Today, Qualcomm [NASDAQ:QCOM] announced both their Quarterly and Annual numbers for Fiscal 2011. In their Fiscal 4Q 2011, aka calendar 3Q 2011, Qualcomm reported Revenues of $4.12B with a profit of $1.06B. These figures represent a 39% improvement year over year and 14% over the previous quarter in terms of revenue. In terms of profit, Qualcomm was also up 22% over the same quarter a year ago and 2% over the previous quarter indicating that Qualcomm is still maintaining a healthy margin. This was after Qualcomm had endured a 20% tax on their operating income of $1.24B which brought them down to $1.06B. The non-GAAP profit of $1.24B represents an EPS of $0.80 which hits the high end of their mark on their expected non-GAAP $0.75 to $0.80 mark, and they also surpassed expectations of $3.86 to $4.16B in revenue. These stellar numbers show that Qualcomm is powering forward quarter by quarter and improving their earnings and positions in mobile.
For Fiscal 2011, Qualcomm reported revenues of $14.96B, up a whopping 36% year over year. Qualcomm also reported that on the $14.96B in revenue they had total operating income of $5.03B also up a staggering 35% over the previous year. In addition to that, Qualcomm also reported a net profit of $4.26B on that 14.96B in revenue representing a 31% increase over the previous year which results in an overall profit margin of 28.5%. These figures hit the very high end of Qualcomm’s expectation’s for Fiscal Year 2011 which were $14.7B to $15B which was already an increase from previous expectations a few quarters ago. Although, they did also hit their GAAP earnings expectations of $2.50-$2.55 per share with their EPS of $2.52. As a result of all of these figures, Qualcomm was able to increase their dividends to investors for the 8th year in a row.
Qualcomm’s fiscal 4Q 2011 was also their highest volume quarter in the company’s history. Qualcomm reported 127M shipments of MSM chipsets in the 4Q 2011 which was their highest volume quarter to date which brought the total year’s shipments into a new record for Qualcomm by shipping 483M MSM chipsets in the whole fiscal year of 2011. These shipment increases are likely due to the fact that Qualcomm finds themselves operating system agnostic with their chipsets being present in all of the major mobile operating system platforms and the flagship SoC for Microsoft’s Windows Phone and a close partner with many if not most Android OEMs as well as CDMA iPhone basebands. These figures represent annual increases of 14% for 4Q 2011 and 21% for the fiscal year 2011 compared to 2010. While some may attribute these improvements to economic conditions, Qualcomm’s earnings and overall performance has been nearly untouched by the global economic hardships primarily due to the nearly exponential growth of the mobile data enabled device sector. As a result, in the fiscal year 2011 Qualcomm reported that they completed the year with $21B in cash and marketable securities even after they had completed their largest acquisition in company history of Atheros for $3.1B.
Qualcomm’s outlook for 1Q 2012 and fiscal 2012 are if possible, even brighter than their current earnings. For the fiscal year 2012, Qualcomm is expecting between $18B and $19B in revenue which represents a growth of 30 to 42% over the current year. Furthermore, Qualcomm expects to finally seal their sale of the FLOTV spectrum to AT&T which will further improve their financial figures as that deal has been in the works for multiple quarters pending regulatory approval. As a result, Qualcomm is predicting a non-GAAP EPS of $3.42 to $3.62 per share which represents an increase between 7 and 14% over the current year.
For fiscal 1Q 2012, Qualcomm expects to out-do themselves once again by taking in revenues between $4.35 and $4.75B which represent increases of 5 to 13% over the current 4Q 2011 and 30 to 42% over fiscal 1Q 2011. They also forecast non-GAAP earnings per share of $0.86 to $0.92 which place them between 5 to 12% growth year over year or 7 to 13% over the current quarter. Qualcomm also expects their MSM shipments to be between approximately 146M to 154M units representing a 24 to 31% increase year over year. These expectations are primarily fueled by the expectation of heavy adoption of Qualcomm chipsets in 2012 by Android, Windows Phone and possibly even iOS. Since Qualcomm is still the primary SoC of choice with many OEMs and they are expecting great adoption of their 28nm chipsets in 2012 there is no doubt that Qualcomm has a very good chance of hitting if not surpassing their own guidance figures.
As they stated during their call, they have multiple licensing agreements in place for CDMA and will continue to reap the benefits of those agreements in addition to settling multiple patent litigation suits with competitors. With the introduction of former adversaries like Nokia into the Windows Phone ecosystem, Qualcomm is adding yet another large and influential manufacturer to their repository of manufacturers who are using Qualcomm chipsets in their mobile devices. This new partnership in addition to the current ones that are already growing, makes us believe that there is no doubt that fiscal 2012 will be yet another record year for Qualcomm and its investors.
In current trading, QCOM is at $52.18 up $2.04 or 4.07% in anticipation of the news. In after hours trading post-earnings call, QCOM is up an additional $5.05 or 9.68% at $57.23. This represents an overall change of 13.75% or $7.09 on news of today’s earnings call. Needless to say, quite a good day for Qualcomm and Qualcomm investors.