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SATA Air Acores Dornier 228-200
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Fairchild Hiller DORNIER 228-200 for sale by Horizontes Internacionales Ltd. from 1988
Serial no.: Inquire Registration No.: Inquire Manufacture year.: 1988 Price.: Inquire TTAF.: 16000 Add Type.: Sale Available From.: Now TotalLandings.: Inquire Paint.: Excellent Aircraft, General.: DORNIER DO-228-202 YOM 1988, in excellent AIRWORTHY CONDITIONS and for inmediately delivery.
Fairchild Dornier - 228-200 - 228 - ATI, Air Transport Intelligence - ATI – Air Transport
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ASN Aircraft accident Dornier 228-200 D-IKBA Paderborn-Lippstadt
LGW flight 615 departed Leipzig for Dortmund. While climbing through FL80 at an indicated airspeed of 175 knots, the plane suddenly started to swing.The crew contacted Bremen Radar and reported that they had a rudder failure. They reduced the speed to 120 knots upon which the swinging stopped.
http://aviation-safety.net/database/record.php?id=20021016-1
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International Paper Reports Preliminary Second Quarter 2008 Results; Highest Second Quarter Since
MEMPHIS, Tenn., July 31, 2008 /PRNewswire-FirstCall via COMTEX/ --
International Paper (NYSE: IP) today reported preliminary second-quarter 2008 net earnings of $227 million ($0.54 per share) compared with net earnings of $133 million ($0.31 per share) in the 2008 first quarter and $190 million ($0.44 per share) in the second quarter of 2007. Amounts in all periods include special items.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020701/IPLOGO )
Diluted Earnings Per Share Summary
Second First Second
Quarter Quarter Quarter
2008 2008 2007
Net Earnings $0.54 $0.31 $0.44
Discontinued Operations:
Loss on sale or impairment - 0.04 0.02
Earnings from Continuing Operations 0.54 0.35 0.46
Net Special Items Expense (Income) 0.02 0.06 0.06
Earnings from Continuing Operations
and Before Special Items $0.56 $0.41 $0.52
Earnings from continuing operations and before special items in the second quarter of 2008 were $235 million ($0.56 per share), compared with $175 million ($0.41 per share) in the 2008 first quarter and $223 million ($0.52 per share) in the second quarter of 2007.
Quarterly net sales were $5.8 billion, up from $5.7 billion in the first quarter and up from $5.3 billion in the second quarter of 2007.
Industry segment operating profits were $393 million for the 2008 second quarter up from $332 million in the 2008 first quarter and down from $450 million in the second quarter of 2007. The quarter-to-quarter increase reflects improved pricing and operating performance helping offset higher input costs. Additionally, the company reported equity earnings, net of taxes, of $32 million up from $17 million in the first quarter from its 50 percent investment in Ilim Holding S.A., a separate reportable industry segment in Russia.
"We had a solid quarter because of strong operating performance, cost management and good results in our businesses outside of the U.S.," said Chairman and CEO John Faraci, "Overall, however, higher than expected input costs continue to negatively impact our real earnings potential."
Commenting on the third quarter of 2008, Faraci said, "Despite the current weakness in the U.S. economy, I am optimistic about our ability to manage through this period and come out in a stronger, better position. We're ready to complete the acquisition of Weyerhaeuser's Containerboard, Packaging and Recycling business next week, which will give us additional opportunities to reduce costs in our North American packaging business."
SEGMENT INFORMATION
During 2008, in order to facilitate performance comparisons with other companies, the company changed its method of allocating corporate overhead expenses to attribute additional expense to its business segments. Accordingly, business segment operating profits for all periods have been restated to reflect this change. Second-quarter 2008 segment operating profits and business trends compared with the previous quarter are as follows:
Operating profits for Printing Papers were $226 million, up from first-quarter operating profits of $185 million due to both improved pricing, primarily in North America, and better operating performance that more than offset higher input costs and a greater level of planned outages than the first quarter. U.S. uncoated free sheet sales volume declined but pulp sales were stronger. Eastern Europe and Brazil showed improved volumes and pricing.
Industrial Packaging operating profits were $87 million, down from $97 million in the prior quarter largely because of higher input costs, more maintenance outages and lower profitability due to the Vicksburg boiler accident. Containerboard inventory levels remain low. Both the U.S. and European box volumes were under pressure due to weaker economic conditions. Overall performance was strong and pricing remained solid.
Consumer Packaging operating profits were $13 million (including a $13 million charge relating to the reorganization of Shorewood's Canadian operations) compared with $9 million in the 2008 first quarter (including a $5 million charge related to the Shorewood reorganization). Price and favorable operating performance offset higher input costs and planned outages. Volumes in the converting business improved seasonally.
The company's distribution business, xpedx, reported operating profits of $26 million, up from $16 million in the prior quarter. High fuel and freight costs were offset by improved pricing and margins. Printing paper and packaging volumes remained weak while facility supplies experienced some growth.
Forest Products operating profits were $41 million, compared with first quarter operating profits of $25 million due to higher earnings from land sales. While land sales are difficult to forecast within a quarter, the company's objective continues to be to maximize net present value for shareholders.
Equity earnings, net of taxes, in Ilim Holding S.A. of $32 million for the quarter, up from $17 million reported in the 2008 first quarter, included a $14 million after-tax foreign exchange gain and a $3 million option write-off charge. Improved price realizations, higher sales volumes and favorable manufacturing operations during the quarter more than offset the effects of increased wood, chemical and energy costs. (Ilim's results are reported on a one-quarter lag.)
Net corporate expenses were $21 million for the quarter, the same as $21 million in the 2008 first quarter and less than half of the $57 million reported in the 2007 second quarter. Compared with the first quarter, higher supply chain initiative costs were offset by an $11 million gain on the sale of the former Natchez mill site. This gain, plus lower pension expenses, led to the year-over-year quarterly decline in net corporate expenses.
EFFECTIVE TAX RATE
The effective tax rate from continuing operations and before special items for the second quarter of 2008 was 32.5 percent, compared with 31.5 percent in the first quarter of 2008 and 29 percent in the second quarter of 2007.
EFFECTS OF SPECIAL ITEMS
Special items in the second quarter of 2008 consisted of a $13 million pre-tax charge ($9 million after taxes) for costs associated with the reorganization of Shorewood operations in Canada and a $3 million pre-tax gain ($2 million after taxes) for an adjustment to the gain on the 2006 transformation plan forestland sales. The net after-tax effect of these special items is a loss of $7 million, or $0.02 per share.
Special items in the first quarter of 2008 included a $40 million pre-tax charge ($25 million after taxes) for adjustments of legal reserves, a pre-tax charge of $5 million ($3 million after taxes) for costs associated with the reorganization of Shorewood operations in Canada, a $3 million pre-tax gain ($2 million after taxes), for adjustments to previously recorded reserves associated with the company's transformation plan, and a $1 million credit before and after taxes for adjustments to estimated gains/losses of businesses previously sold. The net after-tax effect of these special items is a loss of $25 million, or $0.06 per share.
Special items in the 2007 second quarter consisted of a $26 million pre- tax charge ($16 million after taxes) for organizational restructuring programs associated with the company's transformation plan, including $17 million ($11 million after taxes) of accelerated depreciation expense for long-lived assets being removed from service, and a pre-tax gain of $1 million (a loss of $7 million after taxes) for adjustments to estimated losses on sales of businesses previously sold. The net after-tax effect of these special items is a loss of $23 million, or $0.06 per share
DISCONTINUED OPERATIONS
Discontinued operations for the 2008 first quarter included a pre-tax charge of $25 million ($16 million after taxes) related to the final settlement of a Beverage Packaging post-closing sale adjustment and a $1 million after-tax charge for the operating results of certain Wood Products facilities for the quarter.
Discontinued operations for the 2007 second quarter included pre-tax charges of $11 million ($7 million after taxes) for adjustments related to the previously sold wood products and beverage packaging businesses, and the second quarter operating losses of these businesses.
EARNINGS WEBCAST
The company will hold a webcast to review earnings at 10 a.m. Eastern Daylight Time U.S. / 9 a.m. Central Daylight U.S. Time today. All interested parties are invited to listen to the webcast live via the company's Internet site at http://www.internationalpaper.com by clicking on the Investors tab and going to the Presentations page. A replay of the webcast will also be available on the Web site beginning at noon today. Parties who wish to participate in the webcast via teleconference may dial +1 (706) 679-8242 or, within the U.S. only, (877) 316-2541, and ask to be connected to the International Paper 2Q 2008 Earnings Call. The conference ID number is 52276147. Participants should call in no later than 9:45 a.m. EDT/8:45 a.m. CDT. An audio-only replay will be available for four weeks following the call. To access the replay, dial +1 (706) 645-9291 or, within the U.S. only, (800) 642-1687, and when prompted for the conference ID, enter "52276147."
