Nov-05-2009UPDATE 4-Qualcomm outlook off, cites increasing competition
(topic overview)
CONTENTS:- Included a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission recorded in the fourth quarter of fiscal 2009. (b) Included $734 million in other-than-temporary losses on investments, which were not part of the Company's strategic investment portfolio and $13 million in interest expense, partially offset by $513 million in interest and dividend income related to cash, cash equivalents and marketable securities, $107 million in net realized gains on investments and $1 million in gains on derivatives. (c) Included $29 million in other-than-temporary losses on investments, $17 million in equity in losses of investees and $11 million in interest expense, partially offset by $30 million in net realized gains on investments and $3 million in interest and dividend income. (d) The effective tax rates for the twelve months ended September 27, 2009 were approximately 23% for GAAP and approximately 28% for pro forma. (e) Included a tax expense related to the adjustment of net deferred tax assets that were recorded in prior years to reflect the changes in California law. (More...)
- For the September 2010 fiscal year, QCOM sees revenue of $10.5 billion to $11.3 billion, and profits ex-items of $2.10 to $2.30 a share; the Street has been expecting $11.6 billion and $2.32 a share. (More...)
- Samsung said in a separate statement that it would make a $1.3 billion down-payment to Qualcomm under the new agreement but Qualcomm would not disclose the phone maker's ongoing royalty rates. (More...)
- Net operating income or NOI, for the third quarter edged down to $133.66 million from $135.84 million in the prior-year quarter, and total rental property expenses were $58.22 million, up from $54.11 million in the year-ago quarter. (More...)
- Analysts surveyed by Thomson Reuters forecast a profit of 52 cents per share. (More...)
- Company executives told analysts on a conference call that the company was happy with the value it is getting from the new Samsung agreement which includes current wireless technology standards as well as next-generation technologies. (More...)
- Our outlook does not include provisions for the consequences of injunctions, damages or fines related to any pending legal matters. (More...)
SOURCESFIND OUT MORE ON THIS SUBJECTIncluded a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission recorded in the fourth quarter of fiscal 2009. (b) Included $734 million in other-than-temporary losses on investments, which were not part of the Company's strategic investment portfolio and $13 million in interest expense, partially offset by $513 million in interest and dividend income related to cash, cash equivalents and marketable securities, $107 million in net realized gains on investments and $1 million in gains on derivatives. (c) Included $29 million in other-than-temporary losses on investments, $17 million in equity in losses of investees and $11 million in interest expense, partially offset by $30 million in net realized gains on investments and $3 million in interest and dividend income. (d) The effective tax rates for the twelve months ended September 27, 2009 were approximately 23% for GAAP and approximately 28% for pro forma. (e) Included a tax expense related to the adjustment of net deferred tax assets that were recorded in prior years to reflect the changes in California law. [1] Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters CDMA/WCDMA device shipments (1) Prior Guidance Current Guidance Current Guidance Calendar 2009 Calendar 2009 Calendar 2010 Estimates Estimates Estimates March quarter approx. 111M approx. 111M not provided June quarter approx. 127 - 132M approx. 127M not provided September approx. quarter not provided 130M - 135M not provided December quarter not provided not provided not provided Calendar year range (approx.) 540M - 590M 515M - 530M 600M - 650M Midpoint Midpoint Midpoint CDMA/WCDMA units approx. 565M approx. 523M approx. 625M CDMA units approx. 217M approx. 213M approx. 231M WCDMA units approx. 348M approx. 310M approx. 394M (1) CDMA/WCDMA device shipments and average selling prices are for estimated worldwide device shipments, including shipments not reported to Qualcomm. (2) Fiscal 2009 results included a $783 million charge, or $0.45 diluted loss per share, related to a litigation settlement and patent agreement with Broadcom Corporation, as well as a $230 million charge, or $0.14 diluted loss per share, related to an estimated fine expected to be levied by the Korea Fair Trade Commission.
[1] The fourth quarter of fiscal 2009 GAAP results included a $155 million tax benefit, or $0.09 diluted earnings per share, related to prior years as a result of tax audits.
[1] Fiscal 2009 GAAP results reflected a $155 million tax benefit, or $0.09 diluted earnings per share, related to prior years. (3) While we do not forecast impairments, we do have unrealized losses on marketable securities that could be recognized in future periods if market conditions do not improve. (4) Due to recently enacted California budget legislation, we anticipate that fiscal 2010 GAAP results will be impacted by tax expense of approximately $125 million related to the revaluation of certain deferred tax assets to be recognized in future periods related to the license and settlement agreements with Nokia.
[1] The fourth quarter of fiscal 2008 results included $560 million in revenues, or $0.20 diluted earnings per share, as a result of the execution of license and settlement agreements with Nokia Corporation/Nokia Inc. (Nokia).
[1] Analysts had, on average, expected Qualcomm to post revenue of $2.72 billion and pro forma diluted earnings of 52 cents per share for the company's fiscal fourth quarter, according to Yahoo Finance.
[2] For the full year, Qualcomm recorded net income of $1.59 billion, falling 50 percent year-over-year. Qualcomm said its QSI (Qualcomm Strategic Initiatives) segment, which includes FLO TV, contributed a 5 cent diluted loss per share to the company's bottomline in Q4 based on $93 million in operating expenses, "primarily related to FLO TV." During the quarter, FLO TV
kicked off its consumer brand in a move to try and increase revenues.
[3] Pro forma measurements of the following financial data are used by the Company's management: revenues, R&D expenses, SG&A expenses, total 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.
[1] The Company decided to include the benefit of the retroactive extension of the federal research and development tax credit in pro forma results starting in fiscal 2009 because it recurs with relative frequency and would have been included in the Company's pro forma results for the prior year if it had been reenacted in the prior fiscal year. Acquired in-process R&D is excluded because such expense is viewed by management as unrelated to the operating activities of the Company's ongoing core businesses. 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 shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. Management uses this measure to evaluate the Company's performance, to value the Company and to compare its operating performance with other companies in the industry.
[1] The fourth quarter and fiscal 2009 GAAP results included a $155 million tax benefit as a result of tax audits to adjust our estimates of uncertain tax positions for prior years. This tax benefit was excluded from our fiscal 2009 pro forma results to provide a clearer understanding of our ongoing tax rate and after tax earnings.
[1] Net income for the fiscal year slipped to $2.19 billion, down 42 percent compared to fiscal 2008, Qualcomm said. Qualcomm said its fiscal fourth quarter results included a $230 million charge related to an estimated fine expected to be levied by the Korea Fair Trade Commission.
[2] On a pro forma basis, excluding charges, Qualcomm said net income was $811 million, down 10 percent sequentially and 23 percent year to year.
[2] On a pro forma basis, the company reported net income of $811 million or $0.48 per share for the quarter.
[4] Net income available to common shareholders for the quarter totaled $28.29 million or $0.07 per share from $96.76 million or $0.37 per share in the comparable quarter a year ago.
[5] Excluding items, Qualcomm earned 48 cents a share on net income of $811 million, down from 63 cents a share and $1.06 billion in the prior year's quarter.
[6] The current quarter excludes $0.05 diluted loss per share attributable to the QSI segment, $0.05 diluted loss per share attributable to certain estimated share-based compensation and $0.09 diluted earnings per share attributable to certain tax items related to prior years.
[1] The QSI segment is composed of our strategic investments, including FLO TV. GAAP results for the fourth quarter of fiscal 2009 included a $0.05 diluted loss per share for the QSI segment.
[1] The fourth quarter of fiscal 2009 QSI results included $93 million in operating expenses, primarily related to FLO TV.
[1] The company's fiscal 2009 results included a $783 million related to an $891 million settlement and patent licensing agreement with Broadcom Corp., the company said. In a statement, Paul E. Jacobs, Qualcomm chairman and CEO, said the company recently extended its license agreement with Samsung, covering both 3G and 4G. Reuters reported that Samsung said in a regulatory filing it would make a $1.3 billion down payment to Qualcomm for a license.
[2] Qualcomm Inc.' s fourth-quarter profit dropped 8.5%, triggered by charges, but a deal with Samsung Electronics Co. helped offset a cautious forecast for the current period. The San Diego-based maker of chips for cellphones said its results for the fiscal period ended in September included a $230 million charge to cover the estimated cost of a fine expected to be levied.
[7] Qualcomm's fourth-quarter numbers included a charge of $230 million, or 14 cents a share, related to an estimated fine from the Korea Fair Trade Commission.
[6] Qualcomm, based in San Diego, said Wednesday earnings for the three months ended Sept. 27 fell to $803 million, or 48 cents per share, from $878 million, or 52 cents per share, in the same period last year. That fell short of expectations.
