Qualcomm Announces Fourth Quarter and Fiscal 2012 Results

          Qualcomm Announces Fourth Quarter and Fiscal 2012 Results

  PR Newswire

  SAN DIEGO, Nov. 7, 2012

-- Fiscal 2012 Revenues $19.1 Billion

-- GAAP EPS $3.51, Non-GAAP EPS $3.71

- Record Fiscal 2012 Results -

SAN DIEGO, Nov. 7, 2012 /PRNewswire/ -- Qualcomm Incorporated (Nasdaq: QCOM),
a leading developer and innovator of advanced wireless technologies, products
and services, today announced results for the fourth fiscal quarter and year
ended September 30, 2012.

"I am very pleased with our performance this year. We delivered record
revenues, earnings and MSM chipset shipments driven by increasing global
consumption of wireless data across a diverse range of devices, particularly
smartphones," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "As we
continue to invest in and execute on our strategic priorities, our broad
licensing program and industry-leading Snapdragon and 3G/LTE chipset roadmap
position us for double-digit revenue growth again in fiscal 2013."

GAAP Results Qualcomm's results are reported in accordance with generally
accepted accounting principles (GAAP).

Fourth Quarter Fiscal 2012

  *Revenues: [1] $4.87 billion, up 18 percent year-over-year (y-o-y) and 5
    percent sequentially.
  *Operating income: [1] $1.24 billion, even y-o-y and down 11 percent
    sequentially.
  *Net income: [2] $1.27 billion, up 20 percent y-o-y and 5 percent
    sequentially.
  *Diluted earnings per share: [2] $0.73, up 18 percent y-o-y and 6 percent
    sequentially.
  *Effective tax rate: [1] 19 percent for the quarter.
  *Operating cash flow: $1.41 billion, down 23 percent y-o-y; 29 percent of
    revenues.
  *Return of capital to stockholders: $1.27 billion, including $426 million,
    or $0.25 per share, of cash dividends paid, and $841 million through
    repurchases of 15.3 million shares of common stock.

[1] Throughout this news release, the results of FLO TV are presented as
discontinued operations. Revenues, operating expenses, operating income,
earnings before tax (EBT) and effective tax rates are from continuing
operations (i.e., before discontinued operations and adjustments for
noncontrolling interests), unless otherwise stated. [2] Throughout this news
release, net income and diluted earnings per share are attributable to
Qualcomm (i.e., after discontinued operations and adjustments for
noncontrolling interests), unless otherwise stated.

Fiscal 2012*

  *Revenues: $19.12 billion, up 28 percent y-o-y.
  *Operating income: $5.68 billion, up 13 percent y-o-y.
  *Net income: $6.11 billion, up 43 percent y-o-y.
  *Diluted earnings per share: $3.51, up 39 percent y-o-y.
  *Effective tax rate: 19 percent.
  *Operating cash flow: $6.00 billion, up 22 percent y-o-y; 31 percent of
    revenues.
  *Return of capital to stockholders: $2.90 billion, including $1.58
    billion, or $0.93 per share, of cash dividends paid, and $1.31 billion
    through repurchases of 23.9 million shares of common stock.

Non-GAAP Results Non-GAAP results exclude the QSI segment, certain share-based
compensation, certain acquisition-related items and certain tax items.

Fourth Quarter Fiscal 2012

  *Revenues: $4.87 billion, up 18 percent y-o-y and 5 percent sequentially.
  *Operating income: $1.61 billion, down 1 percent y-o-y and 6 percent
    sequentially.
  *Net income: $1.55 billion, up 13 percent y-o-y and 4 percent
    sequentially.
  *Diluted earnings per share: $0.89, up 11 percent y-o-y and 5 percent
    sequentially. Excludes $0.01 earnings per share attributable to QSI,
    $0.13 loss per share attributable to certain share-based compensation,
    $0.04 loss per share attributable to certain acquisition-related items and
    $0.01 earnings per share attributable to certain tax-related items. The
    sum of Non-GAAP earnings per share and items excluded do not equal GAAP
    earnings per share due to rounding.
  *Effective tax rate: 19 percent for the quarter.
  *Free cash flow (defined as net cash from operating activities less capital
    expenditures): $1.24 billion, down 27 percent y-o-y; 25 percent of
    revenues.

Fiscal 2012*

  *Revenues: $19.12 billion, up 28 percent y-o-y.
  *Operating income: $7.10 billion, up 17 percent y-o-y.
  *Net income: $6.46 billion, up 20 percent y-o-y.
  *Diluted earnings per share: $3.71, up 16 percent y-o-y. Excludes $0.40
    earnings per share attributable to QSI, $0.47 loss per share attributable
    to certain share-based compensation, $0.14 loss per share attributable to
    certain acquisition-related items and $0.01 earnings per share
    attributable to certain tax-related items. 
  *Effective tax rate: 20 percent.
  *Free cash flow: $5.20 billion, up 8 percent y-o-y; 27 percent of
    revenues.

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
comparisons: Fiscal 2012 GAAP results included $776 million in earnings, net
of income taxes, for discontinued operations (primarily a result of a $1.2
billion gain associated with the sale of substantially all of our 700 MHz
spectrum), as compared to a $313 million loss, net of income taxes, for
discontinued operations in fiscal 2011. Additionally, fiscal 2012 GAAP and
Non-GAAP results included Qualcomm Atheros, Inc., which was acquired on May
24, 2011, as compared to fiscal 2011 GAAP and Non-GAAP results, which only
included Qualcomm Atheros, Inc. from the date of the acquisition. Fiscal 2011
operating and free cash flows reflected the impact of a $1.5 billion income
tax payment primarily related to license and settlement agreements entered
into in fiscal 2008.

Key Business Metrics

Fourth Quarter Fiscal 2012

  *MSM(TM) chip shipments: 141 million units, up 11 percent y-o-y and even
    sequentially.
  *June quarter total reported device sales: approximately $46.5 billion, up
    19 percent y-o-y and down 3 percent sequentially.

       *June quarter estimated 3G/4G device shipments: approximately 210 to
         214 million units, at an estimated average selling price of
         approximately $216 to $222 per unit.

