NEW YORK -- May 19, 2003 -- Qualcomm Incorporated (Nasdaq: QCOM) today reiterated its financial guidance, originally given on April 23, 2003, for its third fiscal quarter (ending June 29, 2003) and for its 2003 fiscal year (ending September 28, 2003). The previous outlook remains unchanged and is reiterated below in its entirety.
The following statements are forward-looking and actual results may differ materially. Please see page 3 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.
Third Quarter Fiscal 2003
- Based on the current business outlook, we anticipate that revenues excluding the QSI segment in the third fiscal quarter will increase by approximately 27 percent year-over-year. We anticipate that earnings per share excluding the QSI segment will be approximately $0.30-$0.31 in the third fiscal quarter, an increase of approximately 25-29 percent year-over-year. This estimate assumes shipments of approximately 23 million MSM™ phone chips during the quarter. This would represent a 44 percent growth in MSM chip shipments year-over-year. Approximately 96 percent of chip shipments in the third fiscal quarter are expected to be 3G CDMA2000 MSM phone chips.
- Based on the current business outlook, we anticipate that total Qualcomm revenues in the third quarter will increase by approximately 24 percent year-over-year. We anticipate that total Qualcomm earnings per share will be approximately $0.23 in the third fiscal quarter, including an estimated $0.08 loss per share attributed to the QSI segment, compared to a $0.02 loss per share in the year ago quarter. Due to their nature, certain income and expense items such as realized gains or losses, gains or losses on derivatives, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
- Based on the current business outlook, we anticipate that revenues excluding the QSI segment will grow by approximately 30-33 percent year-over-year and earnings per share excluding the QSI segment to be in the range of $1.38-$1.41 for fiscal 2003, up 41-44 percent year-over-year. We estimate the CDMA phone market to be 103-110 million units in calendar 2003 with a decrease of approximately 10 percent in average selling prices of CDMA phones, upon which royalties are calculated.
- Based on the current business outlook, we anticipate that total Qualcomm revenues will grow by approximately 27-30 percent year-over-year and total Qualcomm earnings per share to be in the range of $0.84-$0.87 for fiscal 2003, up 91-98 percent year-over-year, including an estimated $0.54 loss per share attributed to the QSI segment. Due to their nature, certain income and expense items such as realized gains or losses, gains or losses on derivatives, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
Qualcomm Spring 2003 Analyst Meeting
Qualcomm Incorporated (Nasdaq: QCOM) will host its Spring Analyst Meeting for financial analysts and institutional investors on Thursday, May 22, 2003 from 11:30 a.m. to 4:30 p.m. (EDT). This meeting is by invitation only. To attend this meeting in person you must be a certified financial analyst or institutional investor. The meeting presentation will be simulcast on the Company's web site and made available to all Qualcomm investors and other interested parties at www.qualcomm.com.
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 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
The Company presents financial information excluding the Qualcomm Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Wireless&Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating and liquidity performance of the Company because it excludes the effect of fluctuations in value of investments that are unrelated to the Company's operational performance. The financial information excluding QSI should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Reconciliations between total Qualcomm results and results excluding QSI are presented on the Company's web site at http://www.qualcomm.com.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those 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; timing and receipt of license fees and royalties; integrated circuit inventory and order levels; the Company's ability to execute additional 3G licenses; the scale-up, acceptance and operations of CDMA systems, including CDMA2000 1xEV-DO and systems in new markets such as China and India; 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; strategic investments, loans, acquisitions or divestitures the Company has or may pursue; the value realized on sale of the Vesper Companies' business or assets; changes in the fair values of marketable securities and derivative instruments held; the development, deployment and commercial acceptance of evolving CDMA technology standards; developments in current or future litigation; customer receivables and performance guarantees; component shortages; and international business activities, as well as the other risks detailed from time-to-time in the Company's SEC reports.