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Qualcomm Announces First Quarter Fiscal 2013 Results

             Qualcomm Announces First Quarter Fiscal 2013 Results

  PR Newswire

  SAN DIEGO, Jan. 30, 2013

-- Revenues $6.0 Billion

-- GAAP EPS $1.09, Non-GAAP EPS $1.26

-- Record Quarterly Revenues and Non-GAAP EPS; Raising Fiscal 2013 Guidance -

SAN DIEGO, Jan. 30, 2013 /PRNewswire/ -- 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 2013
ended December 30, 2012.

"We are pleased to report record quarterly revenues, Non-GAAP EPS and MSM chip
shipments, driven by the growing global demand for smartphones and our
industry-leading portfolio of 3G/LTE chipsets," said Dr. Paul E. Jacobs,
chairman and CEO of Qualcomm. "Our broad licensing partnerships and extensive
chipset roadmap, including our recently announced best-in-class Qualcomm
Snapdragon 800 and 600 processors, position us well for strong growth, and we
are pleased to be raising our revenue and earnings guidance for fiscal 2013."

First Quarter Results (GAAP)

  *Revenues: [1] $6.02 billion, up 29 percent year-over-year (y-o-y) and 24
    percent sequentially.
  *Operating income: [1] $2.09 billion, up 35 percent y-o-y and 69 percent
    sequentially.
  *Net income: [2] $1.91 billion, up 36 percent y-o-y and 50 percent
    sequentially.
  *Diluted earnings per share: [2] $1.09, up 35 percent y-o-y and 49 percent
    sequentially.
  *Effective tax rate: [1] 18 percent for the quarter.
  *Operating cash flow: $1.98 billion, up 11 percent y-o-y; 33 percent of
    revenues.
  *Return of capital to stockholders: $678 million, including $428 million,
    or $0.25 per share, of cash dividends paid, and $250 million through
    repurchases of 4.3 million shares of common stock.

[1] Throughout this news release, fiscal 2012 results for 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 adjustments for noncontrolling interests and, for
fiscal 2012, 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 segment, certain share-based compensation,
certain acquisition-related items and certain tax items.

  *Revenues: $6.02 billion, up 29 percent y-o-y and 24 percent sequentially.
  *Operating income: $2.45 billion, up 31 percent y-o-y and 52 percent
    sequentially.
  *Net income: $2.20 billion, up 32 percent y-o-y and 42 percent
    sequentially.
  *Diluted earnings per share: $1.26, up 30 percent y-o-y and 42 percent
    sequentially. Excludes $0.01 loss per share attributable to QSI, $0.12
    loss per share attributable to certain share-based compensation and $0.04
    loss per share attributable to certain acquisition-related items.
  *Effective tax rate:18 percent for the quarter.
  *Free cash flow (defined as net cash from operating activities less capital
    expenditures): $1.85 billion, up 24 percent y-o-y; 31 percent of
    revenues.

Detailed reconciliations between results reported in accordance with generally
accepted accounting principles (GAAP) and Non-GAAP results are included within
this news release.

First Quarter Key Business Metrics

  *MSM(TM) chip shipments: 182 million units, up 17 percent y-o-y and 29
    percent sequentially.
  *September quarter total reported device sales: approximately $53.3
    billion, up 29 percent y-o-y and 15 percent sequentially.

       *September quarter estimated 3G/4G device shipments: approximately
         233 to 237 million units, at an estimated average selling price of
         approximately $224 to $230 per unit.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled $28.4 billion at
the end of the first quarter of fiscal 2013, compared to $22.0 billion a year
ago and $26.8 billion at the end of the fourth quarter of fiscal 2012. On
January 15, 2013, we announced a cash dividend of $0.25 per share payable on
March 27, 2013 to stockholders of record as of March 8, 2013.