Fiscal 2012

  *MSM chip shipments: 590 million units, up 22 percent y-o-y.
  *Total reported device sales: approximately $187.3 billion, up 25 percent
    y-o-y.

       *Estimated 3G/4G device shipments: approximately 846 to 863 million
         units, at an estimated average selling price of approximately $216 to
         $222 per unit.

Cash and Marketable Securities Our cash, cash equivalents and marketable
securities totaled $26.8 billion at the end of the fourth quarter of fiscal
2012, compared to $20.9 billion a year ago and $26.5 billion at the end of the
third quarter of fiscal 2012. On October 17, 2012, we announced a cash
dividend of $0.25 per share payable on December 21, 2012 to stockholders of
record as of December 7, 2012. Since September 30, 2012, we repurchased and
retired 4.1 million shares of common stock for $240 million.

Research and Development

($ in millions)        Non-GAAP     QSI    Share-BasedCompensation    GAAP
Fourth quarter fiscal
2012                  $   961  $   1              $    152   $ 1,114
As % of revenues             20%                                          23%
Fourth quarter fiscal
2011                  $   731  $   1              $    119  $   851
As % of revenues             18%                                          21%
Year-over-year change
($)                          31%    N/M                      28%        31%
N/M - Not Meaningful

Non-GAAP research and development (R&D) expenses increased 31 percent y-o-y
primarily due to an increase in costs related to the development of CDMA-based
3G, OFDMA-based 4G LTE and other technologies for integrated circuit and
related software products and to expand our intellectual property portfolio.

Selling, General and Administrative

                                     Share-Based   Acquisition-Related
($ in millions)    Non-GAAP    QSI   Compensation         Items         GAAP
Fourth quarter                $                                       $  
fiscal 2012        $   545     3   $    112            $   21    681
As % of revenues         11%                                              14%
Fourth quarter                $                                       $  
fiscal 2011        $   371     8   $    110            $   42    531
As % of revenues          9%                                              13%
Year-over-year
change ($)               47%  N/M            2%                N/M    28%
N/M - Not Meaningful

Non-GAAP selling, general and administrative (SG&A) expenses increased 47
percent y-o-y primarily due to a long-lived asset impairment charge related to
our QMT division and increases in employee-related expenses, costs relating to
legal matters, selling and marketing expenses and patent-related expenses.

Effective Income Tax Rates Our fiscal 2012 effective income tax rates were 19
percent for GAAP and 20 percent for Non-GAAP. The fiscal 2012 GAAP and
Non-GAAP effective tax rates only reflect the United States federal R&D credit
generated through December 31, 2011, the date on which the credit expired. The
fiscal 2012 GAAP effective tax rate included a tax benefit of $10 million
related to the completion of the audit of our fiscal 2005 through fiscal 2008
state tax returns. This tax benefit was excluded from our Non-GAAP results.

QSI Segment QSI makes strategic investments, many of which are in early-stage
companies, and holds wireless spectrum. QSI also includes the discontinued
operations of our FLO TV business. GAAP results for the fourth quarter of
fiscal 2012 included $0.01 earnings per share for QSI.

Business Outlook The following statements are forward looking, and actual
results may differ materially. The "Note Regarding Forward-Looking Statements"
in this news release provides a description of certain risks that we face, and
our annual and quarterly reports on file with the Securities and Exchange
Commission (SEC) provide a more complete description of risks.

Our outlook does not include provisions for future asset impairments or for
pending legal matters, other than future legal amounts that are probable and
estimable. Further, due to their nature, certain income and expense items,
such as realized investment and certain derivative gains or losses, cannot be
accurately forecast. Accordingly, we only include such items in our business
outlook to the extent they are reasonably certain; however, actual results may
vary materially from the business outlook.

The following table summarizes GAAP and Non-GAAP guidance based on the current
business outlook. The Non-GAAP business outlook presented below is consistent
with the presentation of Non-GAAP results included elsewhere herein.

                     Qualcomm's Business Outlook Summary
FIRST FISCAL QUARTER
                                             Q1 FY12       Current Guidance
                                             Results       Q1 FY13 Estimates
 Revenues                                          $4.68B       $5.6B - $6.1B
  Year-over-year change                                   increase 20% - 30%
 Non-GAAP Diluted earnings per share
 (EPS)                                              $0.97       $1.08 - $1.16
  Year-over-year change                                   increase 11% - 20%
  Diluted EPS attributable to
 QSI                                              ($0.01)             ($0.01)
  Diluted EPS attributable to
 share-based compensation                         ($0.11)             ($0.13)
  Diluted EPS attributable to
 acquisition-related items                        ($0.03)             ($0.04)
  Diluted EPS attributable to
 tax items                                           N/A                 N/A
 GAAP Diluted EPS                                   $0.81       $0.90 - $0.98
  Year-over-year change                                   increase 11% - 21%
 Metrics
 MSM chip shipments                                 156M        168M - 178M
  Year-over-year change                                    increase 8% - 14%
                                                            approx. $46.0B -
 Total reported device sales (1)         approx. $41.4B*             $51.0B*
  Year-over-year change                                   increase 11% - 23%
 *Est. sales in September quarter,
 reported in December quarter
FISCAL YEAR
                                             FY 2012       Current Guidance
                                           Results (2)     FY 2013 Estimates
 Revenues                                        $19.12B     $23.0B - $24.0B
  Year-over-year change                                   increase 20% - 26%
 Non-GAAP Operating Income                         $7.10B       $8.1B - $8.6B
  Year-over-year change                                   increase 14% - 21%
  Operating loss attributable to
 QSI                                             ($0.12B)            ($0.05B)
  Operating loss attributable to
 share-based compensation                        ($1.04B)            ($1.15B)
  Operating loss attributable to
 acquisition-related items                       ($0.27B)            ($0.30B)
 GAAP Operating Income                             $5.68B       $6.6B - $7.1B
  Year-over-year change                                   increase 16% - 25%
 Non-GAAP Diluted EPS                               $3.71       $4.12 - $4.32
  Year-over-year change                                   increase 11% - 16%
  Diluted EPS attributable to
 QSI                                                $0.40             ($0.04)
  Diluted EPS attributable to
 share-based compensation                         ($0.47)             ($0.53)
  Diluted EPS attributable to
 acquisition-related items                        ($0.14)             ($0.15)
  Diluted EPS attributable to
 tax items                                         $0.01                 N/A
 GAAP Diluted EPS                                   $3.51       $3.40 - $3.60
                                                                decrease 3% -
  Year-over-year change                                          increase 3%
 Metrics
 Est. fiscal year* 3G/4G device average    approx. $216 -
 selling price range (1)                             $222 approx. $214 - $226
 *Shipments in Sept. to June quarters,
 reported in Dec. to Sept. quarters

CALENDAR YEAR Device Estimates (1)
                             Prior Guidance Current Guidance Current Guidance
                             Calendar 2012   Calendar 2012    Calendar 2013
                               Estimates       Estimates        Estimates
 Est. 3G/4G device shipments
                             approx. 206M -   approx. 206M -
 March quarter                         211M             211M     not provided
                                              approx. 210M -
 June quarter                  not provided             214M     not provided
 September quarter             not provided     not provided     not provided
 December quarter              not provided     not provided     not provided
 Est. calendar year range
 (approx.)                      875M - 935M      880M - 930M  1,000M - 1,070M
 Est. calendar year midpoint
 (approx.) (3)                         905M             905M           1,035M

(1) Total reported device sales is the sum of all reported sales in U.S.
dollars (as reported to us by our licensees) of all licensed CDMA-based,
OFDMA-based and multimode CDMA/OFDMA subscriber devices (including handsets,
modules, modem cards and other subscriber devices) by our licensees during a
particular period (collectively, 3G/4G devices). The reported quarterly
estimated ranges of average selling prices (ASPs) and unit shipments are
determined based on the information as reported to us by our licensees during
the relevant period and our own estimates of the selling prices and unit
shipments for licensees that do not provide such information. Not all
licensees report sales, selling prices and/or unit shipments the same way
(e.g., some licensees report selling prices net of permitted deductions, such
as transportation, insurance and packing costs, while other licensees report
selling prices and then identify the amount of permitted deductions in their
reports), and the way in which licensees report such information may change
from time to time. Total reported device sales, estimated unit shipments and
estimated ASPs for a particular period may include prior period activity that
was not reported by the licensee until such particular period.
(2) Fiscal 2012 results for QSI and GAAP included $0.44 EPS related to a
$1.2 billion gain associated with the sale of substantially all of our 700
MHz spectrum, which was recognized in discontinued operations and was
excluded from Non-GAAP results.
(3) The midpoints of the estimated calendar year ranges are identified for
comparison purposes only and do not indicate a higher degree of confidence in
the midpoints.
Sums may not equal totals due to rounding.

Results of Business Segments The following table reconciles our Non-GAAP
results to our GAAP results (in millions, except per share data):

