Feb 25, 2002San Diego
Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.
Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today reaffirmed its previous outlook for pro forma earnings per share in the second fiscal quarter ending March 31, 2002. The Company expects pro forma earnings per share, which excludes Qualcomm Strategic Initiatives (QSI), of approximately $0.20 per share in the second quarter of fiscal 2002. This estimate is consistent with the previously announced range of $0.19-$0.21 pro forma earnings per share.
"We continue to see positive momentum in the build out of 3G CDMA networks based on CDMA2000 1X around the world," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "Our second fiscal quarter targets for MSM phone chip shipments are coming in on the upper end of our original estimate of 13-14 million units, and our CDMA2000 1X chip shipments are expected to be approximately one million units higher than our original estimate. We believe this strength in demand demonstrates the strong acceptance of 3G CDMA and the expectation that U.S. consumers will increasingly join the more than five million CDMA2000 1X users in South Korea in adopting high-quality 3G CDMA service delivered on a variety of exciting new phones with color screens, position location/E911 capabilities and BREW applications."
Selected Business Update
The statements in the preceding two paragraphs and the following statements are forward-looking and actual results may differ materially. Please see page three of this press release for a description of certain risk factors and Qualcomm's quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
- Qualcomm CDMA Technologies (QCT) is on track to ship approximately 14 million Mobile Station Modem (MSM?) phone chips for the second fiscal quarter, of which approximately 8 million are expected to be 3G CDMA2000 1X phone chips. Previous guidance was approximately 13-14 million total shipments and approximately 7 million CDMA2000 1X MSM phone chips.
- Qualcomm Internet Services (QIS), within the QWI segment, reported that commercial Binary Runtime Environment for Wireless? (BREW?) service in South Korea has experienced early success by increasing operator revenues, and Verizon Wireless has announced plans to introduce BREW software applications to its customers in selected U.S. markets. QIS expects to sign additional definitive agreements with leading CDMA service providers during the second fiscal quarter.
- The Company's balance sheet remains strong with approximately $2.4 billion cash and essentially no debt. Cash flow from operations (excluding QSI) continues in excess of $1 billion on an annualized basis. Such financial strength and liquidity provides the Company with valuable flexibility and operating leverage to enhance shareholder value and continue its selective and strategic support of CDMA growth worldwide.
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. 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, this news release contains forward-looking statements that are subject to risks and uncertainties, including but not limited to: changing global economic conditions, particularly in the telecommunications and Internet-related industries and the resulting uncertainty in forecasting future results; timing and receipt of license fees and royalties; integrated circuit order and shipment levels; the Company's ability to sustain or improve operational efficiency and profitability, the extent and speed to which CDMA is deployed, as well as the other risks detailed from time to time in the Company's SEC reports.