Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the second quarter of fiscal 2014 ended March 30, 2014.
“We delivered another solid quarter, driven by demand for our leading multimode 3G/LTE chipset solutions and record licensing revenues,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “Looking forward, we are pleased to be raising our earnings per share guidance for the fiscal year. We continue to see increasing demand for our industry-leading chipsets and strong growth in calendar year 2014 of 3G/4G smartphones around the world.”
Second Quarter Results (GAAP)*
- Revenues: 1 $6.37 billion, up 4 percent year-over-year (y-o-y) and down 4 percent sequentially.
- Operating income: 1 $1.99 billion, up 6 percent y-o-y and 33 percent sequentially.
- Net income: 2 $1.96 billion, up 5 percent y-o-y and 4 percent sequentially.
- Diluted earnings per share: 2 $1.14, up 8 percent y-o-y and 5 percent sequentially.
- Effective tax rate: 1 14 percent.
- Operating cash flow: $1.81 billion, down 18 percent y-o-y; 28 percent of revenues.
- Return of capital to stockholders: $1.59 billion, including $1.00 billion through repurchases of 13.4 million shares of common stock and $589 million, or $0.35 per share, of cash dividends paid.
1 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 Second Quarter Results*
Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items and tax items.
- Revenues: $6.37 billion, up 4 percent y-o-y and down 4 percent sequentially.
- Operating income: $2.34 billion, up 5 percent y-o-y and 26 percent sequentially.
- Net income: $2.26 billion, up 9 percent y-o-y and 4 percent sequentially.
- Diluted earnings per share: $1.31, up 12 percent y-o-y and 4 percent sequentially.
- Effective tax rate: 15 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 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.
Second Quarter Key Business Metrics
- MSM™ chip shipments: 188 million units, up 9 percent y-o-y and down 12 percent sequentially.
- December quarter total reported device sales: approximately $66.5 billion, up 9 percent y-o-y and 8 percent sequentially.
- December quarter estimated 3G/4G device shipments: approximately 295 to 299 million units, at an estimated average selling price of approximately $221 to $227 per unit.