Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the first quarter of fiscal 2014 ended December 29, 2013.
“We are pleased with the start to our fiscal year, with record results in quarterly revenues, device sales reported by licensees and MSM chip shipments,” said Dr. Paul E. Jacobs, Chairman and CEO of Qualcomm. “Looking forward, we expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products.”
First Quarter Results (GAAP)*
- Revenues: 1 $6.62 billion, up 10 percent year-over-year (y-o-y) and 2 percent sequentially.
- Operating income: 1 $1.49 billion, down 28 percent y-o-y and 6 percent sequentially.
- Net income: 2 $1.88 billion, down 2 percent y-o-y and up 25 percent sequentially.
- Diluted earnings per share: 2 $1.09, even y-o-y and up 27 percent sequentially.
- Effective tax rate: 1 18 percent.
- Operating cash flow: $2.78 billion, up 41 percent y-o-y; 42 percent of revenues.
- Return of capital to stockholders: $1.59 billion, including $1.00 billion through repurchases of 14.2 million shares of common stock and $590 million, or $0.35 per share, of cash dividends paid.
1 The gain on the sale of Omnitracs recorded in the first quarter of fiscal 2014 is presented as discontinued operations. Throughout this news release, revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates are from continuing operations (i.e., before adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.
2 Throughout this news release, net income and diluted earnings per share are attributable to Qualcomm (i.e., after adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.
Non-GAAP First Quarter Results*
Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items and tax items.
- Revenues: $6.62 billion, up 10 percent y-o-y and 2 percent sequentially.
- Operating income: $1.85 billion, down 24 percent y-o-y and 5 percent sequentially.
- Net income: $2.16 billion, down 2 percent y-o-y and up 19 percent sequentially.
- Diluted earnings per share: $1.26, even y-o-y and up 20 percent sequentially.
- Effective tax rate: 18 percent.
Detailed reconciliations between results reported in accordance with GAAP and Non-GAAP results are included within this news release.
* The following should be considered in regards to the year-over-year and sequential comparisons:
- The first quarter of fiscal 2014 results included:
- $665 million gain ($430 million after tax), or $0.25 per share, in discontinued operations associated with the sale of substantially all of the operations of our Omnitracs division; and
- $444 million charge ($346 million after tax), or $0.20 per share, that resulted from an impairment charge on certain property, plant and equipment related to our QMT division.
- The fourth quarter of fiscal 2013 results included:
- $173 million charge (before and after tax), or $0.10 per share, related to the verdict in our litigation with ParkerVision.