Research and Development

($ in millions)           Non-GAAP   QSI   Share-BasedCompensation   GAAP
First quarter fiscal 2013 $  949   $ 1                  $  156  $ 1,106
As % of revenues               16%                                      18%
First quarter fiscal 2012 $  746   $ 1                  $  126   $ 873
As % of revenues               16%                                      19%
Year-over-year change ($)      27%  N/M                      24%      27%
N/M - Not Meaningful

Non-GAAP research and development (R&D) expenses increased 27 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

($ in                                                    Acquisition-Related
millions)      Non-GAAP   QSI   Share-BasedCompensation         Items         GAAP
First quarter     $      $                                                  $ 
fiscal 2013         468     7               $   105             $   7   587
As % of
revenues             8%                                                        10%
First quarter     $      $                                                  $ 
fiscal 2012         381     12               $   101             $   9   503
As % of
revenues             8%                                                        11%
Year-over-year
change ($)          23%  N/M                       4%                N/M   17%
N/M - Not
Meaningful

Non-GAAP selling, general and administrative (SG&A) expenses increased 23
percent y-o-y primarily due to increases in employee-related expenses and
costs relating to legal matters.

Effective Income Tax Rates

In the first quarter of fiscal 2013, the effective income tax rates for GAAP
and Non-GAAP were both 18 percent. Starting in the second quarter of fiscal
2013, our fiscal 2013 annual effective income tax rates are estimated to be
approximately 16 percent for GAAP and approximately 17 to 18 percent for
Non-GAAP, which include the recent retroactive extension of the federal R&D
tax credit. The R&D tax credit benefit related to fiscal 2012 that will be
recorded in the second quarter of fiscal 2013 will be excluded from Non-GAAP
results.

QSI Segment

QSI makes strategic investments, many of which are in early-stage companies,
and holds wireless spectrum. GAAP results for the first quarter of fiscal 2013
included $0.01 loss 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
SECOND FISCAL QUARTER
                                              Q2 FY12       Current Guidance
                                            Results (1)    Q2 FY13 Estimates
 Revenues                                           $4.94B      $5.8B - $6.3B
  Year-over-year change                                   increase 17% - 27%
 Non-GAAP Diluted earnings per share
 (EPS)                                               $1.01      $1.10 - $1.18
  Year-over-year change                                    increase 9% - 17%
  Diluted EPS attributable to
 QSI                                                 $0.41              $0.00
  Diluted EPS attributable to
 share-based compensation                          ($0.11)            ($0.12)
  Diluted EPS attributable to
 acquisition-related items                         ($0.03)            ($0.04)
  Diluted EPS attributable to
 tax items (2)                                         N/A              $0.04
 GAAP Diluted EPS                                    $1.28      $0.98 - $1.06
  Year-over-year change                                   decrease 17% - 23%
 Metrics
 MSM chip shipments                                  152M       163M - 173M
  Year-over-year change                                    increase 7% - 14%
                                                            approx. $57.5B -
 Total reported device sales (3)          approx. $51.7B*            $62.5B*
  Year-over-year change                                   increase 11% - 21%
 *Est. sales in December quarter,
 reported in March quarter

FISCAL YEAR
                                                                   Current
                                      FY 2012    Prior Guidance   Guidance
                                                    FY 2013        FY 2013
                                    Results (1)    Estimates      Estimates
                                                       $23.0B -      $23.4B -
 Revenues                               $19.12B         $24.0B        $24.4B
                                                 increase 20% -  increase 22%
  Year-over-year change                                    26%         - 28%
 Non-GAAP Diluted EPS                      $3.71  $4.12 - $4.32 $4.25 - $4.45
                                                 increase 11% -  increase 15%
  Year-over-year change                                    16%         - 20%
  Diluted EPS
 attributable to QSI                       $0.40        ($0.04)       ($0.02)
  Diluted EPS attributable
 to share-based compensation             ($0.47)        ($0.53)       ($0.51)
  Diluted EPS attributable
 to acquisition-related items            ($0.14)        ($0.15)       ($0.15)
  Diluted EPS attributable
 to tax items (2)                          $0.01            N/A         $0.04
 GAAP Diluted EPS                          $3.51  $3.40 - $3.60 $3.61 - $3.81
                                                  decrease 3% - increase 3% -
  Year-over-year change                            increase 3%            9%
 Metrics
 Est. fiscal year* 3G/4G device     approx. $216 approx. $214 -  approx. $214
 average selling price range (3)          - $222           $226        - $226
 *Shipments in Sept. to June
 quarters, reported in Dec. to
 Sept. quarters

