Qualcomm Announces First Quarter Fiscal 2013 Results Last update: 1/30/2013 4:00:00 PM
Qualcomm Announces First Quarter Fiscal 2013 Results
Last update: 1/30/2013 4:00:00 PM
--Revenues $6.0 Billion --GAAP EPS $1.09, Non-GAAP EPS $1.26 - Record Quarterly Revenues and Non-GAAP EPS; Raising Fiscal 2013 Guidance -
SAN DIEGO, Jan. 30, 2013 /PRNewswire via COMTEX/ -- Qualcomm Incorporated (QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the first quarter of fiscal 2013 ended December 30, 2012.
"We are pleased to report record quarterly revenues, Non-GAAP EPS and MSM chip shipments, driven by the growing global demand for smartphones and our industry-leading portfolio of 3G/LTE chipsets," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our broad licensing partnerships and extensive chipset roadmap, including our recently announced best-in-class Qualcomm Snapdragon 800 and 600 processors, position us well for strong growth, and we are pleased to be raising our revenue and earnings guidance for fiscal 2013."
First Quarter Results (GAAP)
-- Revenues: 1 $6.02 billion, up 29 percent year-over-year (y-o-y) and 24 percent sequentially.
-- Operating income: 1 $2.09 billion, up 35 percent y-o-y and 69 percent sequentially.
-- Net income: 2 $1.91 billion, up 36 percent y-o-y and 50 percent sequentially.
-- Diluted earnings per share: 2 $1.09, up 35 percent y-o-y and 49 percent sequentially.
-- Effective tax rate: 1 18 percent for the quarter.
-- Operating cash flow: $1.98 billion, up 11 percent y-o-y; 33 percent of revenues.
-- Return of capital to stockholders: $678 million, including $428 million, or $0.25 per share, of cash dividends paid, and $250 million through repurchases of 4.3 million shares of common stock.
1 Throughout this news release, fiscal 2012 results for FLO TV are presented as discontinued operations. Revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates are from continuing operations (i.e., before adjustments for noncontrolling interests and, for fiscal 2012, discontinued operations), unless otherwise stated. 2 Throughout this news release, net income and diluted earnings per share are attributable to Qualcomm (i.e., after adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.
Non-GAAP First Quarter Results
Non-GAAP results exclude the QSI segment, certain share-based compensation, certain acquisition-related items and certain tax items.
-- Revenues: $6.02 billion, up 29 percent y-o-y and 24 percent sequentially.
-- Operating income: $2.45 billion, up 31 percent y-o-y and 52 percent sequentially.
-- Net income: $2.20 billion, up 32 percent y-o-y and 42 percent sequentially.
-- Diluted earnings per share: $1.26, up 30 percent y-o-y and 42 percent sequentially. Excludes $0.01 loss per share attributable to QSI, $0.12 loss per share attributable to certain share-based compensation and $0.04 loss per share attributable to certain acquisition-related items.
-- Effective tax rate: 18 percent for the quarter.
-- Free cash flow (defined as net cash from operating activities less capital expenditures): $1.85 billion, up 24 percent y-o-y; 31 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.
First Quarter Key Business Metrics
-- MSMTM chip shipments: 182 million units, up 17 percent y-o-y and 29 percent sequentially.
-- September quarter total reported device sales: approximately $53.3 billion, up 29 percent y-o-y and 15 percent sequentially.
-- September quarter estimated 3G/4G device shipments: approximately 233 to 237 million units, at an estimated average selling price of approximately $224 to $230 per unit.
Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $28.4 billion at the end of the first quarter of fiscal 2013, compared to $22.0 billion a year ago and $26.8 billion at the end of the fourth quarter of fiscal 2012. On January 15, 2013, we announced a cash dividend of $0.25 per share payable on March 27, 2013 to stockholders of record as of March 8, 2013.
Research and Development
($ in millions) Non-GAAP QSI Share-Based GAAP
First quarter fiscal 2013 $ 949 $ 1 $ 156 $ 1,106
As % of revenues 16% 18%
First quarter fiscal 2012 $ 746 $ 1 $ 126 $ 873
As % of revenues 16% 19%
Year-over-year change ($) 27% N/M 24% 27%
N/M - Not Meaningful
Non-GAAP research and development (R&D) expenses increased 27 percent y-o-y primarily due to an increase in costs related to the development of CDMA-based 3G, OFDMA-based 4G LTE and other technologies for integrated circuit and related software products and to expand our intellectual property portfolio.
Selling, General and Administrative
($ in millions) Non-GAAP QSI Share-Based Acquisition- GAAP
Compensation Related Items
First quarter fiscal 2013 $ 468 $ 7 $ 105 $ 7 $ 587
As % of revenues 8% 10%
First quarter fiscal 2012 $ 381 $ 12 $ 101 $ 9 $ 503
As % of revenues 8% 11%
Year-over-year change ($) 23% N/M 4% N/M 17%
N/M - Not Meaningful
Non-GAAP selling, general and administrative (SG&A) expenses increased 23 percent y-o-y primarily due to increases in employee-related expenses and costs relating to legal matters.
Effective Income Tax Rates
In the first quarter of fiscal 2013, the effective income tax rates for GAAP and Non-GAAP were both 18 percent. Starting in the second quarter of fiscal 2013, our fiscal 2013 annual effective income tax rates are estimated to be approximately 16 percent for GAAP and approximately 17 to 18 percent for Non-GAAP, which include the recent retroactive extension of the federal R&D tax credit. The R&D tax credit benefit related to fiscal 2012 that will be recorded in the second quarter of fiscal 2013 will be excluded from Non-GAAP results.
QSI makes strategic investments, many of which are in early-stage companies, and holds wireless spectrum. GAAP results for the first quarter of fiscal 2013 included $0.01 loss per share for QSI.
The following statements are forward looking, and actual results may differ materially. The "Note Regarding Forward-Looking Statements" in this news release provides a description of certain risks that we face, and our annual and quarterly reports on file with the Securities and Exchange Commission (SEC) provide a more complete description of risks.
Our outlook does not include provisions for future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as realized investment and certain derivative gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our business outlook to the extent they are reasonably certain; however, actual results may vary materially from the business outlook.
The following table summarizes GAAP and Non-GAAP guidance based on the current business outlook. The Non-GAAP business outlook presented below is consistent with the presentation of Non-GAAP results included elsewhere herein.