[8] For the full fiscal year, Qualcomm's profit plunged 50 percent to $1.6 billion, or 95 cents per share, from $3.2 billion, or $1.90 per share in 2008.
[8] For the current first quarter, the company forecast an adjusted profit of 54 cents to 58 cents per share on $2.6 billion to $2.8 billion in revenue.
[8] Analysts currently anticipate the company to earn $0.56 per share on revenue of $2.84 billion for the quarter.
[4] For the full year 2010, the company expects revenue in the range of $10.50 billion - $11.30 billion with earnings in the range of $1.56 - $1.76 per share.
[4] Qualcomm predicted full-year earnings of $2.10 to $2.30 per share on revenue of $10.5 billion to $11.3 billion.
[8] Analysts are looking for first-quarter earnings of 56 cents per share on revenue of $2.8 billion.
[8] The company said it expected earnings of $2.10 to $2.30 per share in the full year of 2010, below the $2.32 expected by analysts on average.
[9] On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share.
[5] On a pro forma basis, earnings is expected to be in the range of $0.54 - $0.58 per share.
[4] Pro forma earnings equated to 48 cents per diluted share, down 11 percent sequentially and 24 percent year-to-year, Qualcomm said.
[2] Qualcomm forecasts earnings per share to fall between 54 and 58 cents a share, an increase of 74 to 84 percent compared to Q1 2009.
[3] Excluding charges and costs, FFO per share for the quarter dropped 56%, and came in line with analysts' expectations. The company also lowered its FFO forecast for the full year 2009.
[5] Quarterly revenues decreased to $924.93 million from $935.59 million in the prior-year quarter. Another peer, Houston, Texas-based Weingarten Realty Investors (WRI: News ) reported last week a decline in FFO for the third quarter to $29.73 million or $0.25 per share from $59.89 million or $0.71 per share, primarily reflecting a non-cash impairment charge.
[5] Excluding non-cash impairments and charges for the acceleration of deferred costs from early debt repayment, FFO for the quarter dropped to $117.9 million or $0.31 per share from $182.80 million or $0.70 per share in the year-ago quarter.
[5] The New Hyde Park, New York-based company posted FFO of $112.55 million or $0.30 per share, lower than $176.89 million or $0.68 per share in the prior-year quarter.
[5] Among Kimco's peers, Indianapolis, Indiana-based Simon Property Group, Inc. (SPG: News ) reported last week a 2% year-over-year increase in third quarter funds from operations to $473.07 million or $1.38 per share, helped by stable performance of franchise retail assets within its regional mall, premium outlet and mills platforms.
[5] Return of capital to stockholders: $1.38 billion, including $1.09 billion of cash dividends, or $0.66 per share; and $284 million to repurchase 8.9 million shares of our common stock.
[1] On October 2, 2009, we announced a cash dividend of $0.17 per share, payable on December 23, 2009 to stockholders of record at the close of business on November 25, 2009.
[1] 
For the September 2010 fiscal year, QCOM sees revenue of $10.5 billion to $11.3 billion, and profits ex-items of $2.10 to $2.30 a share; the Street has been expecting $11.6 billion and $2.32 a share. [10] For the fiscal year 2009, Qualcomm's revenues totaled $10.42 billion, falling 7 percent.
[3] In fiscal first quarter 2010, Qualcomm expects revenues to fall between $2.55 billion and $2.75 billion, which would translate between a 2 to 10 percent increase from the year ago period.
[3] In results released today, Qualcomm said Q4 revenues totaled $2.69 billion, falling 19 percent compared to the year ago period.
[3] Qualcomm said it expects revenue for the current quarter to be between $2.55 billion and $2.75 billion, which would represent an increase of 2 to 10 percent over the year-ago period, Qualcomm said.
[2] While the outlook was below published analyst estimates, some analysts noted that given Qualcomm's share-price decline of 9 percent since late September, many investors had already priced weak guidance into the share price. Others suggested that Qualcomm's guidance for the year may prove to be conservative if the recovery speeds up. "If the macroeconomy is a little better than expected next year there's potential for upside to their guidance," said Piper Jaffray analyst Michael Walkley. Another analyst said that Samsung, a top Qualcomm client, managed to negotiate a cheaper technology licensing rate. "It's good news they've extended, but I'm fairly confident the terms aren't that favorable to Qualcomm," Charter Equity Research analyst Ed Snyder said. "The guidance for this quarter was light and the full-year guidance is a bit discouraging, light on revenue and significantly light on earnings," he added.
[11] NEW YORK, Nov 4 (Reuters) - Wireless chip supplier Qualcomm Inc ( QCOM.O ) on Wednesday forecast weaker than expected full-year results, but its extension of a key deal with Korea's Samsung Electronics ( 005930.KS ) helped offset the disappointment for some investors. The company said aggressive competition in the mobile phone chip market would hurt its profits next year along with slowing handset upgrades by consumers against the backdrop of a lackluster rebound from the recession.
[11] The company expects sales between $10.5 billion and $11.3 billion, below Wall Street's estimate of $11.61 billion. The wireless specialist, which competes with Broadcom ( BRCM Quote ), Nokia and Texas Instruments ( TXN Quote ), recently extended its license agreement with Samsung to cover both 3G and 4G. "I am very pleased with the performance of our businesses this past year, despite a challenging and uncertain global economic environment," said Qualcomm CEO Paul Jacob in a statement.
[6] For the full year, Qualcomm's sales came in at $10.42 billion, down 7% on the prior year quarter, but roughly in line with Wall Street's expectation of $10.43 billion. Qualcomm, despite its reputed
growth potential, issued weak guidance for fiscal year 2010.
[6] Qualcomm forecast full-year revenue of $10.5 billion to $11.3 billion, below Wall Street expectations for revenue of $11.61 billion, according to Thomson Reuters I/B/E/S.
[9] Nine Wall Street analysts had a consensus revenue estimate of $187.77 million for the quarter.
[5] Analysts expected the company to report revenue of $2.72 billion for the quarter.
[4] For the quarter, the wireless chip company posted revenue of $2.69 billion, down 19% year-over-year and 2% sequentially, and below the Street at $2.72 billion.
[10] Free cash flow: $1.29 billion, up 63 percent year-over-year; 48 percent of revenues (defined as net cash from operating activities less capital expenditures).
[1] Three Months Ended September 28, 2008 Estimated Pro Share-Based Forma Compensation QSI GAAP Net cash provided (used) by operating activities $1,153 $(98) (a) $(65) $990 Less: capital expenditures (357) - (57) (414) Free cash flow $796 $(98) $(122) $576 ==== ==== ===== ==== Twelve Months Ended September 28, 2008 Estimated Pro Share-Based In-Process Forma Compensation R&D QSI GAAP Net cash provided (used) by operating activities $4,243 $(408) (a) $(14) $(263) $3,558 Less: capital expenditures (725) - - (672) (1,397) Free cash flow $3,518 $(408) $(14) $(935) $2,161 ====== ===== ==== ===== ====== (a) Incremental tax benefits from stock options exercised during the period.
[1] Management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on pro forma financial measures applicable to the Company and its business segments. Pro forma information used by management excludes the QSI segment, certain estimated share-based compensation, certain tax items and acquired in-process R&D. The QSI segment 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 are viewed by management as unrelated to the Company's operational performance. Estimated share-based compensation, other than amounts related to share-based awards granted under a bonus program that may result in the issuance of unrestricted shares of the Company's common stock, is excluded because management views such share-based compensation as unrelated to the Company's operational performance. It is generally not an expense that requires or will require cash payment by the Company.
[1] Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.
[1] Share-based compensation related to options is affected by factors that are subject to change, including the Company's stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Certain tax items that were recorded in reported earnings in each fiscal year presented but 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 pro forma tax rate and after tax earnings.
[1] Qualcomm's fourth quarter fiscal 2009 earnings conference call will be broadcast live on November 4, 2009, beginning at 2:30 p.m. Pacific Time (PT) on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information and will include a discussion of "non-GAAP financial measures" as that term is 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 the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call.
[1] Wireless chip-maker Qualcomm ( NSDQ: QCOM ) released fiscal fourth quarter and full-year 2009 results today, reporting that revenues for the quarter and for the year fell and that profits were dragged down by charges from settlements and fines.
[3] SAN DIEGO, Nov. 4 /PRNewswire-FirstCall/ -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the fourth fiscal quarter and year ended September 27, 2009. "I am very pleased with the performance of our businesses this past year, despite a challenging and uncertain global economic environment," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm.
