exv99w1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Qualcomm Contact:
John Gilbert
Phone: 1-858 658-4813
e-mail: ir@qualcomm.com

Qualcomm Announces Fourth Quarter and Fiscal 2008 Results
Fiscal 2008 Revenues $11.1 Billion, EPS $1.90
Pro Forma EPS $2.25

SAN DIEGO — November 6, 2008 — Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies and data solutions, today announced results for the fourth fiscal quarter and year ended September 28, 2008.

For comparison purposes, we note the following unique items:

	•		The fourth quarter of fiscal 2008 results for total Qualcomm (GAAP) and Qualcomm pro forma included $560 million in revenues, or $0.20 diluted earnings per share (EPS), as a result of the execution of new license and settlement agreements with Nokia Corporation/Nokia Inc. (Nokia). The fourth quarter of fiscal 2007 results for GAAP and pro forma did not include royalty revenues from Nokia for sales of Nokia products subsequent to April 9, 2007.

	•		The fourth quarter of fiscal 2008 results included $327 million in other-than-temporary impairments of marketable securities, or $0.15 negative GAAP impact and $0.14 negative pro forma impact on diluted EPS, related to the impact of the recent disruption in the financial markets on our marketable securities portfolio.

	•		The fourth quarter of fiscal 2007 included a $331 million tax benefit, or $0.20 in GAAP diluted EPS, as a result of completing audits of prior years’ tax returns.

Total Qualcomm (GAAP) Results

Total Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).

Fourth Quarter

	•		Revenues: $3.33 billion, up 45 percent year-over-year and 21 percent sequentially.

	•		Net income: $878 million, down 22 percent year-over-year and up 17 percent sequentially.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 2 of 18

	•		Diluted earnings per share: $0.52, down 22 percent year-over-year and up 16 percent sequentially.

	•		Effective tax rate: 21 percent.

	•		Estimated share-based compensation: $98 million, net of tax, up 26 percent year-over-year and 4 percent sequentially.

	•		Operating cash flow: $990 million, down 5 percent year-over-year; 30 percent of revenues.

	•		Return of capital to stockholders: $266 million cash dividends in the fourth quarter, or $0.16 per share.

Fiscal 2008

	•		Revenues: $11.14 billion, up 26 percent year-over-year.

	•		Net income: $3.16 billion, down 4 percent year-over-year.

	•		Diluted earnings per share: $1.90, down 3 percent year-over-year.

	•		Effective tax rate: 17 percent.

	•		Estimated share-based compensation: $367 million, net of tax, up 13 percent year-over-year.

	•		Operating cash flow: $3.56 billion, down 7 percent year-over-year; 32 percent of revenues.

	•		Return of capital to stockholders: $2.65 billion, including $982 million of cash dividends, or $0.60 per share, and $1.67 billion to repurchase 43 million shares of our common stock.

Qualcomm Pro Forma Results

Pro forma results 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.

Fourth Quarter

	•		Revenues: $3.33 billion, up 44 percent year-over-year and 21 percent sequentially.

	•		Net income: $1.06 billion, up 16 percent year-over-year and sequentially.

	•		Diluted earnings per share: $0.63, up 17 percent year-over-year and 15 percent sequentially; excludes $0.05 loss per share attributable to the QSI segment and $0.06 loss per share attributable to certain estimated share-based compensation.

	•		Effective tax rate: 22 percent.

	•		Free cash flow: $796 million, down 13 percent year-over-year; 24 percent of revenues (defined as net cash from operating activities less capital expenditures).

Fiscal 2008


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 3 of 18

	•		Revenues: $11.13 billion, up 25 percent year-over-year.

	•		Net income: $3.74 billion, up 10 percent year-over-year.

	•		Diluted earnings per share: $2.25, up 12 percent year-over-year; excludes $0.12 loss per share attributable to the QSI segment, $0.22 loss per share attributable to certain estimated share-based compensation and $0.01 loss per share attributable to acquired in-process R&D.

	•		Effective tax rate: 20 percent.

	•		Free cash flow: $3.52 billion, even year-over-year; 32 percent of revenues.

Detailed reconciliations between total Qualcomm (GAAP) results and cash flow and Qualcomm pro forma results and cash flow are included at the end of this news release. Prior period reconciliations are presented on Qualcomm’s Investor Relations web page at www.qualcomm.com.

“I am very pleased with the performance of our businesses this past year, particularly the strong execution of our chipset business and our successful settlement with Nokia. While we continue to see strong growth in 3G CDMA, the current macroeconomic conditions and potential for further economic slowdown creates an uncertain business environment for the next few quarters,” said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. “As a result of the credit crisis and the economic uncertainty, our guidance reflects slower end-market device growth for 2009 than previously anticipated and a significant contraction in channel inventory in the first and second fiscal quarters. While we are estimating strong growth for CDMA-based devices in calendar year 2009, driven by a shift to emerging markets, this growth is meaningfully less than we would have forecast just a few weeks ago.”

“Although the full impact of the current economic environment is impossible to predict, our balance sheet remains strong and our business operations continue to generate strong cash flow. Our investments in innovative research and development programs, such as Snapdragon^™, Gobi^™, mobile TV, mobile commerce and next-generation technologies continue to grow our industry-leading product and intellectual property portfolio and open up exciting new markets for future growth. We are well positioned to navigate through these uncertain times and will continue to focus on our long-term strategic objectives.”


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 4 of 18

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled approximately $11.3 billion at the end of the fourth quarter of fiscal 2008, compared to $11.2 billion at the end of the third quarter of fiscal 2008 and $11.8 billion a year ago. In October 2008, we received a non-refundable payment of $2.5 billion related to new license and settlement agreements with Nokia. On October 22, 2008, we announced a cash dividend of $0.16 per share payable on January 7, 2009 to stockholders of record at the close of business on December 11, 2008.

There has been a major disruption in U.S. and foreign credit and financial markets that has depressed securities values, and our investments in marketable securities have been impacted. As a result, during the quarter ended September 28, 2008, we recorded other-than-temporary impairments on marketable securities of $327 million, which is approximately 3 percent of the recorded value of our cash, cash equivalents and marketable securities balance at September 28, 2008. In addition, at September 28, 2008 and October 31, 2008, we had net unrealized losses on marketable securities of $347 million and $1.26 billion, respectively.

Research and Development


				Estimated
	Qualcomm Pro			Share-Based						Total Qualcomm
($ in millions)	Forma			Compensation			QSI			(GAAP)
Fourth quarter fiscal 2008	$	528		$	69		$	24		$	621
As a % of revenues		16	%					N/M			19	%
Fourth quarter fiscal 2007	$	410		$	55		$	16		$	481
As a % of revenues		18	%					N/M			21	%
Year-over-year change ($)		29	%		25	%		50	%		29	%

Pro forma R&D expenses increased 29 percent year-over-year, primarily due to an increase in costs related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services, including lower-cost devices, the integration of wireless technologies with consumer electronics and computing, the convergence of multiband, multimode, multinetwork products and technologies, third-party operating systems and services platforms. QSI R&D expenses were related to MediaFLO USA.

Selling, General and Administrative


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 5 of 18


				Estimated
	Qualcomm Pro			Share-Based						Total Qualcomm
($ in millions)	Forma			Compensation			QSI			(GAAP)
Fourth quarter fiscal 2008	$	346		$	67		$	43		$	456
As a % of revenues		10	%					N/M			14	%
Fourth quarter fiscal 2007	$	248		$	53		$	22		$	323
As a % of revenues		11	%					N/M			14	%
Year-over-year change ($)		40	%		26	%		95	%		41	%

Pro forma selling, general and administrative (SG&A) expenses increased 40 percent year-over-year, primarily attributable to an increase in employee-related expenses in the fourth quarter of fiscal 2008 combined with the impact of a gain on the sale of a building in the fourth quarter of fiscal 2007. QSI SG&A expenses were primarily related to MediaFLO USA.

Effective Income Tax Rate

Our fiscal 2008 effective income tax rate for total Qualcomm (GAAP) was 17 percent compared with our prior estimate of 16 percent. Our fiscal 2008 pro forma effective tax rate was 20 percent compared with our prior estimate of 19 percent. The fiscal 2008 total Qualcomm (GAAP) and pro forma effective tax rates are higher than our prior estimates primarily due to increased income taxed at the United States federal rate.

Qualcomm Strategic Initiatives

The QSI segment is composed of our strategic investments, including our MediaFLO USA subsidiary. Total Qualcomm (GAAP) results for the fourth quarter of fiscal 2008 included a $0.05 loss per share for the QSI segment. The fourth quarter of fiscal 2008 QSI results included $102 million in operating expenses, primarily related to MediaFLO USA.

Business Outlook

The following statements are forward looking and actual results may differ materially. The “Note Regarding Forward-Looking Statements” at the end of this news release provides a description of certain risks that we face, and our annual and quarterly reports on file with the Securities and Exchange Commission (SEC) provide a more complete description of risks.

The recent financial disruption affecting the banking system and financial markets has resulted in extreme volatility in fixed income, credit and equity markets. The resulting credit crisis has


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results	Page 6 of 18

depressed global economic conditions which have the potential to adversely affect our operating results by lowering consumer demand for CDMA-based devices.

In addition, the financial disruption has, and may continue to have, an impact on the value of our marketable securities portfolio and net investment income. Given unprecedented daily market volatility and the significant judgments involved, accurately forecasting other-than-temporary impairments associated with our marketable securities portfolio is extremely difficult and actual results could vary materially. While we do not forecast impairments, our net unrealized losses on marketable securities have increased to $1.26 billion at October 31, 2008, and portions of that amount could be impaired in future periods if market conditions do not improve.

Our outlook does not include provisions for the consequences of injunctions or significant possible damages related to litigation matters, unless damages or injunctions have been awarded by a court. 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.

We entered into new license and settlement agreements with Nokia that cover GSM/GPRS/EDGE, CDMA2000, WCDMA (including HSPA), TD-SCDMA, OFDMA (including LTE, UMB and WiMAX) and other products and resolve all pending litigation between the parties. During the fourth quarter of fiscal 2008, we recognized $560 million (attributable to both fiscal 2008 and 2007) in licensing and royalty revenues as a result of the execution of the agreements. Consideration provided to us under the new license agreement with Nokia included, among other things, a non-refundable up-front payment of $2.5 billion, ongoing royalties and the assignment of patents that we recorded in intangible assets in the amount of $1.8 billion. At September 28, 2008, unearned revenues included $3.9 billion related to upfront consideration that resulted from the execution of the new agreements that will be recognized over the remaining term of the license agreement of approximately 14 years. Beginning on the date the patents were assigned in October 2008, the intangible assets will be amortized on a straight-line basis over their estimated useful life of approximately 15 years.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 7 of 18

The following table summarizes total Qualcomm (GAAP) and Qualcomm pro forma guidance for the first fiscal quarter and fiscal 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.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 8 of 18

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

Business Outlook Summary

FIRST FISCAL QUARTER


	Q1’08			Current Guidance
	Results (2)			Q1’09 Estimates (3)
*Qualcomm Pro Forma*
Revenues	$	2.44	B	$	2.3B - $2.5	B
Year-over-year change				decrease 6% - increase 3		%
Diluted earnings per share (EPS)	$	0.52		$	0.46 - $0.50
Year-over-year change				decrease 4% - 12		%
*Total Qualcomm (GAAP)*
Revenues	$	2.44	B	$	2.3B - $2.5	B
Year-over-year change				decrease 6% - increase 2		%
Diluted earnings per share (EPS)	$	0.46		$	0.35 - $0.39
Year-over-year change				decrease 15% - 24		%
Diluted EPS attributable to QSI	$	(0.01	)	$	(0.04	)
Diluted EPS attributable to estimated share-based compensation	$	(0.05	)	$	(0.07	)
*Metrics*
MSM shipments	approx. 79M			approx. 60M - 65M
CDMA/WCDMA devices shipped (1)	approx. 95M		*	approx. 121M - 126M		*
CDMA/WCDMA device wholesale average selling price (1)	approx. $211		*	approx. $205		*


