Qualcomm 2006 Annual Report Download - page 19

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focused business operations and strong results
To ensure long-term growth for our company and industry, we aggressively invest in research and
development (R&D). In scal 2006 we invested approximately $1.5 billion in R&D aimed at enhancing
the wireless user experience and enabling exciting new services for consumers and enterprises.
Our R&D efforts have provided us with an industry-leading intellectual property portfolio that is
made available to equipment and device manufacturers worldwide.
In scal 2006, we achieved another year of record revenue, generating $7.53 billion, up 33 percent
year-over-year. Through our ongoing focus on operations, our earnings have again increased. In
scal 2006 we reported net income of $2.47 billion, up 15 percent year-over-year, and diluted
earnings per share of $1.44, up 14 percent year-over-year. Operating cash ow was $3.25 billion in
scal 2006, up 21 percent year-over-year and represented approximately 43 percent of revenue.
Our balance sheet strength and pro-competitive business model provide us with signicant
nancial exibility, allowing us to pursue strategic growth objectives, pay dividends and repurchase
shares in our ongoing effort to enhance stockholder value. Building on this commitment in scal
2006, we paid cash dividends totaling approximately $698 million and repurchased 34 million
shares of our common stock for approximately $1.49 billion, net of related premiums received.
Our total cash and marketable securities balance grew to $9.95 billion at the end of scal 2006,
an increase of 15 percent year-over-year.
continued growth and leadership
There are signicant opportunities ahead for us as more people make advanced wireless technology
part of their daily lives. The large-scale migration from 2G GSM to 3G CDMA is progressing through-
out the world and market forecasts anticipate considerable increases in device sales with high-speed
data capability. This inevitable worldwide migration to 3G is a signicant opportunity for QUALCOMM
and our partners in the wireless value chain.
On behalf of the executive team, we’d like to thank QUALCOMM’s employees and partners world-
wide for their outstanding performance this year. With their help, and with support from our
investors, we will continue to innovate and invest in the future of wireless.
Dr. Paul E. Jacobs Steven R. Altman
Chief Executive Ofcer President
We are enabling the next evolution in wireless.
qualcomm 2006 05