An Internet presentation and audio broadcast accompany this call, and you can access them by visiting our website at www.qualcomm.com.During this conference call, if we use non-GAAP financial measures as defined in Regulation G, you can find the related 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. During this conference call, we will make forward-looking statements regarding future events or results of the company. Actual events or results could differ materially from those projected in the forward-looking statements. Please refer to our SEC filings, including our most recent Form 10-K and 10-Q, which contain important factors that could cause actual results to differ materially from the forward-looking statements. And now it is my pleasure to introduce Qualcomm's Chairman and Chief Executive Officer, Dr. Paul Jacobs. Paul E. Jacobs Thank you, Warren, and good afternoon, everyone. We are pleased to report another quarter of record revenues and earnings per share driven by strong demand for 3G and 3G/4G multimode-enabled devices across both developed and emerging regions. Consistent with this performance in March, we announced the 16% increase in our dividend and a new $4 billion share repurchase authorization. QCT delivered another strong quarter and announced several new products, including our third generation of LTE chipsets, our family of 802.11ac solutions and our new Snapdragon S4 Pro processor featuring our latest graphics technology. We're seeing very strong demand for our industry-leading MSM8960 and other 28-nanometer products. Although the manufacturing yields are progressing per expectation, there's a shortage of 28-nanometer capacity. And at this stage, we cannot secure enough supply to meet the increasing demand we're experiencing. We're working closely with our partners to bring additional capacity online. However, the constraints on 28-nanometer supply are limiting our potential revenue upside this fiscal year.
Looking forward, we believe we will see significant improvement in supply in the December quarter, and we will continue to work this issue aggressively.Turning to QTL. Our Licensing business had another strong quarter with total reported device sales by our subscriber licensees driven by continued global adoption of smartphones and other 3G-connected devices. QTL continues to grow and expand its base of licensees, and we now have over 210 CDMA licensees and more than 20 OFDMA licensees. As with 3G, we believe that our 4G portfolio is the most widely licensed in the industry. On the spectrum front, we completed the sale of our 700 megahertz spectrum in the U.S. to AT&T for $1.9 billion. And separately, our Indian subsidiary has received its ISP license from India's Department of Telecommunications. I was in India last week, and I'm hopeful that the related spectrum will be assigned to us soon. Looking forward, we continue to see favorable trends across the key growth drivers for our business. First, smartphone demand continues to be strong across all key regions. According to Gartner, annual worldwide smartphone sales will now exceed 1 billion units in 2014. LTE is increasingly becoming a catalyst for multimode 3G/4G smartphone adoption. In Europe, the first LTE smartphones were sold this quarter. And here in U.S., Verizon plans to add 4G LTE capability to each of their smartphone launches during the rest of 2012. Second, subscriber migration from 2G to 3G remains strong, particularly in emerging regions. According to Wireless Intelligence, 3G connections in emerging regions grew to approximately 850 million this quarter, representing close to a 45% year-over-year increase. And further, they reported that China recently surpassed 1 billion mobile connections, yet only 24% of those connections were 3G if we include CDMA2000 1X, leaving a long runway for 3G growth in this important region. Read the rest of this transcript for free on seekingalpha.com