Qualcomm Announces Third Quarter Fiscal 2012 Results
Revenues $4.6 Billion
GAAP EPS $0.69, Non-GAAP EPS $0.85
SAN DIEGO, July 18, 2012 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2012 ended June 24, 2012.
"Adoption of 3G and 3G/4G technologies continues around the world, driving strong year-over-year growth in our chipset and licensing businesses this quarter," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business."
Third Quarter Results (GAAP)*
Revenues: (1) $4.63 billion, up 28 percent year-over-year (y-o-y) and down 6 percent sequentially.
Operating income: (1) $1.38 billion, up 24 percent y-o-y and down 9 percent sequentially.
Net income: (2) $1.21 billion, up 17 percent y-o-y and down 46 percent sequentially.
Diluted earnings per share: (2) $0.69, up 13 percent y-o-y and down 46 percent sequentially.
Effective tax rate: (1) 24 percent for the quarter.
Operating cash flow: $922 million, down 27 percent y-o-y; 20 percent of revenues.
Return of capital to stockholders: $802 million, including $429 million, or $0.25 per share, of cash dividends paid, and $373 million to repurchase 6.6 million shares of our common stock.
(1) The results of FLO TV are presented as discontinued operations. 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 Third Quarter Results*
Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain acquisition-related items and certain tax items.
Revenues: $4.63 billion, up 28 percent y-o-y and down 6 percent sequentially.
Operating income: $1.72 billion, up 23 percent y-o-y and down 10 percent sequentially.
Net income: $1.49 billion, up 20 percent y-o-y and down 16 percent sequentially.
Diluted earnings per share: $0.85, up 16 percent y-o-y and down 16 percent sequentially. Excludes $0.01 loss per share attributable to the QSI segment, $0.12 loss per share attributable to certain share-based compensation and $0.03 loss per share attributable to certain acquisition-related items.
Effective tax rate: 23 percent for the quarter.
Free cash flow (defined as net cash from operating activities less capital expenditures): $658 million, down 43 percent y-o-y; 14 percent of revenues.
Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and Non-GAAP results are included within this news release.
* Note: The following should be considered with regard to the above results and comparisons - the second quarter of fiscal 2012 GAAP results included $761 million in earnings, net of income taxes, for discontinued operations (as a result of a $1.2 billion gain associated with the sale of substantially all of our 700 MHz spectrum), as compared to a $3 million loss, net of income taxes, for discontinued operations in the third quarter of fiscal 2012. Additionally, the third quarter of fiscal 2012 GAAP and Non-GAAP results included Qualcomm Atheros, Inc., which was acquired on May 24, 2011, as compared to the third quarter of fiscal 2011 GAAP and Non-GAAP results which only included Qualcomm Atheros, Inc. from the date of the acquisition.
Third Quarter Key Business Metrics
MSM™ chip shipments: 141 million units, up 18 percent y-o-y and down 7 percent sequentially.
March quarter total reported device sales: approximately $47.8 billion, up 31 percent y-o-y and down 8 percent sequentially.
March quarter estimated 3G/4G device shipments: approximately 206 to 211 million units, at an estimated average selling price of approximately $226 to $232 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $26.5 billion at the end of the third quarter of fiscal 2012, compared to $20.2 billion a year ago and $26.6 billion at the end of the second quarter of fiscal 2012. On July 6, 2012, we announced a cash dividend of $0.25 per share payable on September 26, 2012 to stockholders of record as of September 7, 2012. Since June 24, 2012, we repurchased and retired 11.3 million shares of our common stock for $617 million.