Slide 1: First quarter fiscal 2019 earnings
January 30, 2019 First quarter fiscal 2019 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 executing on our str
Slide 3: Qualcomm reports first quarter fiscal 2019 earnings
Qualcomm reports first quarter fiscal 2019 earnings Quarter ended December 30, 2018 • Our fiscal first quarter results reflected continued strength in our semiconductor business, driven by strong product leadership and operating expense management. • We continue to execute on our strategic objective
Slide 4: First quarter fiscal 2019 results vs. guidance
First quarter fiscal 2019 results vs. guidance Q1 ‘19 Guidance* Q1 ‘19 Results(3) Revenues $4.5B - $5.3B $4.8B Non-GAAP(1) combined R&D and SG&A expenses Decrease 5% - 7% sequentially Decreased 15% sequentially Non-GAAP(1) diluted EPS $1.05 - $1.15 $1.20 MSM chip shipments 175M – 195M 186M QCT EBT m
Slide 5: Second quarter fiscal 2019 guidance
Second quarter fiscal 2019 guidance As of January 30, 2019 Q2 ‘19 Guidance* Revenues $4.4B - $5.2B Non-GAAP(1) combined R&D and SG&A expenses Increase 6% - 8% sequentially Non-GAAP(1) diluted EPS $0.65 - $0.75 MSM chip shipments 150M – 170M QCT EBT margin % 13% - 15% QTL revenues $1.0B - $1.1B QTL E
Slide 6: MSM chip shipments
MSMTM chip shipments Calendar year, millions 903 818 823 804 242 217 237 186 Quarter December 203 211 220 232 September June 225 201 187 199 March 233 189 187 179 150 – 170e* 2015 2016 2017 2018 2019 MSMs are products of Qualcomm Technologies, Inc. and/or its subsidiaries. * Guidance as of January 3
Slide 7: Global 3G/4G/5G device shipment estimates
Global 3G/4G/5G device shipment* estimates Calendar year, as of January 30, 2019 ~1.85B – 1.95Be ~1.80Be ~1.755B Up 5% at midpoint** Up 3% 2017 2018 2019 * Global 3G/4G/5G device shipments represent our estimate of CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices shipped globally,
Slide 8: Cumulative $86.5 billion returned to stockholders
Cumulative $86.5 billion returned to stockholders As of January 30, 2019 Stock Repurchases* (Billions) $22.57 At December 30, 2018, $7.8 billion remained authorized $11.25 for repurchase under our stock repurchase program. $4.61 $4.55 $3.92 $3.02 $0.95 $1.50 $1.48 $1.67 $1.31 $1.34 $1.02 $0.17 $0.28
Slide 9: Financial strength
Financial strength In Billions Dec ‘17(2) Dec ‘18 Total cash, cash equivalents & marketable securities $39.9 $10.4^ Total assets $64.4 $34.2 Stockholders’ equity $23.9 $3.6 Debt* $22.8 $16.4 EBITDA**(3) $0.4 $1.1 Adjusted EBITDA**(3) $1.9 $1.4 ^ Stock repurchases and repayment of long-term debt sign
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 Results QSI Share-based Other Items (1)(2)(3) GAAP Results Compensation Revenues $4,815 $27 $— $— $4,842 Net income (loss) $1,464 $7 ($182) ($221) $1,068 Q1 ‘19 Diluted EPS $1.20 $0.01 ($0.15) ($0.18) $0.87 Diluted shares 1,223 1,223 1,223
Slide 14: EBITDA
EBITDA(1) In millions Q1 ’18 Q1 ‘19 Net income ($5,983) $1,068 Plus income tax expense (benefit) 5,923 (509) Plus depreciation and amortization expense 363 353 Plus interest expense 170 156 Less investment and other income, net 114 5 EBITDA $359 $1,063 Adjustments Less QSI (2) $9 $13 Less share-base
Slide 15: Combined R&D and SG&A expenses
Combined R&D and SG&A expenses In millions Q4 ‘18 Results Q1 ‘19 Results % Increase (Decrease) Non-GAAP combined R&D and SG&A expenses 1,840 1,562 (15%) Plus amounts attributable to QSI 3 3 Plus amounts attributable to other items (1) 18 8 Total combined R&D and SG&A expenses excluding certain share
Slide 16: Tax rates
Tax rates In millions Non-GAAP Results QSI (1) Share-based Other Items (1)(2)(3) GAAP Results Compensation(1) Income (loss) before income taxes $1,044 $8 ($230) ($263) $559 Income tax (expense) benefit 420 (1) 48 42 509 Q1 ‘19 Net income (loss) $1,464 $7 ($182) ($221) $1,068 Tax rate (benefit) (40%)
Slide 17: Tax rates
Tax rates Estimated annual tax rate excluding the Impact of the Non-GAAP Share-based GAAP impact of the deferred tax QSI (1) Other Items (1)(2) deferred tax asset Results Compensation (1) Results asset item item Q2 estimated* tax rate N/A N/A 12% —% —% —% 12% FY ‘19 Estimated* annual tax 12% (12%) —
Slide 18: Business outlook
Business outlook As of January 30, 2019 Q2 ‘18 Results (1) Q2 ‘19 Estimates (2)(3) Revenues $5,220 $4.4B - $5.2B Year-over-year change decrease 0% - 16% GAAP diluted EPS $0.22 $0.40 - $0.50 Less diluted EPS attributable to QSI 0.02 (0.01) Less diluted EPS attributable to share-based compensation (0.
Slide 19: Combined R&D and SG&A expenses guidance
Combined R&D and SG&A expenses guidance* In millions Q1 ‘19 Results Q2 ‘19 Estimates* Non-GAAP combined R&D and SG&A expenses 1,562 6% - 8% increase Plus amounts attributable to QSI 3 Not provided Plus amounts attributable to other items (1) 8 Not provided Total combined R&D and SG&A expenses exclud
Slide 20: Non-GAAP combined interest expense and investment and other income, net guidance
Non-GAAP combined interest expense and investment and other income, net guidance In millions Q1 ‘19 Q1 ‘19 Results Q2 ‘19 Guidance* Estimates** Non-GAAP combined interest expense and investment and other ~($100) ($143) ~($100) income, net Plus amounts attributable to QSI Not provided (5) Not provide
Slide 21: Previous business outlook
Previous business outlook As of November 7, 2018 Q1 ‘19 Previous Guidance Estimate (2) Revenues $4.5B - $5.3B GAAP diluted EPS $0.78 - $0.88 Less diluted EPS attributable to QSI ($0.02) Less diluted EPS attributable to share-based compensation ($0.16) Less diluted EPS attributable to other items (1)
Slide 22: Previous combined R&D and SG&A expenses guidance
Previous combined R&D and SG&A expenses guidance In millions Q1 ‘19 Estimates* Non-GAAP combined R&D and SG&A expenses 5% - 7% decline sequentially Plus amounts attributable to QSI Not Provided Plus amounts attributable to other items Not Provided Total combined R&D and SG&A expenses excluding certa
Slide 23: Operating expense cost plan
Operating expense cost plan As of January 30, 2019 FY ‘17 Baseline Spend(1) FY ‘19 estimate Non-GAAP operating expense $7,440 Greater than $6,400 Plus operating expense attributable to QSI 16 Not Provided Plus operating expense attributable to share-based compensation 780 Not Provided Plus operating
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,