CALENDAR YEAR
Device Estimates
(3)
                                     Current         Prior        Current
                   Prior Guidance    Guidance      Guidance       Guidance
                   Calendar 2012  Calendar 2012  Calendar 2013 Calendar 2013
                     Estimates      Estimates      Estimates     Estimates
  Est. 3G/4G
  device shipments
                   approx. 206M - approx. 206M -
  March quarter              211M           211M  not provided   not provided
                   approx. 210M - approx. 210M -
  June quarter               214M           214M  not provided   not provided
  September                       approx. 233M -
  quarter            not provided           237M  not provided   not provided
  December quarter   not provided   not provided  not provided   not provided
  Est. calendar
  year range                                          1,000M -       1,000M -
  (approx.)           880M - 930M    915M - 940M        1,070M         1,070M
  Est. calendar
  year midpoint
  (approx.) (4)              905M           928M        1,035M         1,035M
(1)       Q2 FY12 and FY 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.
(2)       In the second quarter of fiscal 2013, we expect to record a tax
          benefit as a result of the retroactive extension of the federal R&D
          tax credit related to fiscal 2012 of approximately $0.04 per share,
          which will be excluded from Non-GAAP results.
(3)       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.
(4)       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.
          N/A – Not Applicable
          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):

                                   Non-GAAP                    Share-Based  Acquisition-
                                  Reconciling Non-GAAP         Compensation   Related     Tax
SEGMENTS       QCT    QTL   QWI   Items (1)    (2)    QSI (2)     (2)       Items (2)   Items  GAAP
Q1 - FISCAL
2013
Revenues     $4,120 $1,757  $146        ($5)   $6,018    $ -         $ -         $ -  $ -  $6,018
 Change
from prior
year             34%    22%  (4%)         N/M      29%                                             29%
 Change
from prior
quarter         32%    12%  (9%)         N/M      24%                                             24%
Operating
income
(loss)                                          $2,447    ($8)       ($281)        ($70)  $ -  $2,088
 Change
from prior
year                                               31%     38%        (14%)        (17%)           35%
 Change
from prior
quarter                                           52%  (100%)           1%          21%           69%
EBT           $1,068 $1,532  ($3)         $98   $2,695   ($17)       ($281)        ($70)  $ -  $2,327
 Change
from prior
year             45%    21%   N/M         78%      31%     50%        (14%)        (17%)           35%
 Change
from prior
quarter        120%    12%   N/M         51%      40%     19%           1%          21%           52%
EBT as % of
revenues         26%    87%   N/M         N/M      45%                                             39%
Net income
(loss)                                         $2,204   ($12)       ($219)        ($67)  $ -  $1,906
 Change
from prior
year                                               32%     45%        (13%)        (22%)   N/A     36%
 Change
from prior
quarter                                           42%     N/M           1%          14%   N/M     50%
Diluted EPS                                      $1.26 ($0.01)      ($0.12)      ($0.04)  $ -   $1.09
 Change
from prior
year                                               30%      0%         (9%)        (33%)   N/A     35%
 Change
from prior
quarter                                           42%     N/M           8%           0%   N/M     49%
Diluted
shares used                                      1,751   1,751        1,751        1,751 1,751   1,751
Q4 - FISCAL
2012
Revenues     $3,129 $1,572  $161          $9   $4,871    $ -         $ -         $ -  $ -  $4,871
Operating
income
(loss)                                           1,612     (4)        (284)         (89)     -   1,235
EBT             $486 $1,370  ($1)         $65    1,920    (21)        (284)         (89)     -   1,526
Discontinued
operations,
net of tax                                           -      23            -            -     -      23
Net income
(loss)                                           1,547      14        (222)         (78)    10   1,271
Diluted EPS                                      $0.89   $0.01      ($0.13)      ($0.04) $0.01   $0.73
Diluted
shares used                                      1,745   1,745        1,745        1,745 1,745   1,745
Q2 - FISCAL
2012
Revenues     $3,059 $1,723  $159          $2   $4,943    $ -         $ -         $ -  $ -  $4,943
Operating
income
(loss)                                           1,900    (89)        (240)         (57)     -   1,514
EBT             $599 $1,540 ($10)          $1    2,130    (99)        (240)         (57)     -   1,734
Discontinued
operations,
net of tax                                           -     761            -            -     -     761
Net income
(loss)                                           1,759     707        (184)         (52)     -   2,230
Diluted EPS                                      $1.01   $0.41      ($0.11)      ($0.03)  $ -   $1.28
Diluted
shares used                                      1,743   1,743        1,743        1,743 1,743   1,743
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)
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
12 MONTHS -
FISCAL 2012
Revenues    $12,141 $6,327  $633         $20  $19,121    $ -         $ -         $ -  $ - $19,121
Operating
income
(loss)                                           7,100   (116)      (1,035)        (267)     -   5,682
EBT           $2,296 $5,585 ($15)        $168    8,034   (170)      (1,035)        (267)     -   6,562
Discontinued
operations,
net of tax                                           -     777          (1)            -     -     776
Net income
(loss)                                           6,463     690        (811)        (243)    10   6,109
Diluted EPS                                      $3.71   $0.40      ($0.47)      ($0.14) $0.01   $3.51
Diluted
shares used                                      1,741   1,741        1,741        1,741 1,741   1,741
(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 this difference is allocated to tax provisions
             (benefits) among the columns. 
N/M – Not Meaningful
N/A – Not Applicable
Sums may not equal totals due to rounding.