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 50,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.
This press release contains forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ relate to: (i) the company's ability to realize anticipated profit improvement from its transformation plan, including our ability to realize the expected benefits of our acquisition of the assets of Weyerhaeuser Company's containerboard, packaging and recycling business in light of integration difficulties and other challenges; (ii) increases in interest rates and our ability to meet our debt service obligations; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials and energy, transportation costs, competition we face, the company's product mix, demand and pricing for its products; (iv) global economic conditions and political changes, including but not limited to changes in currency exchange rates, credit availability, the company's credit ratings issued by recognized credit rating organizations and pension and health care costs; (v) unanticipated expenditures related to the cost of compliance with environmental and other governmental regulations and to actual or potential litigation; and (vi) whether we experience a material disruption at one of our manufacturing facilities. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. These and other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
International Paper Company
Consolidated Statement of Operations
Preliminary and Unaudited
(In millions, except per share amounts)
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2007 2008 2008 2007
Net Sales $5,807 $5,291 $5,668 $11,475 $10,508
Costs and
Expenses
Cost of
products sold 4,305 3,881 4,261 8,566 7,732
Selling and
administrative
expenses 459 441 472 931 876
Depreciation,
amortization
and cost of
timber
harvested 305 269 286 591 531
Distribution
expenses 301 254 285 586 510
Taxes other than
payroll and
income taxes 44 47 44 88 89
Restructuring and
other charges 13(a) 26(c) 42(e) 55(g) 44(h)
Insurance
recoveries -(a) - - - -
Forestland sales (3)(b) - - (3)(b) -
Impairment of
goodwill -(a) - - - -
Net gains on sales
and impairments
of businesses - (1) (1) (1) (315)(i)
Reversal of
reserves no
longer required,
net - - - - -
Interest expense,
net 81 80 81 162 141
Earnings From
Continuing
Operations Before
Income Taxes,
Equity Earnings
and Minority
Interest 302(a,b) 294(c) 198(e) 500(b,g) 900(h,i)
Income tax
provision 97 89 59 156 232
Equity earnings,
net of taxes 30 - 16 46 -
Minority interest
expense, net
of taxes 7 5 5 12 11
Earnings From
Continuing
Operations 228(a,b) 200(c) 150(e) 378(b,g) 657(h,i)
Discontinued
operations,
net of taxes
and minority
interest (1) (10)(d) (17)(f) (18)(f) (33)(j)
Net Earnings $227(a,b) $190(c,d) $133(e,f) $360(b,f,g) $624(h-j)
Basic Earnings
Per Common Share
Earnings from
continuing
operations $0.54(a,b) $0.46(c) $0.36(e) $0.90(b,g) $1.50(h,i)
Discontinued
operations (0.00) (0.02)(d) (0.04)(f) (0.04)(f) (0.07)(j)
Net earnings $0.54(a,b) $0.44(c,d) $0.32(e,f) $0.86(b,f,g) $1.43(h-j)
Diluted Earnings
Per Common Share
Earnings from
continuing
operations $0.54(a,b) $0.46(c) $0.35(e) $0.89(b,g) $1.49(h,i)
Discontinued
operations (0.00) (0.02)(d) (0.04)(f) (0.04)(f) (0.07)(j)
Net earnings $0.54(a,b) $0.44(c,d) $0.31(e,f) $0.85(b,f,g) $1.42(h-j)
Average Shares
of Common Stock
Outstanding -
Diluted 422.6 431.2 423.3 423.9 440.4
Cash Dividends
Per Common Share $0.25 $0.25 $0.25 $0.50 $0.50
The accompanying notes are an integral part of these financial statements.
(a) Includes a pre-tax charge of $13 million ($9 million after taxes) for
costs associated with the reorganization of the Company's Shorewood
operations in Canada.
(b) Includes a pre-tax gain of $3 million ($2 million after taxes) for an
adjustment to the gain on the 2006 Transformation Plan forestland
sales.
(c) Includes $17 million ($11 million after taxes) of accelerated
depreciation charges for long-lived assets being removed from service,
and $9 million ($5 million after taxes) of other charges associated
with the Company's Transformation Plan.
(d) Includes a pre-tax charge of $6 million ($4 million after taxes) for
adjustments relating to the sale of the wood products business, a
pre-tax charge of $5 million ($3 million after taxes) for adjustments
relating to the sale of the beverage packaging business, and the
operating results of these businesses.
(e) Includes a $40 million pre-tax charge ($25 million after taxes) for
adjustments to legal reserves, a pre-tax charge of $5 million
($3 million after taxes) for costs associated with the reorganization
of the Company's Shorewood operations in Canada, and a pre-tax gain of
$3 million ($2 million after taxes) for adjustments to previously
recorded reserves associated with the Company's Transformation Plan.
(f) Includes a pre-tax charge of $25 million ($16 million after taxes) for
the settlement of a post-closing adjustment on the sale of the
beverage packaging business and the operating results of certain wood
products facilities during the quarter.
(g) Includes a $40 million pre-tax charge ($25 million after taxes) for
adjustments to legal reserves, a pre-tax charge of $18 million ($12
million after taxes) for costs associated with the reorganization of
the Company's Shorewood operations in Canada, and a pre-tax gain of
$3 million ($2 million after taxes) for adjustments to previously
recorded reserves associated with the Company's Transformation Plan.
(h) Includes $29 million ($18 million after taxes) of accelerated
depreciation charges, and $15 million ($9 million after taxes) for
severance and other charges associated with the Company's
Transformation Plan.
(i) Includes a pre-tax gain of $113 million ($101 million after taxes) on
the sale of the Arizona Chemical business, a pre-tax gain of $205
million ($159 million after taxes) related to the asset exchange for
the Luiz Antonio mill in Brazil, a $6 million pre-tax loss ($4 million
after taxes) for adjustments to the loss on the sale of UK and Ireland
box plants, a $6 million pre-tax credit ($4 million after taxes) for
adjustments to the loss on the sale of the coated and supercalendered
papers business, and a $3 million pre-tax loss ($3 million after
taxes) for other small items.
(j) Includes a pre-tax gain of $15 million ($5 million after taxes)
relating to the sale of the wood products business, a pre-tax loss of
$20 million ($42 million after taxes) for adjustments to the loss on
the sale of the beverage packaging business, a pre-tax gain of
$6 million ($4 million after taxes) for adjustments to the loss on the
sale of the kraft papers business, a $10 million pre-tax credit
($6 million after taxes) for additional refunds received from the
Canadian government of duties paid by the Company's Weldwood of Canada
Limited business, and the year-to-date operating results of the
beverage packaging and wood products businesses.
International Paper Company
Reconciliation of Earnings Before
Special Items to Net Earnings
(In millions except for per share amounts)
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2007 2008 2008 2007
Earnings Before Special Items $235 $223 $175 $410 $426
Restructuring and other charges (9) (16) (26) (35) (27)
Net gains (losses) on sales and
impairments of businesses - (7) 1 1 257
Forestland sales 2 - - 2 -
Interest Income - - - - 1
Earnings Per Common Share from
Continuing Operations 228 200 150 378 657
Discontinued operations (1) (10) (17) (18) (33)
Net Earnings as Reported $227 $190 $133 $360 $624
Diluted Earnings per Three Months Three Months Six Months
Common Share Ended Ended Ended
June 30, March 31, June 30,
2008 2007 2008 2008 2007
Earnings Per Share Before
Special Items $0.56 $0.52 $0.41 $0.97 $0.97
Restructuring and other
charges (0.02) (0.04) (0.06) (0.08) (0.06)
Net gains (losses) on sales
and impairments of
businesses - (0.02) - - 0.58
Earnings Per Common Share
from Continuing Operations 0.54 0.46 0.35 0.89 1.49
Discontinued operations - (0.02) (0.04) (0.04) (0.07)
Diluted Earnings per Common
Share $0.54 $0.44 $0.31 $0.85 $1.42
Notes:
(1) The Company calculates Earnings Before Special Items by excluding the
after-tax effect of items considered by management to be unusual from
the earnings reported under U.S. generally accepted accounting
principles ("GAAP"). Management uses this measure to focus on on-going
operations, and believes that it is useful to investors because it
enables them to perform meaningful comparisons of past and present
operating results. International Paper believes that using this
information along with net earnings provides for a more complete
analysis of the results of operations by quarter. Net earnings is the
most directly comparable GAAP measure.
