8-KEarnings & ResultsExhibits & Filings

QUALCOMM INC/DE 8-K Report, Financial Results (Jan 28, 2009)

Filed January 28, 2009For Securities:QCOM

Summary

This 8-K filing from QUALCOMM INC/DE (QCOM) on January 28, 2009, announces their financial results for the first fiscal quarter ended December 28, 2008. The primary focus of the filing is the release of a press statement (Exhibit 99.1) detailing these results, which are presented on a pro forma basis. Qualcomm's management utilizes these pro forma figures to evaluate and benchmark operational performance, particularly for its core businesses: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Wireless & Internet segments. Investors should note that the pro forma financial information excludes the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, specific tax items, and acquired in-process R&D. The company views these exclusions as separate from ongoing operational performance. The filing also highlights the use of free cash flow as a key metric, defined as net cash from operations less capital expenditures, which management believes is valuable for assessing operational performance, company valuation, and industry comparisons.

Key Highlights

  • 1QUALCOMM INC/DE (QCOM) reported its first fiscal quarter results for the period ended December 28, 2008.
  • 2The company is presenting its financial results on a pro forma basis, which management uses for operational assessment.
  • 3Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, deemed non-operational.
  • 4Certain share-based compensation expenses are excluded from pro forma calculations, as they are not considered cash expenses.
  • 5Acquired in-process R&D is excluded from pro forma results to focus on core business operations.
  • 6Free cash flow (operating cash flow less capital expenditures) is highlighted as a key metric for evaluating financial strength and growth potential.
  • 7The filing emphasizes that pro forma information is a non-GAAP measure and should be considered alongside, not as a substitute for, GAAP results.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce QUALCOMM's financial results for its first fiscal quarter ended December 28, 2008, through an attached press release. It details the company's financial performance, emphasizing pro forma metrics used by management.

Pro forma financial information is a non-GAAP (Generally Accepted Accounting Principles) measure used by Qualcomm's management to evaluate and benchmark the operating performance of its core businesses (Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Wireless & Internet segments). It provides a more consistent and comparable view of operational efficiency by excluding certain items like the QSI segment, some share-based compensation, and acquired R&D, which management considers unrelated to ongoing operational performance.

Qualcomm's pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation (excluding amounts related to specific bonus programs), certain tax items related to prior years, and acquired in-process R&D. Management excludes these to provide a clearer picture of the company's ongoing operational performance.

Qualcomm defines free cash flow as net cash provided by operating activities less capital expenditures. The company presents this metric to help investors understand the cash generated that is available for business growth and shareholder value creation. Management also uses free cash flow to evaluate performance, company valuation, and compare against industry peers.