[1] Our cash, cash equivalents and marketable securities totaled approximately $17.7 billion at the end of the fourth quarter of fiscal 2009, compared to $15.7 billion at the end of the third quarter of fiscal 2009 and $11.3 billion a year ago.
[1] For fiscal 2009, also ended Sept. 27, Qualcomm's total sales were $10.39 billion, down 7 percent from fiscal 2008, the company said.
[2] The company's net income for the period slipped to $803 million, down 9 percent sequentially and 9 percent year-to-year, Qualcomm said.
[2] In Q4, net income totaled $803 million, falling 9 percent compared to the previous year.
[3] Effective tax rate: Negative 8 percent for the quarter, primarily due to the $155 million tax benefit related to prior years.
[1] The prior year's quarter also included $560 million in revenue from license and settlement agreements with Nokia ( NOK Quote ).
[6] Revenues from rental properties for the quarter edged up to $191.89 million from $189.95 million in the same quarter last year.
[5] Total revenues for the quarter declined to $2.7 billion from $3.3 billion in the comparable quarter last year.
[4] Revenue declined 19 percent to $2.7 billion from $3.3 billion in the year-ago quarter, matching analysts' estimates.
[8] Revenue slipped 7 percent to $10.4 billion from $11.1 billion last year, but still matched analysts' expectations.
[8] Consensus analyst expectations for the current quarter had called for revenue of $2.84 billion, according to Yahoo Finance.
[2] The chipmaker reported revenue of $2.69 billion after market close, down 19% on the same period last year, and just below analysts' estimate of $2.72 billion.
[6] For FY Q1, the company sees revenue of $2.55 billion to $2.75 billion and EPS ex-special items of 54-58 cents a share; the Street has been expecting $2.84 billion and 56 cents.
[10] Shares rose 0.4% to $41.78 in after-hours trading, even as the cellphone-chip maker provided a downbeat forecast for the current quarter.
[12] Qualcomm's shares rose $1.19, or 2.86%, to $42.79 in extended trading. Rival
Texas Instruments beat analysts'
estimates in its own third-quarter results last month, boosted by sales of its analog products.
[6] Free cash flow: $6.91 billion, including a $2.5 billion payment received from Nokia related to the license and settlement agreements. Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and pro forma results are included at the end of this news release.
[1] Reconciliations between GAAP results and pro forma results are presented herein. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of deployment and adoption of our technologies in wireless networks and of wireless communications, equipment and services, including CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both domestically and internationally; the current uncertainty of global economic conditions and its potential impact on demand for our products, services or applications and the value of our marketable securities; attacks on our business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; our dependence on major customers and licensees; foreign currency fluctuations; strategic investments and transactions we have or may pursue; our dependence on third-party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; the development, deployment and commercial acceptance of the FLO TV network and FLO((TM)) technology; the development and commercial acceptance of the IMOD display technology; as well as the other risks detailed from time-to-time in our SEC reports.
[1] For more information, please visit www.qualcomm.com. The Company presents pro forma financial information that is used by management (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 Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Wireless & Internet segments and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company.
[1] The non-GAAP pro forma 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, "pro forma" is not a term defined by GAAP, and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies.
[1] Our fiscal 2009 effective income tax rates were 23 percent for GAAP and 28 percent for pro forma.
[1] Pro forma R&D expenses decreased 2 percent year-over-year, primarily due to cost reduction efforts and a decrease in other employee-related expenses.
[1] Operating income: $597 million, down 55 percent year-over-year and 33 percent sequentially.
[1] Revenues: $2.69 billion, down 19 percent year-over-year and 2 percent sequentially.
[1] Samsung said in a separate statement that it would make a $1.3 billion down-payment to Qualcomm under the new agreement but Qualcomm would not disclose the phone maker's ongoing royalty rates. [9] SEOUL, Nov 5 (Reuters) - Samsung Electronics Co Ltd ( 005930.KS ) said on Thursday it would make a $1.3 billion down payment to Qualcomm Inc ( QCOM.O ) for a wireless telecom license.
[13] Net operating income or NOI, for the third quarter edged down to $133.66 million from $135.84 million in the prior-year quarter, and total rental property expenses were $58.22 million, up from $54.11 million in the year-ago quarter. [5] Net income fell more substantially, mostly because of millions of dollars in charges that Qualcomm paid in association with fines by the Korea Fair Trade Commission and charges related to a settlement with Broadcom.
