QUALCOMM Increases Financial Guidance for the Second Fiscal Quarter of 2006

San Diego (ots/PRNewswire) -

QUALCOMM Incorporated (Nasdaq: QCOM) today updated its financial
guidance for the second fiscal quarter ending March 26, 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
expense, tax benefits related to prior years and acquired in-process
research and development (R&D) expense.

Second Fiscal Quarter Business Outlook

Based on the current business outlook, we now anticipate second
fiscal quarter revenues for QUALCOMM pro forma to be approximately
US$1.75 to US$1.82 billion. We now anticipate second fiscal quarter
QUALCOMM pro forma diluted earnings per share to be approximately
US$0.40 to US$0.41, compared to US$0.29 in the year ago quarter. This
estimate is based on the shipment of approximately 47-48 million
Mobile Station Modem (MSM) chips during the quarter compared to
approximately 37 million in the year ago quarter and approximately 47
million in the prior quarter. We previously anticipated second fiscal
quarter QUALCOMM pro forma revenues of US$1.63 to US$1.73 billion,
QUALCOMM pro forma diluted earnings per share of approximately
US$0.35 to US$0.37 and estimated shipments of approximately 44 to 46
million MSM chips.

The majority of our licensees have reported royalties in the
second fiscal quarter for products shipped in the December quarter.
Based on these reports and an estimate of the few licensees yet to
report, we anticipate December quarter shipments of approximately 67
million CDMA units (CDMA2000(TM) and WCDMA) at an average selling
price of approximately US$209 compared to our prior estimate of
approximately 59-61 million units at an average selling price of
approximately US$209. Calendar year 2005 total CDMA handset shipments
are estimated to have been approximately 209 million units, including
approximately 49 million WCDMA units and approximately 160 million
CDMA2000 units, compared to our prior estimate of 203 million units,
including approximately 45 million WCDMA units and approximately 158
million CDMA2000 units.

"Reports from our licensees for handset shipments in the December
quarter indicate stronger than expected WCDMA volumes in Europe and
stronger than expected CDMA2000 volumes primarily in North America
and India," said Dr. Paul E. Jacobs, CEO of QUALCOMM. "In our chipset
business we are seeing greater than expected demand for shipments of
our low-end voice-centric and high-end 1xEV-DO products in the March
quarter. Based on our estimates of CDMA channel inventory and demand
for our chipsets in the coming June quarter, we continue to believe
CDMA channel inventories are within the normal historical band. In
addition, we continue to work closely with our partners to achieve
competitive price points for handsets that will bring the benefits of
CDMA technology to more of the world's current and next billion
wireless subscribers."

The following table summarizes total QUALCOMM (GAAP) and QUALCOMM
pro forma results for the second fiscal quarter of 2005 and guidance
for the second fiscal quarter of 2006 based on the current business
outlook. Total QUALCOMM (GAAP) guidance for the second 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:

Business Outlook Summary
(All figures in US$)
SECOND QUARTER
Prior Guidance Current Guidance
Q2'05 Q2'06 Q2'06
Results Estimates Estimates
QUALCOMM Pro Forma
Revenues $1.37B $1.63B - $1.73B $1.75B - $1.82B
Year-over-year change increase 19% - 27% increase 28% - 33%
Diluted earnings
per share (EPS) $0.29 $0.35- $0.37 $0.40- $0.41
Year-over-year change increase 21% - 28% increase 38% - 41%
Total QUALCOMM (GAAP)
Revenues $1.37B $1.63B - $1.73B $1.75B - $1.82B
Year-over-year change increase 19% - 27% increase 28% - 33%
Diluted earnings
per share (EPS) $0.31 $0.28- $0.30 $0.33- $0.34
Year-over-year change decrease 3% - 10% increase 6% - 10%
Diluted EPS
attributable
to in-process R&D n/a ($0.01) ($0.01)
Diluted EPS
attributable
to QSI ($0.01) ($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 $0.03 n/a n/a
Metrics
MSM Shipments approx. 37M 44M - 46M 47-48M
CDMA/WCDMA handset
units shipped approx. 52M(i) 59M - 61M(i) 67M(i)
CDMA/WCDMA handset
unit wholesale
average selling
price approx. $207(i) $209(i) $209(i)
(i)Based on shipments in Dec. quarter, reported in Mar. quarter