(2) Diluted earnings per common share reflect the inclusion of
contingently convertible securities in the computation.
(3) Since diluted earnings per share are computed independently for each
period, six-month per share amounts may not equal the sum of the
respective quarters.
International Paper Company
Sales and Earnings by Industry Segment
Preliminary and Unaudited
(In Millions)
Sales by Industry Segment
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2007 2008 2008 2007
Printing Papers $1,790 $1,610 $1,715 $3,505 $3,150
Industrial Packaging 1,470 1,315 1,445 2,915 2,550
Consumer Packaging 795 745 770 1,565 1,460
Distribution 1,970 1,720 1,985 3,955 3,395
Forest Products 55 90 25 80 175
Other Businesses (4) - - - - 135
Corporate and Inter-segment
Sales (273) (189) (272) (545) (357)
Net Sales $5,807 $5,291 $5,668 $11,475 $10,508
Operating Profit by Industry Segment
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2007(2) 2008 2008 2007(2)
Printing Papers $226 $188 $185 $411 $355
Industrial Packaging 87 108 97 184 181
Consumer Packaging 13(3) 30 9(3) 22(3) 70
Distribution 26 30 16 42 50
Forest Products 41 94 25 66 191
Other Businesses (4) - - - - 6
Operating Profit (1) 393 450 332 725 853
Interest expense, net (81) (80) (81) (162) (141)
Minority interest/equity
earnings adjustment (5) 8 6 4 12 11
Corporate items, net (21) (57) (21) (42) (94)
Restructuring and other
charges - (26) (37) (37) (44)
Sale of forestlands 3 - - 3 -
Net gains on sales and
impairments of
businesses - 1 1 1 315
Earnings From Continuing
Operations Before
Income Taxes, Equity
Earnings, and
Minority Interest $302 $294 $198 $500 $900
Equity Earnings in Ilim
Holdings S.A., Net of
Taxes (1) $32 $- $17 $48 $-
(1) In addition to the operating profits shown above, International Paper
recorded $17 million and $32 million of equity earnings, net of taxes,
for the three months ended March 31, 2008 and June 30, 2008,
respectively, related to its equity investment in Ilim Holdings S.A.,
a separate reportable industry segment.
(2) Prior-year information has been revised to reflect a change in the
allocation of corporate overhead to the Company's industry segments.
(3) Includes charges of $5 million and $13 million for the first and
second quarters of 2008, respectively, related to the reorganization
of the Company's Shorewood operations in Canada.
(4) Includes Arizona Chemical and certain smaller businesses.
(5) Operating profits for industry segments include each segment's
percentage share of the profits of subsidiaries included in that
segment that are less than wholly owned. The pre-tax minority interest
and equity earnings for these subsidiaries are included here to
present consolidated earnings before income taxes, equity earnings,
and minority interest.
International Paper Company
Sales Volume by Product (1) (2)
Preliminary and Unaudited
International Paper Consolidated
Three Months Three Months Six Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2007 2008 2008 2007
Printing Papers (In
thousands of short tons)
U.S. Uncoated Papers 868 949 910 1,778 1,931
European & Russian
Uncoated Papers 373 354 373 746 730
Brazilian Uncoated Papers 211 198 210 421 342
Asian Uncoated Papers 7 7 8 15 12
Uncoated Papers 1,459 1,508 1,501 2,960 3,015
Market Pulp (3) 416 337 354 770 672
Packaging (In thousands
of short tons)
Container of the Americas 896 905 882 1,778 1,787
European Container (Boxes) 288 298 295 583 605
Other Industrial and
Consumer Packaging 198 165 179 377 296
Industrial and Consumer
Packaging 1,382 1,368 1,356 2,738 2,688
Containerboard 493 457 506 999 849
Coated Paperboard 595 599 606 1,201 1,190
Saturated and Bleached
Kraft Papers 61 63 65 126 116
(1) Sales volumes include third party and inter-segment sales and exclude
sales of equity investees.
(2) Sales volumes for divested businesses are included through the date of
sale, except for discontinued operations.
(3) Includes internal sales to mills.
International Paper Company
Consolidated Balance Sheet
Preliminary and Unaudited
(In Millions)
June 30, December 31,
2008 2007
Assets
Current Assets
Cash and Temporary Investments $3,979 $905
Accounts and Notes Receivable, Net 3,284 3,152
Inventories 2,219 2,071
Assets of Businesses Held for Sale - 24
Deferred Income Tax Assets 184 213
Other 353 370
Total Current Assets 10,019 6,735
Plants, Properties and Equipment, Net 10,442 10,141
Forestlands 824 770
Investments 1,357 1,276
Goodwill 3,722 3,650
Deferred Charges and Other Assets 1,609 1,587
Total Assets $27,973 $24,159
Liabilities and Common Shareholders' Equity
Current Liabilities
Notes Payable and Current Maturities of
Long-Term Debt $757 $267
Liabilities of Businesses Held for Sale - 4
Accounts Payable and Accrued Liabilities 3,581 3,571
Total Current Liabilities 4,338 3,842
Long-Term Debt 8,915 6,353
Deferred Income Taxes 3,166 2,919
Other Liabilities 1,806 2,145
Minority Interest 245 228
Common Shareholders' Equity
Invested Capital 4,986 4,297
Retained Earnings 4,517 4,375
Total Common Shareholders' Equity 9,503 8,672
Total Liabilities and Common Shareholders'
Equity $27,973 $24,159
International Paper Company
Consolidated Statement of Cash Flows
Preliminary and Unaudited
(In Millions)
Six Months Ended
June 30,
2008 2007
Operating Activities
Net earnings $360 $624
Discontinued operations, net of taxes and
minority interest 18 33
Earnings from continuing operations 378 657
Depreciation, amortization and cost of
timber harvested 591 531
Deferred income tax (benefit) expense, net (113) 95
Restructuring and other charges 55 44
Payments related to restructuring and legal
reserves (42) (38)
Net gains on sales and impairments of
businesses (1) (315)
Equity earnings, net (46) -
Periodic pension expense, net 57 105
Other, net 45 186
Changes in current assets and liabilities
Accounts and notes receivable (27) (156)
Inventories (90) (118)
Accounts payable and accrued liabilities 110 (233)
Other 93 (70)
Cash provided by operations - continuing
operations 1,010 688
Cash used for operations - discontinued
operations - (53)
Cash Provided by Operations 1,010 635
Investment Activities
Invested in capital projects (482) (477)
Proceeds from divestitures 14 1,670
Equity investment in Ilim (21) -
Other (159) (103)
Cash (used for) provided by investment
activities - continuing operations (648) 1,090
Cash used for investment activities -
discontinued operations - (12)
Cash (Used for) Provided by Investment
Activities (648) 1,078
Financing Activities
Repurchases of common stock (47) (1,073)
Issuance of common stock 1 71
Issuance of debt 3,135 2
Reduction of debt (125) (467)
Change in book overdrafts (53) 1
Dividends paid (218) (223)
Other (20) -
Cash Provided by (Used for) Financing
Activities 2,673 (1,689)
Effect of Exchange Rate Changes on Cash 39 33
Change in Cash and Temporary Investments 3,074 57
Cash and Temporary Investments
Beginning of the period 905 1,624
End of the period $3,979 $1,681
SOURCE International Paper
http://www.internationalpaper.com
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Companies: International Paper Co. (IP)
Qualcomm Announces Third Quarter Fiscal 2008 Results - Zibb.com
SAN DIEGO, July 23, 2008 /PRNewswire-FirstCall via COMTEX/ --
Qualcomm Incorporated (Nasdaq: QCOM) today announced results for the third fiscal quarter of 2008 ended June 29, 2008.
Qualcomm's third quarter fiscal 2008 earnings conference call has been rescheduled to Thursday, July 24, 2008, beginning at 8:00 a.m. Eastern Daylight Time (5:00 a.m. Pacific Daylight Time). Conference call details are included herein.
Total Qualcomm (GAAP) Third Quarter Results
Total Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).
-- Revenues: $2.8 billion, up 19 percent year-over-year and 6 percent
sequentially.
-- Net income: $748 million, down 6 percent year-over-year and 2 percent
sequentially.
