Quantcast
Last updated on April 20, 2014 at 19:30 EDT

Qualcomm Announces Fourth Quarter and Fiscal 2012 Results

November 7, 2012

SAN DIEGO, Nov. 7, 2012 /PRNewswire-FirstCall/ — Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the fourth fiscal quarter and year ended September 30, 2012.

“I am very pleased with our performance this year. We delivered record revenues, earnings and MSM chipset shipments driven by increasing global consumption of wireless data across a diverse range of devices, particularly smartphones,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “As we continue to invest in and execute on our strategic priorities, our broad licensing program and industry-leading Snapdragon and 3G/LTE chipset roadmap position us for double-digit revenue growth again in fiscal 2013.”

GAAP Results
Qualcomm’s results are reported in accordance with generally accepted accounting principles (GAAP).

Fourth Quarter Fiscal 2012

  • Revenues: (1) $4.87 billion, up 18 percent year-over-year (y-o-y) and 5 percent sequentially.
  • Operating income: (1 )$1.24 billion, even y-o-y and down 11 percent sequentially.
  • Net income: (2) $1.27 billion, up 20 percent y-o-y and 5 percent sequentially.
  • Diluted earnings per share: (2) $0.73, up 18 percent y-o-y and 6 percent sequentially.
  • Effective tax rate: (1) 19 percent for the quarter.
  • Operating cash flow: $1.41 billion, down 23 percent y-o-y; 29 percent of revenues.
  • Return of capital to stockholders: $1.27 billion, including $426 million, or $0.25 per share, of cash dividends paid, and $841 million through repurchases of 15.3 million shares of common stock.

(1) Throughout this news release, the results of 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 discontinued operations and adjustments for noncontrolling interests), unless otherwise stated.
(2) Throughout this news release, net income and diluted earnings per share are attributable to Qualcomm (i.e., after discontinued operations and adjustments for noncontrolling interests), unless otherwise stated.

Fiscal 2012*

  • Revenues: $19.12 billion, up 28 percent y-o-y.
  • Operating income: ( )$5.68 billion, up 13 percent y-o-y.
  • Net income: $6.11 billion, up 43 percent y-o-y.
  • Diluted earnings per share: $3.51, up 39 percent y-o-y.
  • Effective tax rate: 19 percent.
  • Operating cash flow: $6.00 billion, up 22 percent y-o-y; 31 percent of revenues.
  • Return of capital to stockholders: $2.90 billion, including $1.58 billion, or $0.93 per share, of cash dividends paid, and $1.31 billion through repurchases of 23.9 million shares of common stock.

Non-GAAP Results
Non-GAAP results exclude the QSI segment, certain share-based compensation, certain acquisition-related items and certain tax items.

Fourth Quarter Fiscal 2012

  • Revenues: $4.87 billion, up 18 percent y-o-y and 5 percent sequentially.
  • Operating income: $1.61 billion, down 1 percent y-o-y and 6 percent sequentially.
  • Net income: $1.55 billion, up 13 percent y-o-y and 4 percent sequentially.
  • Diluted earnings per share: $0.89, up 11 percent y-o-y and 5 percent sequentially. Excludes $0.01 earnings per share attributable to QSI, $0.13 loss per share attributable to certain share-based compensation, $0.04 loss per share attributable to certain acquisition-related items and $0.01 earnings per share attributable to certain tax-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 percent for the quarter.
  • Free cash flow (defined as net cash from operating activities less capital expenditures): $1.24 billion, down 27 percent y-o-y; 25 percent of revenues.

Fiscal 2012*

  • Revenues: $19.12 billion, up 28 percent y-o-y.
  • Operating income: $7.10 billion, up 17 percent y-o-y.
  • Net income: $6.46 billion, up 20 percent y-o-y.
  • Diluted earnings per share: $3.71, up 16 percent y-o-y. Excludes $0.40 earnings per share attributable to QSI, $0.47 loss per share attributable to certain share-based compensation, $0.14 loss per share attributable to certain acquisition-related items and $0.01 earnings per share attributable to certain tax-related items.
  • Effective tax rate: 20 percent.
  • Free cash flow: $5.20 billion, up 8 percent y-o-y; 27 percent of revenues.

Detailed reconciliations between results reported in accordance with GAAP and Non-GAAP results are included within this news release.

* The following should be considered in regards to the year-over-year comparisons: Fiscal 2012 GAAP results included $776 million in earnings, net of income taxes, for discontinued operations (primarily a result of a $1.2 billion gain associated with the sale of substantially all of our 700 MHz spectrum), as compared to a $313 million loss, net of income taxes, for discontinued operations in fiscal 2011. Additionally, fiscal 2012 GAAP and Non-GAAP results included Qualcomm Atheros, Inc., which was acquired on May 24, 2011, as compared to fiscal 2011 GAAP and Non-GAAP results, which only included Qualcomm Atheros, Inc. from the date of the acquisition. Fiscal 2011 operating and free cash flows reflected the impact of a $1.5 billion income tax payment primarily related to license and settlement agreements entered into in fiscal 2008.

Key Business Metrics

Fourth Quarter Fiscal 2012

  • MSM(TM) chip shipments: 141 million units, up 11 percent y-o-y and even sequentially.
  • June quarter total reported device sales: approximately $46.5 billion, up 19 percent y-o-y and down 3 percent sequentially.
    • June quarter estimated 3G/4G device shipments: approximately 210 to 214 million units, at an estimated average selling price of approximately $216 to $222 per unit.

Fiscal 2012

  • MSM chip shipments: 590 million units, up 22 percent y-o-y.
  • Total reported device sales: approximately $187.3 billion, up 25 percent y-o-y.
    • Estimated 3G/4G device shipments: approximately 846 to 863 million units, at an estimated average selling price of approximately $216 to $222 per unit.

Cash and Marketable Securities
Our cash, cash equivalents and marketable securities totaled $26.8 billion at the end of the fourth quarter of fiscal 2012, compared to $20.9 billion a year ago and $26.5 billion at the end of the third quarter of fiscal 2012. On October 17, 2012, we announced a cash dividend of $0.25 per share payable on December 21, 2012 to stockholders of record as of December 7, 2012. Since September 30, 2012, we repurchased and retired 4.1 million shares of common stock for $240 million.

