Qualcomm Announces Second Quarter Fiscal 2013 Results

            Qualcomm Announces Second Quarter Fiscal 2013 Results

  PR Newswire

  SAN DIEGO, April 24, 2013

-- Revenues $6.1 Billion

-- GAAP EPS $1.06, Non-GAAP EPS $1.17

— Record Quarterly Revenues; Raising Fiscal 2013 Guidance —

SAN DIEGO, April 24, 2013 /PRNewswire/ -- Qualcomm Incorporated (Nasdaq:
QCOM), a leading developer and innovator of advanced wireless technologies,
products and services, today announced results for the second quarter of
fiscal 2013 ended March 31, 2013.

"We delivered another strong quarter as the worldwide adoption of smartphones
continues," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Looking
forward, we are seeing strong traction with our new Qualcomm Snapdragon 600
and 800 processors, and we continue to expect healthy growth in 3G and 3G/4G
multimode devices around the world. We are pleased to be raising our calendar
2013 3G/4G device shipment estimates and our revenue and earnings guidance for
fiscal 2013."

Second Quarter Results (GAAP)

  *Revenues: [1] $6.12 billion, up 24 percent year-over-year (y-o-y) and 2
    percent sequentially.
  *Operating income: [1] $1.88 billion, up 24 percent y-o-y and down 10
    percent sequentially.
  *Net income: [2] $1.87 billion, down 16 percent y-o-y* and 2 percent
    sequentially.
  *Diluted earnings per share: [2] $1.06, down 17 percent y-o-y* and 3
    percent sequentially.
  *Effective tax rate: [1] 13 percent for the quarter.
  *Operating cash flow: $2.22 billion, up 17 percent y-o-y; 36 percent of
    revenues.
  *Return of capital to stockholders: $431 million, or $0.25 per share, of
    cash dividends paid.

* The second quarter of fiscal 2012 GAAP results included $761 million, net of
income taxes, or $0.44 per share, for discontinued operations as a result of a
$1.2 billion pre-tax gain associated with the sale of substantially all of our
700 MHz spectrum.

[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 Second Quarter Results

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

  *Revenues: $6.12 billion, up 24 percent y-o-y and 2 percent sequentially.
  *Operating income: $2.23 billion, up 18 percent y-o-y and down 9 percent
    sequentially.
  *Net income: $2.07 billion, up 17 percent y-o-y and down 6 percent
    sequentially.
  *Diluted earnings per share: $1.17, up 16 percent y-o-y and down 7 percent
    sequentially.
  *Effective tax rate: 16 percent for the quarter.
  *Free cash flow (defined as net cash from operating activities less capital
    expenditures): $1.99 billion, up 10 percent y-o-y; 33 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.

Second Quarter Key Business Metrics

  *MSM™ chip shipments: 173 million units, up 14 percent y-o-y and down 5
    percent sequentially.
  *December quarter total reported device sales: approximately $61.1
    billion, up 18 percent y-o-y and 15 percent sequentially.

       *December quarter estimated 3G/4G device shipments: approximately 279
         to 283 million units, at an estimated average selling price of
         approximately $214 to $220 per unit.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled $30.5 billion at
the end of the second quarter of fiscal 2013, compared to $26.6 billion a year
ago and $28.4 billion at the end of the first quarter of fiscal 2013. On April
9, 2013, we announced a cash dividend of $0.35 per share payable on June 26,
2013 to stockholders of record as of June 5, 2013, which represents a 40
percent increase over our prior quarterly dividend.

Research and Development

($ in                                                    Acquisition-Related
millions)      Non-GAAP   QSI   Share-BasedCompensation         Items         GAAP
Second quarter                                                                    $
fiscal 2013    $ 1,056   $ 1               $   156             $   1  1,214
As % of
revenues            17%                                                         20%
Second quarter                                                                  $ 
fiscal 2012    $  824   $ 4               $   126            $    -    954
As % of
revenues            17%                                                         19%
Year-over-year
change ($)          28%  N/M                      24%                  N/M    27%
N/M - Not Meaningful

Non-GAAP research and development (R&D) expenses increased 28 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
Second quarter
fiscal 2013          $  556  $ 4     $   95             $   6  $ 661
As % of revenues           9%                                             11%
Second quarter
fiscal 2012          $  488  $ 4     $   97             $   6  $ 595
As % of revenues          10%                                             12%
Year-over-year
change ($)                14%   N/M          (2%)                  N/M    11%
N/M - Not Meaningful

Non-GAAP selling, general and administrative (SG&A) expenses increased 14
percent y-o-y primarily due to increases in employee-related expenses,
patent-related expenses and selling and marketing expenses.

