QUALCOMM Updates Financial Guidance for the First Fiscal Quarter of 2007
SAN DIEGO, Dec. 21 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
(Nasdaq: QCOM) today updated its financial guidance for the first fiscal
quarter ending December 31, 2006.
The following statements are forward looking and actual results may
differ materially. Please see "Note Regarding Forward-Looking Statements"
at the end of this news release for a description of certain risk factors
and QUALCOMM's annual and quarterly reports on file with the Securities and
Exchange Commission (SEC) for a more complete description of risks.
Pro Forma Defined
Pro forma results and guidance exclude the QUALCOMM Strategic
Initiatives (QSI) segment, estimated share-based compensation, certain tax
adjustments related to prior years and acquired in-process research and
development (R&D) expense.
First Fiscal Quarter Business Outlook
Based on the current business outlook, we now anticipate first fiscal
quarter QUALCOMM pro forma revenues to be at the high end of our prior
guidance of approximately $1.98 to $2.08 billion. This estimate is based on
the shipment of approximately 58 to 59 million Mobile Station Modem(TM)
(MSM(TM)) chips during the quarter as compared to our prior estimate of 55
to 58 million. We shipped approximately 47 million MSM chips in the year
ago quarter.
We are deferring current period revenue for which we have not received
payment associated with Pantech Group of South Korea due to its debt
restructuring consideration. Additionally, our legal expenses in the
quarter have increased above our prior expectations as we continue to
vigorously defend the legal attacks on our business model. As a result, we
now anticipate first fiscal quarter QUALCOMM pro forma diluted earnings per
share to be approximately $0.41 to $0.42, compared to $0.39 in the year ago
quarter. We previously anticipated first fiscal quarter QUALCOMM pro forma
diluted earnings per share of approximately $0.42 to $0.44.
The majority of our licensees have reported royalties in our first
fiscal quarter for products shipped in the September quarter. Based on
these reports and an estimate of licensees yet to report, we anticipate
September quarter shipments of approximately 75 to 76 million CDMA units
(CDMA2000(R) and WCDMA) at an average selling price of approximately $210
compared to our prior estimate of approximately 74 to 76 million units at
an average selling price of approximately $209. Approximately 52 million
CDMA units were shipped in the year ago quarter.
"Our updated guidance reflects stronger than expected new orders for
our 1xEV-DO chipsets," said Dr. Paul E. Jacobs, chief executive officer of
QUALCOMM. "The CDMA market, CDMA2000 and WCDMA, continues to grow at a
rapid pace as evidenced by the strong handset shipments reported by our
licensees. Operators are taking advantage of the high-speed data capability
enabled by their CDMA-based networks to introduce new and innovative
applications and services that leverage that capability."
The following table summarizes total QUALCOMM (GAAP) and QUALCOMM pro
forma guidance for the first fiscal quarter of 2007 based on the current
business outlook. The pro forma business outlook provided below is
presented consistent with the presentation of pro forma results elsewhere
herein.
Due to their nature, certain income and expense items such as realized
investment gains or losses in QSI, gains and losses on certain derivative
instruments or asset impairments, cannot be accurately forecast.
Accordingly, the Company excludes forecasts of 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. Estimated
share-based compensation in future periods may vary materially from the
business outlook as the methodology used to calculate this estimate is
dependent on a variety of assumptions which are subject to market
fluctuations and other factors.
The following estimates are approximations and are based on the current
business outlook:
Business Outlook Summary
FIRST FISCAL QUARTER
Prior Guidance Current Guidance
Q1'06 Q1'07 Q1'07
Results Estimates Estimates
QUALCOMM
Pro Forma
Revenues $1.74B $1.98B - $2.08B High end of prior
revenue guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.39 $0.42 - $0.44 $0.41 - $0.42
Year-over-year
change increase 8% - 13% increase 5% - 8%
Total QUALCOMM
(GAAP)
Revenues $1.74B $1.98B - $2.08B High end of prior
revenue guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.36 $0.35 - $0.37 $0.35 - $0.36
Year-over-year
change decrease 3% - increase 3% decrease 3% - even
Diluted EPS
attributable
to QSI ($0.01) ($0.02) ($0.01)
Diluted EPS
attributable to
estimated
share-based
compensation ($0.05) ($0.05) ($0.05)
EPS attributable
to tax items
related to
prior years $0.03 n/a n/a
Metrics
MSM Shipments approx. 47M approx. 55M - 58M approx. 58M - 59M
CDMA/WCDMA
handset
units
shipped approx. 52M* approx. 74M - 76M* approx. 75M - 76M*
CDMA/WCDMA
handset unit
wholesale
average
selling
price approx. $215* approx. $209* approx. $210*
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