-- Diluted earnings per share: $0.45, down 4 percent year-over-year and
sequentially.
-- Effective tax rate: 15 percent for the quarter. Fiscal 2008 estimated
tax rate of approximately 16 percent.
-- Estimated share-based compensation: $94 million, net of tax, up 24
percent year-over-year and 7 percent sequentially.
-- Operating cash flow: $739 million, down 25 percent year-over-year; 27
percent of revenues.
-- Return of capital to stockholders: $261 million, or $0.16 per share,
of cash dividends paid.
Qualcomm Pro Forma Third Quarter Results
Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.
-- Revenues: $2.8 billion, up 19 percent year-over-year and 6 percent
sequentially.
-- Net income: $915 million, down 2 percent year-over-year and up 2
percent sequentially.
-- Diluted earnings per share: $0.55, even year-over-year and up 2
percent sequentially; excludes $0.04 loss per share attributable to
the QSI segment, $0.06 loss per share attributable to certain
estimated share-based compensation and $0.01 loss per share
attributable to acquired in-process R&D. (The sum of pro forma
earnings per share and items excluded do not equal total Qualcomm
(GAAP) earnings per share due to rounding.)
-- Effective tax rate: 18 percent for the quarter. Fiscal 2008 estimated
tax rate of approximately 19 percent.
-- Free cash flow: $844 million, down 14 percent year-over-year; 31
percent of revenues (defined as net cash from operating activities
less capital expenditures).
Detailed reconciliations between total Qualcomm (GAAP) results and cash flow and Qualcomm pro forma results and cash flow are included at the end of this news release. Prior period reconciliations are presented on Qualcomm's Investor Relations web page at www.qualcomm.com.
"We are pleased to report another strong quarter as the migration to 3G-enabled products continues to accelerate," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "We delivered record revenues, up 19 percent year-over-year, and our pro forma earnings per share were at the high end of our prior estimate.
"I am also pleased to announce that we have reached a settlement agreement with Nokia that resolves all litigation between the companies and will allow both of us to focus our efforts on driving the global 3G and 4G markets forward. In addition to providing an up-front royalty payment and other benefits, Qualcomm will also receive ongoing royalties for all CDMA standards, as well as single-mode OFDMA. I look forward to providing our updated guidance tomorrow morning."
Cash and Marketable Securities
Qualcomm's cash, cash equivalents and marketable securities totaled approximately $11.2 billion at the end of the third quarter of fiscal 2008, compared to $10.6 billion at the end of the second quarter of fiscal 2008 and $12.3 billion a year ago. On July 16, 2008, we announced a cash dividend of $0.16 per share payable on September 26, 2008 to stockholders of record at the close of business on August 29, 2008.
Estimated Share-Based Compensation
Total Qualcomm (GAAP) net income for the third quarter of fiscal 2008 included estimated share-based compensation, net of tax, of $94 million, or $0.06 per diluted share. This compares to $76 million, or $0.04 per diluted share, in the prior year quarter.
Research and Development
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
($ in millions) Forma Compensation R&D QSI (GAAP)
Third quarter
fiscal 2008 $495 $64 $13 $24 $596
As a % of
revenue 18% N/M 22%
Third quarter
fiscal 2007 $385 $50 $- $19 $454
As a % of
revenue 17% 20%
Year-over-year
change ($) 29% 28% 26% 31%
N/M - Not Meaningful
Pro forma R&D expenses increased 29 percent year-over-year, primarily due to an increase in costs related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services, including lower-cost devices, the integration of wireless technologies with consumer electronics and computing, the convergence of multiband, multimode, multinetwork products and technologies, third-party operating systems and services platforms. QSI R&D expenses were related to MediaFLO USA.
Selling, General and Administrative
Estimated Total
Qualcomm Pro Share-Based Qualcomm
($ in millions) Forma Compensation QSI (GAAP)
Third quarter
fiscal 2008 $357 $65 $31 $453
As a % of revenue 13% N/M 16%
Third quarter
fiscal 2007 $307 $54 $40 $401
As a % of revenue 13% 17%
Year-over-year change($) 16% 20% (23%) 13%
Pro forma selling, general and administrative (SG&A) expenses increased 16 percent year-over-year, primarily attributable to an increase in certain professional fees, primarily related to patent activities, and employee-related expenses. QSI SG&A expenses were primarily related to MediaFLO USA.
Effective Income Tax Rate
Without the potential effect of our settlement agreement with Nokia, our fiscal 2008 effective income tax rates are estimated to be 16 percent for total Qualcomm (GAAP) and 19 percent for Qualcomm pro forma. The third quarter total Qualcomm (GAAP) and Qualcomm pro forma effective tax rates of 15 percent and 18 percent, respectively, are lower than the estimated annual effective tax rates, primarily due to the change in our estimate of foreign earnings taxed at less than the United States federal tax rate.
Qualcomm Strategic Initiatives
The QSI segment includes our strategic investments, including our MediaFLO USA subsidiary, and related income and expenses. Total Qualcomm (GAAP) results for the third quarter of fiscal 2008 included a $0.04 loss per share for the QSI segment. The third quarter of fiscal 2008 QSI results included $88 million in operating expenses, primarily related to MediaFLO USA.
Results of Business Segments (in millions, except per share data):
Third Quarter - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,762 $803 $190 $3 $2,758
Change from prior year 29% 5% (3%) N/M 19%
Change from prior quarter 9% 1% (2%) N/M 6%
EBT $487 $670 $(1) $(40) $1,116
Change from prior year 11% 0% N/M N/M (5%)
Change from prior quarter 14% (2%) N/M N/M 2%
EBT as a % of revenues 28% 83% (1%) N/M 40%
Net income (loss) $915
Change from prior year (2%)
Change from prior quarter 2%
Diluted EPS $0.55
Change from prior year 0%
Change from prior quarter 2%
Diluted shares used 1,654
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) R&D QSI(3) (GAAP)
Revenues $- $- $4 $2,762
Change from prior year N/M 19%
Change from prior quarter 100% 6%
EBT $(139) $(13) $(82) $882
Change from prior year (22%) N/A 10% (9%)
Change from prior quarter (7%) N/A (30%) (3%)
EBT as a % of revenues N/A N/A N/M 32%
Net income (loss) $(94) $(13) $(60) $748
Change from prior year (25%) N/A 2% (6%)
Change from prior quarter (7%) N/A (50%) (2%)
Diluted EPS $(0.06) $(0.01) $(0.04) $0.45
Change from prior year (50%) N/A 0% (4%)
Change from prior quarter (20%) N/A (100%) (4%)
Diluted shares used 1,654 1,654 1,654 1,654
Second Quarter - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,620 $795 $194 $(5) $2,604
EBT 427 684 - (12) 1,099
Net income (loss) 894
Diluted EPS $0.54
Diluted shares used 1,643
Estimated Total
Share-Based Qualcomm
Segments Compensation(2) QSI(3) (GAAP)
Revenues $- $2 $2,606
EBT (130) (63) 906
Net income (loss) (88) (40) 766
Diluted EPS $(0.05) $(0.02) $0.47
Diluted shares used 1,643 1,643 1,643
Third Quarter - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,367 $766 $196 $(4) $2,325
EBT 439 668 18 52 1,177
Net income (loss) 934
Diluted EPS $0.55
Diluted shares used 1,704
Estimated Total
Share-Based Qualcomm
Segments Compensation(2) QSI(3) (GAAP)
Revenues $- $- $2,325
EBT (114) (91) 972
Net income (loss) (75) (61) 798
Diluted EPS $(0.04) $(0.04) $0.47
Diluted shares used 1,704 1,704 1,704
Fourth Quarter - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,419 $647 $245 $(6) $2,305
EBT 424 537 31 137 1,129
Net income (loss) 911
Diluted EPS $0.54
Diluted shares used 1,689
Estimated Total
Share-Based Tax Items Qualcomm
Segments Compensation(2) (4) QSI(3) (GAAP)
Revenues $- $- $1 $2,306
EBT (117) - (64) 948
Net income (loss) (77) 331 (34) 1,131
Diluted EPS $(0.05) $0.20 $(0.02) $0.67
Diluted shares used 1,689 1,689 1,689 1,689
Twelve Months - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $5,275 $2,772 $828 $(5) $8,870
EBT 1,547 2,340 88 388 4,363
Net income (loss) 3,406
Diluted EPS $2.01
Diluted shares used 1,693
Estimated Total
Share-Based Tax Items In-Process Qualcomm
Segments Compensation(2) (4) R&D QSI (GAAP)
Revenues $- $- $- $1 $8,871
EBT (487) - (10) (240) 3,626
Net income (loss) (321) 364 (9) (137) 3,303
Diluted EPS $(0.19) $0.22 $(0.01) $(0.08) $1.95
Diluted shares used 1,693 1,693 1,693 1,693 1,693
Nine Months - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $4,956 $2,248 $595 $2 $7,801
Change from prior year 29% 6% 2% N/M 19%
EBT $1,383 $1,895 $23 $25 $3,326
Change from prior year 23% 5% (60%) N/M 3%
Net income (loss) $2,682
Change from prior year 8%
Diluted EPS $1.62
Change from prior year 10%
Diluted shares used 1,654
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) R&D QSI(3) (GAAP)
Revenues $- $- $7 $7,808
Change from prior year N/M 19%
EBT $(394) $(14) $(200) $2,718
Change from prior year (6%) (40%) (14%) 1%
Net income (loss) $(267) $(13) $(120) $2,282
Change from prior year (9%) (44%) (17%) 5%
Diluted EPS $(0.16) $(0.01) $(0.07) $1.38
Change from prior year (14%) 0% (17%) 8%
Diluted shares used 1,654 1,654 1,654 1,654
Nine Months - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $3,856 $2,125 $583 $1 $6,565
EBT 1,123 1,803 58 250 3,234
Net income (loss) 2,494
Diluted EPS $1.47
Diluted shares used 1,694
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) Tax Items R&D QSI(3) (GAAP)
Revenues $- $- $- $- $6,565
EBT (370) - (10) (176) 2,678
Net income (loss) (244) 33 (9) (103) 2,171
Diluted EPS $(0.14) $0.02 $(0.01) $(0.06) $1.28
Diluted shares used 1,694 1,694 1,694 1,694 1,694
(1) Reconciling items related to revenues consist primarily of other
nonreportable segment revenues less intersegment eliminations.
Reconciling items related to earnings before taxes consist primarily
of certain investment income, research and development expenses and
marketing expenses that are not allocated to the segments for
management reporting purposes, nonreportable segment results and the
elimination of intersegment profit.
(2) Certain share-based compensation is included in operating expenses as
part of employee-related costs but is not allocated to the Company's
segments as such costs are not considered relevant by management in
evaluating segment performance.
(3) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equals the annual tax provisions for each
column computed in accordance with GAAP. In interim quarters, the
tax provision for the QSI operating segment is computed by
subtracting the tax provision for Qualcomm pro forma, the tax items
column and the tax provisions related to estimated share-based
compensation and in-process R&D from the tax provision for total
Qualcomm (GAAP).
(4) During the fourth quarter of fiscal 2007, the Company recorded a $331
million tax benefit, or $0.20 diluted earnings per share, related to
tax expense recorded in prior years resulting from the completion of
tax audits during the fourth fiscal quarter. The fiscal 2007 Qualcomm
pro forma results excluded this tax benefit attributable to prior
years.
N/M - Not Meaningful
N/A - Not Applicable
Sums may not equal totals due to rounding.
Conference Call
Qualcomm's third quarter fiscal 2008 earnings conference call will be broadcast live on July 24, 2008 beginning at 5:00 a.m. Pacific Daylight Time (PDT) on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on July 24, 2008, beginning at approximately 6:00 a.m. PDT through August 23, 2008 at 9:00 p.m. PDT. To listen to the replay, U.S. callers may dial (800) 642-1687 and international callers may dial (706) 645-9291. U.S. and international callers should use reservation number 57610454. An audio replay of the conference call will be available on the Company's web site at www.qualcomm.com for two weeks following the live call.
Editor's Note: To view the web slides that accompany this earnings release and conference call, please go to the Qualcomm Investor Relations website at http://investor.qualcomm.com/results.cfm.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2008 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
The Company presents pro forma financial information that is used by management (i) to evaluate, assess and benchmark the Company's operating results on a consistent and comparable basis, (ii) to measure the performance and efficiency of the Company's ongoing core operating businesses, including the Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Wireless & Internet segments and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Pro forma measurements of the following financial data are used by the Company's management: revenues, R&D expenses, SG&A expenses, total operating expenses, operating income, net investment income, income before income taxes, effective tax rate, net income, diluted earnings per share, operating cash flow and free cash flow. Management is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using pro forma information. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on pro forma financial measures applicable to the Company and its business segments.
Pro forma information used by management excludes the QSI segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process R&D. The QSI segment is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments are viewed by management as unrelated to the Company's operational performance. Estimated share-based compensation, other than amounts related to share-based awards granted under a bonus program that may result in the issuance of unrestricted shares of the Company's common stock, is excluded because management views the valuation of options and other share-based compensation as theoretical and unrelated to the Company's operational performance. Further, share-based compensation is affected by factors that are subject to change, including the Company's stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Moreover, it is generally not an expense that requires or will require cash payment by the Company. Certain tax items related to prior years are excluded in order to provide a clearer understanding of the Company's ongoing tax rate and after tax earnings. Acquired in-process R&D is excluded because such expense is viewed by management as unrelated to the operating activities of the Company's ongoing core businesses.
The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to evaluate the Company's performance, to value the Company and to compare its operating performance with other companies in the industry.
The non-GAAP pro forma 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, "pro forma" is not a term defined by GAAP, and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies. Reconciliations between total Qualcomm (GAAP) results and Qualcomm pro forma results and between total Qualcomm (GAAP) cash flow and Qualcomm pro forma cash flow are presented herein.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release 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 deployment of our technologies in wireless networks and of 3G wireless communications, equipment and services, including CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both domestically and internationally; attacks on our business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; fluctuations in the demand for products, services or applications based on our technologies; our dependence on major customers and licensees; foreign currency fluctuations; strategic loans, investments and transactions we have or may pursue; our dependence on third-party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; the development, deployment and commercial acceptance of the MediaFLO USA network and FLO(TM) technology; as well as the other risks detailed from time-to-time in our SEC reports.
(C) 2008 Qualcomm Incorporated. All rights reserved. Qualcomm is a registered trademark of Qualcomm Incorporated. MediaFLO and FLO are trademarks of Qualcomm Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association. All other trademarks are the property of their respective owners.
Qualcomm Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
This schedule is to assist the reader in reconciling from Qualcomm
Pro Forma results to Total Qualcomm (GAAP) results
(In millions, except per share data)
(Unaudited)
Three Months Ended June 29, 2008
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
Forma Compensation R&D QSI (GAAP)
Revenues:
Equipment and
services $1,863 $- $- $4 $1,867
Licensing and
royalty fees 895 - - - 895
Total
revenues 2,758 - - 4 2,762
Operating expenses:
Cost of
equipment and
services
revenues 846 10 - 33 889
Research and
development 495 64 13 24 596
Selling, general
and
administrative 357 65 - 31 453
Total
operating
expenses 1,698 139 13 88 1,938
Operating income
(loss) 1,060 (139) (13) (84) 824
Investment
income, net 56(a) - - 2(b) 58
Income (loss)
before income
taxes 1,116 (139) (13) (82) 882
Income tax
(expense)
benefit (201)(c) 45 - 22(d) (134)(c)
Net income (loss) $915 $(94) $(13) $(60) $748
Earnings (loss)
per common
share:
Diluted $0.55 $(0.06) $(0.01) $(0.04) $0.45
Shares used in
per share
calculations:
Diluted 1,654 1,654 1,654 1,654 1,654
Supplemental
Financial Data:
Operating Cash
Flow $1,020 $(209)(f) $(13) $(59) $739
Operating Cash
Flow as a %
of Revenues 37% N/M 27%
Free Cash Flow(e) $844 $(209)(f) $(13) $(438) $184
Free Cash Flow as
a % of Revenues 31% N/M 7%
(a) Included $105 million in interest and dividend income related to
cash, cash equivalents and marketable securities, which were not part
of the Company's strategic investment portfolio, and $24 million in
net realized gains on investments, partially offset by $71 million in
other-than-temporary losses on investments and $2 million in interest
expense.
(b) Included $15 million in net realized gains on investments and $3
million interest and dividend income, partially offset by $12 million
in other-than-temporary losses on investments, $2 million in equity
in losses of investees and $2 million in interest expense.
(c) The third quarter of fiscal 2008 effective tax rates were
approximately 15% for total Qualcomm (GAAP) and approximately 18% for
Qualcomm pro forma.
