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 SAN DIEGO, Nov. 8 /PRNewswire/ -- QUALCOMM Inc. (NASDAQ-NMS: QCOM) today reported revenues for the fourth quarter ended Sept. 26, 1993, of $52.7 million, an increase of $23.7 million, or 82 percent from the same quarter last year. Revenues for the fiscal year ended Sept. 26, 1993, were $168.7 million, an increase of $61.2 million, or 57 percent over fiscal 1992.
 Earnings for the fourth quarter represented the company's third consecutive profitable quarter. The fourth quarter's net income was $7.2 million, or $.27 per share, compared with a loss of $609,000, or $.03 per share, for the same period of fiscal 1992. The fourth quarter earnings brought the year's net income to $12.1 million, or $.50 per share, compared to a loss of $4.1 million, or $.21 per share, in fiscal 1992. The increase in earnings is primarily due to the growth in sales of OmniTRACS(R) units and message service revenues, and higher levels of CDMA and OmniTRACS license and development fees.
 All areas of revenues increased significantly in the fourth quarter of fiscal year 1993 compared to the fourth quarter of fiscal 1992. Communications systems revenues were $38.1 million, a 72 percent increase over the $22.2 million recorded in the same quarter last year. License and development revenues were $7.4 million, an increase of 279 percent, compared to the fourth quarter in 1992, and contract service revenues were $7.3 million, an increase of 47 percent from the same quarter in fiscal 1992.
 Communications systems revenue, which accounted for 72 percent of revenues for the fourth quarter, is driven largely by revenues from OmniTRACS operations. OmniTRACS(R) unit shipments reached a record level in the fourth quarter with 7,404 units shipped to domestic and international customers, bringing the total number of units shipped for fiscal 1993 to 24,048. The company has now shipped over 57,000 OmniTRACS units since the product's introduction in late 1988.
 QUALCOMM recently announced an agreement with Motorola to work together to convert CoveragePLUS(R) customers to QUALCOMM's OmniTRACS system. "The addition of CoveragePLUS customers will allow QUALCOMM to further extend its OmniTRACS system service to trucking firms of all sizes," said Harvey White, president of QUALCOMM Inc. "In this time of increased competitive pressure in the transportation industry we see the continued growth of OmniTRACS as a clear indication of the service and cost advantages of the OmniTRACS system to both large and small trucking firms," added White. White also noted that QUALCOMM had recently added two leading truckload carriers, Builders Transport and Chemical Leaman, the largest tanker operator, as well as several prestigious smaller firms including Clean Harbors Environmental Services, Cox Transportation Services and Van Eerden Trucking.
 License and development fees increased significantly in the fourth quarter due primarily to license agreements entered into with four major Korean cellular equipment manufacturers. Goldstar, Hyundai, Maxon and Samsung all signed worldwide licenses to manufacture and sell CDMA equipment. The licensing fees associated with these four manufacturers are to be paid in a series of installments, the first of which was recognized in the fourth quarter. The amount of future CDMA license fees will depend on the timing and extent to which the company's CDMA technology is commercially implemented.
 On July 16, 1993, the Telecommunications Industry Association (TIA) announced its adoption of a North American interim standard (IS-95) for cellular telecommunications based on QUALCOMM's CDMA technology. This announcement culminates approximately one year of effort by the TIA 45.5 committee members. "The adoption of CDMA as a standard was a major milestone for the company and the cellular industry," said Irwin Jacobs, chief executive officer of QUALCOMM. "Issuance of this standard facilitates the commercialization of CDMA both in the United States and abroad." He also noted that the Korean Ministry of Communications has selected the company's CDMA as a national standard for the Korean cellular telephone system.
 "We are very pleased with the significant progress that the company made during fiscal 1993 toward the commercialization of our CDMA technology for both cellular and PCS implementations," Jacobs added. In addition to the standards activities in the United States and Korea, the company introduced the CD-7000, the cellular industry's first dual-mode CDMA/analog portable phone, and announced an agreement with US West for the purchase of 36,000 CDMA phones to be manufactured by QUALCOMM.
 The year also saw increased interest in the emergence of Personal Communication Services (PCS) in the United States. The Federal Communications Commission (FCC) announced a program to auction PCS spectrum which could accelerate the commercial introduction of PCS. The company is participating in field trials with MCI, Time Warner, PacTel's TTL, and American Personal Communications for the use of the company's CDMA technology in PCS applications. As part of its continued efforts to develop PCS for use in cable TV applications, Cox Enterprises announced in August that it will test QUALCOMM's CDMA technology in the Cox Cable TV system in San Diego.