Effective Income Tax Rates

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. The second quarter effective income tax rates were 13 percent for
GAAP and 16 percent for Non-GAAP, which are lower than the estimated annual
effective tax rates primarily as a result of the retroactive reinstatement of
the federal R&D tax credit during the second quarter. The federal R&D tax
credit benefit that related to fiscal 2012 of $0.04 per share was 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 second quarter of fiscal
2013 included $0.02 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
 THIRD FISCAL QUARTER
                                                          Current Guidance Q3
                                         Q3 FY12 Results    FY13 Estimates
  Revenues                                         $4.63B       $5.8B - $6.3B
   Year-over-year change                                  increase 25% - 36%
  Non-GAAP Diluted earnings per share
  (EPS)                                             $0.85       $0.97 - $1.05
   Year-over-year change                                  increase 14% - 24%
   Diluted EPS attributable to
  QSI                                             ($0.01)               $0.00
   Diluted EPS attributable to
  share-based compensation                        ($0.12)             ($0.13)
   Diluted EPS attributable to
  acquisition-related items                       ($0.03)             ($0.04)
  GAAP Diluted EPS                                  $0.69       $0.80 - $0.88
   Year-over-year change                                  increase 16% - 28%
  Metrics
  MSM chip shipments                                141M        163M - 173M
   Year-over-year change                                  increase 16% - 23%
                                                            approx. $51.0B -
  Total reported device sales (1)        approx. $47.8B*             $56.0B*
   Year-over-year change                                   increase 7% - 17%
  *Est. sales in March quarter, reported
  in June quarter

 FISCAL YEAR
                                                                  Current
                                               Prior Guidance   Guidance FY
                                     FY 2012      FY 2013     2013 Estimates
                                   Results (2) Estimates (3)        (3)
                                                     $23.4B -
  Revenues                            $19.12B         $24.4B $24.0B - $25.0B
                                               increase 22% -  increase 26% -
   Year-over-year change                                 28%             31%
  Non-GAAP Diluted EPS                   $3.71  $4.25 - $4.45   $4.40 - $4.55
                                               increase 15% -  increase 19% -
   Year-over-year change                                 20%             23%
   Diluted EPS
  attributable to QSI                    $0.40        ($0.02)           $0.01
   Diluted EPS
  attributable to share-based
  compensation                         ($0.47)        ($0.51)         ($0.51)
   Diluted EPS
  attributable to
  acquisition-related items            ($0.14)        ($0.15)         ($0.16)
   Diluted EPS
  attributable to tax items              $0.01          $0.04           $0.04
  GAAP Diluted EPS                       $3.51  $3.61 - $3.81   $3.78 - $3.93
                                                increase 3% -   increase 8% -
   Year-over-year change                                  9%             12%
  Metrics
  Est. fiscal year* 3G/4G device       approx. approx. $214 -  approx. $216 -
  average selling price range (1)  $216 - $222           $226            $224
  *Shipments in Sept. to June
  quarters, reported in Dec. to
  Sept. quarters

 CALENDAR YEAR Device Estimates (1)
                                                                   Current
                    Prior Guidance    Current    Prior 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
                    approx. 233M -  approx. 233M
  September quarter           237M        - 237M   not provided  not provided
                                    approx. 279M
  December quarter    not provided        - 283M   not provided  not provided
  Est. calendar
  year range                                           1,000M -      1,015M -
  (approx.)            915M - 940M   928M - 945M         1,070M        1,085M
  Est. calendar
  year midpoint
  (approx.) (4)               928M          937M         1,035M        1,050M