(d) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equals the annual tax provisions for each
column computed in accordance with GAAP. In interim quarters, the
tax provision for the QSI operating segment is computed by
subtracting the tax provision for Qualcomm pro forma, the tax items
column and the tax provisions related to estimated share-based
compensation and in-process R&D from the tax provision for total
Qualcomm (GAAP).
(e) Free Cash Flow is calculated as net cash provided by operating
activities less capital expenditures. Reconciliation of these
amounts is included in the Reconciliation of Pro Forma Free Cash
Flows to Total Qualcomm (GAAP) net cash provided by operating
activities and other supplemental disclosures for the three months
ended June 29, 2008, included herein.
(f) Incremental tax benefits from stock options exercised during the
period.
Qualcomm Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
This schedule is to assist the reader in reconciling from Qualcomm
Pro Forma results to Total Qualcomm (GAAP) results
(In millions, except per share data)
(Unaudited)
Nine Months Ended June 29, 2008
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
Forma Compensation(a) R&D QSI (GAAP)
Revenues:
Equipment and
services $5,288 $- $- $7 $5,295
Licensing and
royalty fees 2,513 - - - 2,513
Total
revenues 7,801 - - 7 7,808
Operating expenses:
Cost of
equipment
and services
revenues 2,379 29 - 85 2,493
Research and
development 1,397 182 14 67 1,660
Selling,
general and
administrative 1,000 183 - 78 1,261
Total
operating
expenses 4,776 394 14 230 5,414
Operating
income (loss) 3,025 (394) (14) (223) 2,394
Investment
income, net 301(b) - - 23(c) 324
Income (loss)
before income
taxes 3,326 (394) (14) (200) 2,718
Income tax
(expense)
benefit (644)(d) 127 1 80(e) (436)(d)
Net income (loss)$2,682 $(267) $(13) $(120) $2,282
Earnings (loss)
per common share:
Diluted $1.62 $(0.16) $(0.01) $(0.07) $1.38
Shares used in
per share
calculations:
Diluted 1,654 1,654 1,654 1,654 1,654
Supplemental
Financial Data:
Operating Cash
Flow $3,090 $(310)(g) $(14) $(199) $2,567
Operating Cash
Flow as a %
of Revenue 40% N/M 33%
Free Cash
Flow(f) $2,722 $(310)(g) $(14) $(814) $1,584
Free Cash Flow
as a % of Revenue 35% N/M 20%
(a) Estimated share-based compensation presented above and excluded from
pro forma results did not include $1 million, net of tax, related to
share-based awards granted under a bonus program.
(b) Included $374 million in interest and dividend income related to
cash, cash equivalents and marketable securities, which were not part
of the Company's strategic investment portfolio, $108 million in net
realized gains on investments and $6 million in gains on derivative
instruments from put options related to our share repurchase program,
partially offset by $175 million in other-than-temporary losses on
investments and $12 million in interest expense.
(c) Included $50 million in net realized gains on investments, $4 million
in interest and dividend income and $1 million in equity in earnings
of investees, partially offset by $27 million in other-than-temporary
losses on investments and $5 million in interest expense.
(d) The effective tax rates for the nine months ended June 29, 2008 were
approximately 16% for total Qualcomm (GAAP) and approximately 19% for
Qualcomm pro forma.
(e) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equals the annual tax provisions for each
column computed in accordance with GAAP. In interim quarters, the
tax provision for the QSI operating segment is computed by
subtracting the tax provision for Qualcomm pro forma, the tax items
column and the tax provisions related to estimated share-based
compensation and in-process R&D from the tax provision for total
Qualcomm (GAAP).
(f) Free Cash Flow is calculated as net cash provided by operating
activities less capital expenditures. Reconciliation of these
amounts is included in the Reconciliation of Pro Forma Free Cash
Flows to Total Qualcomm (GAAP) net cash provided by operating
activities and other supplemental disclosures for the nine months
ended June 29, 2008, included herein.
(g) Incremental tax benefits from stock options exercised during the
period.
Qualcomm Incorporated
Reconciliation of Pro Forma Free Cash Flows to
Total Qualcomm (GAAP) net cash provided by operating activities
and other supplemental disclosures
(In millions)
(Unaudited)
Three Months Ended June 29, 2008
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
Forma Compensation R&D QSI (GAAP)
Net cash
provided (used)
by operating
activities $1,020 $(209)(a) $(13) $(59) $739
Less:capital
expenditures (176) - - (379) (555)
Free cash flow $844 $(209) $(13) $(438) $184
Other supplemental
cash disclosures:
Cash transfers
from QSI (1) $30 $- $- $(30) $-
Cash transfers
to QSI (2) (446) - - 446 -
Net cash
transfers $(416) $- $- $416 $-
Nine Months Ended June 29, 2008
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
Forma Compensation R&D QSI (GAAP)
Net cash
provided (used)
by operating
activities $3,090 $(310)(a) $(14) $(199) $2,567
Less:capital
expenditures(3) (368) - - (615) (983)
Free cash flow $2,722 $(310) $(14) $(814) $1,584
Other supplemental
cash disclosures:
Cash transfers
from QSI (1) $59 $- $- $(59) $-
Cash transfers
to QSI (2) (842) - - 842 -
Net cash
transfers $(783) $- $- $783 $-
(1) Cash from sale of equity securities.
(2) Funding for strategic debt and equity investments, capital
expenditures and other QSI operating expenses.
(3) Upon receipt of licenses from the FCC for additional 700 MHz spectrum
for use in our MediaFLO USA business, the deposit made in the second
quarter of fiscal 2008 of $195 million was reclassified from Qualcomm
pro forma capital expenditures to QSI capital expenditures. The total
license fee included in QSI capital expenditures for fiscal 2008 was
$555 million.
Three Months Ended July 1, 2007
Estimated Total
Qualcomm Pro Share-Based Qualcomm
Forma Compensation QSI (GAAP)
Net cash
provided (used)
by operating
activities $1,122 $(80)(a) $(54) $988
Less: capital
expenditures (145) - (12) (157)
Free cash flow $977 $(80) $(66) $831
Nine Months Ended July 1, 2007
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
Forma Compensation R&D QSI (GAAP)
Net cash
provided (used)
by operating
activities $3,116 $(199)(a) $(10) $(139) $2,768
Less: capital
expenditures (506) - - (65) (571)
Free cash flow $2,610 $(199) $(10) $(204) $2,197
(a) Incremental tax benefits from stock options exercised during the
period.
