Summary
QUALCOMM Incorporated (QCOM) filed an 8-K on July 22, 2009, reporting its financial results for the third fiscal quarter ended June 28, 2009. A key aspect of this filing is the company's detailed explanation and use of pro forma financial information. Management utilizes these pro forma figures to assess and benchmark the performance of its core operating businesses, including Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Wireless & Internet segments. This approach is also central to management compensation decisions. The pro forma reporting excludes the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, and specific tax items, with the aim of providing a clearer view of ongoing operational performance. The company also highlighted its use of free cash flow, defined as operating cash flow less capital expenditures, as a critical metric for evaluating business growth potential and shareholder value creation. Investors should note that these pro forma measures are non-GAAP and should be considered alongside, not as a substitute for, GAAP financial results.
Key Highlights
- 1QCOM reported third fiscal quarter 2009 financial results on July 22, 2009.
- 2The company heavily relies on pro forma financial information for internal assessment and performance benchmarking.
- 3Pro forma reporting excludes the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, and specific tax items.
- 4Management uses pro forma measures to evaluate core business segments like CDMA Technologies, Technology Licensing, and Wireless & Internet.
- 5Pro forma financial measures are a primary focus for management compensation decisions.
- 6Free cash flow (operating cash flow minus capital expenditures) is presented as a key metric for evaluating business growth and shareholder value.
- 7The filing emphasizes that pro forma measures are non-GAAP and should be considered in addition to, not as a substitute for, GAAP results.