(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 CDMA/OFDMA multimode 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) 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.
(3) FY 2013 guidance for tax items includes $0.04 EPS related to a tax
    benefit that resulted from the retroactive reinstatement of the federal
    R&D tax credit related to fiscal 2012, which was excluded from Non-GAAP
    results.
(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.
    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
Q2 - FISCAL
2013
Revenues    $3,916 $2,057  $155        ($4)   $6,124     $ -          $ -          $ -   $ - $6,124
 Change
from prior
year            28%    19%  (3%)         N/M      24%                                            24%
 Change
from prior
quarter       (5%)    17%    6%         20%       2%                                             2%
Operating
income
(loss)                                         $2,233    ($5)       ($268)        ($83)   $ - $1,877
 Change
from prior
year                                              18%     94%        (12%)        (46%)          24%
 Change
from prior
quarter                                         (9%)     38%           5%        (19%)        (10%)
EBT            $681 $1,803   $ -       ($30)   $2,454     $33       ($268)        ($83)   $ - $2,136
 Change
from prior
year            14%    17%   N/M         N/M      15%     N/M        (12%)        (46%)          23%
 Change
from prior
quarter      (36%)    18%   N/M         N/M     (9%)     N/M           5%        (19%)         (8%)
EBT as % of
revenues        17%    88%   N/M         N/M      40%                                            35%
Net income
(loss)                                        $2,066     $36       ($220)        ($80)  $ 64 $1,866
 Change
from prior
year                                              17%   (95%)        (20%)        (54%)   N/A  (16%)
 Change
from prior
quarter                                         (6%)     N/M           0%        (19%)   N/A   (2%)
Diluted EPS                                     $1.17   $0.02      ($0.12)      ($0.05) $0.04  $1.06
 Change
from prior
year                                              16%   (95%)         (9%)        (67%)   N/A  (17%)
 Change
from prior
quarter                                         (7%)     N/M           0%        (25%)   N/A   (3%)
Diluted
shares used                                     1,763   1,763        1,763        1,763 1,763  1,763
Q1 - FISCAL
2013
Revenues    $4,120 $1,757  $146        ($5)   $6,018     $ -          $ -          $ -   $ - $6,018
Operating
income
(loss)                                          2,447     (8)        (281)         (70)     -  2,088
EBT          $1,068 $1,532  ($3)         $98    2,695    (17)        (281)         (70)     -  2,327
Net income
(loss)                                          2,204    (12)        (219)         (67)     -  1,906
Diluted EPS                                     $1.26 ($0.01)      ($0.12)      ($0.04)   $ -  $1.09
Diluted
shares used                                     1,751   1,751        1,751        1,751 1,751  1,751
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
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                                          -     (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

                                   Non-GAAP                  Share-Based  Acquisition-
                                  Reconciling Non-GAAP  QSI  Compensation   Related     Tax
SEGMENTS       QCT    QTL   QWI   Items (1)    (2)     (2)      (2)       Items (2)   Items  GAAP
6 MONTHS -
FISCAL 2013
Revenues     $8,036 $3,813  $301        ($7)  $12,143  $ -         $ -         $ -  $ - $12,143
 Change
from prior
year             31%    21%  (3%)         N/M      26%                                           26%
Operating
income
(loss)                                          $4,681 ($12)       ($549)       ($154)  $ -  $3,966
 Change
from prior
year                                               24%   88%        (13%)        (32%)           29%
EBT           $1,749 $3,335  ($4)         $70   $5,150   $16       ($549)       ($154)  $ -  $4,463
 Change
from prior
year             31%    19% (56%)         27%      23%   N/M        (13%)        (32%)           29%
EBT as a %
of revenues      22%    87%   N/M         N/M      42%                                           37%
Net income
(loss)                                         $4,270   $24       ($439)       ($147)  $ 64  $3,772
 Change
from prior
year                                               24% (97%)        (16%)        (36%)   N/A      4%
Diluted EPS                                      $2.43 $0.01      ($0.25)      ($0.08) $0.04   $2.15
 Change
from prior
year                                               23% (98%)        (14%)        (33%)   N/A      2%
Diluted
shares used                                      1,757 1,757        1,757        1,757 1,757   1,757
6 MONTHS -
FISCAL 2012
Revenues     $6,143 $3,162  $311          $9   $9,625  $ -         $ -         $ -  $ -  $9,625
Operating
income
(loss)                                           3,772 (102)        (487)        (117)     -   3,066
EBT           $1,338 $2,808  ($9)         $55    4,192 (133)        (487)        (117)     -   3,455
Discontinued
operations,
net of tax                                           -   756            -            -     -     756
Net income
(loss)                                           3,431   686        (378)        (108)     -   3,631
Diluted EPS                                      $1.98 $0.40      ($0.22)      ($0.06)  $ -   $2.10
Diluted
shares used                                      1,732 1,732        1,732        1,732 1,732   1,732
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
    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 second quarter fiscal 2013 earnings conference call will be
broadcast live on April 24, 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 information reconciling
these Non-GAAP financial measures to the Company's financial results prepared
in accordance with GAAP, as well as 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 following the live call and for 30 days thereafter. To listen to
the replay via telephone, U.S. callers may dial +1-855-859-2056, and
international callers may dial +1-404-537-3406. Callers should use reservation
number 29888090.

