1X chips represented 40 percent of total MSM shipments in the first quarter of fiscal
2002," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM. "Continued weak global economic conditions are moderating our March quarter outlook to a range of
$0.19-$0.21 pro forma earnings per share. However, 3G CDMA2000 1X momentum is continuing to build despite these factors and we expect that several recent developments will further strengthen the foundation for future CDMA market growth. CDMA2000 1X networks now support more than four million subscribers in South Korea and several operators will soon deploy CDMA2000 1X in the United States, Canada, Japan, and Latin and South America; South Korean operator KT FreeTel launched the first commercial BREW-enabled CDMA2000 1X network in November; China Unicom launched its large-scale CDMA network; and the Indian government awarded limited mobility licenses to several operators with CDMA networks planned or underway."
--
Pro forma revenues increased to $693 million in the first quarter of fiscal 2002 from $655 million in the year ago quarter, and increased 6 percent from $651 million in the fourth quarter of fiscal 2001. The increase in revenues compared to a year ago quarter is primarily related to higher royalties, increased shipments of 3G CDMA2000 1X MSM integrated circuits and higher software fees.
Pro forma gross margin for the first quarter of fiscal 2002 was 66 percent compared to 62 percent in the year ago quarter and 64 percent in the fourth quarter of fiscal 2001. The increase in pro forma gross margin resulted from higher royalties and improved gross profit margins in the QCT business segment.
QUALCOMM Announces First Quarter Fiscal 2002 Results Page 3 of 14
Pro forma R&D expenses were $104 million in the first quarter of fiscal 2002 compared to $84 million in the year ago quarter and $114 million in the fourth quarter of fiscal 2001. The increase in R&D investment compared to the year ago quarter was primarily due to increased integrated circuit product initiatives to support high-speed wireless Internet access and multimode, multi-band, multi-network products including cdmaOne., CDMA2000 1X/1xEV-DO, GSM/GPRS, WCDMA and position location technologies. The sequential decrease in pro forma
R&D expense was due to seasonal factors and timing of material purchases.
Pro forma selling, general and administrative expenses were $91 million in the first quarter of fiscal 2002 compared to $78 million in the year ago quarter and $92 million in the fourth quarter of fiscal 2001. The increase in SG&A expense compared to the year ago quarter was primarily due to increased head count and related expenses for our support efforts related to the Binary Runtime Environment for Wireless. (BREW.) application development platform and expansion of the QUALCOMM CDMA Technologies customer base.
Pro forma interest income was $25 million for the first quarter of fiscal 2002 compared to $42 million in the year ago quarter and $26 million in the fourth quarter of fiscal 2001. The decline in interest income was a result of lower interest rates on cash and marketable securities.
The Company's pro forma annual effective income tax rate for fiscal 2002 is estimated to be 34 percent, consistent with the year ago period.
---
qualcomm.com |
