What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce QUALCOMM's financial results for its first quarter ended December 31, 2006, and to provide details on the company's use of pro forma financial information.

Why does QUALCOMM use pro forma financial information?

QUALCOMM uses pro forma financial information to provide management with a more meaningful and comparable view of operational performance. It helps in evaluating and benchmarking core business segments by excluding non-operational items like strategic investments (QSI), share-based compensation, and infrequent acquisition-related expenses.

What is 'free cash flow' according to QUALCOMM's definition?

According to QUALCOMM, free cash flow is defined as net cash provided by operating activities less capital expenditures. Management uses this metric to understand the cash flow available for business growth and creating long-term shareholder value.

Are the pro forma results presented here the official GAAP results?

No, the pro forma financial information is a non-GAAP measure used by management. Investors should consider these pro forma results in addition to, but not as a substitute for, the financial measures calculated in accordance with Generally Accepted Accounting Principles (GAAP). The filing states that reconciliations between GAAP and pro forma results are provided in the attached press release.

QCOM 8-K: Earnings & Results

Summary

This 8-K filing from QUALCOMM Incorporated, dated January 24, 2007, announces the company's financial results for the first quarter ended December 31, 2006. A key aspect of this report is the detailed explanation of QUALCOMM's use of pro forma financial information. Management utilizes these non-GAAP measures to assess operational performance, benchmark business segments (QUALCOMM CDMA Technologies, QUALCOMM Technology Licensing, and QUALCOMM Wireless & Internet), and compare against competitors, excluding factors like strategic investments, share-based compensation, and infrequent acquisition-related expenses. The company also highlights its focus on 'free cash flow,' defined as operating cash flow less capital expenditures, as a critical metric for understanding cash available for business growth and shareholder value creation. Investors should note that while these pro forma measures offer management's perspective on core operations, they should be considered alongside, not as a substitute for, GAAP financial results. The filing includes a press release with reconciliations between GAAP and pro forma figures.

Key Highlights

1QUALCOMM announced its first-quarter financial results for the period ending December 31, 2006.
2The company emphasizes its use of pro forma financial information for internal assessment and benchmarking of operational performance.
3Pro forma results exclude the QUALCOMM Strategic Initiatives (QSI) segment, certain share-based compensation, and acquired in-process R&D.
4Management uses pro forma measures to evaluate ongoing core businesses like QUALCOMM CDMA Technologies, QUALCOMM Technology Licensing, and QUALCOMM Wireless & Internet.
5Free cash flow (operating cash flow minus capital expenditures) is presented as a key metric for evaluating cash available for growth and shareholder value.
6The filing includes a press release with detailed financial results and reconciliations between GAAP and pro forma figures.
7William E. Keitel, Executive Vice President and Chief Financial Officer, signed the report.

QUALCOMM INC/DE 8-K Report, Financial Results (Jan 24, 2007)

Summary

Key Highlights

Frequently Asked Questions