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. 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 and certain share-based
compensation, acquisition-related items and 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 businesses. 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 contracts that limit the use of the acquired intellectual
    property. These 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
    businesses. 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. 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 strong
traction we are seeing with our new Qualcomm Snapdragon 600 and 800
processors; our expectations regarding healthy growth in 3G and 3G/4G
multimode devices around the world; our business outlook; and our 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 shipments,
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 and Quarterly Report on Form 10-Q for the second quarter ended March 31,
2013 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 Contact: Warren KneeshawPhone: +1-858-658-4813 e-mail:
ir@qualcomm.com

                          Qualcomm Incorporated
     Supplemental Information for the Three Months Ended March 31, 2013
                                 (Unaudited)
                                                 Acquisition-  Tax-
               Non-GAAP             Share-Based    Related    Related  GAAP
                                                               Items
                Results     QSI    Compensation   Items (a)     (b)   Results
($ in
millions,
except per
share data)
 Cost of
 equipment and
 services        $      $                                   $        $ 
 revenues      2,279        -     $     17   $    76     -    2,372
 R&D          1,056         1              156            1       -    1,214
 SG&A            556         4               95            6       -      661
 Operating
 income (loss) 2,233       (5)            (268)         (83)       -    1,877
 Investment    $       $        $         $       $      $  
 income, net    221 (c)    38 (d)           -           -     -     259
 Tax rate        16%        0%              18%           4%     N/A      13%
 Net income      $      $                                   $        $ 
 (loss)        2,066        36      $   (220)   $   (80)     64    1,866
 Diluted
 earnings
 (loss) per    $           $                                   $     $  
 share (EPS)    1.17     0.02      $  (0.12)    $ (0.05)    0.04     1.06
 Operating       $      $                       $       $        $ 
 cash flow     2,266       (8)     $    (42)           -     -    2,216
 Operating
 cash flow as
 % of revenues   37%       N/A              N/A          N/A     N/A      36%
 Free cash       $        $                      $       $        $ 
 flow(e)       1,993      (24)     $    (42)           -     -    1,927
 Free cash
 flow as % of
 revenues        33%       N/A              N/A          N/A     N/A      31%

(a) Included amortization and impairment charges of certain intangible assets
    and the recognition of the step-up of inventories to fair value.
(b) Included a $64 million tax benefit as a result of the retroactive
    reinstatement of the federal R&D tax credit related to fiscal 2012.
(c) Included $177 million in interest and dividend income, $41 million in net
    realized gains on investments and $14 million in gains on derivatives,
    partially offset by $10 million in other-than-temporary losses on
    investments and $1 million in interest expense.
(d) Included $43 million in net realized gains on investments and $4 million
    in interest and dividend income, partially offset by $6 million in
    interest expense, $2 million in other-than-temporary losses on
    investments and $1 million in equity in losses of investees.
(e) Free cash flow is defined 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 March 31, 2013 included herein.
N/A – Not Applicable
Sums may not equal totals due to rounding.

                           Qualcomm Incorporated
      Supplemental Information for the Six Months Ended March 31, 2013
                                 (Unaudited)
                                                 Acquisition-  Tax-
                Non-GAAP            Share-Based    Related    Related  GAAP
                                                               Items
                 Results     QSI    Compensation  Items (a)     (b)   Results
($ in
millions,
except per
share data)
 Cost of
 equipment and
 services         $      $         $                    $        $ 
 revenues       4,432       -              37    $   140     -    4,609
 R&D           2,006         1             312            1       -    2,320
 SG&A           1,024        11             200           13       -    1,248
 Operating
 income (loss)  4,681      (12)           (549)        (154)       -    3,966
 Investment     $       $       $         $       $      $  
 income, net     469 (c)    28 (d)          -           -     -     497
 Tax rate         17%      -19%             20%           5%     N/A      16%
 Net income       $      $             $                  $        $ 
 (loss)         4,270        24          (439)   $  (147)      64    3,772
 Diluted
 earnings
 (loss) per     $           $           $                      $    $  
 share (EPS)     2.43     0.01          (0.25)   $  (0.08)   0.04     2.15
 Operating cash   $        $            $      $       $        $ 
 flow           4,312      (18)          (103)           -     -    4,191
 Operating cash
 flow as % of
 revenues         36%       N/A             N/A          N/A     N/A      35%
 Free cash        $        $            $      $       $        $ 
 flow(e)        3,846      (46)          (103)           -     -    3,697
 Free cash flow
 as % of
 revenues         32%       N/A             N/A          N/A     N/A      30%

