The Qualcomm juggernaut just keeps on rolling. Because the company’s financial year involves an in depth it’s celebrating yet another stellar quarter, reporting $4.12 billion in revenue — up 39-percent from the identical time last year and a dramatic 14-percent higher than its Q3 earnings. Of that incoming green, $1.06 was profit. For the year as an entire, Qualcomm saw profits rise 31-percent over 2010 to $4.26 billion while revenues were 36-percent higher than last year, reaching $14.96 billion. Qualcomm exceed expectations not just for earnings but in addition sales — moving 127 million MSM chips in Q4, when analysts were estimating between 120 and 125 million units sold. You can find some PR after the break but, for your entire pretty financial charts you will have to hit up the source.
SAN DIEGO, Nov. 2, 2011 /PRNewswire-FirstCall/ — Qualcomm Incorporated (Nasdaq: QCOM), a number one developer and innovator of advanced wireless technologies, services and products, today announced results for the fourth fiscal quarter and year ended September 25, 2011.
“i’m more than happy with our performance this year as we delivered record revenues, earnings and MSM chipset shipments, driven by the recognition of smartphones, continued adoption of 3G technologies, particularly in emerging regions, and our industry-leading patent portfolio,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “The breadth and depth of our chipset roadmap, extensive licensing program and numerous set of world partnerships position us well for strong revenue and earnings growth in fiscal 2012. We’re concerned with the approaching commercial launch of our groundbreaking Snapdragon multimode LTE solution and continue to speculate in and execute on our strategic priorities to drive profitable growth.”
GAAP Results
Qualcomm results are reported according to generally accepted accounting principles (GAAP).
Fourth Quarter Fiscal 2011
Revenues:(1) $4.12 billion, up 39 percent year-over-year (y-o-y) and 14 percent sequentially.
Operating income:(1) $1.24 billion, up 29 percent y-o-y and 11 percent sequentially.
Net income:(2) $1.06 billion, up 22 percent y-o-y and a couple of percent sequentially.
Diluted earnings per share:(2) $0.62, up 17 percent y-o-y and a couple of percent sequentially.
Effective tax rate:(1) 20 percent for the quarter.
Operating cash flow: $1.82 billion, up 67 percent y-o-y; 44 percent of revenues.
Return of capital to stockholders: $361 million, or $0.215 per share, of money dividends paid and $142 million to repurchase 2.9 million shares of our common stock.
(1)
The result of FLO TV are presented as discontinued operations, and prior period amounts was adjusted accordingly. Revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rate 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 because of Qualcomm (i.e., after discontinued operations and adjustment for noncontrolling interests), unless otherwise stated.
Fiscal 2011
Revenues: $14.96 billion, up 36 percent y-o-y.
Operating income: $5.03 billion, up 35 percent y-o-y.
Net income: $4.26 billion, up 31 percent y-o-y.
Diluted earnings per share: $2.52, up 29 percent y-o-y.
Effective tax rate: 20 percent.
Operating cash flow: $4.90 billion, up 20 percent y-o-y; 33 percent of revenues.
Return of capital to stockholders: $1.49 billion, including $1.35 billion, or $0.81 per share, of money dividends paid, and $142 million to repurchase 2.9 million shares of our common stock.
Non-GAAP Results
Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain tax items that aren’t with regards to the present year and likely acquisition-related items. Starting with acquisitions completed within the third quarter of fiscal 2011, we changed our methodology for reporting Non-GAAP results to exclude the popularity of the step-up of inventories to fair value and amortization of certain intangible assets, as well as our historical practice of excluding acquired in-process research and development (R&D) expense.
Fourth Quarter Fiscal 2011
Revenues: $4.12 billion, up 39 percent y-o-y and 14 percent sequentially.
Operating income: $1.62 billion, up 44 percent y-o-y and 17 percent sequentially.
Net income: $1.37 billion, up 24 percent y-o-y and 11 percent sequentially.
Diluted earnings per share: $0.80, up 18 percent y-o-y and 10 percent sequentially. The present quarter excludes $0.01 loss per share because of the QSI segment, $0.12 loss per share caused by certain share-based compensation, $0.07 loss per share because of certain acquisition-related items and $0.02 earnings per share owing to certain tax-related items.
Effective tax rate: 21 percent for the quarter.
Free cash flow (defined as net cash from operating activities less capital expenditures): $1.69 billion, up 52 percent y-o-y; 41 percent of revenues.
Fiscal 2011
Revenues: $14.96 billion, up 36 percent y-o-y.
Operating income: $6.08 billion, up 41 percent y-o-y.
Net income: $5.41 billion, up 33 percent y-o-y.
Diluted earnings per share: $3.20, up 30 percent y-o-y. The present fiscal year excludes $0.23 loss per share as a result of the QSI segment, $0.37 loss per share on account of certain share-based compensation, $0.12 loss per share as a result of certain acquisition-related items and $0.04 earnings per share as a result of certain tax-related items.
Effective tax rate: 21 percent.
Free cash flow: $4.83 billion, up 16 percent y-o-y; 32 percent of revenues.
Detailed reconciliations between results reported in response to generally accepted accounting principles (GAAP) and Non-GAAP results are included on the end of this news release.
Within the year-over-year comparisons summarized above, the next must be noted: fiscal 2011 results included $401 million in revenues associated with prior quarters with the aid of agreements entered into with two licensees to settle disputes within the second quarter of fiscal 2011 and $120 million in impairment charges with regards to our Firethorn division, including $114 million in goodwill impairment; and financial 2011 operating and free cash flow reflect the impact of a $1.5 billion income tax payment primarily concerning the 2008 license and settlement agreements with Nokia. As well as, fiscal 2011 results included the result of Qualcomm Atheros, Inc., which was acquired on May 24, 2011.
Key Business Metrics
Fourth Quarter Fiscal 2011
CDMA-based Mobile Station Modem (MSM®) shipments: 127 million units, up 14 percent y-o-y and six percent sequentially.
June quarter total reported device sales: approximately $39.1 billion, up 38 percent y-o-y and seven percent sequentially.
June quarter estimated CDMA-based device shipments: approximately 187 to 191 million units, at an estimated average selling price of roughly $204 to $210 per unit.
Fiscal 2011
CDMA-based MSM shipments: 483 million units, up 21 percent y-o-y.
Total reported device sales: approximately $149.5 billion, up 41 percent y-o-y.
Estimated CDMA-based device shipments: approximately 717 to 734 million units, at an estimated average selling price of roughly $203 to $209 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $20.9 billion on the end of the fourth quarter of fiscal 2011, when compared with $20.2 billion on the end of the third quarter of fiscal 2011 and $18.4 billion a year ago. As of September 25, 2011, $1.0 billion remained authorized for repurchases under our stock repurchase program, net of put options outstanding. As well as the $142 million in stock repurchases we made in the course of the fourth quarter of fiscal 2011, we repurchased and retired 2.0 million shares of our common stock for about $99 million since September 25, 2011. In reference to our stock repurchase program, we sold three put options which, if exercised, would require us to repurchase an extra 11.8 million shares for $586 million. On October 11, 2011, we announced a cash dividend of $0.215 per share payable on December 21, 2011 to stockholders of record as of November 23, 2011.
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