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, California, 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 excludes
the QUALCOMM Strategic Initiatives (QSI) segment, estimated
share-based compensation, tax benefits related to prior years and
acquired in-process R&D expense. Pro forma financial measures used by
the Company's management include pro forma revenues, pro forma
earnings before tax, pro forma net income and pro forma diluted
earnings per share. Pro forma information is used by management to
evaluate, assess and benchmark the Company's operating results, and
the Company believes that pro forma reporting represents relevant and
useful information that is widely used by analysts, investors and
other interested parties in its industry.

The Company's management uses pro forma financial information
excluding QSI and share-based compensation to evaluate, assess and
benchmark the Company's operating results because the effects of
fluctuations in the value of investments and share-based compensation
are viewed by management as unrelated to the Company's operational
performance, and share-based compensation is not an expense that
requires or will require cash payment by the Company. QSI results
relate to strategic investments for which the Company has exit
strategies of varying durations. The Company believes that financial
data excluding the QSI segment and the estimate of share-based
compensation provides investors with meaningful information about the
Company's ongoing core operating businesses, including QUALCOMM CDMA
Technologies, QUALCOMM Technology Licensing and QUALCOMM Wireless &
Internet. This presentation is also useful to investors in evaluating
performance on a basis that is consistent and comparable with periods
prior to the adoption of FAS 123R in the first quarter of fiscal
2006.

The Company presents pro forma results excluding certain tax
benefits related to prior years to provide management, as well as
investors, a clearer understanding of its ongoing tax rate and after
tax earnings. The Company believes that this presentation is useful
in evaluating performance on a consistent and comparable basis.

The Company presents pro forma financial information for fiscal
2006 excluding acquired in-process R&D expense to evaluate, assess
and benchmark the Company's operating performance because acquired
in-process R&D expense is viewed by management as unrelated to the
operating activities of the Company's ongoing core businesses.
Management believes that this presentation is useful in evaluating
performance on a consistent and comparable basis.

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 and price of
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, 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.

Reconciliation of Non-GAAP Financial Measure Related to Prior Periods
(In millions, except per share data)
(All figures in US$)
Second Quarter - Fiscal Year 2005
Segments QCT QTL QWI Reconciling
Items (1)
Revenues $746 $493 $151 $(25)
EBT 158 448 8 52
Net income (loss)
Diluted EPS
Shares used in
per share calculations
Second Quarter - Fiscal Year 2005
Segments QUALCOMM Tax Total
Pro Forma Adjustments QUALCOMM
(2) QSI (GAAP)
Revenues $1,365 $-- $-- $1,365
EBT 666 -- (33) 633
Net income (loss) 487 55 (10) 532
Diluted EPS $0.29 $0.03 $(0.01) $0.31
Shares used in
per share calculations 1,704 1,704 1,704 1,704
(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 second quarter of fiscal 2005, the Company decreased its
estimate of R&D costs allocable to the Company's foreign operations
under an intercompany cost sharing agreement. Due to this change in
estimate, the effective tax rate in the second quarter for total
QUALCOMM (GAAP) included a US$55 million benefit, or US$0.03 diluted
earnings per share, related to fiscal 2004. For fiscal 2005 pro
forma presentation, results have been adjusted to exclude the tax
benefit attributable to fiscal 2004.
QUALCOMM Contact:
Bill Davidson, Investor Relations
Phone: +1-858-658-4813
Email: ir@qualcomm.com

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

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

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