Slide 1: Second quarter fiscal 2018 earnings
April 25, 2018 Second quarter fiscal 2018 earnings
Slide 2: Safe harbor
Safe harbor In addition to the historical information contained herein, this presentation and the conference call that accompanies it contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding our commitment to driving
Slide 3: Qualcomm reports second quarter fiscal 2018 earnings
Qualcomm reports second quarter fiscal 2018 earnings Quarter ended March 25, 2018 • Our fiscal second quarter results reflect better than expected performance in our semiconductor business and lower operating expenses. • Looking forward, we remain committed to driving improved performance in fiscal
Slide 4: Second quarter fiscal 2018 results vs. guidance
Second quarter fiscal 2018 results vs. guidance Q2 ‘18 Guidance* Q2 ‘18 Results(4) Revenues $4.8B - $5.6B $5.3B Non-GAAP(1) combined R&D and SG&A expenses Flat to decrease 2% sequentially Decrease 2% sequentially Non-GAAP(1) diluted EPS(2) $0.65 - $0.75 $0.80 MSM chip shipments 170M – 190M 187M QCT
Slide 5: Third quarter fiscal 2018 guidance
Third quarter fiscal 2018 guidance As of April 25, 2018 Q3 ‘18 Guidance* Revenues $4.8B - $5.6B Non-GAAP(1) combined R&D and SG&A expenses Flat to up 2% sequentially Non-GAAP(1) diluted EPS(2) $0.65 - $0.75 MSM chip shipments 185M – 205M QCT EBT margin % 13% - 15% QTL revenues(3) $0.85B - $1.05B QTL
Slide 6: MSM chip shipments
MSM chip shipments Calendar year, millions 919 903 818 823 270 242 217 237 Quarter December 203 236 211 220 September June 225 225 201 185 – 205e* 187 March 188 233 189 187 179 2014 2015 2016 2017 2018 * Guidance as of April 25, 2018. 6
Slide 7: Global 3G/4G device shipment estimates
Global 3G/4G device shipment* estimates Calendar year, as of April 25, 2018 ~1.8B – 1.9Be ~1.755B Up 5% at ~1.70B midpoint** Up 3% 2016 2017 2018 * Global 3G/4G device shipments represent our estimate of CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices shipped globally, excluding
Slide 8: Cumulative $60.8 billion returned to stockholders
Cumulative $60.8 billion returned to stockholders As of March 25, 2018 $11.25 Stock Repurchases* (Billions) $1.2 billion remained authorized for repurchase $4.61 $4.55 $3.92 under our stock $3.02 repurchase program $1.50 $1.48 $1.67 $1.31 $1.34 $0.95 $0.17 $0.28 $0.14 $0.43 FY’03 FY’05 FY’06 FY’07 F
Slide 9: Financial strength
Financial strength In Billions Mar ‘17 Mar ‘18 ^ Domestic $2.1 $8.0 Offshore $26.8 $31.6 Total cash, cash equivalents & marketable securities $28.9 $39.6 Total assets $56.1 $64.1 Stockholders’ equity $31.3 $23.8 Debt* $11.9 $23.1 EBITDA**(4) $1.2 $0.8 Free cash flow***(4) $0.7 $0.3 ^ In May 2017, we
Slide 10: Footnotes
Footnotes 1. Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Further discussion regarding the Company’s use of Non-GAAP financial measures and detailed reconciliations between GAAP a
Slide 11: Reconciliations
Reconciliations 11
Slide 12: Note regarding use of Non-GAAP financial measures
Note regarding use of Non-GAAP financial measures The Non-GAAP financial information presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a re
Slide 13: Non-GAAP results
Non-GAAP results In millions, except per share data Non-GAAP Share-based QSI Other Items (1)(2) GAAP Results Results Compensation Revenues $5,231 $30 $0 $0 $5,261 Net income (loss) $1,187 $30 ($193) ($661) $363 Q2 ‘18 Diluted EPS $0.80 $0.02 ($0.13) ($0.44) $0.24 Diluted shares 1,494 1,494 1,494 1,4
Slide 14: EBITDA
(1) EBITDA In millions Q2 ‘17 Q2 ‘18 Net income $749 $363 Plus: Income tax expense (benefit) 108 ($5) Plus: Depreciation and amortization expense 342 388 Plus: Interest expense 107 179 Less: Interest and dividend income 153 154 EBITDA $1,153 $771 (1) EBITDA is defined as net income (before adjustmen
Slide 15: Combined R&D and SG&A expenses
Combined R&D and SG&A expenses In millions Q2 ‘18 % Increase Q1 ‘18 Results Q2 ‘18 Results Guidance* (Decrease) (est.) Non-GAAP combined R&D and SG&A expenses excluding elevated litigation costs(1) $1,787 $1,715 (4%) Not provided Elevated litigation costs 87 125 Not provided Non-GAAP combined R&D an
Slide 16: Tax rates
Tax rates In millions Share-based Non-GAAP Results QSI Other Items (3)(4)(5) GAAP Results Compensation Q2 Fiscal 2018 Income (loss) before income taxes $1,236 $40 ($222) ($696) $358 Income tax (expense) benefit (49) (10) 29 35 5 Net income (loss)(1) 1,187 30(2) (193)(2) (661)(2) $363 Tax rate (benef
Slide 17: Free cash flow
(a) Free cash flow In millions Non-GAAP Share-based Three months ended March 25, 2018 Results QSI Compensation(b) Other Items(c) GAAP Results Net cash provided (used) by operating activities(b) $687 $11 - ($182) $516 Less: Capital expenditures (185) - - - (185) Free cash flow $502 $11 - ($182) $331
Slide 18: Non-GAAP interest expense, net of investment income guidance
Non-GAAP interest expense, net of investment income guidance In millions Q3 ‘18 Guidance* Q2 ‘18 Results(1) (est.)* Non-GAAP interest expense, net of investment income ($45) ~Flat Plus: Amounts attributable to QSI 30 Not provided Plus: Amounts attributable to share-based - Not provided compensation
Slide 19: Previous business outlook
Previous business outlook As of January 31, 2018 Q2 ‘18 Previous Guidance Estimate(2) Revenues $4.8B - $5.6B GAAP diluted EPS $0.41 - $0.51 Less diluted EPS attributable to QSI $0.03 Less diluted EPS attributable to share-based compensation ($0.14) Less diluted EPS attributable to other items(1) ($0
Slide 20: Business outlook
Business outlook As of April 25, 2018 Q3 ‘17 Results(1) Q3 ‘18 Estimates(2)(3) Revenues $5.4B $4.8B - $5.6B Year-over-year change decrease 11% - increase 4% GAAP diluted EPS $0.58 $0.35 - $0.50 Less diluted EPS attributable to QSI $0.02 $0.03 Less diluted EPS attributable to share-based compensation
Slide 21: Combined R&D and SG&A expenses guidance
Combined R&D and SG&A expenses guidance* In millions Q2 ‘18 Results Q3 ‘18 Guidance* (est.) Non-GAAP combined R&D and SG&A expenses excluding elevated litigation $1,715 1% decrease costs(1) Elevated litigation costs 125 Increase Non-GAAP combined R&D and SG&A expenses $1,840 0% - 2% increase QSI 3 N
Slide 22: QTL EBT margin
QTL EBT margin Q2 ‘18 Results Q3 ‘18 Guidance* QTL EBT margin 67% 50% to 54% Add back QTL elevated litigation costs(1) 11% 15% QTL EBT margin excluding increased litigation expenses 78% 65% to 69% (1) Reflects elevated litigation costs related to certain litigation matters with the Federal Trade Com
Slide 23: Fiscal 2019 Earnings Per Share (EPS) guidance
Fiscal 2019 Earnings Per Share (EPS) guidance* Fiscal 2019 Fiscal 2019 Accretion from Accretion from EPS (est.)(2) Share Repurchase NXP(2) GAAP diluted EPS $4.47 – $5.22 $0.08 $1.26 Less: Diluted EPS attributable to QSI $0.02 N/A $0.01 Less: Diluted EPS attributable to share-based compensation ($0.7
Slide 24: Thank you!
Thank you! Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog Nothing in these materials is an offer to sell any of the References in this presentation to “Qualcomm” may mean Qualcomm components or devices referenced herein. Incorporated, Qualcomm Technologies,