Research and Development

    ($ in millions)      Non-GAAP QSI Share-Based             GAAP
                                       Compensation
                                                          ---

    Fourth quarter
     fiscal 2012                  $961   $1         $152           $1,114
    As % of revenues                20%                                23%
    Fourth quarter
     fiscal 2011                  $731   $1         $119             $851
    As % of revenues                18%                                21%
    Year-over-year
     change ($)                     31% N/M           28%              31%

    N/M - Not Meaningful

Non-GAAP research and development (R&D) expenses increased 31 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-Related         GAAP
                                                 Compensation                Items
                                                                                            ---

     Fourth
     quarter
     fiscal
     2012                         $545       $3               $112                      $21          $681
    As %
     of
     revenues                       11%                                                                14%
     Fourth
     quarter
     fiscal
     2011                         $371       $8               $110                      $42          $531
    As %
     of
     revenues                        9%                                                                13%
    Year-
     over-
     year
     change
     ($)                            47%     N/M                  2%                     N/M            28%

    N/M - Not Meaningful

Non-GAAP selling, general and administrative (SG&A) expenses increased 47 percent y-o-y primarily due to a long-lived asset impairment charge related to our QMT division and increases in employee-related expenses, costs relating to legal matters, selling and marketing expenses and patent-related expenses.

Effective Income Tax Rates
Our fiscal 2012 effective income tax rates were 19 percent for GAAP and 20 percent for Non-GAAP. The fiscal 2012 GAAP and Non-GAAP effective tax rates only reflect the United States federal R&D credit generated through December 31, 2011, the date on which the credit expired. The fiscal 2012 GAAP effective tax rate included a tax benefit of $10 million related to the completion of the audit of our fiscal 2005 through fiscal 2008 state tax returns. This tax benefit was excluded from our Non-GAAP results.

QSI Segment
QSI makes strategic investments, many of which are in early-stage companies, and holds wireless spectrum. QSI also includes the discontinued operations of our FLO TV business. GAAP results for the fourth quarter of fiscal 2012 included $0.01 earnings per share for QSI.

Business Outlook
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.

                            Qualcomm's Business Outlook Summary
    FIRST FISCAL QUARTER
    --------------------
                                                            Q1 FY12                       Current Guidance
                                                            Results                      Q1 FY13 Estimates
                                                            -------                      -----------------

              Revenues                                                           $4.68B                              $5.6B - $6.1B
                Year-over-
                 year change                                                                                    increase 20% - 30%
               Non-GAAP
               Diluted
               earnings per
               share (EPS)                                                        $0.97                              $1.08 - $1.16
                Year-over-
                 year change                                                                                    increase 11% - 20%
                       Diluted EPS
                        attributable
                        to QSI                                                   ($0.01)                                    ($0.01)
                       Diluted EPS
                        attributable
                        to share-
                        based
                        compensation                                             ($0.11)                                    ($0.13)
                       Diluted EPS
                        attributable
                        to
                        acquisition-
                        related items                                            ($0.03)                                    ($0.04)
                       Diluted EPS
                        attributable
                        to tax items                                                N/A                                        N/A
               GAAP Diluted
               EPS                                                                $0.81                              $0.90 - $0.98
                Year-over-
                 year change                                                                                    increase 11% - 21%
              ------------

              Metrics
               MSM chip
               shipments                                                           156M                                168M - 178M
                Year-over-
                 year change                                                                                     increase 8% - 14%
               Total reported
               device sales
                (1)                                                     approx. $41.4B*                   approx. $46.0B - $51.0B*
                Year-over-
                 year change                                                                                    increase 11% - 23%
               *Est. sales in
               September
               quarter,
               reported in
               December
               quarter

    FISCAL YEAR
    -----------
                                                            FY 2012                       Current Guidance
                                                            -------
                                                          Results (2)                    FY 2013 Estimates
                                                          ----------                     -----------------
              Revenues                                                          $19.12B                            $23.0B - $24.0B
                                                                                -------
                Year-over-
                 year change                                                                                    increase 20% - 26%
               Non-GAAP
               Operating
               Income                                                            $7.10B                              $8.1B - $8.6B
                                                                                 ------
                Year-over-
                 year change                                                                                    increase 14% - 21%
                       Operating loss
                        attributable
                        to QSI                                                 ($0.12B)                                   ($0.05B)
                       Operating loss
                        attributable
                        to share-
                        based
                        compensation                                           ($1.04B)                                   ($1.15B)
                       Operating loss
                        attributable
                        to
                        acquisition-
                        related items                                          ($0.27B)                                   ($0.30B)
               GAAP Operating
               Income                                                            $5.68B                              $6.6B - $7.1B
                Year-over-
                 year change                                                                                    increase 16% - 25%
               Non-GAAP
               Diluted EPS                                                        $3.71                              $4.12 - $4.32
                                                                                  -----
                Year-over-
                 year change                                                                                    increase 11% - 16%
                       Diluted EPS
                        attributable
                        to QSI                                                    $0.40                                     ($0.04)
                                                                                  -----
                       Diluted EPS
                        attributable
                        to share-
                        based
                        compensation                                             ($0.47)                                    ($0.53)
                       Diluted EPS
                        attributable
                        to
                        acquisition-
                        related items                                            ($0.14)                                    ($0.15)
                       Diluted EPS
                        attributable
                        to tax items                                              $0.01                                        N/A
               GAAP Diluted
               EPS                                                                $3.51                              $3.40 - $3.60
                Year-over-
                 year change                                                                             decrease 3% - increase 3%

              Metrics
               Est. fiscal
               year* 3G/4G
               device
               average
               selling price
               range (1)                                            approx. $216 - $222                        approx. $214 - $226
               *Shipments in
               Sept. to June
               quarters,
               reported in
               Dec. to Sept.
               quarters
               -------------
    CALENDAR YEAR Device Estimates (1)
    ---------------------------------
                                       Prior Guidance                   Current Guidance                  Current Guidance
                                        Calendar 2012                     Calendar 2012                    Calendar 2013
                                          Estimates                         Estimates                        Estimates
                                          ---------                         ---------                        ---------
              Est. 3G/4G
              device
              shipments
              March
              quarter                               approx. 206M - 211M               approx. 206M - 211M                   not provided
                                                    -------------------
             June quarter                                  not provided               approx. 210M - 214M                   not provided
                                                           ------------
              September
              quarter                                      not provided                      not provided                   not provided
                                                           ------------
              December
              quarter                                      not provided                      not provided                   not provided
             ---------                                     ------------
              Est.
              calendar
              year range
              (approx.)                                     875M - 935M                       880M - 930M                1,000M - 1,070M
             -----------                                    -----------                       -----------                ---------------
              Est.
              calendar
              year
              midpoint
              (approx.)
               (3)                                                 905M                              905M                         1,035M
             ---------                                             ----                              ----                         ------
    (1)                                Total reported device sales is the
                                       sum of all reported sales in U.S.
                                       dollars (as reported to us by our
                                       licensees) of all licensed CDMA-
                                       based, OFDMA-based and multimode
                                       CDMA/OFDMA subscriber devices
                                       (including handsets, modules, modem
                                       cards and other subscriber devices)
                                       by our licensees during a
                                       particular period (collectively,
                                       3G/4G devices).  The reported
                                       quarterly estimated ranges of
                                       average selling prices (ASPs) and
                                       unit shipments are determined based
                                       on the information as reported to
                                       us by our licensees during the
                                       relevant period and our own
                                       estimates of the selling prices and
                                       unit shipments for licensees that
                                       do not provide such information.
                                       Not all licensees report sales,
                                       selling prices and/or unit
                                       shipments the same way (e.g., some
                                       licensees report selling prices net
                                       of permitted deductions, such as
                                       transportation, insurance and
                                       packing costs, while other
                                       licensees report selling prices and
                                       then identify the amount of
                                       permitted deductions in their
                                       reports), and the way in which
                                       licensees report such information
                                       may change from time to time.
                                       Total reported device sales,
                                       estimated unit shipments and
                                       estimated ASPs for a particular
                                       period may include prior period
                                       activity that was not reported by
                                       the licensee until such particular
                                       period.
    (2)                                Fiscal 2012 results for QSI and GAAP
                                       included $0.44 EPS related to a
                                       $1.2 billion gain associated with
                                       the sale of substantially all of
                                       our 700 MHz spectrum, which was
                                       recognized in discontinued
                                       operations and was excluded from
                                       Non-GAAP results.
    (3)                                The midpoints of the estimated
                                       calendar year ranges are identified
                                       for comparison purposes only and do
                                       not indicate a higher degree of
                                       confidence in the midpoints.