Conference Call

Qualcomm's first quarter fiscal 2013 earnings conference call will be
broadcast live on January 30, 2013, beginning at 1:45 p.m. Pacific Time (PT)
at http://investor.qualcomm.com/events.cfm . 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 http://investor.qualcomm.com/events.cfm 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 (404) 537-3406. Callers should use reservation number
85067601.

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 primarily relates 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.
  *Acquisition-related items relate to amortization and impairment charges 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 are
    not 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 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. Qualcomm Incorporated includes
Qualcomm's licensing business, QTL, and the vast majority of its patent
portfolio. Qualcomm Technologies, Inc., a wholly - owned subsidiary of
Qualcomm Incorporated, operates, along with its subsidiaries, substantially
all of Qualcomm's engineering, research and development functions, and
substantially all of its products and services businesses, including its
semiconductor business, QCT. 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 the Company's
broad licensing partnerships and extensive chipset roadmap positioning it for
strong growth; the Company's business outlook; 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;
and the treatment of the tax credit benefit resulting from the retroactive
extension of the federal R&D tax credit. 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 and Quarterly Report on Form 10-Q for the fiscal quarter
ended December 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 December 30, 2012
                                 (Unaudited)
                                                         Acquisition-
                    Non-GAAP                Share-Based    Related     GAAP
                     Results       QSI      Compensation  Items (a)   Results
($ in millions,
except per share
data)
    Cost of
    equipment and
    services           $                                                 $ 
    revenues         2,154     $   -     $    20     $   63    2,237
    R&D               949            1             156            -    1,106
    SG&A               468            7             105            7      587
    Operating
    income (loss)    2,447          (8)           (281)         (70)    2,088
    Investment
    income (loss),     $         $                                     $ 
    net               248 (b)      (9) (c) $     -    $    -     239
    Tax rate           18%          12%             22%           4%      18%
    Net income         $           $            $                     $ 
    (loss)           2,204        (12)          (219)   $   (67)    1,906
    Diluted
    earnings
    (loss) per         $             $           $                     $ 
    share (EPS)      1.26      (0.01)          (0.12)   $  (0.04)    1.09
    Operating cash     $           $          $                      $ 
    flow             2,046        (10)            (61)    $    -    1,975
    Operating cash
    flow as % of
    revenues           34%          N/A             N/A          N/A      33%
    Free cash          $           $          $                      $ 
    flow(d)          1,853        (22)            (61)    $    -    1,770
    Free cash flow
    as % of
    revenues           31%          N/A             N/A          N/A      29%
(a)       Included amortization and impairment charges 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 $164 million in interest and dividend income and $91
            million in net realized gains on investments, partially offset by
            $4 million in other-than-temporary losses on investments, $2
            million in interest expense and $1 million in losses on
            derivatives.
(c)      Included $6 million in other-than-temporary losses on
            investments, $6 million in interest expense and $3 million in
            equity in losses of investees, partially offset by $5 million in
            net realized gains on investments and $1 million in interest and
            dividend income.
(d)      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
            December 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 December 30, 2012
                                               Share-Based
                       Non-GAAP       QSI      Compensation           GAAP
Net cash provided
(used) by operating
activities             $  2,046  $  (10)  $     (61) (a) $  1,975
Less: capital
expenditures                (193)       (12)               -            (205)
Free cash flow         $  1,853  $  (22)  $     (61)       $  1,770
Revenues               $  6,018    $   -    $     -       $  6,018
Free cash flow as %
of revenues                   31%      N/A           N/A              29%
Other supplemental
cash disclosures:
 Cash transfers
from QSI (b)            $    7  $   (7)    $     -         $   -
 Cash transfers to
QSI (c)                     (103)        103               -                -
 Net cash
transfers             $   (96)   $   96    $     -         $   -

