QUALCOMM Increases Financial Guidance for the Third Fiscal Quarter of 2006

San Diego (ots/PRNewswire) -

QUALCOMM Incorporated (Nasdaq: QCOM) today updated its financial
guidance for the third fiscal quarter ending June 25, 2006.

The following statements are forward looking and actual results
may differ materially. Please see "Note Regarding Forward-Looking
Statements" at the end of this news release for a description of
certain risk factors and QUALCOMM's annual and quarterly reports on
file with the Securities and Exchange Commission (SEC) for a more
complete description of risks.

Pro Forma Defined

Pro forma results and guidance exclude the QUALCOMM Strategic
Initiatives (QSI) segment, estimated share-based compensation, tax
benefits related to prior years and acquired in-process research and
development (R&D) expense, when applicable.

Third Fiscal Quarter Business Outlook

Based on the current business outlook, we now anticipate third
fiscal quarter QUALCOMM pro forma revenues to be approximately
US$1.91 to US$1.96 billion. We now anticipate third fiscal quarter
QUALCOMM pro forma diluted earnings per share to be approximately
US$0.41 to US$0.42, compared to US$0.28 in the year ago quarter.
This estimate is based on the shipment of approximately 55 million
Mobile Station Modem (MSM) chips during the quarter compared to
approximately 36 million in the year ago quarter and approximately
49 million in the prior quarter. We previously anticipated third
fiscal quarter QUALCOMM pro forma revenues to be at or slightly above
the high end of prior guidance of US$1.77 to US$1.87 billion. We
previously anticipated third fiscal quarter QUALCOMM pro forma
diluted earnings per share of approximately US$0.38 to US$0.40 and
previously estimated shipments of approximately 53 to 56 million MSM
chips.

The majority of our licensees have reported royalties in the third
fiscal quarter for products shipped in the March quarter. Based on
these reports and an estimate of licensees yet to report, we
anticipate March quarter shipments of approximately 65 to 66 million
CDMA units (CDMA2000(TM) and WCDMA) at an average selling price of
approximately US$213, compared to our prior estimate of approximately
62 to 64 million units at an average selling price of approximately
US$203.

"Consumer demand for third generation devices and services
continues to be vibrant as operators offer compelling prices,
services and devices," said Dr. Paul E. Jacobs, chief executive
officer of QUALCOMM. "WCDMA handset shipments and average selling
prices are exceeding our prior expectations. Demand for our CDMA2000
infrastructure chips, notably DO revision A, is exceptionally strong.
This, combined with the ongoing movement to upgrade WCDMA networks to
HSDPA, causes us to be encouraged by the forward market for 3G
advanced devices and services."

The following table summarizes total QUALCOMM (GAAP) and QUALCOMM
pro forma guidance for the third fiscal quarter of 2006 based on the
current business outlook. Total QUALCOMM (GAAP) guidance for the
third fiscal quarter of 2006 includes approximately US$0.05 diluted
loss per share related to estimated share-based compensation.
Estimated share-based compensation in future periods may vary
materially from the business outlook as the methodology used to
calculate this estimate is dependent on a variety of assumptions
which are subject to market fluctuations and other factors.

Due to their nature, certain income and expense items such as
realized investment gains or losses in QSI, gains and losses on
certain derivative instruments or asset impairments, cannot be
accurately forecast. Accordingly, the Company excludes forecasts of
such items from its business outlook, and actual results may vary
materially from the business outlook if the Company incurs any such
income or expense items.

The following estimates are approximations and are based on the
current business outlook:

(All Figures Shown are in US$)
Business Outlook Summary
THIRD QUARTER
Prior Guidance Current Guidance
Q3'05 Q3'06 Q3'06
Results Estimates Estimates
QUALCOMM Pro
Forma
Revenues $1.36B At or slightly above $1.91B - $1.96B
the high end of prior
guidance of $1.77B
to $1.87B
Year-over-year
change increase 41% - 44%
Diluted earnings
per share (EPS) $0.28 $0.38 - $0.40 $0.41 - $0.42
Year-over-year
change increase 36% - 43% increase 46% - 50%
Total QUALCOMM
(GAAP)
Revenues $1.36B At or slightly above $1.91B - $1.96B
the high end of prior
guidance of $1.77B
to $1.87B
Year-over-year
change increase 41% - 44%
Diluted earnings
per share (EPS) $0.33 $0.32 - $0.34 $0.35 - $0.36
Year-over-year
change decrease 3% - increase 3% increase 6% - 9%
Diluted EPS
attributable
to QSI $0.05 ($0.01) ($0.01)
Diluted EPS
attributable to
estimated
share-based
compensation n/a ($0.05) ($0.05)
EPS attributable
to tax benefit
related
to prior years $0.01 n/a n/a
Metrics
MSM
Shipments approx. 36M approx. 53M - 56M approx. 55M
CDMA/WCDMA
handset
units
shipped approx. 43M(a) approx. 62M - 64M(a) approx. 65M - 66M(a)
CDMA/WCDMA
handset unit
wholesale
average
selling
price approx. $231(a) approx. $203(a) approx. $213(a)
(a) Based on shipments in March quarter, reported in June quarter
Sums may not equal totals due to rounding.

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 2006 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.

Pro forma information used by management excludes the QUALCOMM
Strategic Initiatives (QSI) segment, estimated share-based
compensation, certain tax benefits related to prior years and
acquired in-process R&D expense. 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 is
excluded because management views the valuation of options and other
share-based compensation as theoretical and unrelated to the
Company's operational performance as it is affected by factors that
are subject to change on each grant date 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 not an expense that requires or will require cash
payment by the Company. Certain tax benefits 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 expense in fiscal 2006 is excluded because such
expense is incurred infrequently and is viewed by management as
unrelated to the operating activities of the Company's ongoing core
businesses.

Management is able to assess what it believes is a more
fundamentally pure and comparable set of financial performance
measures for the Company and its business segments by eliminating the
episodic impact of strategic investments in QSI and items such as
acquired in-process R&D, as well as the inherent, non-operational
volatility of share-based compensation. 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.

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 guidance
and QUALCOMM pro forma results and guidance 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 development,
deployment and commercial acceptance of CDMA-based networks and
CDMA-based technology, including CDMA2000 1X, 1xEV-DO, WCDMA and
HSDPA both domestically and internationally; our dependence on major
customers and licensees; fluctuations in the demand for CDMA-based
products, services or applications; foreign currency fluctuations;
strategic loans, investments and transactions the Company has or may
pursue; our dependence on third party manufacturers and suppliers;
our ability to maintain and improve operational efficiencies and
profitability; developments in current and future litigation; the
development, deployment and commercial acceptance of the
MediaFLO(TM) USA network and FLO(TM) technology; as well as the
other risks detailed from time-to-time in the Company's SEC reports.

QUALCOMM(R), Mobile Station Modem(TM), MSM(TM) are trademarks
and/or service marks of QUALCOMM Incorporated. CDMA2000(R) is a
registered trademark of the Telecommunications Industry Association.
All other trademarks are the property of their respective owners.

QUALCOMM Contact:
Bill Davidson, Investor Relations
Phone: +1-858-658-4813
Email: ir@qualcomm.com
(All Figures Shown are in US$)
Reconciliation of Non-GAAP Financial Measure Related to Prior Period
(In millions, except per share data)
Third Quarter - Fiscal Year 2005
Reconciling
Segments QCT QTL QWI Items(1)
Revenues $766 $448 $164 $(20)
EBT 186 407 12 51
Net income (loss)
Diluted EPS
Shares used in per share calculations
Third Quarter - Fiscal Year 2005
Tax Total
QUALCOMM Adjustments QUALCOMM
Segments Pro Forma (2) QSI(3) (GAAP)
Revenues $1,358 $-- $-- $1,358
EBT 656 -- 30 686
Net income (loss) 465 16 79 560
Diluted EPS $0.28 $0.01 $0.05 $0.33
Shares used in per
share calculations 1,683 1,683 1,683 1,683
(1) Reconciling items related to revenues consist primarily of other
non- reportable segment revenues less intersegment eliminations.
Reconciling items related to earnings before taxes consist primarily
of corporate expenses, charges that are not allocated to the
segments for management reporting purposes, unallocated net
investment income, non-reportable segment results and the
elimination of intercompany profit.
(2) During the third quarter of fiscal 2005, the Company made an
election to compute its California tax on the basis of its U.S.
operations only, which resulted in a US$38 million tax benefit. Our
effective tax rate in the third quarter of fiscal 2005 for total
QUALCOMM (GAAP) includes a US$16 million tax benefit, or US$0.01
diluted earnings per share, for this California tax election
related to fiscal 2004. For fiscal 2005 pro forma presentation,
results have been adjusted to exclude the tax benefit attributable
to fiscal 2004.
(3) At fiscal year-end, the sum of the quarterly tax provisions for each
column, including QSI, equal 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 and the tax
adjustment column from the tax provision for total QUALCOMM (GAAP).

Web site: http://www.qualcomm.com

ots Originaltext: Qualcomm Incorporated
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Bill Davidson, Investor Relations of QUALCOMM, +1-858-658-4813,
ir@qualcomm.com