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» Qualcomm Inc. F2Q10 (Qtr End 28/03/2010) Earnings Call Transcript
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During this conference call if we use any non-GAAP financial measures as defined by the SEC and Regulation G, you can find the required reconciliations to GAAP on our Website. I’d also like to direct you to our 10-Q and earnings release which were filed and furnished respectively with the SEC today and are available on our Website.We may make forward-looking statements relating to our expectations and other future events that may differ materially from Qualcomm’s actual results. Please review our SEC filings for a detailed presentation of each of our businesses and associated risks and other important factors that may cause our actual results to differ from these forward-looking statements. And now, it is my pleasure to introduce Qualcomm’s Chairman and Chief Executive Officer, Dr. Paul Jacobs. Paul Jacobs Thanks, Warren and good afternoon, everyone. Our financial performance this quarter was ahead of our expectations, and was driven by record MSM chipset shipments, favorable product mix, and continued strong demand for 3G devices around the world. Looking forward, we continue to see healthy CDMA based device growth or approximately 23% in calendar year 2010, and are pleased to be raising our revenue and earnings guidance for the fiscal year. I’d also like to highlight that during the third quarter and the first few weeks of our current quarter, we repurchased an additional $1.3 billion of our common stock, bringing our cumulative repurchases to $3 billion in this fiscal year. This is an exciting time in the wireless industry, although some global economic uncertainty remains, our business is extremely well positioned to capitalize on some very positive industry trends. Specifically, mobile wireless data usage continues to expand rapidly. We’re at a transformative stage in the industry as people increasingly use their 3G devices to stay connected. New network technologies are coming online to meet the demand for more capacity. With the recent issuance of licenses in India, the 3G footprint is now global. Finally, we’re seeing the emergence of new 3G connected device types come to market.
Qualcomm’s scale and breadth of technologies position us to uniquely capitalize on these opportunities. Our broad licensing program and our semiconductor expertise in managing the complex performance and power management demand of the market really set us apart.So, moving into some specifics, global wireless subscribers recently surpassed the 5 billion milestones according to Wireless Intelligence, just over 1 billion of these being 3G. According to the GSA and CDG, approximately 85% of the world’s networks now support 3G. With networks in place and a healthy demand for data services, we expect the global migration from 2G to 3G to continue. Smartphones remained one of the fastest growing segments in wireless, as evidenced by the focus major OEMs are placing on this device category. According to Informa, one in every five phones sold globally in 2010 will be a smartphone. By 2012, approximately one in every three is projected to be a smartphone. Additionally, we’re seeing carriers continue to experiment with variable data pricing plans which will help to spur data growth and drive demand for data capable devices. In our broad family of chipsets, including the costs effective QSC single chips designed for emerging market as well our industry-leading Snapdragon products which support a wide range of operating systems and multimedia capabilities vision us well to assist our partners in creating devices across all tiers in the market. We recently held our first Annual Uplinq Conference in San Diego, which provided a forum for developers and partners to learn about new initiatives within Qualcomm and to create new business opportunities. The event was a success and brought together more than 2,100 attendees from around the world. We focused on our support for multiple operating systems and how developers can better optimize their applications to work with our solutions, as well as how Brew MP will help bring the smartphone experience to the masses. Read the rest of this transcript for free on seekingalpha.com