Qualcomm 2005 Annual Report Download - page 8
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executive committee
Top row: Dr. Paul Jacobs, Steve Altman, Dr. Sanjay Jha, Bill Keitel, Dr. Roberto Padovani. Bottom row: Dr. Dan Sullivan, Lou Lupin, Jeff Jacobs, Peggy Johnson, Marv Blecker.
which is part of the EV-DO standard, and FLO, our dedicated
multicasting air interface technology which is part of the
MediaFLO System.
driving shareholder value
The growing adoption of CDMA technology-based 3G stan-
dards across many customer segments and regions around
the world continues to drive strong fi nancial results for
QUALCOMM. We are very pleased with the demand for our
CDMA2000 and WCDMA chipset solutions from manufacturers
throughout the world. QUALCOMM earned revenues of $5.67
billion in fi scal year 2005, up 16% from fi scal 2004. Operating
cash fl ow, defi ned as net cash provided by operating activities,
was $2.69 billion, up 8% year-over-year, and represented
47% of revenue. And fi scal 2005 diluted earnings per share
were $1.26, compared to $1.03 in 2004.
We continued to focus on returning capital to QUALCOMM
stockholders through another increase in our quarterly cash
dividend and a further increase in our stock repurchase
authority to $2.5 billion. Our commitment to returning value
to stockholders is evidenced by the fact that we paid $524
million in cash dividends in fi scal year 2005 and repurchased
27.1 million shares of common stock for $953 million.
QUALCOMM’s total cash and marketable securities balance
at fi scal year end grew to $8.7 billion.
To meet the large market opportunity that lies before us, we
continued to invest in R&D, hire more engineers and expand
our global workforce. We increased our selling, general and
administrative (SG&A) expenses to meet the needs of our
growing customer base. However, as a percent of revenue,
SG&A expense remains modest and we continue to execute
on our asset-light business model. Through these measures,
we expect QUALCOMM will sustain its leadership position
in innovative wireless technologies and continue to grow
stockholder value.
celebrating our heritage
In the summer of 2005, QUALCOMM celebrated two decades
of growth and accomplishment. As part of that event, we
announced changes in our leadership. It was an infl ection
point in the evolution of our company. Dr. Irwin Jacobs stepped
down from his position as chief executive offi cer, but continues