(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 a $64 million tax benefit as a result of the retroactive
    reinstatement of the federal R&D tax credit related to fiscal 2012.
(c) Included $342 million in interest and dividend income, $132 million in
    net realized gains on investments and $12 million in gains on
    derivatives, partially offset by $14 million in other-than-temporary
    losses on investments and $3 million in interest expense.
(d) Included $47 million in net realized gains on investments and $5 million
    in interest and dividend income, partially offset by $12 million in
    interest expense, $8 million in other-than-temporary losses on
    investments and $4 million in equity in losses of investees.
(e) Free cash flow is defined 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 six months ended March 31, 2013 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 March 31, 2013
                                                Share-Based
                       Non-GAAP       QSI       Compensation          GAAP
Net cash
provided (used)
by operating                           $                                $ 
activities             $  2,266       (8)     $    (42) (a)    2,216
Less: capital
expenditures                (273)       (16)                -           (289)
                                         $                               $ 
Free cash flow         $  1,993      (24)     $    (42)          1,927
                                     $                                 $ 
Revenues               $  6,124         -   $      -          6,124
Free cash flow
as % of revenues              33%      N/A            N/A             31%
Other
supplemental
cash
disclosures:
 Cash
transfers from                         $  
QSI (b)              $     51       (51)   $      -        $   -
 Cash
transfers to QSI
(c)                          (54)         54                -               -
 Net cash             $        $   
transfers                     (3)         3   $      -        $   -
                                 Six Months Ended March 31, 2013
                                                Share-Based
                       Non-GAAP       QSI       Compensation          GAAP
Net cash
provided (used)
by operating                           $                                $ 
activities             $  4,312       (18)      $   (103) (a)    4,191
Less: capital
expenditures                (466)       (28)                -           (494)
                                       $                                $ 
Free cash flow         $  3,846       (46)      $   (103)          3,697
                                     $   
Revenues                $ 12,143        -   $      -       $ 12,143
Free cash flow
as % of revenues              32%      N/A            N/A             30%
Other
supplemental
cash
disclosures:
 Cash
transfers from                         $                          $    
QSI (b)              $     58       (58)   $      -              -
 Cash
transfers to QSI
(c)                         (157)        157                -               -
 Net cash                          $                           $    
transfers            $    (99)         99   $      -              -
                                Three Months Ended March 25, 2012
                                                Share-Based
                       Non-GAAP       QSI       Compensation          GAAP
Net cash
provided (used)
by operating                             $                               $ 
activities             $  2,084      (121)   $     (75) (a)    1,888
Less: capital
expenditures                (276)          -                -           (276)
                                         $                               $ 
Free cash flow         $  1,808      (121)   $     (75)          1,612
                                 Six Months Ended March 25, 2012
                                                Share-Based
                       Non-GAAP       QSI       Compensation          GAAP
Net cash
provided (used)
by operating                             $                               $ 
activities             $  3,934      (169)   $     (98) (a)    3,667
Less: capital
expenditures                (635)          -                -           (635)
                                         $                               $ 
Free cash flow         $  3,299      (169)   $     (98)          3,032
                 Incremental tax benefits from share-based compensation
(a)              during the period.
                 Primarily cash from sale of equity securities and other
(b)              investments.
                 Primarily funding for strategic debt and equity investments,
                 other investing activities and QSI operating and capital
(c)              expenditures.
N/A - Not Applicable