Qualcomm Incorporated
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)
ASSETS
June 29, September 30,
2008 2007
Current assets:
Cash and cash equivalents $2,970 $2,411
Marketable securities 3,644 4,170
Accounts receivable, net 917 715
Inventories 618 469
Deferred tax assets 358 435
Collateral held under securities lending 326 421
Other current assets 228 200
Total current assets 9,061 8,821
Marketable securities 4,567 5,234
Property, plant and equipment, net 1,912 1,788
Goodwill 1,520 1,325
Deferred tax assets 870 318
Other assets 1,667 1,009
Total assets $19,597 $18,495
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $653 $635
Payroll and other benefits related liabilities 356 311
Unearned revenues 186 218
Income taxes payable 15 119
Obligations under securities lending 326 421
Other current liabilities 575 554
Total current liabilities 2,111 2,258
Unearned revenues 124 142
Income taxes payable 222 -
Other liabilities 314 260
Total liabilities 2,771 2,660
Stockholders' equity:
Preferred stock, $0.0001 par value; issuable
in series; 8 shares authorized; none
outstanding at June 29, 2008 and
September 30, 2007 - -
Common stock, $0.0001 par value; 6,000 shares
authorized; 1,640 and 1,646 shares issued and
outstanding at June 29, 2008 and
September 30, 2007, respectively - -
Paid-in capital 6,783 7,057
Retained earnings 10,104 8,541
Accumulated other comprehensive (loss) income (61) 237
Total stockholders' equity 16,826 15,835
Total liabilities and stockholders' equity $19,597 $18,495
Qualcomm Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
June 29, July 1, June 29, July 1,
2008 2007 2008 2007
Revenues:
Equipment and services $1,867 $1,484 $5,295 $4,196
Licensing and royalty fees 895 841 2,513 2,369
Total revenues 2,762 2,325 7,808 6,565
Operating expenses:
Cost of equipment and
services revenues 889 688 2,493 1,956
Research and development 596 454 1,660 1,348
Selling, general and
administrative 453 401 1,261 1,155
Total operating expenses 1,938 1,543 5,414 4,459
Operating income 824 782 2,394 2,106
Investment income, net 58 190 324 572
Income before income taxes 882 972 2,718 2,678
Income tax expense (134) (174) (436) (507)
Net income $748 $798 $2,282 $2,171
Basic earnings per common share $0.46 $0.48 $1.40 $1.31
Diluted earnings per common share $0.45 $0.47 $1.38 $1.28
Shares used in per share calculations:
Basic 1,626 1,670 1,626 1,661
Diluted 1,654 1,704 1,654 1,694
Dividends per share paid $0.16 $0.14 $0.44 $0.38
Dividends per share announced $0.16 $0.14 $0.44 $0.38
Qualcomm Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended Nine Months Ended
June 29, July 1, June 29, July 1,
2008 2007 2008 2007
Operating Activities:
Net income $748 $798 $2,282 $2,171
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 117 99 336 283
Non-cash income tax expense 66 136 148 365
Non-cash portion of share-based
compensation expense 138 114 393 371
Incremental tax benefits from
stock options exercised (209) (80) (310) (199)
Net realized gains on marketable
securities and other investments (39) (53) (158) (173)
Other-than-temporary losses on
marketable securities
and other investments 83 8 202 11
Other items, net 11 7 1 5
Changes in assets and liabilities,
net of effects of acquisitions:
Accounts receivable, net (186) (45) (178) (62)
Inventories (7) (49) (142) (147)
Other assets (7) 10 35 (137)
Trade accounts payable (24) (7) (4) 127
Payroll, benefits and other
liabilities 78 68 12 69
Unearned revenues (30) (18) (50) 84
Net cash provided by operating
activities 739 988 2,567 2,768
Investing Activities:
Capital expenditures (555) (157) (983) (571)
Purchases of available-for-sale
securities (1,984) (2,340) (4,944) (5,921)
Proceeds from sale of available-
for-sale securities 1,559 1,909 5,548 6,254
Other investments and acquisitions,
net of cash acquired (8) (3) (283) (230)
Change in collateral held under
securities lending 8 (153) 95 (153)
Other items, net 4 12 30 13
Net cash used by investing
activities (976) (732) (537) (608)
Financing Activities:
Proceeds from issuance of common
stock 464 220 700 474
Incremental tax benefits from stock
options exercised 209 80 310 199
Dividends paid (261) (234) (716) (632)
Repurchase and retirement of common
stock - (129) (1,670) (264)
Proceeds from put options - 17 - 17
Change in obligations under
securities lending (8) 153 (95) 153
Net cash provided (used) by
financing activities 404 107 (1,471) (53)
Effect of exchange rate changes on
cash - - - 2
Net increase in cash and
cash equivalents 167 363 559 2,109
Cash and cash equivalents at
beginning of period 2,803 3,353 2,411 1,607
Cash and cash equivalents at end of
period $2,970 $3,716 $2,970 $3,716
Qualcomm Contact:
John Gilbert
Vice President of Investor and Industry Analyst Relations
1-858-658-4813 (ph) 1-858-651-9303 (fax)
e-mail: ir@qualcomm.com
SOURCE Qualcomm Incorporated
http://www.qualcomm.com
Tags: accounting acquisition business ceo commercial communications conference consumer debt dividend dividends earnings electronics e-mail eps equity executive federal financial results gaap index interest rates internet investment licenses marketing nasdaq note patent plant president products profit property rates research and development retirement revenue schedule sec securities standards stock option tax taxes technology trade web wireless
Companies: QUALCOMM Incorporated (QCOM)
Qualcomm Announces Third Quarter Fiscal 2008 Results - Zibb.com
SAN DIEGO, Jul 24, 2008 (PR Newswire Europe via COMTEX) --
Revenues US$2.8 Billion, EPS US$0.45
- Pro Forma EPS US$0.55
Qualcomm Incorporated (Nasdaq: QCOM) today announced results for the third fiscal quarter of 2008 ended June 29, 2008.
Qualcomm's third quarter fiscal 2008 earnings conference call has been rescheduled to Thursday, July 24, 2008, beginning at 8:00 a.m. Eastern Daylight Time (5:00 a.m. Pacific Daylight Time). Conference call details are included herein.
Total Qualcomm (GAAP) Third Quarter Results
Total Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).
-- Revenues: US$2.8 billion, up 19 percent year-over-year and 6 percent
sequentially.
-- Net income: US$748 million, down 6 percent year-over-year and 2
percent sequentially.
-- Diluted earnings per share: US$0.45, down 4 percent year-over-year
and sequentially.
-- Effective tax rate: 15 percent for the quarter. Fiscal 2008
estimated tax rate of approximately 16 percent.
-- Estimated share-based compensation: US$94 million, net of tax, up 24
percent year-over-year and 7 percent sequentially.
-- Operating cash flow: US$739 million, down 25 percent year-over-year;
27 percent of revenues.
-- Return of capital to stockholders: US$261 million, or US$0.16 per
share, of cash dividends paid.
Qualcomm Pro Forma Third Quarter Results
Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.
-- Revenues: US$2.8 billion, up 19 percent year-over-year and 6 percent
sequentially.
-- Net income: US$915 million, down 2 percent year-over-year and up 2
percent sequentially.
-- Diluted earnings per share: US$0.55, even year-over-year and up 2
percent sequentially; excludes US$0.04 loss per share attributable to
the QSI segment, US$0.06 loss per share attributable to certain
estimated share-based compensation and US$0.01 loss per share
attributable to acquired in-process R&D. (The sum of pro forma
earnings per share and items excluded do not equal total Qualcomm
(GAAP) earnings per share due to rounding.)
-- Effective tax rate: 18 percent for the quarter. Fiscal 2008
estimated tax rate of approximately 19 percent.
-- Free cash flow: US$844 million, down 14 percent year-over-year; 31
percent of revenues (defined as net cash from operating activities
less capital expenditures).
Detailed reconciliations between total Qualcomm (GAAP) results and cash flow and Qualcomm pro forma results and cash flow are included at the end of this news release. Prior period reconciliations are presented on Qualcomm's Investor Relations web page at www.qualcomm.com.
"We are pleased to report another strong quarter as the migration to 3G-enabled products continues to accelerate," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "We delivered record revenues, up 19 percent year-over-year, and our pro forma earnings per share were at the high end of our prior estimate.
"I am also pleased to announce that we have reached a settlement agreement with Nokia that resolves all litigation between the companies and will allow both of us to focus our efforts on driving the global 3G and 4G markets forward. In addition to providing an up-front royalty payment and other benefits, Qualcomm will also receive ongoing royalties for all CDMA standards, as well as single-mode OFDMA. I look forward to providing our updated guidance tomorrow morning."
Cash and Marketable Securities
Qualcomm's cash, cash equivalents and marketable securities totaled approximately US$11.2 billion at the end of the third quarter of fiscal 2008, compared to US$10.6 billion at the end of the second quarter of fiscal 2008 and US$12.3 billion a year ago. On July 16, 2008, we announced a cash dividend of US$0.16 per share payable on September 26, 2008 to stockholders of record at the close of business on August 29, 2008.
Estimated Share-Based Compensation
Total Qualcomm (GAAP) net income for the third quarter of fiscal 2008 included estimated share-based compensation, net of tax, of US$94 million, or US$0.06 per diluted share. This compares to US$76 million, or US$0.04 per diluted share, in the prior year quarter.
Research and Development
(All Amounts in US Dollars unless otherwise specified)
Estimated Total
Qualcomm Pro Share-Based In-Process Qualcomm
($ in millions) Forma Compensation R&D QSI (GAAP)
Third quarter
fiscal 2008 $495 $64 $13 $24 $596
As a % of
revenue 18% N/M 22%
Third quarter
fiscal 2007 $385 $50 $- $19 $454
As a % of
revenue 17% 20%
Year-over-year
change ($) 29% 28% 26% 31%
N/M - Not Meaningful
Pro forma R&D expenses increased 29 percent year-over-year, primarily due to an increase in costs related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services, including lower-cost devices, the integration of wireless technologies with consumer electronics and computing, the convergence of multiband, multimode, multinetwork products and technologies, third-party operating systems and services platforms. QSI R&D expenses were related to MediaFLO USA.
