Qualcomm 1999 Annual Report Download - page 16

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12
Creating Value
We believe the Company performed
exceptionally well this year and that
fact was reflected not only in market
acceptance of our technology but
in increased revenues, profits and
stock value.
QUALCOMM’s stock price growth
led our Board of Directors to effect
a two-for-one stock split in May 1999
and a four-for-one stock split in
December 1999.
We continued to reduce overall
expenses as a percentage of rev-
enues and substantially improved
our margins this year. CIO Magazine
acknowledged our operational and
strategic excellence by naming
QUALCOMM a recipient of the 1999
CIO-100 award for companies pos-
sessing the strategy to prosper into
the next century.
After being named to the S&P 500, we anticipated increased demand from
the index funds. We sold 6.9 million shares to these funds and gained net
proceeds of over $1 billion to fund our future growth. Our total market capi-
talization reached a milestone this fiscal year as QUALCOMM became a
$109 billion company by the end of calendar 1999. Our ideas have clearly
led to results.
Our Company gained additional capital this year through very strong revenues
across business units. Revenues grew to $3.9 billion, up 18% from last year.
License, royalty and development fees for fiscal 1999 were $343 million,
compared to $218 million last year. Earnings before taxes this year increased
by 106% to $307 million compared to $149 million last year.
The outlook for fiscal 2000 and beyond is very positive as worldwide CDMA
continues to grow, and our Company is well positioned to succeed in
tomorrow’s wireless communications markets. We are very pleased with
the demand for our products and services and want to conclude by thanking
all the outstanding employees who are making QUALCOMM an exceptional
performer and the leader in our industry. Through ethical and intelligent
pursuit of excellence, all of us at QUALCOMM are pursuing big ideas to bring
meaningful benefits to people around the world.
RICHARD SULPIZIO
President and
Chief Operating Officer
DR. IRWIN MARK JACOBS
Chairman and
Chief Executive Officer