                           Qualcomm Incorporated
         Reconciliation of Non-GAAP Tax Rates to GAAP Tax Rates (a)
                                (in millions)
                                 (Unaudited)
                            Three Months Ended March 31, 2013
                                           Acquisition-
             Non-GAAP        Share-Based    Related     Tax-Related   GAAP
              Results   QSI  Compensation     Items       Items (b)   Results
Income
(loss) from
continuing
operations              $ 
before                                                                   $ 
income taxes $  2,454  33   $   (268)     $  (83)     $   -    2,136
Income tax
(expense)
benefit          (388)    -            48             3           64    (273)
Income
(loss) from             $ 
continuing                                                               $ 
operations  $  2,066  33   $   (220)     $  (80)     $   64    1,863
Tax rate           16%   0%           18%            4%          N/A      13%

                             Six Months Ended March 31, 2013
            Non-GAAP        Share-Based  Acquisition-  Tax-Related   GAAP
             Results   QSI   Compensation  Related Items   Items (b)   Results
Income
(loss) from
continuing
operations
before                  $ 
income                                                                    $ 
taxes       $  5,150   16   $   (549)      $  (154)     $   -    4,463
Income tax
(expense)
benefit         (881)     3           110              7           64    (697)
Income
(loss) from             $ 
continuing                                                                $ 
operations $  4,269   19   $   (439)      $  (147)     $   64    3,766
Tax rate          17%  -19%           20%             5%          N/A      16%

(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. 
(b) During the second quarter of fiscal 2013, we recorded a tax benefit of
    $64 million related to fiscal 2012 due to the retroactive reinstatement
    of the federal R&D tax credit.
N/A - Not Applicable
Sums may not equal totals due to rounding.

                            Qualcomm Incorporated
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                    (In millions, except per share data)
                                 (Unaudited)
                                   ASSETS
                                                    March 31,   September 30,
                                                          2013           2012
Current assets:
 Cash and cash equivalents                        $   4,093    $   3,807
 Marketable securities                                  9,400          8,567
 Accounts receivable, net                               1,889          1,459
 Inventories                                            1,484          1,030
 Deferred tax assets                                      318            309
 Other current assets                                    582            473
 Total current assets                          17,766         15,645
Marketable securities                                   17,046         14,463
Deferred tax assets                                      1,229          1,412
Assets held for sale                                     1,070          1,109
Property, plant and equipment, net                       2,971          2,851
Goodwill                                                 3,975          3,917
Other intangible assets, net                             2,735          2,938
Other assets                                               807            677
 Total assets                             $  47,599    $  43,012
                    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Trade accounts payable                           $   1,628    $   1,298
 Payroll and other benefits related liabilities           679            664
 Unearned revenues                                        514            545
 Liabilities held for sale                                538          1,072
 Other current liabilities                              1,904          1,723
 Total current liabilities                       5,263          5,302
Unearned revenues                                        3,697          3,739
Liabilities held for sale                                  531              -
Other liabilities                                          480            426
 Total liabilities                               9,971          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; 1,726
 and 1,706 shares issued and outstanding,
respectively                                                 -              -
 Paid-in capital                                       12,991         11,956
 Retained earnings                                     23,599         20,701
 Accumulated other comprehensive income                 1,021            866
 Total Qualcomm stockholders' equity            37,611         33,523
Noncontrolling interests                                    17             22
 Total stockholders' equity                     37,628         33,545
 Total liabilities and stockholders'
equity                                             $  47,599    $  43,012

                            Qualcomm Incorporated
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In millions, except per share data)
                                 (Unaudited)
                                   Three Months Ended      Six Months Ended
                                  March 31,  March 25,   March 31,  March 25,
                                       2013       2012        2013       2012
Revenues:
 Equipment and services          $  3,990  $  3,137   $  8,189  $  6,305
 Licensing                           2,134      1,806       3,954      3,320
 Total revenues                      6,124      4,943      12,143      9,625
Operating expenses:
 Cost of equipment and services
revenues                              2,372      1,783       4,609      3,537
 Research and development            1,214        954       2,320      1,827
 Selling, general and
administrative                          661        595       1,248      1,098
 Other                                   -         97           -         97
 Total operating expenses        4,247      3,429       8,177      6,559
Operating income                     1,877      1,514       3,966      3,066
Investment income, net                  259        220         497        389
 Income from continuing
operations before income taxes        2,136      1,734       4,463      3,455
Income tax expense                   (273)      (296)       (697)      (617)
 Income from continuing
operations                            1,863      1,438       3,766      2,838
Discontinued operations, net of
income taxes                              -        761           -        756
 Net income                          1,863      2,199       3,766      3,594
Net loss attributable to
noncontrolling interests                  3         31           6         37
 Net income attributable to
Qualcomm                          $  1,866  $  2,230   $  3,772  $  3,631
Basic earnings per share
attributable to Qualcomm:
 Continuing operations           $  1.08  $  0.86   $  2.20  $  1.70
 Discontinued operations                 -       0.45           -       0.45
 Net income                      $  1.08  $  1.31   $  2.20  $  2.15
Diluted earnings per share
attributable to Qualcomm:
 Continuing operations           $  1.06  $  0.84   $  2.15  $  1.66
 Discontinued operations                 -       0.44           -       0.44
 Net income                      $  1.06  $  1.28   $  2.15  $  2.10
Shares used in per share
calculations:
 Basic                               1,722      1,698       1,716      1,691
 Diluted                             1,763      1,743       1,757      1,732
Dividends per share announced     $  0.250  $  0.215   $  0.500  $  0.430

                            Qualcomm Incorporated
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (In millions)
                                 (Unaudited)
                                   Three Months Ended      Six Months Ended
                                  March 31,  March 25,   March 31,  March 25,
                                    2013       2012        2013       2012
Operating Activities:
Net income                         $ 1,863   $ 2,199    $ 3,766   $ 3,594
Adjustments to reconcile net
income to net cash provided by
 operating activities:
 Depreciation and amortization        248        211         489        419
 Gain on sale of wireless
spectrum                                  -    (1,179)           -    (1,179)
 Revenues related to
non-monetary exchanges                 (31)       (30)        (62)       (61)
 Income tax provision (less
than) in excess of income tax
payments                               (34)        382         161        500
 Non-cash portion of
share-based compensation expense        267        241         550        488
 Incremental tax benefit from
share-based compensation               (42)       (75)       (103)       (98)
 Net realized gains on
marketable securities and other
investments                            (84)      (101)       (179)      (144)
 Gains on derivative
instruments                            (14)       (28)        (12)       (74)
 Other items, net                      55         36          91         62
Changes in assets and
liabilities, net of effects of
acquisitions:
 Accounts receivable, net           (239)      (157)       (424)      (195)
 Inventories                        (207)       (71)       (454)       (21)
 Other assets                       (150)         14       (201)       (10)
 Trade accounts payable                 1        261         377        287
 Payroll, benefits and other
liabilities                             590      (218)         203      (261)
 Unearned revenues                    (7)        403        (11)        360
 Net cash provided by operating
activities                            2,216      1,888       4,191      3,667
Investing Activities:
 Capital expenditures               (289)      (276)       (494)      (635)
 Purchases of
available-for-sale securities       (4,160)    (5,009)     (7,449)    (7,036)
 Proceeds from sale of
available-for-sale securities         2,306      1,940       4,532      3,543
 Purchases of trading
securities                            (826)      (502)     (1,796)    (1,639)
 Proceeds from sale of trading
securities                              574        503       1,598        651
 Proceeds from sale of
spectrum                                  -      1,925           -      1,925
 Acquisitions and other
investments, net of cash
acquired                               (93)       (29)       (132)      (329)
 Other items, net                      44       (57)          70       (53)
 Net cash used by investing
activities                          (2,444)    (1,505)     (3,671)    (3,573)
Financing Activities:
 Borrowing under loans and
debentures                                -        232           -        232
 Repayment of loans payable             -      (151)           -      (151)
 Proceeds from issuance of
common stock                            407        907         747      1,135
 Incremental tax benefit from
share-based compensation                 42         75         103         98
 Repurchases and retirements
of common stock                           -          -       (250)       (99)
 Dividends paid                     (431)      (366)       (859)      (729)
 Other items, net                     (4)       (59)         (2)       (39)
 Net cash provided (used) by
financing activities                     14        638       (261)        447
 Changes in cash and cash
equivalents held for sale                18          -          31          -
 Effect of exchange rate
changes on cash and cash
equivalents                             (4)         13         (4)        (5)
Net (decrease) increase in cash
and cash equivalents                  (200)      1,034         286        536
Cash and cash equivalents at
beginning of period                   4,293      4,964       3,807      5,462
Cash and cash equivalents at end
of period                          $ 4,093   $ 5,998    $ 4,093   $ 5,998

Website: http://www.qualcomm.com