Qualcomm 2004 Annual Report Download - page 4
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Please find page 4 of the 2004 Qualcomm annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.(4)FreeCashFlowiscalculatedascashflowfromoperationslesscapitalexpenditures,bothofwhicharepresentedintheGAAPstatementofcashflows.
(5)Inthefourthquarteroffiscal2004,theCompanyceasedaccruingestimatedearnedroyaltiesbeforetheactualamountsarereportedbytheCompany’slicensees.Forfinancialreportingpurposes,
thechangeresultingfromthenewroyaltyestimationmethodismadeprospectivelyandhastheone-timeeffectofreducingroyaltyrevenuesinfiscal2004.Therefore,GAAPresultsforfiscal2004
donotreflectafullyearofeconomicperformanceoftheCompany’slicensingbusiness,asroyaltyrevenuethatwouldhavebeenrecognizedinthefourthquarteroffiscal2004isexpectedtobe
recognizedinthefirstfiscalquarteroffiscal2005whentheactualroyaltyreportsarereceivedfromthelicensees.Resultspresentedforfiscal2000-2003areunderthe“PriorMethod”of
estimatingroyalties.Resultspresentedforfiscal2004includethefirstthreequartersunderthe“PriorMethod”ofestimatingroyalties,withthefourthquarterreflectingtheprospective
changefromthe“PriorMethod”tothe“NewMethod”ofestimatingroyalties.Furtherdetailsregardingthechangefromthe“PriorMethod”tothe“NewMethod”ofestimatingroyaltiescan
befoundintheFinancialssectionofthisAnnualReport,beginningonpage32.Afullcomparisonofthe“PriorMethod”andthe“NewMethod”ofestimatingroyaltiesforfiscalyears2001
through2004ispresentedonourwebsiteathttp://www.qualcomm.com/ir/earnings.html.
Thewirelessworldismigratingtothethird-
generation(3G)technologyinnovatedbyQUALCOMM.
Thatspellsenormousopportunityforeveryone
inthewirelessvaluechain:
Manufacturersof3Gnetworkinfrastructureequipment
andmobiledevices
Operatorsofhigh-speedwirelessnetworkswhooffer
dataservicestodifferentiatetheirofferings
PublishersandDevelopersofdownloadableapplications
andcontentthatgowaybeyondbuzzersandbells
ConsumersandBusinessUserswhowillbenefit
fromthepremiumservices,advanceddevicesand
compellingapplications
QUALCOMMPostedRecordResultsin2004
*Financialresultsincludetheresultsoftheterrestrialwirelessconsumerphonebusinesspriortothesaleofthisbusiness.InFebruary2000,theCompanycompletedthesaleofthe
terrestrialwirelessconsumerproductsbusinesstoKyoceraWireless.
(1)Duringfiscal2004,theCompanysolditsconsolidatedsubsidiaries,theVésperOperatingCompaniesandTowerCo,andreturnedpersonalmobileservice(SMP)licensestoAnatel,the
telecommunicationsregulatoryagencyinBrazil.TheresultsofoperationsoftheVésperOperatingCompaniesandTowerCo,includinggainsandlossesrealizedonthesalestransactions
andtheSMPlicenses,arepresentedasdiscontinuedoperations.TheCompany’sstatementsofoperationsandcashflowsforallpriorperiodshavebeenadjustedtopresentthedis-
continuedoperations.Assuch,Revenue,GrossMargin,andFreeCashFlowresultspresentedabovedonotincludetheresultsfromthesediscontinuedoperations.
(2)TheCompanyeffectedafour-for-onestocksplitinDecember1999andatwo-for-onestocksplitinAugust2004.Allreferencestoshareamountshavebeenrestatedtoreflectthese
stocksplits.
(3)See“NoteRegardingUseofNon-GAAPFinancialMeasures”andreconciliationsonpage33.
