Wireless technology developer Qualcomm beat analyst estimates, reporting earnings per share of $0.97 for the first quarter.
The company also beat analyst expectations for second quarter revenues, with guidance of $4.5-5 billion up from $3.87 billion for the same quarter last year. The company brought in $4.68 billion in the first quarter.
At 4:20 PM ET, shares were up 1.26% in after-hours trading.
The press release announcing Qualcomm’s earnings highlighted investment in research and development, however little information was provided about the year ahead. That will likely be discussed further in the earnings conference call which begins at 4:45 PM ET.
From the release:
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 per cent year-over-year (y-o-y) and
14 per cent sequentially.
Operating income: (1) $1.55 billion, up 24 per cent y-o-y and 25
per cent sequentially.
Net income: (2) $1.40 billion, up 20 per cent y-o-y and 33 per cent sequentially.
Diluted earnings per share: (2) $0.81, up 14 per cent y-o-y and 31
per cent sequentially.
Effective tax rate: (1) 19 per cent for the quarter.
Operating cash flow: $1.78 billion, 38 per cent 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
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 per cent y-o-y and 14 per cent sequentially.
Operating income: $1.87 billion, up 32 per cent y-o-y and 15 per cent
Net income: $1.67 billion, up 24 per cent y-o-y and 22 per cent sequentially.
Diluted earnings per share: $0.97, up 18 per cent y-o-y and 21 per cent
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 per cent for the quarter.
Free cash flow (defined as net cash from operating activities less
capital expenditures): $1.49 billion, 32 per cent 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 recognise
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 per cent y-o-y and 23 per cent
September quarter total reported device sales: approximately $41.4
billion, up 22 per cent y-o-y and 6 per cent 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 authorised 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.