    Sums may not equal totals due to
     rounding.

Results of Business Segments
The following table reconciles our Non-GAAP results to our GAAP results (in millions, except per share data):

    SEGMENTS                                QCT QTL QWI Non-GAAP Reconciling Items (1) Non-GAAP (2) QSI (2) Acquisition- Related Items (2)
                                                                                                                                  (3)          Tax Items (4)          GAAP
                                                                                                        Share-Based
                                                                                                      Compensation (2)
    ---                                                                                                      ---                                                  ---
    Q4 - FISCAL 2012
    ----------------
    Revenues                                     $3,129  $1,572   $161               $9             $4,871         $  -       $  -      $  -                $  -            $4,871
      Change from prior year                         21%     16%   (1%)              50%                18%                                                                     18%
      Change from prior quarter                       9%    (1%)     1%             N/M                  5%                                                                      5%
    Operating income (loss)                                                                           $1,612          ($4)     ($284)     ($89)               $  -            $1,235
      Change from prior year                                                                           (1%)          56%      (13%)       29%                                    0%
      Change from prior quarter                                                                        (6%)          64%       (8%)     (46%)                                 (11%)
    EBT                                            $486  $1,370    ($1)             $65             $1,920         ($21)     ($284)     ($89)               $  -            $1,526
      Change from prior year                       (15%)     15%    80%             N/M                 11%          38%      (13%)       29%                                   15%
      Change from prior quarter                       3%    (3%)    83%              33%                 0%        (31%)       (8%)     (46%)                                  (3%)
    EBT as % of revenues                             16%     87%   N/M              N/M                 39%                                                                     31%
    Discontinued operations, net of tax (5)                                                           $  -          $23       $  -      $  -                $  -               $23
    Net income (loss)                                                                               $1,547          $14      ($222)     ($78)                $10            $1,271
      Change from prior year                                                                            13%         N/M        (4%)       35%               (75%)               20%
      Change from prior quarter                                                                          4%         N/M        (6%)     (34%)                N/A                 5%
    Diluted EPS                                                                                      $0.89        $0.01     ($0.13)   ($0.04)              $0.01             $0.73
      Change from prior year                                                                            11%         N/M        (8%)       43%               (50%)               18%
      Change from prior quarter                                                                          5%         N/M        (8%)     (33%)                N/A                 6%
    Diluted shares used                                                                              1,745        1,745      1,745     1,745               1,745             1,745
    Q3 - FISCAL 2012
    ----------------
    Revenues                                     $2,869  $1,593   $160               $4             $4,626         $  -       $  -      $  -                $  -            $4,626
    Operating income (loss)                                                                          1,718          (11)      (264)      (61)                  -             1,382
    EBT                                            $472  $1,407    ($6)             $49              1,922          (16)      (264)      (61)                  -             1,581
    Discontinued operations, net of tax (5)                                                              -           (3)         -         -                   -                (3)
    Net income (loss)                                                                                1,486          (11)      (210)      (58)                  -             1,207
    Diluted EPS                                                                                      $0.85       ($0.01)    ($0.12)   ($0.03)               $  -             $0.69
    Diluted shares used                                                                              1,758        1,758      1,758     1,758               1,758             1,758
    Q1 - FISCAL 2012
    ----------------
    Revenues                                     $3,085  $1,440   $152               $4             $4,681         $  -       $  -      $  -                $  -            $4,681
    Operating income (loss)                                                                          1,871          (13)      (247)      (60)                  -             1,551
    EBT                                            $739  $1,267     $1              $55              2,062          (34)      (247)      (60)                  -             1,721
    Discontinued operations, net of tax (5)                                                              -           (5)         -         -                   -                (5)
    Net income (loss)                                                                                1,672          (22)      (194)      (55)                  -             1,401
    Diluted EPS                                                                                      $0.97       ($0.01)    ($0.11)   ($0.03)               $  -             $0.81
    Diluted shares used                                                                              1,721        1,721      1,721     1,721               1,721             1,721
    Q4 - FISCAL 2011
    ----------------
    Revenues                                     $2,587  $1,361   $163               $6             $4,117         $  -       $  -      $  -                $  -            $4,117
    Operating income (loss)                                                                          1,624           (9)      (252)     (125)                  -             1,238
    EBT                                            $569  $1,193    ($5)            ($20)             1,737          (34)      (252)     (125)                  -             1,326
    Discontinued operations, net of tax (5)                                                              -           (5)        (1)        -                   -                (6)
    Net income (loss)                                                                                1,372          (22)      (214)     (120)                 40             1,056
    Diluted EPS                                                                                      $0.80       ($0.01)    ($0.12)   ($0.07)              $0.02             $0.62
    Diluted shares used                                                                              1,716        1,716      1,716     1,716               1,716             1,716
    12 MONTHS - FISCAL 2012
    -----------------------
    Revenues                                    $12,141  $6,327   $633              $20            $19,121         $  -       $  -      $  -                $  -           $19,121
      Change from prior year                         37%     17%   (4%)               0%                28%                                                                     28%
    Operating income (loss)                                                                         $7,100        ($116)   ($1,035)    ($267)               $  -            $5,682
      Change from prior year                                                                            17%         N/M       (27%)     (28%)                                   13%
    EBT                                          $2,296  $5,585   ($15)            $168             $8,034        ($170)   ($1,035)    ($267)               $  -            $6,562
      Change from prior year                         12%     18%    90%             (8%)                17%        (29%)      (27%)     (28%)                                   15%
    EBT as a % of revenues                           19%     88%   N/M              N/M                 42%                                                                     34%
    Discontinued operations, net of tax (5)                                                           $  -         $777        ($1)     $  -                $  -              $776
    Net income (loss)                                                                               $6,463         $690      ($811)    ($243)                $10            $6,109
      Change from prior year                                                                            20%         N/M       (30%)     (22%)               (84%)               43%
    Diluted EPS                                                                                      $3.71        $0.40     ($0.47)   ($0.14)              $0.01             $3.51
      Change from prior year                                                                            16%         N/M       (27%)     (17%)               (75%)               39%
    Diluted shares used                                                                              1,741        1,741      1,741     1,741               1,741             1,741
    12 MONTHS - FISCAL 2011
    -----------------------
    Revenues                                     $8,859  $5,422   $656              $20            $14,957         $  -       $  -      $  -                $  -           $14,957
    Operating income (loss)                                                                          6,084          (37)      (813)     (208)                  -             5,026
    EBT                                          $2,056  $4,753  ($152)            $183              6,840         (132)      (813)     (208)                  -             5,687
    Discontinued operations, net of tax (5)                                                              -         (308)        (5)        -                   -              (313)
    Net income (loss)                                                                                5,407         (385)      (624)     (200)                 62             4,260
    Diluted EPS                                                                                      $3.20       ($0.23)    ($0.37)   ($0.12)              $0.04             $2.52
    Diluted shares used                                                                              1,691        1,691      1,691     1,691               1,691             1,691
    -------------------                                                                              -----        -----      -----     -----               -----             -----
    (1)            Non-GAAP reconciling items related
                   to revenues consist primarily of
                   other nonreportable segment
                   revenues less intersegment
                   eliminations.  Non-GAAP
                   reconciling items related to
                   earnings before taxes consist
                   primarily of certain costs of
                   equipment and services revenues,
                   research and development expenses,
                   sales and marketing expenses,
                   other operating expenses and
                   certain investment income or
                   losses and interest expense that
                   are not allocated to the segments
                   for management reporting purposes;
                   nonreportable segment results; and
                   the elimination of intersegment
                   profit.
    (2)            At fiscal year end, the sum of the
                   quarterly tax provision (benefit)
                   for each column equals the annual
                   tax provision (benefit) for each
                   column computed in accordance with
                   GAAP.  In interim quarters, the
                   sum of these provisions (benefits)
                   may not equal the total GAAP tax
                   provision, and starting in fiscal
                   2012, this difference is allocated
                   to tax provisions (benefits) among
                   the columns.  In interim quarters
                   of prior years, it was included in
                   QSI because variability in QSI
                   results was considered the primary
                   driver of the difference.
    (3)            In addition to our historical
                   practice of excluding acquired in-
                   process research and development
                   expenses, starting with
                   acquisitions completed in the
                   third quarter of fiscal 2011, Non-
                   GAAP results also exclude other
                   items related to acquisitions.
                   During fiscal 2012, acquisition-
                   related items consisted of
                   amortization of certain intangible
                   assets, expense associated with
                   the termination of a contract of
                   an acquiree and the recognition of
                   the step-up of inventories to
                   fair value.
    (4)            During the fourth quarter of fiscal
                   2012, we recorded a tax benefit of
                   $10 million related to the
                   completion of the audit of our
                   fiscal 2005 through fiscal 2008
                   state tax returns.  Our quarterly
                   and fiscal 2012 Non-GAAP results
                   exclude this item.
    (5)            During fiscal 2011, we shut down
                   the FLO TV business and network.
                   The results of FLO TV are
                   presented as discontinued
                   operations.

