Qualcomm 2005 Annual Report Download - page 37
Download and view the complete annual report
Please find page 37 of the 2005 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.qualcomm 2005 33
In this document, the words “the Company,” “we,” “our,” “ours” and “us”
refer only to QUALCOMM Incorporated and not any other person
or entity.
FINANCIAL INFORMATION
The following is certain fi nancial information of the Company that
was originally fi led with the Securities and Exchange Commission
(SEC) on November 2, 2005 as part of the Company’s Annual Report
on Form 10-K for the fi scal year ended September 25, 2005. The
Company has not undertaken any updates or revision to such infor-
mation since the date it was originally fi led with the SEC. Accordingly,
you are encouraged to review such fi nancial information together with
subsequent information fi led by the Company with the SEC, if any,
and other publicly available information.
We operate and report using a 52-53 week fi scal year ending the
last Sunday in September. Our 52-week fi scal years consist of four
equal quarters of 13 weeks each, and our 53-week fi scal years con-
sist of three 13-week fi scal quarters and one 14-week fi scal quarter.
The fi nancial results for our 53-week fi scal years and our 14-week
fi scal quarters will not be exactly comparable to our 52-week fi scal
years and our 13-week fi scal quarters. Each of the fi scal years ended
September 25, 2005, September 26, 2004, September 28, 2003
and September 29, 2002 included 52 weeks. The fi scal year ended
September 30, 2001 included 53 weeks.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK-
HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
On July 13, 2004, we announced a two-for-one stock split in the
form of a stock dividend. Stock was distributed on August 13, 2004
to stockholders of record as of July 23, 2004. All references in this
Annual Report to number of shares and per share amounts refl ect
the stock split.
Market Information
Our common stock is traded on the NASDAQ National Market under
the symbol “QCOM.” The following table sets forth the range of high
and low sales prices on the National Market of the common stock
for the periods indicated, as reported by NASDAQ. Such quotations
represent inter-dealer prices without retail markup, markdown or
commission and may not necessarily represent actual transactions.
High ($) Low ($)
Fiscal 2004
First quarter 26.82 20.50
Second quarter 32.64 26.40
Third quarter 35.03 30.90
Fourth quarter 41.17 33.66
Fiscal 2005
First quarter 44.99 37.71
Second quarter 44.91 33.99
Third quarter 38.52 32.08
Fourth quarter 44.92 32.98
As of October 31, 2005, there were 10,595 holders of record of our
common stock. On October 31, 2005, the last sale price reported
on the NASDAQ National Market for our common stock was $39.76
per share.
Dividends
On March 2, 2004, we announced an increase in our quarterly dividend
from $0.035 to $0.050 per share on our common stock. On July 13,
2004, we announced an increase in our quarterly dividend from
$0.050 to $0.070 per share on our common stock. On March 8, 2005,
we announced an increase in our quarterly dividend from $0.070 to
$0.090 per share on our common stock. Cash dividends announced
in fi scal 2004 and 2005 were as follows (in millions, except per
share data):
Cumulative
by Fiscal
Per Share Total Year
Fiscal 2004
First quarter $0.07(1) $112 $112
Second quarter 0.05 81 193
Third quarter —(2) — 193
Fourth quarter 0.07 114 $307
Total $0.19 $307
Fiscal 2005
First quarter $0.07 $115 $115
Second quarter 0.07 115 230
Third quarter 0.09 147 377
Fourth quarter 0.09 147 $524
Total $0.32 $524
(1) In the fi rst quarter of fi scal 2004, we announced two dividends of $0.035 per
share which were paid in the fi rst and second quarters of fi scal 2004.
(2) We paid a dividend of $0.05 per share in the third quarter of fi scal 2004 that
had been announced in the second quarter of fi scal 2004.
On October 10, 2005, we announced a cash dividend of $0.09 per
share on our common stock, payable on January 4, 2006 to stock-
holders of record as of December 7, 2005. We intend to continue to
pay quarterly dividends subject to capital availability and periodic
determinations that cash dividends are in the best interests of our
stockholders. Future dividends may be affected by, among other
items, our views on potential future capital requirements, including
those relating to research and development, creation and expansion
of sales distribution channels and investments and acquisitions,
legal risks, stock repurchase programs, changes in federal income
tax law and changes to our business model.
Stock Options
Our stock option plans are part of a broad-based, long-term retention
program that is intended to attract and retain talented employees
and directors and align stockholder and employee interests.
Pursuant to our 2001 Stock Option Plan (2001 Plan), we may grant
options to selected employees, directors and consultants to purchase
shares of our common stock at a price not less than the fair market
value of the stock at the date of grant. The 2001 Plan provides for
the grant of both incentive stock options and non-qualifi ed stock
options. Generally, options outstanding vest over fi ve years and
are exercisable for up to 10 years from the grant date. We also may
grant options pursuant to our 2001 Non-Employee Directors’ Stock
Option Plan (the 2001 Directors’ Plan). This plan provides for non-
qualifi ed stock options to be granted to non-employee directors at
Financial, Market and Other Stockholder Information