*		Shipments in September quarter, reported in December quarter

FISCAL YEAR


	FY 2008			Current Guidance
	Results			FY 2009 Estimates (3)
*Qualcomm Pro Forma*
Revenues	$	11.13	B	$	10.2B - $10.8	B
Year-over-year change				decrease 3% - 8		%
Diluted earnings per share (EPS)	$	2.25		$	2.00 - $2.10
Year-over-year change				decrease 7% - 11		%
*Total Qualcomm (GAAP)*
Revenues	$	11.14B		$	10.2B - $10.8	B
Year-over-year change				decrease 3% - 8		%
Diluted earnings per share (EPS)	$	1.90		$	1.61 - $1.71
Year-over-year change				decrease 10% - 15		%
Diluted EPS attributable to QSI	$	(0.12	)	$	(0.14	)
Diluted EPS attributable to estimated share-based compensation	$	(0.22	)	$	(0.25	)
Diluted EPS attributable to in-process R&D	$	(0.01	)	n/a
*Metrics*
Fiscal year* CDMA/WCDMA device wholesale average selling price (1)	approx. $219			approx. $195


*		Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters

CALENDAR YEAR Device Estimates (1)

Prior Guidance

Current Guidance

Calendar 2008

Calendar 2009

CDMA/WCDMA device shipments

Estimates

March quarter

approx. 107M

not provided

June quarter

approx. 114M - 118M

approx. 119M

not provided

September quarter

not provided

approx. 121M - 126M

not provided

December quarter

not provided

Calendar year range (approx.)

488M - 518M

475M - 485M

580M - 620M

Midpoint

CDMA/WCDMA units

approx. 503M

approx. 480M

approx. 600M

CDMA units

approx. 229M

approx. 213M

approx. 230M

WCDMA units

approx. 274M

approx. 267M

approx. 370M


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

(2)		Our Q1’08 results do not include royalty revenues attributable to Nokia’s sales after April 9, 2007.

(3)		While we do not forecast impairments, our net unrealized losses on marketable securities have increased to $1.26 billion at October 31, 2008, and portions of that amount could be impaired in future periods if market conditions do not improve.

Sums may not equal totals due to rounding.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 9 of 18

Results of Business Segments (in millions, except per share data):

Fourth Quarter — Fiscal Year 2008


																Estimated						Total
										Reconciling			Qualcomm			Share-Based						Qualcomm
Segments	QCT			QTL			QWI			Items (1)			Pro Forma			Compensation (2)			QSI (4)			(GAAP)
Revenues	$	1,761		$	1,374		$	190		$	4		$	3,329		$	—		$	5		$	3,334
Change from prior year		24	%		112	%		(22	%)		N/M			44	%					400	%		45	%
Change from prior quarter		0	%		71	%		0	%		N/M			21	%					25	%		21	%
EBT	$	449		$	1,247		$	(24	)	$	(315	)	$	1,357		$	(146	)	$	(104	)	$	1,107
Change from prior year		6	%		132	%		(177	%)		N/M			20	%		(25	%)		(63	%)		17	%
Change from prior quarter		(8	%)		86	%		N/M			N/M			22	%		(5	%)		(27	%)		26	%
EBT as a % of revenues		25	%		91	%		(13	%)		N/M			41	%		N/M			N/M			33	%
Net income (loss)													$	1,058		$	(98	)	$	(82	)	$	878
Change from prior year														16	%		(27	%)		(141	%)		(22	%)
Change from prior quarter														16	%		(4	%)		(37	%)		17	%
Diluted EPS													$	0.63		$	(0.06	)	$	(0.05	)	$	0.52
Change from prior year														17	%		(20	%)		(150	%)		(22	%)
Change from prior quarter														15	%		0	%		(25	%)		16	%
Diluted shares used														1,678			1,678			1,678			1,678

Third Quarter — Fiscal Year 2008

Estimated

Total

Reconciling

Qualcomm

Share-Based

In-Process

Qualcomm

Segments

QCT

QTL

QWI

Items (1)

Pro Forma

Compensation (2)

R&D

QSI (4)

(GAAP)

Revenues

1,762

803

190

2,758

—

2,762

EBT

487

670

)

(40

)

1,116

(139

)

(13

)

(82

)