    N/M - Not Meaningful

    N/A - Not Applicable

    Sums may not equal totals due to rounding.

Conference Call
Qualcomm’s fourth quarter and fiscal 2012 earnings conference call will be broadcast live on November 7, 2012, beginning at 1:45 p.m. Pacific Time (PT) at www.qualcomm.com/investor. This conference call will include a discussion of “Non-GAAP financial measures” as defined in Regulation G. The most directly comparable GAAP financial measures and GAAP reconciliation information, as well as the other material financial and statistical information to be discussed on the conference call, will be posted at www.qualcomm.com/investor immediately prior to commencement of the call. An audio replay will be available at www.qualcomm.com/investor and via telephone for 30 days shortly following the live call. To listen to the replay via telephone, U.S. callers may dial (855) 859-2056, and international callers may dial (404) 537-3406. Callers should use reservation number 37726774.

Note Regarding Use of Non-GAAP Financial Measures
The Non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a result, the Company’s measure of Non-GAAP results might be different than similarly titled measures used by other companies. Reconciliations between GAAP and Non-GAAP results are presented herein.

The Company uses Non-GAAP financial information (i) to evaluate, assess and benchmark the Company’s operating results on a consistent and comparable basis; (ii) to measure the performance and efficiency of the Company’s ongoing core operating businesses, including the QCT, QTL and QWI segments; and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Non-GAAP measurements of the following financial data are used by the Company: revenues, cost of revenues, R&D expenses, SG&A expenses, other operating expenses, operating income (loss), net investment income (loss), income (loss) before income taxes, effective tax rate, net income (loss), diluted earnings (loss) per share, operating cash flow and free cash flow. The Company is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using Non-GAAP information. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on Non-GAAP financial measures applicable to the Company and its business segments. The Company presents Non-GAAP financial information to provide greater transparency to investors with respect to its use of such information in financial and operational decision-making.

Non-GAAP information used by management excludes QSI, certain share-based compensation, certain acquisition-related items and certain tax items.

  • QSI is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments and realized gains or losses are viewed by management as unrelated to the Company’s operational performance.
  • Share-based compensation expense relates primarily to restricted stock units and stock options. Certain share-based compensation is excluded because management views such expenses as unrelated to the operating activities of the Company’s ongoing core business. Further, the fair values of share-based awards are affected by factors that are variable on each grant date, which may include the Company’s stock price, stock market volatility, expected award life, risk-free interest rates and expected dividend payouts in future years.
  • In addition to its historical practice of excluding acquired in-process R&D expenses from Non-GAAP results, the Company began excluding amortization of certain intangible assets, recognition of the step-up of inventories to fair value and the related tax effects of these items starting with acquisitions completed in the third quarter of fiscal 2011, as well as any tax effects from restructuring the ownership of such acquired assets. Additionally, starting with acquisitions completed in the fourth quarter of fiscal 2012, the Company began excluding expenses related to the termination of contract(s) that limit the use of the acquired intellectual property. These certain acquisition-related items are excluded and no longer allocated to the Company’s segments because management views such expenses as unrelated to the operating activities of the Company’s ongoing core business. In addition, these charges are impacted by the size and timing of acquisitions, potentially obscuring period to period comparisons of the Company’s operating businesses.
  • Certain tax items that were recorded in each fiscal year presented, but that were unrelated to the fiscal year in which they were recorded, are excluded in order to provide a clearer understanding of the Company’s ongoing Non-GAAP tax rate and after tax earnings. The Company also excludes any benefit resulting from the retroactive extensions of the federal R&D tax credit from Non-GAAP results because the Company does not include the potential extension of the credit in its business outlook due to uncertainty as to whether and when the federal R&D tax credit will be retroactively extended.

The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term stockholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to evaluate the Company’s performance and to compare its operating performance with other companies in the industry.

About Qualcomm
Qualcomm Incorporated (Nasdaq: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit www.qualcomm.com.

Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding our broad licensing program and industry-leading Snapdragon and 3G/LTE chipset roadmap positioning us for double-digit revenue growth in fiscal 2013; the Company’s business outlook; and estimates and guidance related to revenues, GAAP and Non-GAAP diluted earnings per share, effective income tax rates, MSM chip shipments, total reported device sales, 3G/4G device average selling price ranges and 3G/4G device shipment ranges and midpoints. Forward-looking statements are generally identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “guidance” and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to risks associated with the commercial deployment of our technologies and our customers’ and licensees’ sales of equipment, products and services based on these technologies; competition; our dependence on a small number of customers and licensees; attacks on our licensing business model, including current and future legal proceedings and actions of governmental or quasi-governmental bodies; our dependence on third-party suppliers, including the potential impact of supply constraints; the enforcement and protection of our intellectual property rights; claims by third parties that we infringe their intellectual property; global economic conditions that impact the communications industry and the potential impact on demand for our products and our customers’ and licensees’ products; our stock price and earnings volatility; strategic transactions and investments; the commercial success of our QMT division’s display technology; foreign currency fluctuations; and failures, defects or errors in our products and services or in the products of our customers and licensees. These and other risks are set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2012 filed with the SEC. Our reports filed with the SEC are available on our website at www.qualcomm.com. We undertake no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.

Qualcomm, Snapdragon and MSM are trademarks of Qualcomm Incorporated, registered in the United States and other countries. All other trademarks are the property of their respective owners.

                                                                                                           Qualcomm Incorporated
                                                                                   Supplemental Information for the Three Months Ended September 30, 2012
                                                                                                                (Unaudited)

                                                                                                                                        Acquisition-      Tax-
                                              Non-GAAP                                     Share-Based              Related                Related        GAAP
                                              Results              QSI Compensation         Items (a)                Items                 Results
                                              -------              --- ------------          --------                -----                 -------
     ($ in millions, except
      per share data)

                 Cost of equipment and
                 services revenues                     $1,753                $        -                                          $20                              $68  $     -     $1,841

                R&D                                       961                         1                                          152                                -        -      1,114

                SG&A                                      545                         3                                          112                               21        -        681

                Operating income (loss)                 1,612                        (4)                                        (284)                             (89)       -      1,235

                Investment income (loss), net            $308  (b)                 $(17) (c)                         $             -                       $        -  $     -       $291

                Tax rate                                   19%                       19%                                          22%                              12%     N/M         19%

                Net income (loss)                      $1,547                       $14                                        $(222)                            $(78)     $10 (d) $1,271

                 Diluted earnings (loss) per
                 share (EPS)                            $0.89                     $0.01                                       $(0.13)                          $(0.04)   $0.01      $0.73

                Operating cash flow                    $1,476                      $(26)                                        $(41)                      $        -  $     -     $1,409
                 Operating cash flow as % of
                 revenues                                  30%                      N/A                                          N/A                              N/A      N/A         29%

                Free cash flow(e)                      $1,242                      $(42)                                        $(41)                      $        -  $     -     $1,159
                 Free cash flow as % of
                 revenues                                  25%                      N/A                                          N/A                              N/A      N/A         24%
    (a)                 Consisted of amortization of certain
                        intangible assets, expense
                        associated with the termination of a
                        contract of an acquiree and the
                        recognition of the step-up of
                        inventories to fair value.
    (b)                 Included $177 million in interest and
                        dividend income related to cash,
                        cash equivalents and marketable
                        securities, which were not part of
                        our strategic investments and $143
                        million in net realized gains on
                        investments, partially offset by $5
                        million in other-than-temporary
                        losses on investments, $4 million in
                        losses on derivatives and $3 million
                        in interest expense.
    (c)                 Included $14 million in other-than-
                        temporary losses on investments, $13
                        million in interest expense and $3
                        million in equity in losses of
                        investees, partially offset by $12
                        million in net realized gains on
                        investments and $1 million in
                        interest and dividend income related
                        to cash, cash equivalents and
                        marketable securities.
    (d)                 Included a tax benefit of $10 million
                        related to the completion of the
                        audit of our fiscal 2005 through
                        fiscal 2008 state tax returns.
    (e)                 Free cash flow is calculated as net
                        cash provided by operating
                        activities less capital
                        expenditures.  Reconciliation of
                        these amounts is included in the
                        "Reconciliation of Non-GAAP Free
                        Cash Flows to Net Cash Provided by
                        Operating Activities (GAAP) and
                        Other Supplemental Disclosures" for
                        the three months ended September 30,
                        2012 included herein.

    N/A - Not Applicable

    Sums may not equal totals due to rounding.
                                                                                                           Qualcomm Incorporated
                                                                                  Supplemental Information for the Twelve Months Ended September 30, 2012
                                                                                                                (Unaudited)

                                                                                                                                         Acquisition-     Tax-
                                              Non-GAAP                                      Share-Based              Related                Related       GAAP
                                              Results              QSI Compensation          Items (a)                Items                 Results
                                              -------              --- ------------           --------                -----                 -------
     ($ in millions, except
      per share data)

                 Cost of equipment and
                 services revenues                     $6,796               $          -                                          $75                            $225  $     -     $7,096

                R&D                                     3,363                          6                                          546                               -        -      3,915

                SG&A                                    1,839                         29                                          414                              42        -      2,324

                Other operating expenses                   23                         81  (b)                                       -                               -        -        104

                Operating income (loss)                 7,100                       (116)                                      (1,035)                           (267)       -      5,682

                Investment income (loss), net            $934  (c)                  $(54) (d)                         $             -                      $        -  $     -       $880

                Tax rate                                   20%                        19%                                          22%                              9%     N/M         19%

                Net income (loss)                      $6,463                       $690                                        $(811)                          $(243)     $10 (e) $6,109

                 Diluted earnings (loss) per
                 share (EPS)                            $3.71                      $0.40                                       $(0.47)                         $(0.14)   $0.01      $3.51

                Operating cash flow                    $6,382                      $(216)                                       $(168)                     $        -  $     -     $5,998
                 Operating cash flow as % of
                 revenues                                  33%                       N/A                                          N/A                             N/A      N/A         31%

                Free cash flow(f)                      $5,199                      $(317)                                       $(168)                     $        -  $     -     $4,714
                 Free cash flow as % of
                 revenues                                  27%                       N/A                                          N/A                             N/A      N/A         25%
    (a)                  Consisted of amortization of certain
                         intangible assets, expense
                         associated with the termination of a
                         contract of an acquiree and the
                         recognition of the step-up of
                         inventories to fair value.
    (b)                  QSI results for fiscal 2012 included
                         $81 million in other operating
                         expenses associated with a payment
                         made to the Indian government in
                         connection with the issuance of the
                         BWA spectrum license.
    (c)                  Included $590 million in interest and
                         dividend income related to cash,
                         cash equivalents and marketable
                         securities, which were not part of
                         our strategic investments, $327
                         million in net realized gains on
                         investments, $76 million in gains on
                         derivatives (primarily due to gains
                         from put options sold as part of our
                         stock repurchase program) and $1
                         million in equity earnings of
                         investees, partially offset by $49
                         million in other-than-temporary
                         losses on investments and $11
                         million in interest expense.
    (d)                  Included $79 million in interest
                         expense, $34 million in other-than-
                         temporary losses on investments and
                         $10 million of equity in losses of
                         investees, partially offset by $42
                         million in net realized gains on
                         investments, $19 million in interest
                         and dividend income related to cash,
                         cash equivalents and marketable
                         securities and $8 million in gains
                         on derivatives.
    (e)                  Included a tax benefit of $10 million
                         related to the completion of the
                         audit of our fiscal 2005 through
                         fiscal 2008 state tax returns.
    (f)                  Free cash flow is calculated as net
                         cash provided by operating
                         activities less capital
                         expenditures.  Reconciliation of
                         these amounts is included in the
                         "Reconciliation of Non-GAAP Free
                         Cash Flows to Net Cash Provided by
                         Operating Activities (GAAP) and
                         Other Supplemental Disclosures" for
                         the twelve months ended September
                         30, 2012, included herein.

    N/A - Not Applicable

    Sums may not equal totals due to rounding.

                                                                              Qualcomm Incorporated
                                                                  Reconciliation of Non-GAAP Free Cash Flows to
                                                                 Net Cash Provided by Operating Activities (GAAP)
                                                                        and Other Supplemental Disclosures
                                                                                  (In millions)
                                                                                   (Unaudited)

                                   Three Months Ended September 30, 2012
                                   -------------------------------------
                                                                                                                  Share-Based
                                           Non-GAAP                                QSI                            Compensation            GAAP
                                           --------                                ---                            ------------            ----
    Net cash provided (used) by
     operating activities                            $1,476                                 $(26)                               $(41) (a)       $1,409
    Less: capital expenditures                         (234)                                 (16)                                  -              (250)
                                                       ----                                  ---                                 ---              ----
    Free cash flow                                   $1,242                                 $(42)                               $(41)           $1,159
                                                     ======                                 ====                                ====            ======

    Revenues                                         $4,871                                  $ -                                 $ -            $4,871
    Free cash flow as % of
     revenues                                            25%                                 N/A                                 N/A                24%

    Other supplemental cash
     disclosures:
       Cash transfers from QSI (b)                     $183                                $(183)                                $ -               $ -
       Cash transfers to QSI (c)                       (123)                                 123                                   -                 -
                                                       ----                                  ---                                 ---               ---
        Net cash transfers                              $60                                 $(60)                                $ -               $ -
                                                        ===                                 ====                                 ===               ===

                                   Twelve Months Ended September 30, 2012
                                   --------------------------------------
                                                                                   QSI                            Share-Based             GAAP
                                           Non-GAAP                                                               Compensation
                                           --------                                                               ------------
    Net cash provided (used) by
     operating activities                            $6,382                                $(216)                              $(168) (a)       $5,998
    Less: capital expenditures                       (1,183)                                (101)                                  -            (1,284)
                                                     ------                                 ----                                 ---            ------
    Free cash flow                                   $5,199                                $(317)                              $(168)           $4,714
                                                     ======                                =====                               =====            ======

    Revenues                                        $19,121                                  $ -                                 $ -           $19,121
    Free cash flow as % of
     revenues                                            27%                                 N/A                                 N/A                25%

    Other supplemental cash
     disclosures:
       Cash transfers from QSI (d)                   $2,281                              $(2,281)                                $ -               $ -
       Cash transfers to QSI (c)                       (478)                                 478                                   -                 -
                                                       ----                                  ---                                 ---               ---
         Net cash transfers                          $1,803                              $(1,803)                                $ -               $ -
                                                     ======                              =======                                 ===               ===

                                   Three Months Ended September 25, 2011
                                   -------------------------------------
                                                                                   QSI                            Share-Based             GAAP
                                           Non-GAAP                                                               Compensation
                                           --------                                                               ------------
    Net cash provided (used) by
     operating activities                            $1,886                                 $(50)                               $(16) (a)       $1,820
    Less: capital expenditures                         (194)                                   -                                   -              (194)
                                                       ----                                  ---                                 ---              ----
    Free cash flow                                   $1,692                                 $(50)                               $(16)           $1,626
                                                     ======                                 ====                                ====            ======

                                   Twelve Months Ended September 25, 2011
                                   --------------------------------------
                                                                                   QSI                            Share-Based             GAAP
                                           Non-GAAP                                                               Compensation
                                           --------                                                               ------------
    Net cash provided (used) by
     operating activities                            $5,418                                $(335)                              $(183) (a)       $4,900
    Less: capital expenditures                         (588)                                  (5)                                  -              (593)
                                                       ----                                  ---                                 ---              ----
    Free cash flow                                   $4,830                                $(340)                              $(183)           $4,307
                                                     ======                                =====                               =====            ======
    (a)            Incremental tax benefits from stock
                   options exercised during the
                   period.
    (b)            Primarily due to release of
                   restricted cash and cash from sale
                   of equity securities and other
                   investments.
    (c)            Primarily funding for strategic debt
                   and equity investments, other
                   investing activities and QSI
                   operating and capital expenditures.
    (d)            Primarily cash from sale of wireless
                   spectrum, issuance of subsidiary
                   shares to noncontrolling interest,
                   borrowings under loans and
                   debentures and sale of equity
                   securities and other investments.

