Qualcomm Incorporated (Nasdaq: QCOM - news), today provided access to historical data in its new financial segment reporting format. The new reporting includes two new segments, called Qualcomm Wireless&Internet and Qualcomm Strategic Initiatives, which were created as a result of certain changes in the Company's businesses and managerial reporting as announced in July 2001. Effective in the first quarter of fiscal 2002, the Company's complete financial segment reporting includes:
- Qualcomm CDMA Technologies (QCT) -- develops and supplies industry-leading CDMA chipset and system software solutions used in network infrastructure equipment, phones and other wireless devices. QCT integrates industry-leading capabilities into its chipsets; including radioOne™ direct conversion technology and gpsOne™ wireless position location technology facilitated by SnapTrack™, a wholly owned subsidiary of Qualcomm.
- Qualcomm Technology Licensing (QTL) -- licenses the Company's essential CDMA patent portfolio to telecom equipment and consumer electronics manufacturers worldwide. To date, Qualcomm has licensed over 100 companies to use its portfolio of over 1,900 U.S. patents and patent applications applicable to CDMA and other technologies.
- Qualcomm Wireless&Internet (QWI) -- comprised of the following businesses:
- Qualcomm Internet Services (QIS) -- formed to accelerate the development of applications for the wireless Internet, building on Qualcomm's Binary Runtime Environment for Wireless™ (BREW™) applications platform. The BREW platform enables hardware manufacturers and software developers to quickly create new products and applications, and allows users to download and run those applications on their wireless devices.
- Qualcomm Digital Media (QDM) -- develops technologies to support the processing, transmission and management of content for a variety of media applications, including the delivery of digitized motion pictures (Digital Cinema) and highly secure, wireless products for the U.S. government.
- Qualcomm Wireless Business Solutions (QWBS) -- develops and provides satellite and terrestrial-based fleet management solutions to over 400,000 vehicles in 32 countries. The QWBS Network Management Center processes more than seven million transactions per day, making it one of the largest wireless data networks in the world.
- Qualcomm Strategic Initiatives (QSI) -- formed to consolidate and manage the Company's strategic investment activities. Qualcomm invests in wireless carriers and manufacturers to promote the worldwide adoption of CDMA products and services for wireless voice and Internet data applications. Generally, the Company will exit these investments at the earliest possible time, provided the individual circumstances of a particular investment permit an orderly exit without undermining Qualcomm's original strategic purpose. Earnings or losses from the QSI segment come from interest income, increases or decreases in the value of investments (both realized and unrealized) and Qualcomm's share of income or losses from consolidated subsidiaries and investments accounted under the equity method of accounting. From time-to-time other income may result from strategic activities such as the sale of an FCC bidding credit in the fourth fiscal quarter of 2001.
Qualcomm is providing new information on the QSI segment to aid investors' understanding of the investments that the Company has made and the income or losses generated from those investments. Qualcomm will separate the financial performance of QSI from its core operating businesses because many of these investments are in development-stage companies incurring planned accounting losses that are consolidated into Qualcomm's reported earnings. The Company believes that the new financial segment reporting will allow investors to more accurately value the different elements of Qualcomm's activities. Under the new financial segment reporting, net earnings of $0.10 per share for fiscal 2001 and $0.09 per share for fiscal 2000 have been moved from core operations into the QSI segment.
Historical information, including revenues and earnings before taxes by segment, is presented on Qualcomm's Investor Relations web site at www.qualcomm.com. Qualcomm will report the results of its first fiscal quarter of 2002 using this new reporting format on January 24, 2002.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include CDMA chipsets and system software; technology licensing; wireless fleet management systems, OmniTRACS®, TruckMAIL™, OmniExpress®, LINQ™ BREW™ applications platform; and satellite-based systems including portions of the Globalstar™ system. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, the preceding discussion contains forward-looking statements that involve risks and uncertainties. Qualcomm's future results could differ materially from those discussed here. Factors that could cause or contribute to such differences include, but are not specifically limited to: potential declines in the rate of growth in the Code Division Multiple Access (CDMA) subscriber base; risks associated with the scale-up, acceptance, and operations of CDMA systems; risks associated with strategic opportunities or acquisitions, divestitures, and investments the Company may pursue, including investments in new ventures and operators; risks related to the ability to sustain or improve operational efficiency and profitability; the development, deployment and commercial acceptance of evolving CDMA technology standards; developments in current or future litigation; the ability to develop and introduce cost-effective new products in a timely manner, the Company's ability to effectively manage growth; the intense competition in the wireless communications industry, as well as the other risks detailed in the Company's report of Form 10-K. The Company's consolidated financial data includes SnapTrack, Inc. and other consolidated subsidiaries of the Company.
Qualcomm, OmniTRACS and OmniExpress are registered trademarks of Qualcomm Incorporated. radioOne, gpsOne, SnapTrack, BREW, TruckMAIL and LINQ are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.