SAN DIEGO -- May 21, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today reaffirmed its previous outlook given on April 24, 2002 for pro forma earnings per share in the third fiscal quarter ending June 30, 2002. Based on the current business outlook, the Company expects third fiscal quarter pro forma revenues to increase by approximately 3-6 percent compared to the second quarter of fiscal 2002. The Company expects pro forma earnings per share, which excludes Qualcomm Strategic Initiatives (QSI), to be approximately $0.21-$0.23 per share in the third quarter of fiscal 2002. This estimate assumes shipments of approximately 15-16 million MSM phone chips during the quarter, including approximately 10 million third-generation (3G) CDMA2000 1X MSM phone chips.
Based on the current business outlook, the Company expects revenue growth for fiscal 2002 to be approximately 4-8 percent and pro forma earnings per share to be in the range of $0.90-$0.95. This estimate is based on the Company's forecast for growth of the CDMA2000 1X market in the second half of fiscal 2002, and for the sale of 80-85 million CDMA phones in calendar 2002 with a 5-10 percent annual decrease in average selling prices of CDMA phones, upon which royalties are calculated.
"Rapid uptake of 3G CDMA2000 1X services continues with nearly nine million reported subscribers in South Korea and Japan alone with other operators now ramping up subscribers," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "We believe that the strong demand for our CDMA2000 1X chips supports the strong acceptance of 3G CDMA and that excitement is fueled by innovative, color devices with rich multimedia and position location capabilities and BREW-enabled applications. In Japan, KDDI has experienced strong subscriber growth in only one month of commercial CDMA2000 1X operation. The upcoming World Cup games will enable South Korean operators to showcase CDMA2000 1X EV-DO high-speed data services to a global audience."
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.