Qualcomm Rockets After-Hours; Beats On EPS By $0.10 and Revenues (QCOM)

Qualcomm

is up huge after-hours on earnings announcements after beating earnings estimates and guidance. Qualcomm Incorporated

, a leading developer and innovator of advanced wireless technologies, products and services, today announced record results for the first quarter of fiscal 2011 ended December 26, 2010. "We are very pleased to report record revenues, earnings per share and MSM chipset shipments this quarter driven by increased demand for smartphones and data-centric devices across an expanding number of regions and price points," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "In addition, we have resolved one of our previously disclosed licensee disputes, which will be reflected beginning with the second fiscal quarter results. We continue to execute on our strategic objectives as our partners leverage our technologies and solutions to offer leading wireless products and services to consumers around the globe. We believe we are uniquely positioned to benefit from these industry trends and are substantially raising our revenue and earnings guidance for the fiscal year." First Quarter Results (GAAP) Revenues: $3.35 billion, up 25 percent year-over-year (y-o-y) and 13 percent sequentially. Operating income: $1.11 billion, up 26 percent y-o-y and 33 percent sequentially. Net income: $1.17 billion, up 39 percent y-o-y and 35 percent sequentially. Diluted earnings per share: $0.71, up 42 percent y-o-y and 34 percent sequentially. Effective tax rate: 12 percent for the quarter. Operating cash flow: $48 million, down 96 percent y-o-y due to a $1.5 billion income tax payment.* Return of capital to stockholders: $309 million, or $0.19 per share, of cash dividends paid. Non-GAAP First Quarter Results Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain tax items that are not related to the current year and acquired in-process research and development (R&D) expense. Revenues: $3.35 billion, up 25 percent y-o-y and 13 percent sequentially. Operating income: $1.42 billion, up 25 percent both y-o-y and sequentially. Net income: $1.35 billion, up 29 percent y-o-y and 22 percent sequentially. Diluted earnings per share: $0.82, up 32 percent y-o-y and 21 percent sequentially. The current quarter excludes $0.05 loss per share attributable to the QSI segment, $0.07 loss per share attributable to certain share-based compensation and $0.02 earnings per share attributable to certain tax items (the sum of Non-GAAP earnings per share and items excluded do not equal GAAP earnings per share due to rounding). Effective tax rate: 19 percent for the quarter. Free cash flow: $127 million, down 90 percent y-o-y due to a $1.5 billion income tax payment* (defined as net cash from operating activities less capital expenditures). *The $1.5 billion income tax payment primarily related to the 2008 license and settlement agreements with Nokia. Detailed reconciliations between results reported in accordance with generally accepted accounting principles (GAAP) and Non-GAAP results are included at the end of this news release. First Quarter Key Business Metrics CDMA-based Mobile Station Modem™ (MSM™) shipments: approximately 118 million units, up 28 percent y-o-y and 6 percent sequentially. September quarter total reported device sales: approximately $34.0 billion, up 39 percent y-o-y and 20 percent sequentially. September quarter estimated CDMA-based device shipments: approximately 165 to 169 million units at an estimated average selling price of approximately $201 to $207 per unit. Cash and Marketable Securities Our cash, cash equivalents and marketable securities totaled approximately $19.1 billion at the end of the first quarter of fiscal 2011, compared to $18.4 billion at the end of the fourth quarter of fiscal 2010 and $18.9 billion a year ago. On January 5, 2011, we announced an agreement to acquire Atheros Communications, Inc. for $45 per share in cash, representing an enterprise value of $3.1 billion on that date. The transaction is expected to close in the first half of calendar 2011, subject to customary closing conditions including the receipt of domestic and foreign regulatory approvals and the approval of Atheros' stockholders. On January 14, 2011, we announced a cash dividend of $0.19 per share payable on March 25, 2011 to stockholders of record as of February 25, 2011.