUALCOMM Incorporated (QCOM) reported strong financial performance for the third quarter of fiscal year 2013, ending June 30, 2013. Total revenues reached $6.24 billion, a significant increase of approximately 35% year-over-year, driven by robust growth in both equipment and services (QCT segment) and licensing (QTL segment). Net income attributable to Qualcomm was $1.58 billion, or $0.90 per diluted share, also showing substantial year-over-year improvement. The company's core semiconductor business (QCT) saw a 22% increase in shipments of its MSM integrated circuits and substantial revenue growth, reflecting strong demand for mobile devices. The licensing division (QTL) also experienced robust revenue growth, indicating continued strong adoption of Qualcomm's intellectual property. Qualcomm continues to actively return capital to shareholders through dividends and a significant share repurchase program, with $4.0 billion remaining available under its $5.0 billion authorization as of the reporting date. The company maintains a strong liquidity position with substantial cash and marketable securities.

Financial Highlights

50 data points

Beta

Revenue

$6.24B

0.6% Gross Margin

Net Income

$1.58B

0.3% Net Margin

EPS (Diluted)

$0.90

Total Assets

$46.81B

Cash & Equivalents

$2.53B

Free Cash Flow

$2.08B

Financial Statements

Beta

Revenue	$6.24B
Cost of Revenue	$2.50B
Gross Profit	$3.75B
R&D Expenses	$1.30B
SG&A Expenses	$613.00M
Operating Expenses	$4.57B
Operating Income	$1.68B
Interest Expense	$7.00M
Net Income	$1.58B
EPS (Basic)	$0.91
EPS (Diluted)	$0.90
Shares Outstanding (Basic)	1.73B
Shares Outstanding (Diluted)	1.76B

Key Highlights

1Total revenues increased by 35% to $6.24 billion in Q3 FY13 compared to Q3 FY12.
2Net income attributable to Qualcomm increased to $1.58 billion ($0.90/share) from $1.21 billion ($0.69/share) in the prior year quarter.
3QCT (semiconductor) segment revenues grew significantly, driven by a 22% increase in MSM integrated circuit shipments.
4QTL (licensing) segment revenues also showed strong growth, reflecting continued demand for Qualcomm's IP portfolio.
5The company generated $6.27 billion in net cash from operating activities for the nine months ended June 30, 2013.
6Qualcomm repurchased $1.3 billion of its stock in the first nine months of FY13 and has $4.0 billion remaining on its repurchase authorization.
7The company announced a quarterly dividend of $0.35 per share.

QUALCOMM INC/DE Quarterly Report for Q3 Ended Jun 30, 2013

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions