QUALCOMM Announces Third Quarter Results Pro Forma Earnings Per Share
$.27; Record Pro Forma Net Income Up 40 Percent from Third Quarter of Fiscal
1999
SAN DIEGO--(BUSINESS WIRE)--July 19, 2000--QUALCOMM Incorporated (NASDAQ:
QCOM) today reported pro forma revenues (see note below) of $714 million for the third quarter
of fiscal 2000, an increase of 11 percent compared to $645 million in the year ago period. Pro
forma earnings per share were $.27 in the third quarter of fiscal 2000 compared to $.22 per share
in the third quarter of fiscal 1999, an increase of 23 percent. Pro forma earnings before taxes were
$352 million, a 47 percent increase, compared to $239 million in the third quarter of fiscal 1999.
Pro forma net income was $218 million, an increase of 40 percent, compared to $156 million in the
third quarter of fiscal 1999.
For the first nine months of fiscal 2000, pro forma earnings per share were $.80, pro forma
earnings before taxes were $1 billion, and pro forma net income was $635 million. This represents
an increase of 45 percent in pro forma earnings per share, 80 percent increase in pro forma
earnings before taxes and 72 percent increase in pro forma net income, compared to the first nine
months of fiscal 1999.
Note: Pro forma results for the current period exclude $64 million in ongoing amortization of
acquisition-related goodwill and other intangible assets and $7 million in employer payroll taxes on
employee non-qualified stock option exercises. Pro forma results for the prior year period exclude
the results of exited businesses and related charges, one-time gains and other non-recurring items.
Pro forma earnings exclude the above mentioned items and, therefore, differ from reported earnings
which are presented in accordance with generally accepted accounting principles.
"Our profitability continued to improve with an increase of 23 percent earnings per share over the
third quarter of last fiscal year and a record $1 billion in pro forma earnings before taxes for the first
nine months of fiscal 2000," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM
Incorporated. "Our chip business met its third quarter goal of shipping a record number of MSM
phone chips, while aggressively preparing for and investing in new areas of growth including third
generation (cdma2000 and WCDMA) and HDR products. Our technology licensing business
signed numerous license agreements during the quarter and we're seeing momentum build in
requests for both new license agreements and 3G extensions by existing licensees. We're
particularly excited about supporting a new group of licensees - companies that are focused on
creating wireless data devices and applications to maximize the inherent benefits of CDMA and
enable wireless Internet access."
Pro forma operating expenses (research and development and selling, general and administrative)
for the third quarter of fiscal 2000 increased to 21 percent of revenues, compared to 19 percent of
revenues during the year ago period. The increase in research and development expenses were
primarily associated with new product initiatives including HDR development (now being
standardized under the name 1xEV), software applications that run on QUALCOMM phone chips
and an enhanced position location technology embedded in QUALCOMM chipsets.
The Company currently estimates its pro forma annual effective income tax rate to be 38 percent
for fiscal 2000, compared to 35 percent for fiscal 1999.
Reported revenues for the third quarter of fiscal 2000 were $714 million, compared to $1 billion in
the year ago period. The decrease in reported revenues was attributable to the sale of the
subscriber business in February of 2000. Reported earnings per share were $.19 in the third
quarter of fiscal 2000, compared to $.09 per share in the year ago period. Reported earnings
before taxes and net income were $281 million and $155 million in the third quarter of fiscal 2000
compared to $91 million and $59 million, respectively, in the year ago period. |