 The company's financial position was also strengthened significantly in fiscal 1993. In July, the company completed a new issue of 2,875,000 shares of common stock at $55.00 per share. The net cash proceeds of approximately $150 million have increased the company's cash and investments to nearly $200 million. "The proceeds from our recent public offering provide us with the financial resources to expand the company's role in CDMA beyond technology development and to participate directly in the commercialization of CDMA," added White.
 QUALCOMM develops, manufactures, markets, licenses and operates advanced communications systems and products based on digital wireless technology. QUALCOMM's OmniTRACS system is a satellite-based, two-way mobile communications and tracking system that provides data transmission and position reporting services for transportation companies and other mobile users in North America, Europe, Brazil and Japan. QUALCOMM is developing, manufacturing and licensing Code Division Multiple Access (CDMA) technology for use in digital wireless telephone systems and products. The company also provides secure communications equipment and a range of VLSI devices for use in commercial and government applications. In addition, the company has formed a joint venture with Loral Corp. to launch and operate the Globalstar system, a worldwide communications system using low Earth orbit (LEO) satellites.
 NOTE TO EDITORS: OmniTRACS and CoveragePLUS are registered trademarks of QUALCOMM Inc.
 Balance Sheet
 Sept. 26, 1993 Sept. 27, 1992
 Current assets:
 Cash and cash equivalents $97,453,000 $40,236,000
 Investments 94,622,000 14,131,000
 Accounts receivable, net 34,136,000 24,664,000
 Inventories 14,077,000 6,509,000
 Other current assets 1,251,000 1,167,000
 Total current assets 241,539,000 86,707,000
 Property, plant and
 equipment, net 62,349,000 20,311,000
 Other assets 2,701,000 1,299,000
 Total $306,589,000 $108,317,000
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts payable and
 accrued liabilities $29,382,000 $16,475,000
 Unearned revenue 5,851,000 9,020,000
 Current portion of long-term
 notes payable and leases 5,640,000 4,634,000
 Total current liabilities 40,873,000 30,129,000
 Long-term stockholder and
 other notes payable 23,019,000 2,651,000
 Capital lease obligations 1,886,000 2,874,000
 Long-term deposits and
 other liabilities 4,115,000 3,856,000
 Total liabilities 69,893,000 39,510,000
 Stockholders' equity:
 Preferred stock, $0.0001 par
 value; 8,000,000 shares
 authorized; no shares
 outstanding in 1993 and 1992 --- ---
 Common stock, $0.0001 par
 value; 50,000,000 shares
 authorized; 25,134,000 and
 20,886,000 shares issued and
 outstanding in 1993 and 1992 3,000 2,000
 Paid-in capital 277,229,000 121,401,000
 Accumulated deficit (40,536,000) (52,596,000)
 Total stockholders' equity 236,696,000 68,807,000
 Total $306,589,000 $108,317,000
 Statement of Operations
 12 Months Ended
 Sept. 26, 1993 Sept. 27, 1992
 Communications systems $123,828,000 $84,366,000
 License and development fees 16,271,000 9,092,000
 Contract services 28,609,000 14,063,000
 Total revenues 168,708,000 107,521,000
 Operating expenses:
 Communications systems 77,206,000 56,170,000
 Contract services 23,416,000 8,924,000
 Research and development 27,415,000 25,211,000
 Selling and marketing 16,335,000 9,868,000
 General and administrative 12,411,000 9,305,000
 Total operating expenses 156,783,000 109,478,000
 Operating income (loss) 11,925,000 (1,957,000)
 Interest income 3,346,000 1,823,000
 Interest expense (2,013,000) (2,149,000)
 Income (loss) before income tax
 expense and equity in losses
 of joint ventures 13,258,000 (2,283,000)
 Income tax expense (1,000,000) (580,000)
 Income (loss) before equity
 in losses of joint ventures 12,258,000 (2,863,000)
 Equity in losses
 of joint ventures (198,000) (1,261,000)
 Net income (loss) $12,060,000 ($4,124,000)
 Net earnings (loss)
 per common share: $0.50 ($0.21)
 Shares used in per share
 calculation 24,023,000 19,529,000
 -0- 11/8/93
 /CONTACT: Thomas Crawford of QUALCOMM, 619-658-4820; or Clarence Swearngan, Jr. of McQuerter Group, 619-450-0030/


JL-LM -- SD003 -- 1560 11/08/93 08:03 EST
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Publication:PR Newswire
Date:Nov 8, 1993

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