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Qualcomm Reports 3Q Fiscal 2014 Results [Manufacturing Close - Up](Manufacturing Close - Up Via Acquire Media NewsEdge) Qualcomm has reported results for the third quarter of fiscal 2014 ended June 29. "We are pleased to report another record quarter with revenues, earnings per share and chip shipments reaching all-time highs, driven by broad-based demand for our industry-leading 3G/4G chipset solutions," said Steve Mollenkopf, CEO of Qualcomm Inc. "Looking forward, although we have lowered our near-term financial outlook for the licensing business, we are pleased to be raising our fiscal year earnings per share guidance on better than expected performance in our semiconductor business." In its release on July 23, the company noted that its cash, cash equivalents and marketable securities totaled $32.7 billion at the end of the third quarter of fiscal 2014, compared to $30.4 billion a year ago and $32.1 billion at the end of the second quarter of fiscal 2014. On July 18, Qualcomm announced a cash dividend of $0.42 per share payable on September 24, to stockholders of record as of the close of business on September 3. Effective Income Tax Rates The company noted that its fiscal 2014 annual effective income tax rates are estimated to be 14 percent for GAAP and 15 percent for Non-GAAP, both of which include the United States federal R&D tax credit generated through December 31, 2013, the date on which the credit expired. During the third quarter of fiscal 2014, the company recorded a$66 million tax benefit as a result of an agreement reached with the Internal Revenue Service related to transfer pricing on its fiscal 2013 tax return, which was excluded from Non- GAAP results. Business Outlook Qualcomm's 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, the company only include such items in its financial outlook to the extent they are reasonably certain; however, actual results may differ materially from the outlook. During the fourth quarter of fiscal 2014, the company said that it expects to complete a minimum of $1 billion in stock repurchases under its current stock repurchase program. The company's outlook for fiscal 2014 diluted earnings per share includes an estimate of the benefit related to stock repurchases. China continues to present significant opportunities for the company, particularly with the rollout of 4G LTE, but also presents significant challenges, as its business practices continue to be the subject of an investigation by the China National Development and Reform Commission (NDRC). Qualcomm noted that it also believe that certain licensees in China currently are not fully complying with their contractual obligations to report their sales of licensed products to the company (which includes certain licensees underreporting a portion of their 3G/4G device sales and a dispute with a licensee) and that unlicensed companies may seek to delay execution of new licenses while the NDRC investigation is ongoing. The company expects calendar year 2014 3G/4G device shipments to be approximately 1.3 billion globally. However, Qualcomm's estimate of calendar year 2014 3G/4G device shipments that it currently expects to be reported to it is approximately 1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to it, are in dispute or are currently unlicensed. Qualcomm is a provider of 3G, 4G and next-generation wireless technologies. More information and complete details: qualcomm.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |