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Actionable news in QCOM: QUALCOMM Incorporated,

QUALCOMM: Vice President, Investor Relations

The following excerpt is from the company's SEC filing.

Phone: 1-858-658-4813

e-mail: ir@qualcomm.com

Qualcomm Announces

Fourth

Quarter and Fiscal 2015 Results

Fiscal 2015 Revenues

$25.3 billion

GAAP EPS

, Non-GAAP EPS

-Record Fiscal Year QTL Results and $14 Billion Return of Capital to Stockholders-

SAN DIEGO -

November 4, 2015

- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for its fiscal

fourth

quarter and year ended

September 27, 2015

“Our fiscal fourth quarter revenues and EPS were at the high end of our expectations, with stronger-than-expected MSM chipset shipments offsetting slower than expected progress concluding new license agreements in China. We executed a major increase in our capital return program in fiscal 2015, returning a record $14 billion of capital to stockholders,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “We are encouraged by customer reaction to our flagship Snapdragon 820, are on track to deliver on our fiscal 2016 cost reduction targets and expect to exit fiscal 2016 on an improving financial trajectory.”

GAAP Results

Quarter Fiscal 2015*

Q4 Fiscal 2015

Q4 Fiscal 2014

Year-Over-Year Change

Q3 Fiscal 2015

Sequential Change

Operating income

Net income

Diluted earnings per share

Operating cash flow

Throughout this news release, revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates are from continuing operations (i.e., before adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.

Throughout this news release, net income and diluted earnings per share are attributable to Qualcomm (i.e., after adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.

Qualcomm Announces Fourth Quarter and Fiscal 2015 Results Page

of 15

$25.3B

$26.5B

Non-GAAP Results

Quarter Fiscal 2015*

Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Beginning in the first quarter of fiscal 2015, we changed our methodology for reporting Non-GAAP results to exclude third-party acquisition and integration services costs and certain other items, which may include major restructuring and restructuring-related costs, goodwill and indefinite- and long-lived asset impairment charges and litigation settlements and/or damages. Detailed reconciliations between 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 fiscal 2015 GAAP results included:

$975 million

charge, or $0.58 per share, related to the resolution reached with the China National Development and Reform Commission (NDRC) regarding its investigation of us under China’s Anti-Monopoly Law in the second quarter of fiscal 2015;

$142 million of charges, or $0.08 per share, that resulted from an impairment of goodwill and long-lived assets related to one of our display businesses in the third quarter of fiscal 2015;

$190 million

of charges, or $0.09 per share, that resulted from restructuring and restructuring-related charges related to our Strategic Realignment Plan in the fourth quarter of fiscal 2015; and

Operating cash flow also was impacted by the prepayment of $950 million to secure long-term capacity commitments at a supplier of our integrated circuit products in the second quarter of fiscal 2015.

The fiscal 2014 Non-GAAP and GAAP results included:

$665 million gain, or $0.25 per share, in discontinued operations associated with the sale of substantially all of the operations of our Omnitracs division in the first quarter of fiscal 2014;

$444 million charge, or $0.20 per share, that resulted from an impairment on long-lived assets related to one of our display businesses in the first quarter of fiscal 2014;

$208 million of income, or $0.12 per share, of which $184 million was recorded in other income, due to the reversal of accruals related to our litigation with ParkerVision in the third quarter of fiscal 2014; and

$164 million of charges, or $0.08 per share, that resulted from an impairment of goodwill and long-lived assets related to one of our display businesses in the third quarter of fiscal 2014.

Key Business Metrics

Year-Over-Year Change (1)

Sequential Change (1)

chip shipments

Total reported device sales (2)

$58.3B

$57.4B

$60.4B

Est. reported 3G/4G device shipments (approx.) (2)

276M - 280M

256M - 260M

289M - 293M

Est. reported 3G/4G average selling price (approx.) (2)

$207 - $213

$220 - $226

$205 - $211

$250.9B

$243.6B

Est. reported 3G/4G device shipments (approx.) (2)

1,233M - 1,249M

1,077M - 1,093M

$199 - $205

$222 - $228

The year-over-year and sequential changes for estimated reported 3G/4G device shipments and average selling prices are calculated at the midpoints. The midpoints of the estimated ranges are used for comparison purposes only and do not indicate a higher degree of confidence in the midpoints.

The fourth quarter of fiscal 2014 and 2015 are based on sales by our licensees in the June quarter as reported to us in the September quarter, and the third quarter of fiscal 2015 is based on sales by our licensees in the March quarter as reported to us in the June quarter. Fiscal 2014 and 2015 are based on sales of our licensees in the September to June quarters as reported to us in the December to September quarters.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled

$30.9 billion

at the end of the

quarter of fiscal 2015, compared to

$32.0 billion

a year ago and

$35.2 billion

quarter of fiscal 2015. In August 2015, we acquired CSR plc for $2.3 billion in cash, net of cash acquired.

The following table summarizes stock repurchases and dividends paid during the fourth quarter and fiscal 2015 (in millions, except per-share amounts):

Stock Repurchases

Dividends

Shares (1)

Amount

Per Share

Q4 fiscal 2015

$2,230

$2,968

$11,245

$2,880

$14,125

Fourth quarter fiscal 2015 shares repurchased includes 20.5 million shares delivered in August 2015 upon the completion of the accelerated share repurchase agreements, in addition to 37.5 million shares repurchased for $2.2 billion. In fiscal 2015, a total of 78.3 million shares were delivered under the $5.0 billion accelerated share repurchase agreements, in addition to 94.2 million shares repurchased for $6.2 billion.

Our fiscal 2015 return of capital to stockholders of $14.1 billion was a record and increased 98 percent year-over-year. Since

, we repurchased and retired

24.6 million

shares of common stock for

$1.4 billion

. On

October 9, 2015

, we announced a cash dividend of

per share payable on

December 18, 2015

to stockholders of record as of the close of business on

December 1, 2015

Effective Income Tax Rates

Our fiscal 2015 annual effective income tax rates were

19 percent

for GAAP and

18 percent

for Non-GAAP, both of which include the United States federal research and development (R&D) tax credit generated through December 31, 2014, the date on which the credit expired. The fiscal 2015 GAAP effective tax rate included the impact of the $975 million fine related to the resolution of the NDRC investigation during the second quarter of fiscal 2015, which was not deductible for tax purposes. The effective income tax rates for the

quarter of fiscal 2015 were

15 percent

17 percent

for Non-GAAP.

Business Outlook

The following statements are forward looking, and actual results may differ materially. The “Note Regarding Forward-Looking Statements” in this news release provides a description of certain risks that we face, and our most recent annual report on file with the Securities and Exchange Commission (SEC) provides a more complete description of risks.

Our outlook does not include provisions for future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as realized investment and certain derivative gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our financial outlook to the extent they are reasonably certain; however, actual results may differ materially from the outlook. Our outlook includes an estimate of the benefit related to stock repurchases that we plan to complete.

Updating Guidance Practices

We have modified our approach to providing a financial outlook for our business. Beginning with today’s release, we are no longer providing annual revenue and EPS guidance. We will continue to provide quarterly guidance for certain financial and operational metrics, along with commentary on our earnings call on the drivers of our longer-term performance, including our view of industry trends and growth prospects and other key factors that influence our business and operating environment. For fiscal 2016, we will provide certain full-year financial metrics to assist with the transition to our new policy. This approach aligns our practices more closely with our semiconductor and large cap technology peers. Our quarterly executive presentation, which is available on the results section of our investor relations website

http://investor.qualcomm.com/results.cfm

, also includes the supplementary guidance points we are providing during the transition to...


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