Qualcomm 2004 Annual Report Download - page 84

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QUALCOMM 80
Notes to Consolidated Financial Statements continued
Safe Harbor
NOTE 14. SUMMARIZED QUARTERLY DATA (UNAUDITED)
The following financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement
of the results of the interim periods.
The table below presents quarterly data for the years ended September 30, 2004 and 2003 (in millions, except per share data):
1st Quarter* 2nd Quarter 3rd Quarter 4th Quarter(3)
2004
Revenues(1) $1,207 $1,216 $1,341 $1,118
Operating income(1) 568 577 622 362
Income from continuing operations(1) 411 441 486 387
Net income(1) 352 488 486 393
Basic earnings per common share from continuing operations(2) $ 0.26 $ 0.27 $ 0.30 $ 0.24
Basic net earnings per common share(2) $ 0.22 $ 0.30 $ 0.30 $ 0.24
Diluted earnings per common share from continuing operations(2) $ 0.25 $ 0.26 $ 0.29 $ 0.23
Diluted net earnings per common share(2) $ 0.21 $ 0.29 $ 0.29 $ 0.23
2003*
Revenues(1) $1,068 $1,017 $ 892 $ 871
Operating income(1) 485 421 348 319
Income from continuing operations(1) 276 258 241 255
Net income(1) 241 103 192 291
Basic earnings per common sharefrom continuing operations(2) $0.18 $ 0.16 $ 0.15 $ 0.16
Basic net earnings per common share(2) $ 0.15 $ 0.07 $ 0.12 $ 0.18
Diluted earnings per common sharefrom continuing operations(2) $ 0.17 $ 0.16 $ 0.15 $ 0.15
Diluted net earnings per common share(2) $ 0.15 $ 0.06 $ 0.12 $ 0.18
*As adjusted (Note 11).
(1) Revenues, operating income, income from continuing operations and net income are rounded to millions each quarter. Therefore, the sum of the quarterly amounts
may not equal the annual amounts reported.
(2) Earnings per share are computed independently for each quarter and the full year based upon respective average shares outstanding. Therefore, the sum of the
quarterly earnings per share amounts may not equal the annual amounts reported.
(3) Prior to the fourth quarter of fiscal 2004, the Company recorded royalty revenues from certain licensees based on estimates of royalties during the period they were
earned. Starting in the fourth quarter of fiscal 2004, the Company began recognizing royalty revenues solely based on royalties reported by licensees during the
quarter (Note 1). The change in the timing of recognizing royalty revenue was made prospectively and had the initial one-time effect of reducing royalty revenues
recorded in the fourth quarter of fiscal 2004.
Except for the historical information contained herein, this annual report contains forward-looking statements that are subject to risks and
uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks
associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology,
including CDMA2000 1X and WCDMA, both domestically and internationally; our dependence on major customers and licensees; fluctuations in
the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the
Company has or may pursue; dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiency
and profitability; developments in current and future litigation as well as other risks detailed from time to time in the Company’s SEC reports.