    N/A - Not Applicable
                                                                                               Qualcomm Incorporated
                                                                            Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a)
                                                                                                   (in millions)
                                                                                                    (Unaudited)

                                Three Months Ended September 30, 2012
                                -------------------------------------
                                                                                                                                         Acquisition-           Tax-
                     Non-GAAP                                QSI                            Share-Based                                   Related            Related       GAAP
                     Results                                                                Compensation                                   Items              Items      Results
                     -------                                                                ------------                                   -----              -----      -------

    Income (loss)
     from
     continuing
     operations
     before income
     taxes                     $1,920                                 $(21)                                    $(284)                                  $(89)         $ -         $1,526
    Income tax
     (expense)
     benefit                     (373)                                   4                                        62                                     11           10           (286)
                                 ----                                  ---                                       ---                                    ---          ---           ----
       Income (loss)
        from
        continuing
        operations             $1,547                                 $(17)                                    $(222)                                  $(78)         $10         $1,240
                               ======                                 ====                                     =====                                   ====          ===         ======

    Tax rate                       19%                                  19%                                       22%                                    12%         N/M             19%

                             Twelve Months Ended September 30, 2012
                             --------------------------------------
                                                                                                                                       Acquisition-           Tax-
                     Non-GAAP                                QSI                            Share-Based                                   Related            Related       GAAP
                     Results                                                                Compensation                                   Items              Items      Results
                     -------                                                                ------------                                   -----              -----      -------

    Income (loss)
     from
     continuing
     operations
     before income
     taxes                     $8,034                                $(170)                                  $(1,035)                                 $(267)         $ -         $6,562
    Income tax
     (expense)
     benefit                   (1,571)                                  33                                       225                                     24           10         (1,279)
                               ------                                  ---                                       ---                                    ---          ---         ------
       Income (loss)
        from
        continuing
        operations             $6,463                                $(137)                                    $(810)                                 $(243)         $10         $5,283
                               ======                                =====                                     =====                                  =====          ===         ======

    Tax rate                       20%                                  19%                                       22%                                     9%         N/M             19%
    (a)              At fiscal year end, the sum of
                     the quarterly tax provision
                     (benefit) for each column
                     equals the annual tax
                     provision (benefit) for each
                     column computed in accordance
                     with GAAP. In interim
                     quarters, the sum of these
                     provisions (benefits) may not
                     equal the total GAAP tax
                     provision, and this difference
                     is allocated to tax provisions
                     (benefits) among the columns.

    Sums may not equal totals due to rounding.
                                                   Qualcomm Incorporated
                                                CONSOLIDATED BALANCE SHEETS
                                            (In millions, except per share data)
                                                        (Unaudited)

                                                           ASSETS
                                                         September 30,           September 25,
                                                                           2012                   2011
                                                                           ----                   ----
    Current assets:
      Cash and cash equivalents                                          $3,807                 $5,462
      Marketable securities                                               8,567                  6,190
      Accounts receivable, net                                            1,459                    993
      Inventories                                                         1,030                    765
      Deferred tax assets                                                   309                    537
      Other current assets                                                  473                    346
                                                                            ---                    ---
              Total current assets                                       15,645                 14,293
    Marketable securities                                                14,463                  9,261
    Deferred tax assets                                                   1,412                  1,703
    Assets held for sale                                                  1,109                    746
    Property, plant and equipment,
     net                                                                  2,851                  2,414
    Goodwill                                                              3,917                  3,432
    Other intangible assets, net                                          2,938                  3,099
    Other assets                                                            677                  1,474
                                                                            ---                  -----
              Total assets                                              $43,012                $36,422
                                                                        =======                =======

                                          LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Trade accounts payable                                             $1,298                   $969
      Payroll and other benefits
       related liabilities                                                  664                    644
      Unearned revenues                                                     545                    610
      Loans and debentures                                                    -                    994
      Liabilities held for sale                                           1,072                      -
      Other current liabilities                                           1,723                  2,072
                                                                          -----                  -----
             Total current liabilities                                    5,302                  5,289
    Unearned revenues                                                     3,739                  3,541
    Other liabilities                                                       426                    620
                                                                            ---                    ---
             Total liabilities                                            9,467                  9,450
                                                                          -----                  -----

    Stockholders' equity:
    Qualcomm stockholders' equity:
      Preferred stock, $0.0001 par
       value; 8 shares authorized;
       none outstanding                                                       -                      -
      Common stock, $0.0001 par
       value; 6,000 shares
       authorized; 1,706
        and 1,681 shares issued and
         outstanding, respectively                                            -                      -
      Paid-in capital                                                    11,956                 10,394
      Retained earnings                                                  20,701                 16,204
      Accumulated other
       comprehensive income                                                 866                    353
                                                                            ---                    ---
             Total Qualcomm stockholders'
              equity                                                     33,523                 26,951
    Noncontrolling interests                                                 22                     21
                                                                            ---                    ---
             Total stockholders' equity                                  33,545                 26,972
                                                                         ------                 ------
                Total liabilities and
                 stockholders' equity                                   $43,012                $36,422
                                                                        =======                =======
                                                               Qualcomm Incorporated
                                                       CONSOLIDATED STATEMENTS OF OPERATIONS
                                                        (In millions, except per share data)
                                                                    (Unaudited)

                            Three Months Ended                                      Twelve Months Ended
                            ------------------                                      -------------------
                               September 30,                September 25,                               September 30,          September 25,
                                                 2012                         2011                                       2012                  2011
                                                 ----                         ----                                       ----                  ----

    Revenues:
      Equipment and
       services                                $3,213                       $2,673                                    $12,465                $9,223
      Licensing                                 1,658                        1,444                                      6,656                 5,734
                                                -----                        -----                                      -----                 -----
       Total revenues                           4,871                        4,117                                     19,121                14,957
                                                -----                        -----                                     ------                ------

    Operating expenses:
      Cost of equipment and
       services revenues                        1,841                        1,497                                      7,096                 4,877
      Research and
       development                              1,114                          851                                      3,915                 2,995
      Selling, general and
       administrative                             681                          531                                      2,324                 1,945
      Other                                         -                            -                                        104                   114
          Total operating
           expenses                             3,636                        2,879                                     13,439                 9,931
                                                -----                        -----                                     ------                 -----

    Operating income                            1,235                        1,238                                      5,682                 5,026