Cash, Cash Equivalents and
Marketable Securities
($ millions)
0
1527
3054
4581
6108
7635
$2,521 $2,581
$3,200
$5,372
$7,63
5
Revenue and Gross Margin
($ millions)
0
976
1952
2928
3904
4880
0
976
1952
2928
3904
4880
Gross Margin
Revenue
(1), (5)
53% 61%
67%
67%
70%
$3,197*
$2,680 $2,915
$3,847
$4,880
Research and Development
($ millions)
0.0
144.2
288.4
432.6
576.8
721.0
0.0
144.2
288.4
432.6
576.8
721.0
11% 15% 15% 14% 15%
$340*
$415 $452
$523
$720
% of Revenue
R & D
Diluted Net Income (Loss)
Per Share
0
206
412
618
824
1030
(2), (5)
$0.39*
($0.38)
$0.22
$0.51
$1.03
Pro Forma Diluted Net Income
Per Share
0
200
400
600
800
1000
(2), (3)
$0.46 $0.44 $0.49
$0.71
$1.00
Free Cash Flow
($ millions)
0.000000
429.800018
859.600037
1289.400055
1719.200073
(1), (4)
$628
$937
$1,136
$1,622
$2,14
9
01 LettertoStockholders
06 Envision
10 Innovate
16 Enable
24 BusinessUnits
30 Working.Learning.Giving.
31 AwardsandHonors
32 Financials
BoardofDirectors
CorporateOfficers
DR.IRWINMARKJACOBS
Member:StrategicCommittee
Title:ChairmanoftheBoardof
DirectorsandChiefExecutiveOfficer,
QUALCOMMIncorporated
DR.RICHARDC.ATKINSON
Member:AuditCommittee,
CompensationCommittee
Title:PresidentEmeritusof
theUniversityofCalifornia
ADELIAA.COFFMAN
Title:Self-Employed,Personal
FinancialConsultant
RAYMONDV.DITTAMORE
Chair:CompensationCommittee
Member:AuditCommittee,
Title:RetiredAuditPartner,
Ernst&YoungLLP
THEHONORABLE
DIANALADYDOUGAN
Chair:StrategicCommittee
Member:FinanceCommittee
Title:Chairwoman,Cyber
CenturyForumandSenior
Advisor,CenterforStrategic
andInternationalStudies
DR.ROBERTE.KAHN
Member:StrategicCommittee,
GovernanceCommittee
Title:Chairman,ChiefExecutive
OfficerandPresident,
CorporationforNationalResearch
Initiatives
DUANEA.NELLES
Chair:AuditCommittee
Member:GovernanceCommittee
Title:Self-Employed,Personal
InvestmentBusiness
PETERM.SACERDOTE
Chair:FinanceCommittee
Member:GovernanceCommittee
Title:AdvisoryDirector,
GoldmanSachs&Co.
GENERALBRENTSCOWCROFT
Member:GovernanceCommittee,
StrategicCommittee
Title:President,TheScowcroftGroup
MARCI.STERN
Chair:GovernanceCommittee
Member:CompensationCommittee
Title:President,TheTCWGroup,Inc.
RICHARDSULPIZIO
Member:FinanceCommittee,
StrategicCommittee
Title:FormerQUALCOMMPresident
DR.IRWINMARKJACOBS
ChairmanoftheBoardofDirectors
andChiefExecutiveOfficer
ANTHONYS.THORNLEY
PresidentandChief
OperatingOfficer
STEVENR.ALTMAN
ExecutiveVicePresident
andPresident,QUALCOMM
TechnologyLicensing
FRANKLINP.ANTONIO
ExecutiveVicePresident
andChiefScientist
SCOTTJ.BECKER
SeniorVicePresidentand
GeneralManager,QUALCOMM
WirelessSystems
JEFFREYA.JACOBS
SeniorVicePresidentandPresident,
QUALCOMMGlobalDevelopment
DR.PAULE.JACOBS
ExecutiveVicePresident
andPresident,QUALCOMM
WirelessandInternetGroup
DR.SANJAYK.JHA
ExecutiveVicePresident
andPresident,QUALCOMM
CDMATechnologiesGroup
MARGARETL.“PEGGY”JOHNSON
SeniorVicePresidentandPresident,
QUALCOMMInternetServices
WILLIAME.KEITEL
ExecutiveVicePresidentand
ChiefFinancialOfficer
KIMBERLYM.KORO
SeniorVicePresidentandPresident,
QUALCOMMGovernmentTechnologies
LOUISM.LUPIN
SeniorVicePresidentand
GeneralCounsel
DR.ROBERTOPADOVANI
ExecutiveVicePresidentand
ChiefTechnologyOfficer
DR.DANIELL.SULLIVAN
ExecutiveVicePresident,
HumanResources
CHRISA.WOLFE
SeniorVicePresidentand
President,QUALCOMMWireless
BusinessSolutions
Baker
Enable