                                                                             Acquisition-
                                    Non-GAAP                    Share-Based    Related     Tax
                                   Reconciling Non-GAAP         Compensation  Items (2)   Items
SEGMENTS       QCT    QTL    QWI   Items (1)    (2)    QSI (2)     (2)          (3)       (4)   GAAP
Q4 - FISCAL
2012
Revenues     $3,129 $1,572   $161          $9   $4,871     $ -          $ -          $ -   $ -  $4,871
 Change
from prior
year             21%    16%   (1%)         50%      18%                                             18%
 Change
from prior
quarter          9%   (1%)     1%         N/M       5%                                              5%
Operating
income
(loss)                                           $1,612    ($4)       ($284)        ($89)   $ -  $1,235
 Change
from prior
year                                               (1%)     56%        (13%)          29%            0%
 Change
from prior
quarter                                           (6%)     64%         (8%)        (46%)         (11%)
EBT             $486 $1,370   ($1)         $65   $1,920   ($21)       ($284)        ($89)   $ -  $1,526
 Change
from prior
year           (15%)    15%    80%         N/M      11%     38%        (13%)          29%           15%
 Change
from prior
quarter          3%   (3%)    83%         33%       0%   (31%)         (8%)        (46%)          (3%)
EBT as % of
revenues         16%    87%    N/M         N/M      39%                                             31%
Discontinued
operations,
net of tax
(5)                                                 $ -     $23          $ -          $ -   $ -     $23
Net income
(loss)                                          $1,547     $14       ($222)        ($78)  $ 10  $1,271
 Change
from prior
year                                                13%     N/M         (4%)          35% (75%)     20%
 Change
from prior
quarter                                              4%     N/M         (6%)        (34%)   N/A      5%
Diluted EPS                                       $0.89   $0.01      ($0.13)      ($0.04) $0.01   $0.73
 Change
from prior
year                                                11%     N/M         (8%)          43% (50%)     18%
 Change
from prior
quarter                                              5%     N/M         (8%)        (33%)   N/A      6%
Diluted
shares used                                       1,745   1,745        1,745        1,745 1,745   1,745
Q3 - FISCAL
2012
Revenues     $2,869 $1,593   $160          $4   $4,626     $ -          $ -          $ -   $ -  $4,626
Operating
income
(loss)                                            1,718    (11)        (264)         (61)     -   1,382
EBT             $472 $1,407   ($6)         $49    1,922    (16)        (264)         (61)     -   1,581
Discontinued
operations,
net of tax
(5)                                                   -     (3)            -            -     -     (3)
Net income
(loss)                                            1,486    (11)        (210)         (58)     -   1,207
Diluted EPS                                       $0.85 ($0.01)      ($0.12)      ($0.03)   $ -   $0.69
Diluted
shares used                                       1,758   1,758        1,758        1,758 1,758   1,758
Q1 - FISCAL
2012
Revenues     $3,085 $1,440   $152          $4   $4,681     $ -          $ -          $ -   $ -  $4,681
Operating
income
(loss)                                            1,871    (13)        (247)         (60)     -   1,551
EBT             $739 $1,267     $1         $55    2,062    (34)        (247)         (60)     -   1,721
Discontinued
operations,
net of tax
(5)                                                   -     (5)            -            -     -     (5)
Net income
(loss)                                            1,672    (22)        (194)         (55)     -   1,401
Diluted EPS                                       $0.97 ($0.01)      ($0.11)      ($0.03)   $ -   $0.81
Diluted
shares used                                       1,721   1,721        1,721        1,721 1,721   1,721
Q4 - FISCAL
2011
Revenues     $2,587 $1,361   $163          $6   $4,117     $ -          $ -          $ -   $ -  $4,117
Operating
income
(loss)                                            1,624     (9)        (252)        (125)     -   1,238
EBT             $569 $1,193   ($5)       ($20)    1,737    (34)        (252)        (125)     -   1,326
Discontinued
operations,
net of tax
(5)                                                   -     (5)          (1)            -     -     (6)
Net income
(loss)                                            1,372    (22)        (214)        (120)    40   1,056
Diluted EPS                                       $0.80 ($0.01)      ($0.12)      ($0.07) $0.02   $0.62
Diluted
shares used                                       1,716   1,716        1,716        1,716 1,716   1,716
12 MONTHS -
FISCAL 2012
Revenues    $12,141 $6,327   $633         $20  $19,121     $ -          $ -          $ -   $ - $19,121
 Change
from prior
year             37%    17%   (4%)          0%      28%                                             28%
Operating
income
(loss)                                           $7,100  ($116)     ($1,035)       ($267)   $ -  $5,682
 Change
from prior
year                                                17%     N/M        (27%)        (28%)           13%
EBT           $2,296 $5,585  ($15)        $168   $8,034  ($170)     ($1,035)       ($267)   $ -  $6,562
 Change
from prior
year             12%    18%    90%        (8%)      17%   (29%)        (27%)        (28%)           15%
EBT as a %
of revenues      19%    88%    N/M         N/M      42%                                             34%
Discontinued
operations,
net of tax
(5)                                                 $ -    $777         ($1)          $ -   $ -    $776
Net income
(loss)                                          $6,463    $690       ($811)       ($243)  $ 10  $6,109
 Change
from prior
year                                                20%     N/M        (30%)        (22%) (84%)     43%
Diluted EPS                                       $3.71   $0.40      ($0.47)      ($0.14) $0.01   $3.51
 Change
from prior
year                                                16%     N/M        (27%)        (17%) (75%)     39%
Diluted
shares used                                       1,741   1,741        1,741        1,741 1,741   1,741
12 MONTHS -
FISCAL 2011
Revenues     $8,859 $5,422   $656         $20  $14,957     $ -          $ -          $ -   $ - $14,957
Operating
income
(loss)                                            6,084    (37)        (813)        (208)     -   5,026
EBT           $2,056 $4,753 ($152)        $183    6,840   (132)        (813)        (208)     -   5,687
Discontinued
operations,
net of tax
(5)                                                   -   (308)          (5)            -     -   (313)
Net income
(loss)                                            5,407   (385)        (624)        (200)    62   4,260
Diluted EPS                                       $3.20 ($0.23)      ($0.37)      ($0.12) $0.04   $2.52
Diluted
shares used                                       1,691   1,691        1,691        1,691 1,691   1,691

(1) Non-GAAP reconciling items related to revenues consist primarily of
other nonreportable segment revenues less intersegment eliminations.
Non-GAAP reconciling items related to earnings before taxes consist primarily
of certain costs of equipment and services revenues, research and development
expenses, sales and marketing expenses, other operating expenses and certain
investment income or losses and interest expense that are not allocated to
the segments for management reporting purposes; nonreportable segment
results; and the elimination of intersegment profit.
(2) At fiscal year end, the sum of the quarterly tax provision (benefit) for
each column equals the annual tax provision (benefit) for each column
computed in accordance with GAAP. In interim quarters, the sum of these
provisions (benefits) may not equal the total GAAP tax provision, and
starting in fiscal 2012, this difference is allocated to tax provisions
(benefits) among the columns. In interim quarters of prior years, it was
included in QSI because variability in QSI results was considered the primary
driver of the difference.
(3) In addition to our historical practice of excluding acquired in-process
research and development expenses, starting with acquisitions completed in
the third quarter of fiscal 2011, Non-GAAP results also exclude other items
related to acquisitions. During fiscal 2012, acquisition-related items
consisted of amortization of certain intangible assets, expense associated
with the termination of a contract of an acquiree and the recognition of the
step-up of inventories to fair value.
(4) During the fourth quarter of fiscal 2012, we recorded a tax benefit of
$10 million related to the completion of the audit of our fiscal 2005 through
fiscal 2008 state tax returns. Our quarterly and fiscal 2012 Non-GAAP
results exclude this item.
(5) During fiscal 2011, we shut down the FLO TV business and network. The
results of FLO TV are presented as discontinued operations.
N/M – Not Meaningful
N/A – Not Applicable
Sums may not equal totals due to rounding.

Conference Call Qualcomm's fourth quarter and fiscal 2012 earnings conference
call will be broadcast live on November 7, 2012, beginning at 1:45 p.m.
Pacific Time (PT) at www.qualcomm.com/investor . This conference call will
include a discussion of "Non-GAAP financial measures" as defined in Regulation
G. The most directly comparable GAAP financial measures and GAAP
reconciliation information, as well as the other material financial and
statistical information to be discussed on the conference call, will be posted
at www.qualcomm.com/investor immediately prior to commencement of the call. An
audio replay will be available at www.qualcomm.com/investor and via telephone
for 30 days shortly following the live call. To listen to the replay via
telephone, U.S. callers may dial (855) 859-2056, and international callers may
dial +1-404-537-3406. Callers should use reservation number 37726774.

Note Regarding Use of Non-GAAP Financial Measures The Non-GAAP financial
information presented herein should be considered in addition to, not as a
substitute for, or superior to, financial measures calculated in accordance
with GAAP. In addition, "Non-GAAP" is not a term defined by GAAP, and as a
result, the Company's measure of Non-GAAP results might be different than
similarly titled measures used by other companies. Reconciliations between
GAAP and Non-GAAP results are presented herein.

The Company uses Non-GAAP financial information (i) to evaluate, assess and
benchmark the Company's operating results on a consistent and comparable
basis; (ii) to measure the performance and efficiency of the Company's ongoing
core operating businesses, including the QCT, QTL and QWI segments; and (iii)
to compare the performance and efficiency of these segments against each other
and against competitors outside the Company. Non-GAAP measurements of the
following financial data are used by the Company: revenues, cost of revenues,
R&D expenses, SG&A expenses, other operating expenses, operating income
(loss), net investment income (loss), income (loss) before income taxes,
effective tax rate, net income (loss), diluted earnings (loss) per share,
operating cash flow and free cash flow. The Company is able to assess what it
believes is a more meaningful and comparable set of financial performance
measures for the Company and its business segments by using Non-GAAP
information. As a result, management compensation decisions and the review of
executive compensation by the Compensation Committee of the Board of Directors
focus primarily on Non-GAAP financial measures applicable to the Company and
its business segments. The Company presents Non-GAAP financial information to
provide greater transparency to investors with respect to its use of such
information in financial and operational decision-making.

Non-GAAP information used by management excludes QSI, certain share-based
compensation, certain acquisition-related items and certain tax items.

  *QSI is excluded because the Company expects to exit its strategic
    investments at various times, and the effects of fluctuations in the value
    of such investments and realized gains or losses are viewed by management
    as unrelated to the Company's operational performance.
  *Share-based compensation expense relates primarily to restricted stock
    units and stock options. Certain share-based compensation is excluded
    because management views such expenses as unrelated to the operating
    activities of the Company's ongoing core business. Further, the fair
    values of share-based awards are affected by factors that are variable on
    each grant date, which may include the Company's stock price, stock market
    volatility, expected award life, risk-free interest rates and expected
    dividend payouts in future years.
  *In addition to its historical practice of excluding acquired in-process
    R&D expenses from Non-GAAP results, the Company began excluding
    amortization of certain intangible assets, recognition of the step-up of
    inventories to fair value and the related tax effects of these items
    starting with acquisitions completed in the third quarter of fiscal 2011,
    as well as any tax effects from restructuring the ownership of such
    acquired assets. Additionally, starting with acquisitions completed in
    the fourth quarter of fiscal 2012, the Company began excluding expenses
    related to the termination of contract(s) that limit the use of the
    acquired intellectual property. These certain acquisition-related items
    are excluded and no longer allocated to the Company's segments because
    management views such expenses as unrelated to the operating activities of
    the Company's ongoing core business. In addition, these charges are
    impacted by the size and timing of acquisitions, potentially obscuring
    period to period comparisons of the Company's operating businesses. 
  *Certain tax items that were recorded in each fiscal year presented, but
    that were unrelated to the fiscal year in which they were recorded, are
    excluded in order to provide a clearer understanding of the Company's
    ongoing Non-GAAP tax rate and after tax earnings. The Company also
    excludes any benefit resulting from the retroactive extensions of the
    federal R&D tax credit from Non-GAAP results because the Company does not
    include the potential extension of the credit in its business outlook due
    to uncertainty as to whether and when the federal R&D tax credit will be
    retroactively extended.

The Company presents free cash flow, defined as net cash provided by operating
activities less capital expenditures, to facilitate an understanding of the
amount of cash flow generated that is available to grow its business and to
create long-term stockholder value. The Company believes that this
presentation is useful in evaluating its operating performance and financial
strength. In addition, management uses this measure to evaluate the Company's
performance and to compare its operating performance with other companies in
the industry.

About Qualcomm Qualcomm Incorporated (Nasdaq: QCOM) is a world leader in 3G,
4G and next-generation wireless technologies. For more than 25 years, Qualcomm
ideas and inventions have driven the evolution of digital communications,
linking people everywhere more closely to information, entertainment and each
other. For more information, visit 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 inherently subject to risks and uncertainties, including
but not limited to statements regarding our broad licensing program and
industry-leading Snapdragon and 3G/LTE chipset roadmap positioning us for
double-digit revenue growth in fiscal 2013; the Company's business outlook;
and estimates and guidance related to revenues, GAAP and Non-GAAP diluted
earnings per share, effective income tax rates, MSM chip shipments, total
reported device sales, 3G/4G device average selling price ranges and 3G/4G
device shipment ranges and midpoints. Forward-looking statements are generally
identified by words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "guidance" and similar expressions. Actual
results may differ materially from those referred to in the forward-looking
statements due to a number of important factors, including but not limited to
risks associated with the commercial deployment of our technologies and our
customers' and licensees' sales of equipment, products and services based on
these technologies; competition; our dependence on a small number of customers
and licensees; attacks on our licensing business model, including current and
future legal proceedings and actions of governmental or quasi-governmental
bodies; our dependence on third-party suppliers, including the potential
impact of supply constraints; the enforcement and protection of our
intellectual property rights; claims by third parties that we infringe their
intellectual property; global economic conditions that impact the
communications industry and the potential impact on demand for our products
and our customers' and licensees' products; our stock price and earnings
volatility; strategic transactions and investments; the commercial success of
our QMT division's display technology; foreign currency fluctuations; and
failures, defects or errors in our products and services or in the products of
our customers and licensees. These and other risks are set forth in the
Company's Annual Report on Form 10-K for the fiscal year ended September 30,
2012 filed with the SEC. Our reports filed with the SEC are available on our
website at www.qualcomm.com . We undertake no obligation to update, or
continue to provide information with respect to, any forward-looking statement
or risk factor, whether as a result of new information, future events or
otherwise.

Qualcomm, Snapdragon and MSM are trademarks of Qualcomm Incorporated,
registered in the United States and other countries. All other trademarks are
the property of their respective owners.

                             Qualcomm Incorporated
     Supplemental Information for the Three Months Ended September 30, 2012
                                  (Unaudited)
                                                  Acquisition-   Tax-
                 Non-GAAP            Share-Based    Related     Related   GAAP
                 Results      QSI    Compensation  Items (a)     Items   Results
($ in
millions,
except per
share data)
     Cost of
     equipment
     and
     services        $       $                                $             $
     revenues   1,753        -       $   20     $  68       -      1,841
     R&D          961         1             152           -       -       1,114
     SG&A          545         3             112          21       -         681
     Operating
     income
     (loss)      1,612       (4)           (284)        (89)       -       1,235
     Investment
     income
     (loss),       $          $                               $  
     net           308 (b) (17) (c)   $    -     $   -       -     $  291
     Tax rate      19%       19%             22%         12%     N/M         19%
     Net income      $       $                                  $            $
     (loss)     1,547        14      $  (222)    $  (78)     10 (d)  1,271
     Diluted
     earnings
     (loss) per
     share         $          $                                   $         $ 
     (EPS)        0.89      0.01      $  (0.13)   $ (0.04)   0.01        0.73
     Operating       $         $                               $             $
     cash flow  1,476     (26)      $   (41)     $   -       -      1,409
     Operating
     cash flow
     as % of
     revenues      30%       N/A             N/A         N/A     N/A         29%
     Free cash       $         $                               $             $
     flow(e)    1,242     (42)      $   (41)     $   -       -      1,159
     Free cash
     flow as %
     of
     revenues      25%       N/A             N/A         N/A     N/A         24%
(a)       Consisted of amortization of certain intangible assets, expense
            associated with the termination of a contract of an acquiree and the
            recognition of the step-up of inventories to fair value.
(b)      Included $177 million in interest and dividend income related to
            cash, cash equivalents and marketable securities, which were not
            part of our strategic investments and $143 million in net realized
            gains on investments, partially offset by $5 million in
            other-than-temporary losses on investments, $4 million in losses on
            derivatives and $3 million in interest expense.
(c)     Included $14 million in other-than-temporary losses on investments,
            $13 million in interest expense and $3 million in equity in losses
            of investees, partially offset by $12 million in net realized gains
            on investments and $1 million in interest and dividend income
            related to cash, cash equivalents and marketable securities.
(d)      Included a tax benefit of $10 million related to the completion of
            the audit of our fiscal 2005 through fiscal 2008 state tax returns.
(e)     Free cash flow is calculated as net cash provided by operating
            activities less capital expenditures. Reconciliation of these
            amounts is included in the "Reconciliation of Non-GAAP Free Cash
            Flows to Net Cash Provided by Operating Activities (GAAP) and Other
            Supplemental Disclosures" for the three months ended September 30,
            2012 included herein.
N/A – Not Applicable
Sums may not equal totals due to rounding.

                            Qualcomm Incorporated
   Supplemental Information for the Twelve Months Ended September 30, 2012
                                 (Unaudited)
                                               Acquisition-   Tax-
             Non-GAAP             Share-Based    Related     Related   GAAP
             Results      QSI     Compensation  Items (a)     Items   Results
($ in
millions,
except per
share data)
 Cost of
 equipment
 and
 services        $      $                                 $             $
 revenues   6,796          -       $   75     $  225       -      7,096
 R&D        3,363          6             546           -       -       3,915
 SG&A        1,839         29             414          42       -       2,324
 Other
 operating
 expenses       23         81 (b)           -           -       -         104
 Operating
 income
 (loss)      7,100      (116)         (1,035)       (267)       -       5,682
 Investment
 income
 (loss),       $         $                                $  
 net           934 (c)   (54) (d)   $    -     $   -       -     $  880
 Tax rate      20%        19%             22%          9%     N/M         19%
 Net income      $        $                                  $            $
 (loss)     6,463        690      $  (811)    $ (243)     10 (e)  6,109
 Diluted
 earnings
 (loss) per
 share         $           $                                   $         $ 
 (EPS)        3.71      0.40      $  (0.47)   $ (0.14)   0.01        3.51
 Operating       $          $                               $             $
 cash flow  6,382     (216)      $  (168)     $   -       -      5,998
 Operating
 cash flow
 as % of
 revenues      33%        N/A             N/A         N/A     N/A         31%
 Free cash       $          $                               $             $
 flow(f)    5,199     (317)      $  (168)     $   -       -      4,714
 Free cash
 flow as %
 of
 revenues      27%        N/A             N/A         N/A     N/A         25%

(a)   Consisted of amortization of certain intangible assets, expense
         associated with the termination of a contract of an acquiree and the
         recognition of the step-up of inventories to fair value.
(b)  QSI results for fiscal 2012 included $81 million in other operating
         expenses associated with a payment made to the Indian government in
         connection with the issuance of the BWA spectrum license.
(c)   Included $590 million in interest and dividend income related to
         cash, cash equivalents and marketable securities, which were not
         part of our strategic investments, $327 million in net realized
         gains on investments, $76 million in gains on derivatives (primarily
         due to gains from put options sold as part of our stock repurchase
         program) and $1 million in equity earnings of investees, partially
         offset by $49 million in other-than-temporary losses on investments
         and $11 million in interest expense.
(d)  Included $79 million in interest expense, $34 million in
         other-than-temporary losses on investments and $10 million of equity
         in losses of investees, partially offset by $42 million in net
         realized gains on investments, $19 million in interest and dividend
         income related to cash, cash equivalents and marketable securities
         and $8 million in gains on derivatives.
(e) Included a tax benefit of $10 million related to the completion of
         the audit of our fiscal 2005 through fiscal 2008 state tax returns.
(f)   Free cash flow is calculated as net cash provided by operating
         activities less capital expenditures. Reconciliation of these
         amounts is included in the "Reconciliation of Non-GAAP Free Cash
         Flows to Net Cash Provided by Operating Activities (GAAP) and Other
         Supplemental Disclosures" for the twelve months ended September 30,
         2012, included herein.
N/A – Not Applicable
Sums may not equal totals due to rounding.

                            Qualcomm Incorporated
                Reconciliation of Non-GAAP Free Cash Flows to
              Net Cash Provided by Operating Activities (GAAP)
                     and Other Supplemental Disclosures
                                (In millions)
                                 (Unaudited)
                                  Three Months Ended September 30, 2012
                                                    Share-Based
                              Non-GAAP     QSI    Compensation       GAAP
Net cash provided (used) by
operating activities            $ 1,476     $ (26)        $ (41) (a)  $ 1,409
Less: capital expenditures        (234)       (16)             -        (250)
Free cash flow                  $ 1,242     $ (42)        $ (41)      $ 1,159
Revenues                        $ 4,871        $ -           $ -      $ 4,871
Free cash flow as % of
revenues                            25%        N/A           N/A          24%
Other supplemental cash
disclosures:
 Cash transfers from QSI
(b)                               $ 183    $ (183)           $ -          $ -
 Cash transfers to QSI
(c)                               (123)        123             -            -
 Net cash transfers             $ 60     $ (60)           $ -          $ -
                                  Twelve Months Ended September 30, 2012
                                                    Share-Based
                              Non-GAAP     QSI     Compensation       GAAP
Net cash provided (used) by
operating activities            $ 6,382    $ (216)       $ (168) (a)  $ 5,998
Less: capital expenditures      (1,183)      (101)             -      (1,284)
Free cash flow                  $ 5,199    $ (317)       $ (168)      $ 4,714
Revenues                       $ 19,121        $ -           $ -     $ 19,121
Free cash flow as % of
revenues                            27%        N/A           N/A          25%
Other supplemental cash
disclosures:
 Cash transfers from QSI
(d)                             $ 2,281  $ (2,281)           $ -          $ -
 Cash transfers to QSI
(c)                               (478)        478             -            -
 Net cash transfers         $ 1,803  $ (1,803)           $ -          $ -
                                  Three Months Ended September 25, 2011
                                                    Share-Based
                              Non-GAAP     QSI     Compensation       GAAP
Net cash provided (used) by
operating activities            $ 1,886     $ (50)        $ (16) (a)  $ 1,820
Less: capital expenditures        (194)          -             -        (194)
Free cash flow                  $ 1,692     $ (50)        $ (16)      $ 1,626
                                  Twelve Months Ended September 25, 2011
                                                    Share-Based
                              Non-GAAP     QSI     Compensation       GAAP
Net cash provided (used) by
operating activities            $ 5,418    $ (335)       $ (183) (a)  $ 4,900
Less: capital expenditures        (588)        (5)             -        (593)
Free cash flow                  $ 4,830    $ (340)       $ (183)      $ 4,307

(a) Incremental tax benefits from stock options exercised during the period.
(b) Primarily due to release of restricted cash and cash from sale of equity
    securities and other investments.
(c) Primarily funding for strategic debt and equity investments, other
    investing activities and QSI operating and capital expenditures.
(d) Primarily cash from sale of wireless spectrum, issuance of subsidiary
    shares to noncontrolling interest, borrowings under loans and debentures
    and sale of equity securities and other investments.
N/A - Not Applicable

                            Qualcomm Incorporated
         Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a)
                                (in millions)
                                 (Unaudited)
                           Three Months Ended September 30, 2012
                                                              Tax-
               Non-GAAP         Share-Based  Acquisition-   Related   GAAP
               Results   QSI   Compensation   Related Items   Items   Results
Income (loss)
from
continuing
operations
before income               $
taxes           $ 1,920  (21)        $ (284)         $ (89)      $ -  $ 1,526
Income tax
(expense)
benefit           (373)     4             62             11       10    (286)
 Income
(loss) from
continuing                  $
operations      $ 1,547  (17)        $ (222)         $ (78)     $ 10  $ 1,240
Tax rate            19%   19%            22%            12%      N/M      19%

                           Twelve Months Ended September 30, 2012
                                                              Tax-
               Non-GAAP         Share-Based   Acquisition-   Related   GAAP
               Results    QSI   Compensation  Related Items   Items   Results
Income (loss)
from
continuing
operations
before income                $
taxes           $ 8,034  (170)     $ (1,035)        $ (267)      $ -  $ 6,562
Income tax
(expense)
benefit         (1,571)     33           225             24       10  (1,279)
 Income
(loss) from
continuing                   $
operations      $ 6,463  (137)       $ (810)        $ (243)     $ 10  $ 5,283
Tax rate            20%    19%           22%             9%      N/M      19%

(a)At fiscal year end, the sum of the quarterly tax provision (benefit) for
each column equals the annual tax provision (benefit) for each column
computed in accordance with GAAP. In interim quarters, the sum of these
provisions (benefits) may not equal the total GAAP tax provision, and this
difference is allocated to tax provisions (benefits) among the columns. 
Sums may not equal totals due to rounding.

                            Qualcomm Incorporated
                         CONSOLIDATED BALANCE SHEETS
                    (In millions, except per share data)
                                 (Unaudited)
                                   ASSETS
                                           September 30,      September 25,
                                                2012              2011
Current assets:
 Cash and cash equivalents               $     3,807   $     5,462
 Marketable securities                              8,567              6,190
 Accounts receivable, net                           1,459                993
 Inventories                                        1,030                765
 Deferred tax assets                                  309                537
 Other current assets                                473                346
 Total current assets                      15,645             14,293
Marketable securities                               14,463              9,261
Deferred tax assets                                  1,412              1,703
Assets held for sale                                 1,109                746
Property, plant and equipment, net                   2,851              2,414
Goodwill                                             3,917              3,432
Other intangible assets, net                         2,938              3,099
Other assets                                           677              1,474
 Total assets                     $    43,012    $    36,422
                    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Trade accounts payable                  $     1,298  $       969
 Payroll and other benefits related
liabilities                                            664                644
 Unearned revenues                                    545                610
 Loans and debentures                                   -                994
 Liabilities held for sale                          1,072                  -
 Other current liabilities                          1,723              2,072
 Total current liabilities                   5,302              5,289
Unearned revenues                                    3,739              3,541
Other liabilities                                      426                620
 Total liabilities                           9,467              9,450
Stockholders' equity:
Qualcomm stockholders' equity:
 Preferred stock, $0.0001 par value; 8
shares authorized; none outstanding                      -                  -
 Common stock, $0.0001 par value; 6,000
shares authorized; 1,706
 and 1,681 shares issued and
outstanding, respectively                                -                  -
 Paid-in capital                                   11,956             10,394
 Retained earnings                                 20,701             16,204
 Accumulated other comprehensive income               866                353
 Total Qualcomm stockholders'
equity                                              33,523             26,951
Noncontrolling interests                                22                 21
 Total stockholders' equity                 33,545             26,972
 Total liabilities and
stockholders' equity                       $    43,012    $    36,422

