Qualcomm Earns $1.26 Per Share

Qualcomm ($QCOM) just reported fiscal Q1 (Dec) earnings of $1.26 per share which was eight cents more than the Street was expecting:

Qualcomm Incorporated, a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the first quarter of fiscal 2014 ended December 29, 2013.

“We are pleased with the start to our fiscal year, with record results in quarterly revenues, device sales reported by licensees and MSM chip shipments,” said Dr. Paul E. Jacobs, Chairman and CEO of Qualcomm. “Looking forward, we expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products.”

(…)

Non-GAAP First Quarter Results*

Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items and tax items.

Revenues: $6.62 billion, up 10 percent y-o-y and 2 percent sequentially.

Operating income: $1.85 billion, down 24 percent y-o-y and 5 percent sequentially.

Net income: $2.16 billion, down 2 percent y-o-y and up 19 percent sequentially.

Diluted earnings per share: $1.26, even y-o-y and up 20 percent sequentially.

Effective tax rate: 18 percent.

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 and sequential comparisons:

The first quarter of fiscal 2014 results included:

$665 million gain ($430 million after tax), or $0.25 per share, in discontinued operations associated with the sale of substantially all of the operations of our Omnitracs division; and

$444 million charge ($346 million after tax), or $0.20 per share, that resulted from an impairment charge on certain property, plant and equipment related to our QMT division.

The fourth quarter of fiscal 2013 results included:

$173 million charge (before and after tax), or $0.10 per share, related to the verdict in our litigation with ParkerVision.

First Quarter Key Business Metrics

MSMTM chip shipments: 213 million units, up 17 percent y-o-y and 12 percent sequentially.

September quarter total reported device sales: approximately $61.6 billion, up 16 percent y-o-y and 2 percent sequentially.

September quarter estimated 3G/4G device shipments: approximately 276 to 280 million units, at an estimated average selling price of approximately $219 to $225 per unit.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled $31.6 billion at the end of the first quarter of fiscal 2014, compared to $28.4 billion a year ago and $29.4 billion at the end of the fourth quarter of fiscal 2013. On January 22, 2014, we announced a cash dividend of $0.35 per share payable on March 26, 2014 to stockholders of record as of the close of business on March 5, 2014.

For fiscal Q2 (ending March), QCOM sees revenues between $6.1 billion and $6.7 billion, and EPS between $1.15 and $1.25. Wall Street had been expecting $1.26 per share.

They kept their full-year revenue guidance the same at $26 billion to $27.5 billion, but they raised their full-year EPS guidance range by five cents; from $4.95 to $5.15, to $5.00 to $5.20. Wall Street had been expecting $5.09 per share.

The shares are up about 2% after hours.

Posted by on January 29th, 2014 at 4:05 pm


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