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Qualcomm Reports Q4
Q4 net income of $614M was up 14 percent year over year and down 5 percent sequentially
November 3, 2006
2 Min Read
SAN DIEGO -- QUALCOMM Incorporated (NASDAQ: QCOM) today announced results for the fourth fiscal quarter and fiscal 2006 year ended September 24, 2006.
Total QUALCOMM (GAAP) Results:
Total QUALCOMM results are reported in accordance with Generally Accepted Accounting Principles (GAAP).
Fourth Quarter
Revenues: $2.00 billion, up 28 percent year-over-year and 2 percent sequentially.
Net income: $614 million, up 14 percent year-over-year and down 5 percent sequentially.
Diluted earnings per share: $0.36, up 13 percent year-over-year and down 3 percent sequentially.
Effective tax rate: 24 percent.
Estimated share-based compensation: $76 million, net of tax.
Operating cash flow: $952 million, up 1 percent year-over-year; 48 percent of revenue.
Return of capital to stockholders: $528 million, including $198 million, or $0.12 per share, of cash dividends and $330 million, net of related premiums received, to repurchase 7.6 million shares of our common stock.
Fiscal 2006
Revenues: $7.53 billion, up 33 percent year-over-year.
Net income: $2.47 billion, up 15 percent year-over-year.
Diluted earnings per share: $1.44, up 14 percent year-over-year.
Effective tax rate: 22 percent.
Estimated share-based compensation: $320 million, net of tax.
Operating cash flow: $3.25 billion, up 21 percent year-over-year; 43 percent of revenue.
Return of capital to stockholders: $2.19 billion, including $698 million, or $0.42 per share, of cash dividends and $1.49 billion, net of related premiums received, to repurchase 34.0 million shares of our common stock.
“Our record performance in fiscal 2006 was a direct result of the focus and innovation delivered by the employees of QUALCOMM and the success of our partners,” said Dr. Paul E. Jacobs, chief executive officer of QUALCOMM. “We achieved record revenues, net income and operating cash flow. We shipped a record 207 million MSM™ chips in fiscal 2006 - up from 151 million in fiscal 2005. As of September 2006, there were approximately 402 million subscribers using third generation (3G) CDMA-based networks worldwide as compared to approximately 273 million at the same point in 2005.”
“3G networks with mobile broadband capability are now widely deployed across the globe, enhancing opportunities to gain new 3G subscribers and for the migration of existing second generation subscribers to 3G. Looking forward to fiscal 2007, our key priorities will be working with our existing chipset customers to improve their market share, winning new customers for our chipset and software solutions, and continuing to expand the base of 3G wireless networks.”
"The competition resulting from our business model has led to continual decreases in selling prices of handsets and significant technology advancements which enable further cost reduction and new revenue streams for our partners. Our Company has built the most valuable and widely licensed portfolio of intellectual property in the wireless industry, which we have consistently made available to all on fair and non-discriminatory terms. We will take the necessary actions to ensure that the technology advances embodied in our intellectual property portfolio are protected and that we are fairly compensated for their use. We will continue to fund an expensive but necessary battle to defend our business in the interest of our shareholders.”
Qualcomm Inc. (Nasdaq: QCOM)
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