Qualcomm Raises Financial Guidance for the First Fiscal Quarter of 2008

San Diego (ots/PRNewswire) -

- Increases First Quarter Fiscal 2008 Revenue and Earnings per
Share Guidance

Qualcomm Incorporated (Nasdaq: QCOM) today updated its financial
guidance for the first fiscal quarter ending December 30, 2007.

The following statements are forward looking and actual results
may differ materially. Please see "Note Regarding Forward-Looking
Statements" at the end of this news release for a description of
certain risk factors and Qualcomm's annual and quarterly reports on
file with the Securities and Exchange Commission (SEC) for a more
complete description of risks that may affect the forward looking
statements.

Pro Forma Defined

Pro forma results and guidance exclude the Qualcomm Strategic
Initiatives (QSI) segment, certain estimated share-based
compensation, certain tax adjustments related to prior years and
acquired in-process research and development (R&D) expense.

Business Outlook

Based on the current business outlook, we now anticipate first
fiscal quarter Qualcomm pro forma revenues to be at the high end of
the prior guidance of approximately US$2.3 to US$2.4 billion
compared to US$2.02 billion in the year ago quarter. We now
anticipate first fiscal quarter Qualcomm pro forma diluted earnings
per share to be approximately US$0.52 to US$0.53 compared to US$0.43
in the year ago quarter. This estimate is based on the shipment of
approximately 78 million Mobile Station Modem(TM) (MSM(TM)) chips
during the quarter as compared to our prior estimate of 74 to 78
million units. We previously anticipated first fiscal quarter
Qualcomm pro forma diluted earnings per share of approximately
US$0.50 to US$0.52.

The majority of our licensees have reported royalties in the first
fiscal quarter for products shipped in the September quarter. Based
on these reports and our own estimate of unreported activity, we
anticipate September quarter estimated shipments of approximately 95
million CDMA units (CDMA2000(R) and WCDMA) for the total market at
an estimated average selling price of approximately US$211, compared
to our prior estimate of approximately 95 to 98 million units at an
average selling price of approximately US$212. Approximately 74
million CDMA units were shipped in the year ago quarter.

"Demand for CDMA-based devices and services continues to
accelerate at a rapid pace," said Dr. Paul E. Jacobs, chief
executive officer of Qualcomm. "Our updated guidance reflects
stronger than anticipated demand across all tiers of CDMA2000
chipsets with particular strength in the low end as we continue to
bridge the digital divide in emerging markets. September quarter
handset shipment estimates indicate strong year-over-year growth
across all major regions as well as sequential growth in North
America, Europe and emerging markets. Even with this continued
market growth, we believe the worldwide CDMA inventory channel
remains at less than 20 weeks."

"Together with our partners we continue to innovate and bring many
new and exciting products and services to the global wireless
marketplace. We will continue to execute and drive growth in 3G
convergence and next generation wireless technologies."

The following table summarizes total Qualcomm (GAAP) and Qualcomm
pro forma guidance for the first fiscal quarter of 2008 based on the
current business outlook. The pro forma business outlook provided
below is presented consistent with the presentation of pro forma
results elsewhere herein.

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. In
addition, our outlook does not include provisions for the
consequences of injunctions or significant possible damages related
to litigation matters unless damages have been awarded by a court.
The variability of our estimated quarterly CDMA device volumes and
ASPs may widen due to the increased use of our own estimates of
unreported activity. Royalty revenue is recognized based on royalties
reported by our licensees; therefore, such estimates of unreported
activity do not impact our ability to accurately report revenues.

Despite recent credit market volatility, our diversified cash
investment portfolio returns are not expected to change our earnings
guidance for the first fiscal quarter of 2008.

We are engaged in multiple disputes with Nokia Corp., including
arbitration over Nokia's obligation to pay royalties for the use of
certain of our patents. As a result, under generally accepted
accounting principles, we are not recording royalty revenue
attributable to Nokia's sales after April 9, 2007 until an
arbitrator (or court) awards damages or the disputes are otherwise
resolved by agreement with Nokia. We have excluded from our fiscal
2008 revenue and earnings guidance our estimate of royalties which
we believe Nokia is required to report and pay to us under our
existing license agreement in fiscal 2008 of approximately
US$0.25-US$0.30 diluted earnings per share.

The following estimates are approximations and are based on the
current business outlook:

Business Outlook Summary
(All currency in US dollars)
FIRST FISCAL QUARTER
Prior Prior Current
Year Guidance Guidance
Q1'07 Q1'08 Q1'08
Results Estimates Estimates
Qualcomm Pro Forma
At the high end
Revenues $2.02B $2.3B - $2.4B of prior guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.43 $0.50 - $0.52 $0.52 - $0.53
Year-over-year
change increase 16% - 21% increase 21% - 23%
Total Qualcomm (GAAP)
At the high end
Revenues $2.02B $2.3B - $2.4B of prior guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.38 $0.42 - $0.44 $0.45 - $0.46
Year-over-year
change increase 11% - 16% increase 18% - 21%
Diluted EPS
attributable
to QSI ($0.01) ($0.03) ($0.02)
Diluted EPS
attributable
to estimated
share-based
compensation ($0.05) ($0.05) ($0.05)
Diluted EPS
attributable
to tax items
related to prior
years $0.02 n/a n/a
Metrics
MSM Shipments approx. 59M approx. 74M - 78M approx. 78M
CDMA/WCDMA
handset
units
shipped (1) approx. 74M(e) (2) approx. 95M - 98M(e) approx. 95M(e)
CDMA/WCDMA
handset
unit
wholesale
average
selling
price (1) approx. $208(e) (2) approx. $212(e) approx. $211(e)
(e) Shipments in Sept. quarter, reported in Dec. quarter
(1) CDMA/WCDMA handset unit shipments and average selling prices are
provided for the total market.
(2) We perform periodic audits of the royalties payable by our
licensees. As a result of our audit process, we determined during
the fourth quarter of fiscal 2007 that total CDMA-based handset unit
shipments and average selling prices (ASPs) should be adjusted for
certain periods. The adjustments related only to handset shipments
and ASPs and did not impact the amount or timing of our revenue.
Historical units presented herein for Q1'07 have been revised to
reflect these adjustments.

Sums may not equal totals due to rounding.

Qualcomm Incorporated (http://www.qualcomm.com) is a leader in
developing and delivering innovative digital wireless communications
products and services based on CDMA and other advanced technologies.
Headquartered in San Diego, Calif., Qualcomm is included in the S&P
500 Index and is a 2007 FORTUNE 500(R) company traded on The Nasdaq
Stock Market(R) under the ticker symbol QCOM.

Note Regarding Use of Non-GAAP Financial Measures

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. 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, net investment
income, income before income taxes, effective tax rate, net income,
diluted earnings per share, operating cash flow and free cash flow.
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. As a
result, 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 Qualcomm
Strategic Initiatives (QSI) segment, certain estimated share-based
compensation, certain tax items related to prior years 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 the executive bonus program, is
excluded because management views the valuation of options and other
share-based compensation as theoretical and unrelated to the
Company's operational performance. Further, share-based compensation
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. Moreover, it is generally not an expense that requires or
will require cash payment by the Company. Certain tax items related
to prior years are excluded in order to provide a clearer
understanding of the Company's ongoing tax rate and after tax
earnings. 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 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.
Reconciliations between total Qualcomm (GAAP) results and Qualcomm
pro forma results and between total Qualcomm (GAAP) cash flow and
Qualcomm pro forma cash flow are presented herein.

Note Regarding Forward-Looking Statements

In addition to the historical information contained herein, this
news release contains forward-looking statements that are subject to
risks and uncertainties. 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 of
our technologies in wireless networks and of 3G wireless
communications, equipment and services, including CDMA2000 1X,
1xEV-DO, WCDMA, HSPA and OFDMA both domestically and
internationally; our dependence on major customers and licensees;
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; fluctuations in the demand for products, services
or applications based on our technologies; foreign currency
fluctuations; strategic loans, investments and transactions the
Company has 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 MediaFLO(TM) USA network
and FLO(TM) technology; as well as the other risks detailed from
time-to-time in the Company's SEC reports.

(C) 2007 Qualcomm Incorporated. All rights reserved. Qualcomm is a
registered trademark of Qualcomm Incorporated. CDMA2000(R) is a
registered trademark of the Telecommunications Industry Association.
All other trademarks are the property of their respective owners.

Reconciliation of Non-GAAP Financial Measure Related to Prior
Periods
(In millions, except per share data)
First Quarter - Fiscal Year 2007
Qualcomm Estimated Total
Pro Share-Based Tax Qualcomm
Segments Forma Compensation (1) Items QSI (2) (GAAP)
Revenues $2,019 $- $- $- $2,019
EBT 952 (130) - (43) 779
Net income (loss) 722 (86) 33 (21) 648
Diluted EPS $0.43 $(0.05) $0.02 $(0.01) $0.38
Diluted shares used 1,685 1,685 1,685 1,685 1,685
(1) Certain share-based compensation is included in operating expenses
as part of employee-related costs but is not allocated to the
Company's segments as such costs are not considered relevant by
management in evaluating segment performance.
(2) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equals the annual tax provisions for each
column computed in accordance with GAAP. In interim quarters, the
tax provision for the QSI operating segment is computed by
subtracting the tax provision for Qualcomm pro forma, the tax items
column and the tax provisions related to estimated share-based
compensation and in-process R&D from the tax provision for total
Qualcomm (GAAP).
N/M - Not Meaningful
Sums may not equal totals due to rounding.
Qualcomm Contact:
John Gilbert, Investor Relations
Phone: +1-858-658-4813
Email: ir@qualcomm.com

Web site: http://www.qualcomm.com

ots Originaltext: Qualcomm Incorporated
Im Internet recherchierbar: http://www.presseportal.de

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John Gilbert, Investor Relations of Qualcomm Incorporated,
+1-858-658-4813, ir@qualcomm.com