8-KEarnings & ResultsExhibits & Filings

QUALCOMM INC/DE 8-K Report, Financial Results (Jan 27, 2010)

Filed January 27, 2010For Securities:QCOM

Summary

This 8-K filing from QUALCOMM Incorporated, filed on January 27, 2010, primarily serves to attach a press release detailing the company's financial results for its first fiscal quarter ended December 27, 2009. Investors should note that Qualcomm is presenting significant pro forma financial information, which management uses to assess operational performance and make compensation decisions. This pro forma data excludes the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain tax items, and acquired in-process R&D, as these are considered unrelated to the core operational performance of the business. The company also highlights its use of free cash flow, defined as operating cash flow less capital expenditures, as a key metric for evaluating its financial strength and ability to drive shareholder value. Investors are advised to consider this non-GAAP pro forma information in conjunction with, and not as a substitute for, GAAP-reported financial measures, as Qualcomm's definition of "pro forma" may differ from other companies.

Key Highlights

  • 1QUALCOMM Incorporated filed an 8-K on January 27, 2010, to report its Q1 fiscal 2010 financial results.
  • 2The company is using and emphasizing pro forma financial information to present its results.
  • 3Pro forma results are used by management for performance evaluation, benchmarking, and compensation decisions.
  • 4Key exclusions from pro forma results include the QSI segment, certain share-based compensation, certain tax items, and acquired in-process R&D.
  • 5Management views the excluded items as not reflective of ongoing core operational performance.
  • 6Free cash flow is presented as a key metric, defined as net cash from operations less capital expenditures, to assess business growth and shareholder value creation.
  • 7Investors are cautioned that pro forma is a non-GAAP measure and should be considered alongside GAAP results.

Frequently Asked Questions

The primary purpose of this 8-K filing is to publicly disclose QUALCOMM Incorporated's financial results for its first fiscal quarter ended December 27, 2009, through an attached press release.

Pro forma financial information is a non-GAAP presentation that management uses to evaluate and benchmark the company's operational performance on a consistent and comparable basis. It excludes certain items like strategic investments (QSI segment), some share-based compensation, and tax items that management believes are not related to ongoing operational performance.

Qualcomm's pro forma financial information excludes the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation (other than under specific bonus programs), certain tax items unrelated to the current fiscal year, and acquired in-process R&D.

Qualcomm defines free cash flow as net cash provided by operating activities less capital expenditures. Management uses this metric to understand the cash available for business growth and shareholder value creation, and it's considered useful for evaluating operating performance and financial strength compared to industry peers.