Qualcomm Incorporated (NASDAQ: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that, effective immediately, its Board of Directors has approved a new $2.5 billion stock repurchase program to replace its previous stock repurchase program, which had approximately $1.0 billion remaining availability.
“We are pleased to expand our stock repurchase program which, in combination with our dividend program, enhances stockholder value” said Dr. Paul E. Jacobs, CEO of Qualcomm. “Our goal is to drive higher EPS growth in conjunction with our excellent cash flow growth prospects. Our Company's strong operating cash flow enables our aggressive investments in research and development and, at the same time, significant return of capital to our stockholders.”
Outstanding put options of approximately $411 million will carry over to the new program and reduce its current availability to approximately $2.1 billion. The timing of stock 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 1.6 billion shares of common stock outstanding as of October 31, 2005.
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 the S&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 execution 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.