Qualcomm Announces Third Quarter Fiscal 2015 Results
Revenues $5.8 billion – GAAP EPS $0.73, Non-GAAP EPS $0.99 – Record $6.2 billion of Capital Returned to Stockholders – Announces Strategic Realignment Plan
Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2015 ended June 28, 2015.
“Our fiscal third quarter revenues, MSM chip shipments and EPS were within prior expectations, and we took a significant step towards our increased capital return commitments through the initiation of a $5 billion accelerated share repurchase as part of our plan to repurchase an additional $10 billion in stock by March 2016,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “During the quarter, we also launched a comprehensive review of our cost structure and announced today a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth. Importantly, the changes we are announcing today are designed to enable us to right-size our cost structure and reposition Qualcomm for improved financial and operating performance. We will continue to invest to build upon our technology leadership position and capitalize on the significant long-term opportunities before us in order to create sustainable long-term value for stockholders.”
Qualcomm Announces Strategic Realignment Plan
Taking Aggressive Actions to Improve Performance – Plan Designed to Right-Size Cost Structure and Increase QCT Margins – Will Examine Financial and Structural Alternatives to Create Stockholder Value and Position the Company for Future Growth – Plan Endorsed by JANA Partners, a Significant Qualcomm Stockholder
Qualcomm Incorporated (NASDAQ: QCOM) today announced it has initiated a Strategic Realignment Plan designed to improve execution, enhance financial performance and drive profitable growth as the Company works to create sustainable long-term value for stockholders. The Company also announced that it has entered into an agreement with JANA Partners pursuant to which Mark McLaughlin and Tony Vinciquerra have been added to the Board of Directors and a third director to be selected by the Company and consented to by JANA will be added promptly.
The core elements of the new plan include:
· Aggressively right-sizing the cost structure by eliminating approximately $1.4 billion in spending, including an approximately $300 million reduction in annual share-based compensation grants; Company expects to achieve this run-rate by the end of fiscal year 2016
· Reviewing alternatives to the Company’s corporate and financial structure
· Reaffirming the Company’s plan to return significant capital to stockholders
· Adding new Directors with complementary skills while reducing the average tenure of the Board of Directors
· Further aligning executive compensation with performance, including returns on investment
· Disciplined investment in areas that further Qualcomm’s leadership positions, build upon the Company’s core technologies and capabilities and offer attractive growth opportunities and returns