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

The main purpose of this 8-K filing is to formally report Qualcomm's financial results for its second fiscal quarter ended March 27, 2011, by attaching a press release that contains this information.

Why does Qualcomm present Non-GAAP financial measures?

Qualcomm presents Non-GAAP financial measures because management uses them to evaluate, assess, and benchmark the company's operational performance on a consistent and comparable basis, excluding items they believe are unrelated to ongoing core business operations, such as strategic investments and certain compensation expenses.

What is free cash flow and why is it important to investors?

Free cash flow is defined as net cash provided by operating activities less capital expenditures. Qualcomm presents it to help investors understand the cash generated that is available for reinvestment in the business and to create shareholder value. It is also used for comparing performance against other companies in the industry.

What specific items are excluded from Qualcomm's Non-GAAP financial results?

Specific items excluded from Non-GAAP results include the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation (other than under specific bonus programs), certain tax items, and acquired in-process R&D. These are excluded because management views them as not directly reflective of the company's ongoing operational performance.

QCOM 8-K: Earnings & Results

Summary

Qualcomm Incorporated (QCOM) filed an 8-K report on April 20, 2011, detailing its financial results for the second fiscal quarter ended March 27, 2011. The filing primarily serves to attach a press release that provides both GAAP and Non-GAAP financial information. Investors should note that the company utilizes Non-GAAP measures to assess operational performance and management compensation, excluding items such as the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, and acquired in-process R&D. These exclusions are intended to provide a more consistent and comparable view of the company's core operating businesses. The press release also defines and presents free cash flow, calculated as operating cash flow less capital expenditures. Qualcomm believes this metric is valuable for understanding the cash available for business growth and shareholder value creation, and for industry comparisons. Investors are advised to review the reconciliations between GAAP and Non-GAAP figures provided in the attached press release to fully understand the financial performance reported.

Key Highlights

1Qualcomm filed an 8-K on April 20, 2011, announcing its second fiscal quarter 2011 financial results.
2The report includes a press release containing both GAAP and Non-GAAP financial information.
3The company emphasizes the use of Non-GAAP financial measures for internal assessment of operational performance.
4Key exclusions in Non-GAAP reporting include the QSI segment, certain share-based compensation, and acquired in-process R&D.
5Free cash flow is presented as a key metric, defined as operating cash flow less capital expenditures.
6Qualcomm uses free cash flow to evaluate business growth potential and shareholder value.
7Investors are directed to review reconciliations between GAAP and Non-GAAP figures for a comprehensive understanding.

QUALCOMM INC/DE 8-K Report, Financial Results (Apr 20, 2011)

Summary

Key Highlights

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