                                Three Months Ended December 25, 2011
                                                Share-Based
                        Non-GAAP       QSI      Compensation           GAAP
Net cash provided
(used) by operating                      $                               $ 
activities              $  1,850     (48)   $     (23) (a)    1,779
Less: capital
expenditures                 (359)         -                -           (359)
                                         $                               $ 
Free cash flow          $  1,491     (48)   $     (23)          1,420
(a)        Incremental tax benefits from share-based compensation during the
           period.
(b)        Primarily 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.
N/A - Not Applicable

                            Qualcomm Incorporated
         Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a)
                                (in millions)
                                 (Unaudited)
                               Three Months Ended December 30, 2012
                                                        Acquisition-
                       Non-GAAP           Share-Based     Related      GAAP
                       Results     QSI   Compensation     Items      Results
Income (loss) from
continuing
operationsbefore                  $                                     $ 
income taxes           $  2,695   (17)    $   (281)     $  (70)    2,327
Income tax (expense)
benefit                    (491)      2             62             3    (424)
 Income (loss) from              $                                     $ 
continuing operations  $  2,204   (15)    $   (219)     $  (67)    1,903
Tax rate                     18%    12%            22%            4%      18%
(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
             CONDENSED CONSOLIDATED BALANCE SHEETS
             (In millions, except per share data)
                          (Unaudited)
                            ASSETS
                                    December 30,  September 30,
                                        2012          2012
Current assets:
 Cash and cash equivalents          $   4,293    $   3,807
 Marketable securities                    8,982          8,567
 Accounts receivable, net                 1,647          1,459
 Inventories                              1,277          1,030
 Deferred tax assets                        309            309
 Other current assets                      595            473
 Total current assets            17,103         15,645
Marketable securities                     15,096         14,463
Deferred tax assets                        1,327          1,412
Assets held for sale                       1,037          1,109
Property, plant and equipment, net         2,874          2,851
Goodwill                                   3,929          3,917
Other intangible assets, net               2,826          2,938
Other assets                                 649            677
 Total assets               $  44,841    $  43,012

                    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Trade accounts payable                             $   1,657  $   1,298
 Payroll and other benefits related liabilities             618          664
 Unearned revenues                                          733          545
 Liabilities held for sale                                  524        1,072
 Other current liabilities                                1,473        1,723
 Total current liabilities                         5,005        5,302
Unearned revenues                                          3,516        3,739
Liabilities held for sale                                    526            -
Other liabilities                                            440          426
 Total liabilities                                 9,487        9,467
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; 1,716
 and 1,706 shares issued and outstanding,
respectively                                                   -            -
 Paid-in capital                                         12,282       11,956
 Retained earnings                                       22,172       20,701
 Accumulated other comprehensive income                     880          866
 Total Qualcomm stockholders' equity              35,334       33,523
Noncontrolling interests                                      20           22
 Total stockholders' equity                       35,354       33,545
 Total liabilities and stockholders'
equity                                               $  44,841  $  43,012