                            Qualcomm Incorporated
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In millions, except per share data)
                                 (Unaudited)
                             Three Months Ended        Twelve Months Ended
                           September    September     September    September
                              30,          25,           30,          25,
                             2012         2011          2012         2011
Revenues:
 Equipment and services  $   3,213  $   2,673   $  12,465  $   9,223
 Licensing                     1,658        1,444         6,656        5,734
 Total revenues               4,871        4,117        19,121       14,957
Operating expenses:
 Cost of equipment and
services revenues               1,841        1,497         7,096        4,877
 Research and
development                     1,114          851         3,915        2,995
 Selling, general and
administrative                    681          531         2,324        1,945
 Other                             -            -           104          114
 Total operating
expenses                        3,636        2,879        13,439        9,931
Operating income               1,235        1,238         5,682        5,026
Investment income, net            291           88           880          661
 Income from continuing
operations before income
taxes                           1,526        1,326         6,562        5,687
Income tax expense             (286)        (271)       (1,279)      (1,132)
 Income from continuing
operations                      1,240        1,055         5,283        4,555
Discontinued operations,
net of income taxes                23          (6)           776        (313)
 Net income                    1,263        1,049         6,059        4,242
Net loss attributable to
noncontrolling interests            8            7            50           18
 Net income attributable
to Qualcomm               $   1,271  $   1,056   $   6,109  $   4,260
Basic earnings (loss) per
share attributable to
Qualcomm:
 Continuing operations   $   0.73  $   0.63   $   3.14  $   2.76
 Discontinued operations        0.02            -          0.45       (0.19)
 Net income              $   0.75  $   0.63   $   3.59  $   2.57
Diluted earnings (loss)
per share attributable to
Qualcomm:
 Continuing operations   $   0.72  $   0.62   $   3.06  $   2.70
 Discontinued operations        0.01            -          0.45       (0.18)
 Net income              $   0.73  $   0.62   $   3.51  $   2.52
Shares used in per share
calculations:
 Basic                         1,704        1,681         1,700        1,658
 Diluted                       1,745        1,716         1,741        1,691
Dividends per share
announced                 $   0.250  $   0.215   $   0.930  $   0.810

                            Qualcomm Incorporated
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In millions)
                                 (Unaudited)
                                  Three Months Ended     Twelve Months Ended
                                September  September    September  September
                                30, 2012    25, 2011    30, 2012    25, 2011
Operating Activities:
Net income                      $  1,263  $  1,049   $  6,059  $  4,242
Adjustments to reconcile net
income to net cash provided by
 operating activities:
 Depreciation and
amortization                          257         241         897       1,061
 Gain on sale of wireless
spectrum                                -           -     (1,179)           -
 Goodwill impairment                  -           -          23         114
 Revenues related to
non-monetary exchanges               (30)        (30)       (122)       (123)
 Income tax provision in
excess of (less than) income
tax payments                          156          14         395     (1,204)
 Non-cash portion of
share-based compensation
expense                               283         256       1,035         824
 Incremental tax benefit
from stock options exercised         (41)        (16)       (168)       (183)
 Net realized gains on
marketable securities and
other investments                   (155)        (33)       (369)       (337)
 Net impairment losses on
marketable securities and
other investments                      19          26          83          52
 Losses (gains) on
derivative instruments                  4           4        (84)           3
 Other items, net                    65        (16)          93           9
Changes in assets and
liabilities, net of effects of
acquisitions:
 Accounts receivable, net         (207)       (161)       (456)       (140)
 Inventories                      (199)        (19)       (252)        (62)
 Other assets                     (209)        (34)       (240)        (70)
 Trade accounts payable             174         165         371        (26)
 Payroll, benefits and other
liabilities                            71         362       (341)         572
 Unearned revenues                 (42)          12         253         168
 Net cash provided by
operating activities                1,409       1,820       5,998       4,900
Investing Activities:
 Capital expenditures             (250)       (194)     (1,284)       (593)
 Purchases of
available-for-sale securities     (3,707)     (2,677)    (15,511)    (10,948)
 Proceeds from sale of
available-for-sale securities       4,084       1,306       9,858      10,661
 Purchase of trading
securities                        (1,729)           -     (4,009)           -
 Proceeds from sale of
trading securities                  1,763           -       3,060           -
 Proceeds from sale of
wireless spectrum                       -           -       1,925           -
 Acquisitions and other
investments, net of cash
acquired                            (156)       (362)       (833)     (3,624)
 Other items, net                   (7)           1        (83)          15
 Net cash used by investing
activities                            (2)     (1,926)     (6,877)     (4,489)
Financing Activities:
 Borrowing under loans and
debentures                              -         295         710       1,555
 Repayment of loans payable           -       (295)       (591)     (1,555)
 Proceeds from issuance of
common stock                          355         255       1,714       2,647
 Incremental tax benefit
from stock options exercised           41          16         168         183
 Proceeds from issuance of
subsidiary shares to
noncontrolling interests                1           -          86          62
 Repurchase and retirement
of common stock                     (841)       (142)     (1,313)       (142)
 Dividends paid                   (426)       (361)     (1,583)     (1,346)
 Other items, net                 (147)          78          52         114
 Net cash (used) provided by
financing activities              (1,017)       (154)       (757)       1,518
 Effect of exchange rate
changes on cash                         5        (24)        (19)        (14)
Net increase (decrease) in
cash and cash equivalents             395       (284)     (1,655)       1,915
Cash and cash equivalents at
beginning of period                 3,412       5,746       5,462       3,547
Cash and cash equivalents at
end of period                   $  3,807  $  5,462   $  3,807  $  5,462

Website: http://www.qualcomm.com