Selling, General and Administrative
Estimated Total
Qualcomm Pro Share-Based Qualcomm
($ in millions) Forma Compensation QSI (GAAP)
Third quarter
fiscal 2008 $357 $65 $31 $453
As a % of revenue 13% N/M 16%
Third quarter
fiscal 2007 $307 $54 $40 $401
As a % of revenue 13% 17%
Year-over-year change($) 16% 20% (23%) 13%
Pro forma selling, general and administrative (SG&A) expenses increased 16 percent year-over-year, primarily attributable to an increase in certain professional fees, primarily related to patent activities, and employee-related expenses. QSI SG&A expenses were primarily related to MediaFLO USA.
Effective Income Tax Rate
Without the potential effect of our settlement agreement with Nokia, our fiscal 2008 effective income tax rates are estimated to be 16 percent for total Qualcomm (GAAP) and 19 percent for Qualcomm pro forma. The third quarter total Qualcomm (GAAP) and Qualcomm pro forma effective tax rates of 15 percent and 18 percent, respectively, are lower than the estimated annual effective tax rates, primarily due to the change in our estimate of foreign earnings taxed at less than the United States federal tax rate.
Qualcomm Strategic Initiatives
The QSI segment includes our strategic investments, including our MediaFLO USA subsidiary, and related income and expenses. Total Qualcomm (GAAP) results for the third quarter of fiscal 2008 included a US$0.04 loss per share for the QSI segment. The third quarter of fiscal 2008 QSI results included $88 million in operating expenses, primarily related to MediaFLO USA.
Results of Business Segments (in millions, except per share data):
Third Quarter - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,762 $803 $190 $3 $2,758
Change from prior year 29% 5% (3%) N/M 19%
Change from prior quarter 9% 1% (2%) N/M 6%
EBT $487 $670 $(1) $(40) $1,116
Change from prior year 11% 0% N/M N/M (5%)
Change from prior quarter 14% (2%) N/M N/M 2%
EBT as a % of revenues 28% 83% (1%) N/M 40%
Net income (loss) $915
Change from prior year (2%)
Change from prior quarter 2%
Diluted EPS $0.55
Change from prior year 0%
Change from prior quarter 2%
Diluted shares used 1,654
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) R&D QSI(3) (GAAP)
Revenues $- $- $4 $2,762
Change from prior year N/M 19%
Change from prior quarter 100% 6%
EBT $(139) $(13) $(82) $882
Change from prior year (22%) N/A 10% (9%)
Change from prior quarter (7%) N/A (30%) (3%)
EBT as a % of revenues N/A N/A N/M 32%
Net income (loss) $(94) $(13) $(60) $748
Change from prior year (25%) N/A 2% (6%)
Change from prior quarter (7%) N/A (50%) (2%)
Diluted EPS $(0.06) $(0.01) $(0.04) $0.45
Change from prior year (50%) N/A 0% (4%)
Change from prior quarter (20%) N/A (100%) (4%)
Diluted shares used 1,654 1,654 1,654 1,654
Second Quarter - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,620 $795 $194 $(5) $2,604
EBT 427 684 - (12) 1,099
Net income (loss) 894
Diluted EPS $0.54
Diluted shares used 1,643
Estimated Total
Share-Based Qualcomm
Segments Compensation(2) QSI(3) (GAAP)
Revenues $- $2 $2,606
EBT (130) (63) 906
Net income (loss) (88) (40) 766
Diluted EPS $(0.05) $(0.02) $0.47
Diluted shares used 1,643 1,643 1,643
Third Quarter - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,367 $766 $196 $(4) $2,325
EBT 439 668 18 52 1,177
Net income (loss) 934
Diluted EPS $0.55
Diluted shares used 1,704
Estimated Total
Share-Based Qualcomm
Segments Compensation(2) QSI(3) (GAAP)
Revenues $- $- $2,325
EBT (114) (91) 972
Net income (loss) (75) (61) 798
Diluted EPS $(0.04) $(0.04) $0.47
Diluted shares used 1,704 1,704 1,704
Fourth Quarter - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $1,419 $647 $245 $(6) $2,305
EBT 424 537 31 137 1,129
Net income (loss) 911
Diluted EPS $0.54
Diluted shares used 1,689
Estimated Total
Share-Based Tax Items Qualcomm
Segments Compensation(2) (4) QSI(3) (GAAP)
Revenues $- $- $1 $2,306
EBT (117) - (64) 948
Net income (loss) (77) 331 (34) 1,131
Diluted EPS $(0.05) $0.20 $(0.02) $0.67
Diluted shares used 1,689 1,689 1,689 1,689
Twelve Months - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $5,275 $2,772 $828 $(5) $8,870
EBT 1,547 2,340 88 388 4,363
Net income (loss) 3,406
Diluted EPS $2.01
Diluted shares used 1,693
Estimated Total
Share-Based Tax Items In-Process Qualcomm
Segments Compensation(2) (4) R&D QSI (GAAP)
Revenues $- $- $- $1 $8,871
EBT (487) - (10) (240) 3,626
Net income (loss) (321) 364 (9) (137) 3,303
Diluted EPS $(0.19) $0.22 $(0.01) $(0.08) $1.95
Diluted shares used 1,693 1,693 1,693 1,693 1,693
Nine Months - Fiscal Year 2008
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $4,956 $2,248 $595 $2 $7,801
Change from prior year 29% 6% 2% N/M 19%
EBT $1,383 $1,895 $23 $25 $3,326
Change from prior year 23% 5% (60%) N/M 3%
Net income (loss) $2,682
Change from prior year 8%
Diluted EPS $1.62
Change from prior year 10%
Diluted shares used 1,654
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) R&D QSI(3) (GAAP)
Revenues $- $- $7 $7,808
Change from prior year N/M 19%
EBT $(394) $(14) $(200) $2,718
Change from prior year (6%) (40%) (14%) 1%
Net income (loss) $(267) $(13) $(120) $2,282
Change from prior year (9%) (44%) (17%) 5%
Diluted EPS $(0.16) $(0.01) $(0.07) $1.38
Change from prior year (14%) 0% (17%) 8%
Diluted shares used 1,654 1,654 1,654 1,654
Nine Months - Fiscal Year 2007
Qualcomm
Reconciling Pro
Segments QCT QTL QWI Items (1) Forma
Revenues $3,856 $2,125 $583 $1 $6,565
EBT 1,123 1,803 58 250 3,234
Net income (loss) 2,494
Diluted EPS $1.47
Diluted shares used 1,694
Estimated Total
Share-Based In-Process Qualcomm
Segments Compensation(2) Tax Items R&D QSI(3) (GAAP)
Revenues $- $- $- $- $6,565
EBT (370) - (10) (176) 2,678
Net income (loss) (244) 33 (9) (103) 2,171
Diluted EPS $(0.14) $0.02 $(0.01) $(0.06) $1.28
Diluted shares used 1,694 1,694 1,694 1,694 1,694
(1) Reconciling items related to revenues consist primarily of other
nonreportable segment revenues less intersegment eliminations.
Reconciling items related to earnings before taxes consist primarily
of certain investment income, research and development expenses and
marketing expenses that are not allocated to the segments for
management reporting purposes, nonreportable segment results and the
elimination of intersegment profit.
(2) Certain share-based compensation is included in operating expenses
as part of employee-related costs but is not allocated to the
Company's segments as such costs are not considered relevant by
management in evaluating segment performance.
(3) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equals the annual tax provisions for each
column computed in accordance with GAAP. In interim quarters, the
tax provision for the QSI operating segment is computed by
subtracting the tax provision for Qualcomm pro forma, the tax items
column and the tax provisions related to estimated share-based
compensation and in-process R&D from the tax provision for total
Qualcomm (GAAP).
(4) During the fourth quarter of fiscal 2007, the Company recorded a
US$331 million tax benefit, or US$0.20 diluted earnings per share,
related to tax expense recorded in prior years resulting from the
completion of tax audits during the fourth fiscal quarter. The
fiscal 2007 Qualcomm pro forma results excluded this tax benefit
attributable to prior years.
N/M - Not Meaningful
N/A - Not Applicable
Sums may not equal totals due to rounding.
Conference Call
Qualcomm's third quarter fiscal 2008 earnings conference call will be broadcast live on July 24, 2008 beginning at 5:00 a.m. Pacific Daylight Time (PDT) on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on July 24, 2008, beginning at approximately 6:00 a.m. PDT through August 23, 2008 at 9:00 p.m. PDT. To listen to the replay, U.S. callers may dial +1-800-642-1687 and international callers may dial +1-706-645-9291. U.S. and international callers should use reservation number 57610454. An audio replay of the conference call will be available on the Co