882

Net income (loss)

915

(94

)

(13

)

(60

)

748

Diluted EPS

0.55

(0.06

)

(0.01

)

(0.04

)

0.45

Diluted shares used

1,654

Fourth Quarter — Fiscal Year 2007

Estimated

Total

Reconciling

Qualcomm

Share-Based

Qualcomm

Segments

QCT

QTL

QWI

Items (1)

Pro Forma

Compensation (2)

Tax Items (3)

QSI (4)

(GAAP)

Revenues

1,419

647

245

)

2,305

—

2,306

EBT

424

537

137

1,129

(117

)

—

(64

)

948

Net income (loss)

911

(77

)

331

(34

)

1,131

Diluted EPS

0.54

(0.05

)

0.20

(0.02

)

0.67

Diluted shares used

1,689

First Quarter — Fiscal Year 2008


											Estimated									Total
							Reconciling		Qualcomm		Share-Based			In-Process						Qualcomm
Segments	QCT		QTL		QWI		Items (1)		Pro Forma		Compensation (2)			R&D			QSI (4)			(GAAP)
Revenues	$	1,574	$	650	$	210	$	5	$	2,439	$	—		$	—		$	1		$	2,440
EBT		470		541		24		76		1,111		(124	)		(2	)		(55	)		930
Net income (loss)										872		(84	)		(1	)		(20	)		767
Diluted EPS									$	0.52	$	(0.05	)	$	—		$	(0.01	)	$	0.46
Diluted shares used										1,664		1,664			1,664			1,664			1,664

Twelve Months — Fiscal Year 2008


																Estimated									Total
										Reconciling			Qualcomm			Share-Based			In-Process						Qualcomm
Segments	QCT			QTL			QWI			Items (1)			Pro Forma			Compensation (2)			R&D			QSI			(GAAP)
Revenues	$	6,717		$	3,622		$	785		$	6		$	11,130		$	—		$	—		$	12		$	11,142
Change from prior year		27	%		31	%		(5	%)		N/M			25	%								N/M			26	%
EBT	$	1,833		$	3,142		$	(1	)	$	(290	)	$	4,684		$	(540	)	$	(14	)	$	(304	)	$	3,826
Change from prior year		18	%		34	%		(101	%)		N/M			7	%		(11	%)		(40	%)		(27	%)		6	%
EBT as a % of revenues		27	%		87	%		0	%		N/M			42	%		N/M			N/M			N/M			34	%
Net income (loss)													$	3,740		$	(365	)	$	(13	)	$	(202	)	$	3,160
Change from prior year														10	%		(14	%)		(44	%)		(47	%)		(4	%)
Diluted EPS													$	2.25		$	(0.22	)	$	(0.01	)	$	(0.12	)	$	1.90
Change from prior year														12	%		(16	%)		0	%		(50	%)		(3	%)
Diluted shares used														1,660			1,660			1,660			1,660			1,660

Twelve Months — Fiscal Year 2007

Estimated

Total

Reconciling

Qualcomm

Share-Based

In-Process

Qualcomm

Segments

QCT

QTL

QWI

Items (1)

Pro Forma

Compensation (2)

Tax Items (3)

R&D

QSI

(GAAP)

Revenues

5,275

2,772

828

)

8,870

—

8,871

EBT

1,547

2,340

388

4,363

(487

)

—

(10

)

(240

)

3,626

Net income (loss)

3,406

(321

)

364

)

(137

)

3,303

Diluted EPS

2.01

(0.19

)

0.22

(0.01

)

(0.08

)

1.95

Diluted shares used

1,693


(1)		Reconciling items related to revenues consist primarily of other nonreportable segment revenues less intersegment eliminations. Reconciling items related to earnings before taxes consist primarily of certain investment income, research and development expenses and marketing expenses that are not allocated to the segments for management reporting purposes, nonreportable segment results and the elimination of intersegment profit.

(2)		Certain share-based compensation is included in operating expenses as part of employee-related costs but is not allocated to the Company’s segments as such costs are not considered relevant by management in evaluating segment performance.

