QUALCOMM Increases Financial Guidance for Third Fiscal Quarter Ending June 27, 2004 and Fiscal Year 2004
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QUALCOMM Increases Financial Guidance for Third Fiscal Quarter Ending June 27, 2004 and Fiscal Year 2004
Wednesday May 12, 7:31 am ET
SAN DIEGO, May 12 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News) today updated its financial guidance for the third fiscal quarter ending June 27, 2004 and the fiscal year ending September 26, 2004.
The following statements are forward-looking and actual results may differ materially. Please see description of certain risk factors in this release and QUALCOMM's reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
Third Quarter Fiscal 2004
Based on the current business outlook, we now anticipate third fiscal quarter revenues excluding the QUALCOMM Strategic Initiatives (QSI) segment to increase approximately 44-46 percent year-over-year compared to our prior guidance of 41-44 percent. We now anticipate third fiscal quarter 2004 earnings per share excluding the QSI segment to be $0.51-$0.53, an increase of 55-61 percent year-over-year, compared to our prior guidance of $0.48-$0.50. These estimates are based on the shipment of approximately 34-35 million Mobile Station Modem(TM) (MSM(TM)) phone chips during the quarter. Our prior guidance was based on the shipment of approximately 33-35 million MSM phone chips during the quarter. The improved outlook is due to greater than expected WCDMA royalties, faster migration to 6000 series MSMs and stronger orders for CSM products.
We now expect total QUALCOMM third fiscal quarter revenues to increase approximately 44-46 percent year-over-year. We expect total QUALCOMM earnings per share to be approximately $0.49-$0.51, an increase of 113-122 percent year-over-year, compared to our prior guidance of $0.46-$0.48. Total earnings per share include an estimated $0.02 loss per share attributed to the QSI segment.
Fiscal 2004
Based on the current business outlook, we are increasing our guidance for fiscal 2004. We now anticipate fiscal year 2004 revenues excluding the QSI segment will increase by approximately 28-30 percent year-over-year compared to our prior guidance of 26-29 percent increase year-over-year. We now anticipate fiscal 2004 earnings per share excluding the QSI segment to be in the range of $2.00-$2.05, an increase of 41-44 percent year-over-year, compared to our prior estimate of $1.93-$1.98. We expect to ship approximately 32-36 million MSM phone chips in the fourth fiscal quarter ended September 26, 2004. We estimate that average selling prices of CDMA phones for fiscal 2004, upon which royalties are calculated, to increase to approximately $195, compared to our prior estimate of $194. We reiterate our estimate for the CDMA phone market to be approximately 152-160 million units in calendar 2004.
Based on the current business outlook, we anticipate that total QUALCOMM revenues will grow by approximately 28-30 percent year-over-year and total QUALCOMM earnings per share to be in the range of $1.93-$1.98 for fiscal 2004, an increase of 91-96 percent year-over-year, compared to our prior guidance of $1.86-$1.91. Total earnings per share include an estimated $0.07 loss per share attributed to the QSI segment for fiscal 2004.
Due to their nature, certain income and expense items such as investment gains and losses, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
Calendar 2005
We estimate the calendar 2005 CDMA phone market to be in the range of 195-215 million units, compared to our calendar 2004 estimate of 152-160 million units, a year-over-year growth of 31 percent based upon the midpoint of our estimates. Using the midpoint of 205 million, we expect approximately 160 million CDMA2000® and 45 million WCDMA unit shipments in calendar 2005, 15 percent and 165 percent growth respectively over our midpoint estimates for 2004. |
