Qualcomm Announces Record First Quarter Fiscal 2012 Results
Revenues $4.7 Billion
GAAP EPS $0.81, Non-GAAP EPS $0.97
-- Record First Quarter Results, Raising Fiscal 2012 Guidance --
SAN DIEGO, Feb. 1, 2012 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced record results for the first quarter of fiscal 2012 ended December 25, 2011.
"I am pleased to report another record quarter with revenues, earnings and MSM shipments reaching all-time highs, driven by our industry-leading chipset portfolio and the continued strong demand for smartphones around the world," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "We are raising our revenue and earnings guidance as our broad licensing partnerships and extensive chipset roadmap, led by our integrated Snapdragon processors, position us well for strong growth in fiscal 2012. We continue to invest in innovative wireless technologies, products and services, and we are excited about the opportunities ahead as 3G and 4G continue to expand across new device types and geographies."
First Quarter Results (GAAP)
Revenues: (1) $4.68 billion, up 40 percent year-over-year (y-o-y) and 14 percent sequentially.
Operating income: (1) $1.55 billion, up 24 percent y-o-y and 25 percent sequentially.
Net income: (2) $1.40 billion, up 20 percent y-o-y and 33 percent sequentially.
Diluted earnings per share: (2) $0.81, up 14 percent y-o-y and 31 percent sequentially.
Effective tax rate: (1) 19 percent for the quarter.
Operating cash flow: $1.78 billion, 38 percent of revenues.
Return of capital to stockholders: $461 million, including $362 million, or $0.215 per share, of cash dividends paid, and $99 million to repurchase 2.0 million shares of our common stock.
(1) The results of FLO TV are presented as discontinued operations, and prior period amounts have been adjusted accordingly. Revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates throughout this news release are from continuing operations (i.e., before discontinued operations and the adjustment for noncontrolling interests), unless otherwise stated.
(2) Net income and diluted earnings per share throughout this news release are attributable to Qualcomm (i.e., after discontinued operations and adjustment for noncontrolling interests), unless otherwise stated.
Non-GAAP First Quarter Results
Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain acquisition-related items starting with acquisitions completed in the third quarter of fiscal 2011 and certain tax items.
Revenues: $4.68 billion, up 40 percent y-o-y and 14 percent sequentially.
Operating income: $1.87 billion, up 32 percent y-o-y and 15 percent sequentially.
Net income: $1.67 billion, up 24 percent y-o-y and 22 percent sequentially.
Diluted earnings per share: $0.97, up 18 percent y-o-y and 21 percent sequentially. Excludes $0.01 loss per share attributable to the QSI segment, $0.11 loss per share attributable to certain share-based compensation and $0.03 loss per share attributable to certain acquisition-related items (the sum of Non-GAAP earnings per share and items excluded do not equal GAAP earnings per share due to rounding).
Effective tax rate: 19 percent for the quarter.
Free cash flow (defined as net cash from operating activities less capital expenditures): $1.49 billion, 32 percent of revenues.
Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and Non-GAAP results are included at the end of this news release.
The following should be noted with regards to the above results and year-over-year comparisons: first quarter fiscal 2012 results included the results of Qualcomm Atheros, Inc., which was acquired on May 24, 2011. Additionally, on December 27, 2011, after the close of our first fiscal quarter, we completed the sale of substantially all of our 700 MHz spectrum for $1.9 billion. As a result, we will recognize a gain in discontinued operations of $1.2 billion in the second quarter of fiscal 2012 related to the close of this transaction.
First Quarter Key Business Metrics
MSM™ shipments: 156 million units, up 32 percent y-o-y and 23 percent sequentially.
September quarter total reported device sales: approximately $41.4 billion, up 22 percent y-o-y and 6 percent sequentially.
September quarter estimated 3G/4G device shipments: approximately 191 to 195 million units, at an estimated average selling price of approximately $212 to $218 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $22.0 billion at the end of the first quarter of fiscal 2012, compared to $20.9 billion at the end of the fourth quarter of fiscal 2011 and $19.1 billion a year ago. As of December 25, 2011, $948 million remained authorized for repurchases under our stock repurchase program, net of put options outstanding. On January 10, 2012, we announced a cash dividend of $0.215 per share payable on March 23, 2012 to stockholders of record as of March 2, 2012.