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

The primary purpose of this 8-K filing is to announce QUALCOMM Incorporated's financial results for its third fiscal quarter ended June 26, 2011, through an attached press release.

Why does Qualcomm present Non-GAAP financial information?

Qualcomm presents Non-GAAP financial information because management uses it to evaluate and benchmark the company's operational performance on a consistent and comparable basis, measure the efficiency of its core businesses, and compare performance against competitors. They believe these measures offer a more meaningful view of ongoing operations.

What types of items are excluded from Qualcomm's Non-GAAP financial measures?

Qualcomm excludes items such as the Qualcomm Strategic Initiatives (QSI) segment (due to expected exits and value fluctuations), certain share-based compensation (viewed as unrelated to operational performance), specific tax items (to clarify ongoing tax rates), and certain acquisition-related items (like in-process R&D, inventory step-ups, and amortization of intangibles) to avoid obscuring period-to-period comparisons of core businesses.

How does Qualcomm define and use Free Cash Flow?

Qualcomm defines free cash flow as net cash provided by operating activities less capital expenditures. They present this metric to help investors understand the cash flow available for growing the business and creating long-term shareholder value, and management uses it for performance evaluation and valuation.

QCOM 8-K: Earnings & Results

Summary

This 8-K filing by QUALCOMM Incorporated (QCOM), dated July 20, 2011, primarily serves to announce the company's financial results for its third fiscal quarter ended June 26, 2011. A key takeaway for investors is the company's use of Non-GAAP financial measures to present its results. Management utilizes these Non-GAAP figures to evaluate operational performance, assess segment efficiency (including QCT, QTI, and QWI), and compare performance against competitors. These Non-GAAP measures exclude items such as the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, specific tax items, and acquisition-related costs, aiming to provide a more meaningful and comparable view of ongoing core business operations. Furthermore, the filing highlights the presentation of free cash flow, defined as operating cash flow less capital expenditures. Qualcomm emphasizes that this metric is used internally to assess performance, evaluate the company's valuation, and benchmark against industry peers. This metric is presented to facilitate investor understanding of cash available for business growth and long-term shareholder value creation.

Key Highlights

1Qualcomm announced its third fiscal quarter 2011 financial results on July 20, 2011.
2The company is reporting results using both GAAP and Non-GAAP financial measures.
3Non-GAAP measures are used by management for internal assessment, benchmarking, and compensation decisions.
4Key exclusions from Non-GAAP results include the QSI segment, certain share-based compensation, tax items, and acquisition-related costs.
5The company explicitly states that Non-GAAP measures are not a substitute for GAAP but provide a more comparable view of core operations.
6Free cash flow (operating cash flow less capital expenditures) is presented to indicate cash available for growth and shareholder value.
7The filing includes an exhibit of the full press release detailing these financial results.

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

Summary

Key Highlights

Frequently Asked Questions