SAN DIEGO -- February 11, 2003 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that its Board of Directors has declared a quarterly dividend of $0.05 per share and approved a stock repurchase program of up to $1.0 billion of common shares over 24 months. The dividend is payable on March 31, 2003 to stockholders of record at the close of business on March 14, 2003 and would pay out approximately $160 million per year, if continued quarterly. Subject to continued capital availability and a determination that cash dividends continue to be in the best interests of the Company and its stockholders, it is the intention of the Board of Directors to pay a comparable quarterly dividend on a going forward basis.
"Qualcomm has been generating increasing amounts of free cash from operations as a result of the success of CDMA technology, particularly with increasing third generation (3G) CDMA network deployments around the world," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "Qualcomm has benefited from the growth of CDMA with increased revenues and earnings in our core semiconductor and technology licensing businesses. In declaring the first dividend in our history and a stock repurchase program, Qualcomm's Board of Directors has determined that the Company can return some of its cash to shareholders without impacting future revenue and earnings growth or restricting strategic opportunities. The combination of a dividend and a stock repurchase program demonstrates our commitment to long-term shareholder value."
The stock repurchase program is effective immediately. The timing of repurchases and the exact number of shares of common stock to be purchased will depend upon prevailing market conditions and other factors. Repurchases under this program will be made using the Company's own cash resources and may be commenced or suspended at any time or from time-to-time at management's discretion without prior notice. Repurchases may be made in the open market, in privately negotiated transactions, or through the use of derivative securities. The Company had approximately 783 million shares of common stock outstanding as of December 29, 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. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and 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. Actual results, as well as the future executive of the dividend and repurchase programs, may differ substantially from the results and programs referred to herein due to a number of factors, including but not limited to risks associated with: changing global economic conditions, particularly in the telecommunications and Internet-related industries and the resulting uncertainty in forecasting future results; the scale-up, acceptance and operations of CDMA systems; the ability to sustain or improve operational efficiency and profitability; decreases in the rate of growth in CDMA-based wireless data and Internet access or the CDMA subscriber population; the development, deployment and commercial acceptance of evolving CDMA technology standards; developments in current or future litigation, the ability to continue to generate cash at a rate necessary to continue paying cash dividends or repurchasing shares, the ability to execute stock repurchases of the amounts indicated, as well as the other risks detailed from time-to-time in the Company's SEC reports.