[3] NEW YORK (Dow Jones)--Qualcomm Inc.' s (QCOM) fiscal fourth-quarter profit dropped 8.5% as charges, lower revenue and drooping margins weighed on results.
[12] SAN DIEGO — Qualcomm Inc. says its fiscal fourth-quarter profit slipped 9 percent as revenue from the mobile phone technology it licenses and mobile-phone chips it makes declined.
[8] "The kind of revenue growth and earnings growth we've projected for the coming year is lower than Qualcomm has experienced for the last several years," Chief Financial Officer Bill Keitel told Reuters.
[11] Total quarterly revenues decreased to $144.54 million from $153.97 million a year ago.
[5] The Street expects a higher profit of $2.32 on $10.4 billion in revenue.
[8] "Our revenues for fiscal year 2009 were in line with our guidance at the outset of the year.
[1] Qualcomm (QCOM) this afternoon posted somewhat disappointing results for its fiscal fourth quarter ended September 27, and a similarly lackluster outlook for both Q1 and FY 2010.
[10] SAN DIEGO (
TheStreet -- Qualcomm ( QCOM Quote ) saw its sales slump during the fourth quarter, and the component manufacturer also missed Wall Street's profit estimate.
[6] Analysts surveyed by Thomson Reuters forecast a profit of 52 cents per share. [8] Analysts surveyed by Thomson Reuters had predicted earnings of 52 cents a share.
[6] While the results were disappointing, analysts said that given the shares had fallen 9 percent since late September, a lot of softness had already been priced in.
[9] Company executives told analysts on a conference call that the company was happy with the value it is getting from the new Samsung agreement which includes current wireless technology standards as well as next-generation technologies. Chief Financial Officer Bill Keitel said he expects consumers to upgrade their cellphones at a slower rate in 2010 than in 2009 and noted that the market was taking time to recover after the global economic recession.
[9] Management 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 pro forma information.
[1] The following table summarizes GAAP and pro forma guidance based on the current business outlook.
[1] The pro forma business outlook provided below is presented consistent with the presentation of pro forma results elsewhere herein.
[1] Pro forma R&D expenses primarily related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services.
[1] Our outlook does not include provisions for the consequences of injunctions, damages or fines related to any pending legal matters. Due to their nature, certain income and expense items, such as realized investment gains or losses, gains and losses on certain derivative instruments or asset impairments, cannot be accurately forecast. Accordingly, we exclude forecasts of such items from our business outlook, and actual results may vary materially from the business outlook if we incur any such income or expense items.
[1] At September 27, 2009, we had net unrealized gains on marketable securities of $674 million as compared to $25 million of net unrealized losses as of June 28, 2009.
[1] Qualcomm's stock rose 1.2 percent to $42.05 in after-hours trading, even though the outlook wasn't terribly upbeat.
[3] As part of the new initiative, Qualcomm unveiled a new device that is only a TV and not a phone. The device will cost $250 and be available for purchase this holiday season.
[3] SOURCES1.
Qualcomm Announces Fourth Quarter and Fiscal 2009 Results2.
EETimes.com - Qualcomm misses estimates, extends Samsung license3.
Qualcomm's Revenues Down 19 Percent in Q4; Profits Hurt By Charges | mocoNews4.
Qualcomm Q4 Profit Declines; Provides Q1, FY10 Guidance - Quick Facts 25.
Kimco Realty Q3 FFO Drops 36%; Trims FY09 FFO Outlook - Update6.
This Wasn't Qualcomm's Quarter | Technology | Financial Articles & Investing News | TheStreet.com7.
Qualcomm Profit Hit By Charges - WSJ.com8.
The Associated Press: Qualcomm fiscal 4Q profit slips 9 percent9.
Qualcomm Outlook off but Shares up After Samsung Deal - ABC News10.
Qualcomm FY Q4 Slightly Light; Q1, FY 2010 Outlook Below The Street; But Stock Gains - Tech Trader Daily - Barrons.com11.
UPDATE 4-Qualcomm outlook off, cites increasing competition | Reuters12.
2nd UPDATE: Qualcomm 4Q Profit Dn 8.5% On Lower Rev, Margins - WSJ.com13.
Samsung Elec to make $1.3 bln down payment to Qualcomm | Industries | Technology, Media & Telecommunications | ReutersGENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECTEnter your search query below. WAIT 10-20 sec for the new window to open.
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