                           Qualcomm Incorporated
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In millions, except per share data)
                                (Unaudited)
                                                 Three Months Ended
                                           December 30,      December 25,
                                               2012              2011
Revenues:
 Equipment and services                  $     4,199   $     3,167
 Licensing                                         1,819             1,514
Total revenues                                   6,018             4,681
Operating expenses:
 Cost of equipment and services
revenues                                            2,237             1,754
 Research and development                          1,106               873
 Selling, general and administrative                 587               503
 Total operating expenses                      3,930             3,130
Operating income                                   2,088             1,551
Investment income, net                                239               170
 Income from continuing operations
before income taxes                                 2,327             1,721
Income tax expense                                 (424)             (321)
 Income from continuing operations                 1,903             1,400
Discontinued operations, net of income
taxes                                                   -               (5)
 Net income                                        1,903             1,395
Net loss attributable to noncontrolling
interests                                               3                 6
 Net income attributable to Qualcomm     $     1,906   $     1,401
Basic earnings per share attributable to
Qualcomm:
 Continuing operations                  $      1.12  $      0.83
 Discontinued operations                               -                 -
 Net income                             $      1.12  $      0.83
Diluted earnings per share attributable
to Qualcomm:
 Continuing operations                  $      1.09  $      0.81
 Discontinued operations                               -                 -
 Net income                             $      1.09  $      0.81
Shares used in per share calculations:
 Basic                                             1,709             1,684
 Diluted                                           1,751             1,721
Dividends per share announced             $     0.250   $     0.215

                            Qualcomm Incorporated
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In millions)
                                 (Unaudited)
                                                 Three Months Ended
                                        December 30, 2012  December 25, 2011
Operating Activities:
Net income                                   $   1,903      $    1,395
Adjustments to reconcile net income to
net cash provided by
 operating activities:
 Depreciation and amortization                      241                208
 Revenues related to non-monetary
exchanges                                            (31)               (31)
 Income tax provision in excess of
income tax payments                                   195                118
 Non-cash portion of share-based
compensation expense                                  283                247
 Incremental tax benefit from
share-based compensation                             (61)               (23)
 Net realized gains on marketable
securities and other investments                     (96)               (44)
 Losses (gains) on derivative
instruments                                             1               (45)
 Net impairment losses on marketable
securities and other investments                       10                 20
 Other items, net                                    28                  6
Changes in assets and liabilities, net
of effects of acquisitions:
 Accounts receivable, net                         (185)               (38)
 Inventories                                      (247)                 50
 Other assets                                      (51)               (24)
 Trade accounts payable                             376                 26
 Payroll, benefits and other
liabilities                                         (387)               (43)
 Unearned revenues                                  (4)               (43)
 Net cash provided by operating
activities                                          1,975              1,779
Investing Activities:
 Capital expenditures                             (205)              (359)
 Purchases of available-for-sale
securities                                        (3,289)            (2,027)
 Proceeds from sale of
available-for-sale securities                       2,226              1,603
 Purchases of trading securities                  (970)            (1,137)
 Proceeds from sale of trading
securities                                          1,024                148
 Acquisitions and other investments,
net of cash acquired                                 (39)              (300)
 Other items, net                                    26                  4
 Net cash used by investing
activities                                        (1,227)            (2,068)
Financing Activities:
 Proceeds from issuance of common
stock                                                 340                228
 Incremental tax benefit from
share-based compensation                               61                 23
 Repurchases and retirements of
common stock                                        (250)               (99)
 Dividends paid                                   (428)              (362)
 Change in obligation under
securities lending                                      3                 20
 Other items, net                                   (1)                (1)
 Net cash used by financing
activities                                          (275)              (191)
 Changes in cash and cash equivalents
held for sale                                          13                  -
 Effect of exchange rate changes on
cash and cash equivalents                               -               (18)
 Net increase (decrease) in cash and
cash equivalents                                      486              (498)
Cash and cash equivalents at beginning
of period                                           3,807              5,462
 Cash and cash equivalents at end of
period                                       $   4,293      $    4,964

Qualcomm Contact: Warren KneeshawPhone: 1-858-658-4813 e-mail: ir@qualcomm.com

Website: http://www.qualcomm.com