    Investment income,
     net                                          291                           88                                        880                   661
                                                  ---                          ---                                        ---                   ---
      Income from
       continuing
       operations before
       income taxes                             1,526                        1,326                                      6,562                 5,687
    Income tax expense                           (286)                        (271)                                    (1,279)               (1,132)
                                                 ----                         ----                                     ------                ------
      Income from
       continuing
       operations                               1,240                        1,055                                      5,283                 4,555
    Discontinued
     operations, net of
     income taxes                                  23                           (6)                                       776                  (313)
                                                  ---                          ---                                        ---                  ----
      Net income                                1,263                        1,049                                      6,059                 4,242
    Net loss attributable
     to noncontrolling
     interests                                      8                            7                                         50                    18
                                                  ---                          ---                                        ---                   ---
      Net income
       attributable to
       Qualcomm                                $1,271                       $1,056                                     $6,109                $4,260
                                               ======                       ======                                     ======                ======

    Basic earnings (loss)
     per share
     attributable to
     Qualcomm:
      Continuing operations                     $0.73                        $0.63                                      $3.14                 $2.76
      Discontinued
       operations                                0.02                            -                                       0.45                 (0.19)
                                                 ----                          ---                                       ----                 -----
      Net income                                $0.75                        $0.63                                      $3.59                 $2.57
                                                =====                        =====                                      =====                 =====
    Diluted earnings
     (loss) per share
     attributable to
     Qualcomm:
      Continuing operations                     $0.72                        $0.62                                      $3.06                 $2.70
      Discontinued
       operations                                0.01                            -                                       0.45                 (0.18)
                                                 ----                          ---                                       ----                 -----
      Net income                                $0.73                        $0.62                                      $3.51                 $2.52
                                                =====                        =====                                      =====                 =====
    Shares used in per
     share calculations:
      Basic                                     1,704                        1,681                                      1,700                 1,658
                                                =====                        =====                                      =====                 =====
      Diluted                                   1,745                        1,716                                      1,741                 1,691
                                                =====                        =====                                      =====                 =====

    Dividends per share
     announced                                 $0.250                       $0.215                                     $0.930                $0.810
                                               ======                       ======                                     ======                ======
                                                                   Qualcomm Incorporated
                                                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                       (In millions)
                                                                        (Unaudited)

                                 Three Months Ended               Twelve Months Ended
                                 ------------------               -------------------
                                 September 30, 2012                September 25, 2011            September 30, 2012        September 25, 2011
                                 ------------------                ------------------            ------------------        ------------------
    Operating Activities:
    Net income                                     $1,263                            $1,049                        $6,059                    $4,242
    Adjustments to
     reconcile net income
     to net cash provided
     by
           operating activities:
       Depreciation and
        amortization                                  257                               241                           897                     1,061
       Gain on sale of
        wireless spectrum                               -                                 -                        (1,179)                        -
       Goodwill impairment                              -                                 -                            23                       114
       Revenues related to
        non-monetary
        exchanges                                     (30)                              (30)                         (122)                     (123)
       Income tax provision
        in excess of (less
        than) income tax
        payments                                      156                                14                           395                    (1,204)
       Non-cash portion of
        share-based
        compensation expense                          283                               256                         1,035                       824
       Incremental tax
        benefit from stock
        options exercised                             (41)                              (16)                         (168)                     (183)
       Net realized gains on
        marketable securities
        and other investments                        (155)                              (33)                         (369)                     (337)
       Net impairment losses
        on marketable
        securities and other
        investments                                    19                                26                            83                        52
       Losses (gains) on
        derivative
        instruments                                     4                                 4                           (84)                        3
       Other items, net                                65                               (16)                           93                         9
    Changes in assets and
     liabilities, net of
     effects of
     acquisitions:
       Accounts receivable,
        net                                          (207)                             (161)                         (456)                     (140)
       Inventories                                   (199)                              (19)                         (252)                      (62)
       Other assets                                  (209)                              (34)                         (240)                      (70)
       Trade accounts payable                         174                               165                           371                       (26)
       Payroll, benefits and
        other liabilities                              71                               362                          (341)                      572
       Unearned revenues                              (42)                               12                           253                       168
                                                      ---                               ---                           ---                       ---
      Net cash provided by
       operating activities                         1,409                             1,820                         5,998                     4,900
                                                    -----                             -----                         -----                     -----
    Investing Activities:
       Capital expenditures                          (250)                             (194)                       (1,284)                     (593)
       Purchases of
        available-for-sale
        securities                                 (3,707)                           (2,677)                      (15,511)                  (10,948)
       Proceeds from sale of
        available-for-sale
        securities                                  4,084                             1,306                         9,858                    10,661
       Purchase of trading
        securities                                 (1,729)                                -                        (4,009)                        -
       Proceeds from sale of
        trading securities                          1,763                                 -                         3,060                         -
       Proceeds from sale of
        wireless spectrum                               -                                 -                         1,925                         -
       Acquisitions and other
        investments, net of
        cash acquired                                (156)                             (362)                         (833)                   (3,624)
       Other items, net                                (7)                                1                           (83)                       15
                                                      ---                               ---                           ---                       ---
      Net cash used by
       investing activities                            (2)                           (1,926)                       (6,877)                   (4,489)
                                                      ---                            ------                        ------                    ------
    Financing Activities:
       Borrowing under loans
        and debentures                                  -                               295                           710                     1,555
       Repayment of loans
        payable                                         -                              (295)                         (591)                   (1,555)
       Proceeds from issuance
        of common stock                               355                               255                         1,714                     2,647
       Incremental tax
        benefit from stock
        options exercised                              41                                16                           168                       183
       Proceeds from issuance
        of subsidiary shares
        to noncontrolling
        interests                                       1                                 -                            86                        62
       Repurchase and
        retirement of common
        stock                                        (841)                             (142)                       (1,313)                     (142)
       Dividends paid                                (426)                             (361)                       (1,583)                   (1,346)
       Other items, net                              (147)                               78                            52                       114
                                                     ----                               ---                           ---                       ---
      Net cash (used)
       provided by financing
       activities                                  (1,017)                             (154)                         (757)                    1,518
                                                   ------                              ----                          ----                     -----
      Effect of exchange
       rate changes on cash                             5                               (24)                          (19)                      (14)
                                                      ---                               ---                           ---                       ---
    Net increase
     (decrease) in cash
     and cash equivalents                             395                              (284)                       (1,655)                    1,915
    Cash and cash
     equivalents at
     beginning of period                            3,412                             5,746                         5,462                     3,547
                                                    -----                             -----                         -----                     -----
    Cash and cash
     equivalents at end of
     period                                        $3,807                            $5,462                        $3,807                    $5,462
                                                   ======                            ======                        ======                    ======

SOURCE Qualcomm Incorporated


Source: PR Newswire