(3)		During the fourth quarter of fiscal 2007, the Company recorded a $331 million tax benefit, or $0.20 diluted earnings per share, related to tax expense recorded in prior years resulting from the completion of tax audits during the fourth fiscal quarter. The fiscal 2007 Qualcomm pro forma results excluded this tax benefit attributable to prior years.

(4)		At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals 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


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 10 of 18


		provision for Qualcomm pro forma, the tax items column and the tax provisions related to estimated share-based compensation and in-process R&D from the tax provision for total Qualcomm (GAAP).

N/M — Not Meaningful

Sums may not equal totals due to rounding.

Conference Call

Qualcomm’s fourth quarter fiscal 2008 earnings conference call will be broadcast live on November 6, 2008 beginning at 1:45 p.m. Pacific Standard Time (PST) on the Company’s web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of “non-GAAP financial measures” as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company’s Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on November 6, 2008, beginning at approximately 5:30 p.m. PST through December 6, 2008 at 9:00 p.m. PST. To listen to the replay, U.S. callers may dial (800) 642-1687 and international callers may dial (706) 645-9291. U.S. and international callers should use reservation number 67351049. An audio replay of the conference call will be available on the Company’s web site at www.qualcomm.com for two weeks following the live call.

Editor’s Note: To view the web slides that accompany this earnings release and conference call, please go to the Qualcomm Investor Relations website at http://investor.qualcomm.com/results.cfm.

Qualcomm Incorporated (Nasdaq: QCOM) 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 2008 FORTUNE 500^® company. For more information, please visit www.qualcomm.com.

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


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 11 of 18

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. Management is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using pro forma information. 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.

Pro forma information used by management excludes the QSI segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process R&D. 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, other than amounts related to share-based awards granted under a bonus program that may result in the issuance of unrestricted shares of the Company’s common stock, is excluded because management views such share-based compensation as unrelated to the Company’s operational performance. Moreover, it is generally not an expense that requires or will require cash payment by the Company. Further, share-based compensation related to options is affected by factors that are subject to change, including the Company’s stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Certain tax items 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 is excluded because such expense is viewed by management as unrelated to the operating activities of the Company’s ongoing core businesses.

The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition,


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 12 of 18

management uses this measure to evaluate the Company’s performance, to value the Company and to compare its operating performance with other companies in the industry.

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 Qualcomm pro forma results and between total Qualcomm (GAAP) cash flow and Qualcomm pro forma cash flow 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 deployment of our technologies in wireless networks and of 3G wireless communications, equipment and services, including CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both domestically and internationally; the current uncertainty of global economic conditions and its potential impact on demand for our products and our marketable securities portfolio; attacks on our business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; fluctuations in the demand for products, services or applications based on our technologies; our dependence on major customers and licensees; foreign currency fluctuations; strategic loans, investments and transactions we have or may pursue; our dependence on third-party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; the development, deployment and commercial acceptance of the MediaFLO USA network and FLO^™ technology; as well as the other risks detailed from time-to-time in our SEC reports.

###

Qualcomm is a registered trademark of Qualcomm Incorporated. Snapdragon, Gobi and FLO are trademarks of Qualcomm Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 13 of 18

Qualcomm Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
This schedule is to assist the reader in reconciling from Qualcomm
Pro Forma results to Total Qualcomm (GAAP) results
(In millions, except per share data)
(Unaudited)


	Three Months Ended September 28, 2008
				Estimated						Total
	Qualcomm			Share-Based						Qualcomm
	Pro Forma			Compensation			QSI			(GAAP)
Revenues:
Equipment and services	$	1,861		$	—		$	5		$	1,866
Licensing and royalty fees		1,468			—			—			1,468

Total revenues		3,329			—			5			3,334


Operating expenses:
Cost of equipment and services revenues		877			10			35			922
Research and development		528			69			24			621
Selling, general and administrative		346			67			43			456

Total operating expenses		1,751			146			102			1,999


Operating income (loss)		1,578			(146	)		(97	)		1,335
Investment loss, net		(221	)(a)		—			(7	) (b)		(228	)

Income (loss) before income taxes		1,357			(146	)		(104	)		1,107
Income tax (expense) benefit		(299	) (c)		48			22	(d)		(229	)(c)

