Qualcomm 2002 Annual Report Download - page 37

QUALCOMM 2002 ANNUAL REPORT PAGE 35
charges related to the values of marketable equity securities and derivatives,
amortization of goodwill and other acquisition-related intangible assets, con-
solidated losses of the Vesper Companies in Brazil and other gains and losses
related to strategic investments.) The increase in revenues in fiscal 2002 was
primarily related to increasing demand for CDMA products across all major
regions of CDMA deployment. The rate of growth in revenues and earnings
accelerated in our fiscal fourth quarter and the outlook for 2003 is for good
growth in both revenues and earnings.
Beginning in fiscal 2003, QUALCOMM will no longer amortize goodwill, in
accordance with new accounting standards. We intend to continue to report by
existing segments—QCT, QTL, QWI and QSI. When summed, QCT, QTL, QWI,
plus small amounts of other revenues and earnings, represent core operations.
QSI represents strategic initiatives in the form of investments to support the
growth of the core operations.
With increasing free cash flow and a strong balance sheet, we believe that
QUALCOMM is well-positioned for continuing revenue and profit growth in the
future. We continue to execute on our strategy for increasing global acceptance
of our technology. That means continuing our investment in R&D, particularly
in places where it’s important for the growth of the market. It also means
growing our sales and support staff.
COMMITTED TO BUSINESS TRANSPARENCY
In reporting our results to stockholders, it seems appropriate to pause for a
moment and reflect on the subject of corporate governance. This topic was
top-of-mind for many people this year. As a Company that takes its responsibil-
ity to stockholders very seriously, we applaud any efforts aimed at increasing
corporate transparency and assuring investor confidence. QUALCOMM fully
supports the SEC request for the certification of financial reports and was one
of the first major corporations to comply with this initiative.
Since our founding over 17 years ago, we have been committed to managing
our Company according to the highest ethical standards. We strive to provide
investors with timely, accurate and helpful information within established
accounting, legal and ethical guidelines. We continue to review our corporate
governance to ensure that our Board of Directors is diverse and independent
with the strength and commitment to oversee and guide our executive team to
maximize shareholder value while maintaining accountability.
THE BEST IS YET TO COME
QUALCOMM remains the technology leader in an expanding market. Our
near-term and long-term strategies focused on innovation, internal growth
with only occasional acquisitions, and customer focus continue to support our
growth and profitability without major changes. In many respects, QUALCOMM
is energizing the consumer electronics industry by providing the enabling
technologies for proliferating new products and services that will take advantage
of today’s high-speed network data capabilities. As more network deployments
take place, the introduction of more devices will follow. Quite simply, this
means more opportunity for QUALCOMM. We have a vision for the future and
the financial strength to fund our growth. QUALCOMM enjoyed a successful
year in 2002, but the best is yet to come. On behalf of all of us here at
QUALCOMM, we thank you for your continued support.
Dr. Irwin Mark Jacobs Anthony S. Thornley
Chairman & CEO President & COO