Qualcomm Raises Financial Guidance for the Third Fiscal Quarter of 2009

Updated Guidance Reflects Increased Demand for High-End Chipsets.

SAN DIEGO, -- Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, updated its financial guidance for the third fiscal quarter ending June 28, 2009.

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 that may affect the forward-looking statements.

Pro Forma Defined

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

Third Fiscal Quarter Business Outlook

The following estimates are based on the current business outlook:

•Revenues: estimated to be $2.67 to $2.77 billion compared to our prior guidance range of $2.40 to $2.60 billion.
•Operating income: estimated to be $1.06 to $1.11 billion pro forma, compared to our prior guidance range of $800 to $900 million; and estimated to be $830 to $880 million in accordance with generally accepted accounting principles (GAAP), compared to our prior guidance range of $550 to $650 million.
•CDMA-based Mobile Station Modem(TM) (MSM(TM)) shipments: estimated to be 94 to 95 million units compared to our prior guidance range of 87 to 92 million units.
•March quarter CDMA-based device shipments: estimated to be 109 to 111 million CDMA units (CDMA2000(R) and WCDMA), compared to our prior guidance of range of 107 to 112 million units; the CDMA unit average selling price is now estimated to be approximately $191, compared to our prior estimate of approximately $196.

"We are very pleased to raise our fiscal third quarter guidance, reflecting the strong worldwide demand for wireless broadband powered by 3G CDMA," said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. "Our increased guidance reflects stronger than expected demand for more data-capable chipsets and increased licensing revenues driven in part by advanced 3G network upgrades. While some chipset demand for developing markets has shifted to the fourth fiscal quarter and demand remains generally strong, due to the current economic environment we remain cautious and currently project a modest sequential decrease in chipset shipments."

The financial crisis has had, and may continue to have, an impact on the value of our marketable securities and net investment income (loss). While we do not forecast impairments, we do have unrealized losses on marketable securities that could be recognized in the third quarter of fiscal 2009 and future periods if market conditions do not improve. Given the market volatility and the significant judgments involved, accurately forecasting other-than-temporary impairments associated with our marketable securities is extremely difficult and actual results could vary materially. As a result, while we are providing revenue, operating income and our other standard guidance, we are not providing earnings per share guidance.

Moreover, our outlook does not include provisions for the consequences of injunctions, damages, or fines related to any pending legal matters. In addition, due to their nature, certain income and expense items, such as realized investment gains or losses, gains and losses on certain derivative instruments or asset impairments, cannot be accurately forecast. Accordingly, we exclude forecasts of such items from our business outlook, and actual results may vary materially from the business outlook if we incur any such income or expense items.

The following table summarizes GAAP and pro forma guidance for the third fiscal quarter of 2009 based on the current business outlook. The pro forma business outlook provided below is presented consistent with the presentation of pro forma results elsewhere herein.

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

Qualcomm's Business Outlook Summary

THIRD FISCAL QUARTER

Q3'08 Prior Guidance Current Guidance
Results (2) Q3'09 Q3'09
Estimates (3) Estimates (3)
Pro Forma
Revenues $2.76B $2.40B - $2.60B $2.67B - $2.77B
Year-over-year
change decrease 6% - 13% decrease 3% - even
Operating income $1.06B $0.80B - $0.90B $1.06B - $1.11B
Year-over-year
change decrease 15% - 25% even - increase 5%

GAAP
Revenues $2.76B $2.40B - $2.60B $2.67B - $2.77B
Year-over-year
change decrease 6% - 13% decrease 3% - even
Operating income $0.82B $0.55B - $0.65B $0.83B - $0.88B
Year-over-year
change decrease 21% - 33% increase 1% - 7%
Operating income
(loss) attributable
to QSI ($0.08B) ($0.10B) ($0.08B)
Operating income
(loss) attributable
to estimated
share-based
compensation ($0.14B) ($0.15B) ($0.15B)
Operating income
(loss) attributable
to in-process R&D ($0.01B) n/a n/a

Metrics
MSM shipments approx. 86M approx. 87M - 92M approx. 94M - 95M
CDMA/WCDMA
devices
shipped (1) approx. 107M* approx. 107M - 112M* approx. 109M - 111M*
CDMA/WCDMA
device
wholesale
average selling
price (1) approx. $226* approx. $196* approx. $191*

*Shipments in March quarter, reported in June quarter

(1) CDMA/WCDMA device shipments and average selling prices are for
estimated worldwide device shipments, including shipments not
reported to Qualcomm.

(2) Our Q3'08 results do not include royalty revenues attributable to
Nokia's sales.

(3) While we do not forecast impairments, we do have unrealized losses on
marketable securities that could be recognized in future periods if
market conditions do not improve.

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 100 Index, the S&P 500 Index and is a 2009 FORTUNE 500(R) company. For more information, please visit www.qualcomm.com.