Net income (loss)	$	1,058		$	(98	)	$	(82	)	$	878


Earnings (loss) per common share:
Diluted	$	0.63		$	(0.06	)	$	(0.05	)	$	0.52


Shares used in per share calculations:
Diluted		1,678			1,678			1,678			1,678


Supplemental Financial Data:
Operating Cash Flow	$	1,153		$	(98	)(f)	$	(65	)	$	990
Operating Cash Flow as a % of Revenues		35	%					N/M			30	%
Free Cash Flow (e)	$	796		$	(98	)(f)	$	(122	)	$	576
Free Cash Flow as a % of Revenues		24	%					N/M			17	%


(a)		Included $327 million in other-than-temporary losses on investments, which were not part of the Company’s strategic investment portfolio, $4 million in net realized losses on investments and $2 million in interest expense, partially offset by $112 million in interest and dividend income related to cash, cash equivalents and marketable securities.

(b)		Included $5 million in other-than-temporary losses on investments, $2 million in interest expense and $1 million in equity in losses of investees, partially offset by $1 million in net realized gains on investments

(c)		The fourth quarter of fiscal 2008 effective tax rates were approximately 21% for total Qualcomm (GAAP) and approximately 22% for Qualcomm pro forma.

(d)		At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals 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, the tax items column and the tax provisions related to estimated share-based compensation and in-process R&D from the tax provision for total Qualcomm (GAAP).

(e)		Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures for the three months ended September 28, 2008, included herein.

(f)		Incremental tax benefits from stock options exercised during the period.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 14 of 18


	Three Months Ended September 28, 2008
				Estimated									Total
				Share-Based			In-Process						Qualcomm
	Qualcomm Pro Forma			Compensation (a)			R&D			QSI			(GAAP)
Revenues:
Equipment and services	$	7,148		$	—		$	—		$	12		$	7,160
Licensing and royalty fees		3,982			—			—			—			3,982

Total revenues		11,130			—			—			12			11,142


Operating expenses:
Cost of equipment and services revenues		3,255			39			—			120			3,414
Research and development		1,926			250			14			91			2,281
Selling, general and administrative		1,345			251			—			121			1,717

Total operating expenses		6,526			540			14			332			7,412

Operating income (loss)		4,604			(540	)		(14	)		(320	)		3,730

Investment income, net		80	(b)		—			—			16	(c)		96

Income (loss) before income taxes		4,684			(540	)		(14	)		(304	)		3,826
Income tax (expense) benefit		(944	)(d)		175			1			102			(666	)(d)

Net income (loss)	$	3,740		$	(365	)	$	(13	)	$	(202	)	$	3,160


Earnings (loss) per common share:
Diluted	$	2.25		$	(0.22	)	$	(0.01	)	$	(0.12	)	$	1.90


Shares used in per share calculations:
Diluted		1,660			1,660			1,660			1,660			1,660


Supplemental Financial Data:
Operating Cash Flow	$	4,243		$	(408)	(f)	$	(14	)	$	(263	)	$	3,558
Operating Cash Flow as a % of Revenue		38	%								N/M			32	%
Free Cash Flow (e)	$	3,518		$	(408)	(f)	$	(14	)	$	(935	)	$	2,161
Free Cash Flow as a % of Revenue		32	%								N/M			19	%


(a)		Estimated share-based compensation presented above and excluded from pro forma results did not include $2 million, net of tax, related to share-based awards granted under a bonus program.

(b)		Included $487 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not part of the Company’s strategic investment portfolio, $104 million in net realized gains on investments and $6 million in gains on derivative instruments from put options related to our share repurchase program, partially offset by $502 million in other-than-temporary losses on investments and $15 million in interest expense.

(c)		Included $51 million in net realized gains on investments, $4 million in interest and dividend income and $1 million in equity in earnings of investees, partially offset by $33 million in other-than-temporary losses on investments and $7 million in interest expense.

(d)		The effective tax rates for the twelve months ended September 28, 2008 were approximately 17% for total Qualcomm (GAAP) and approximately 20% for Qualcomm pro forma.

(e)		Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures for the twelve months ended September 28, 2008, included herein.

(f)		Incremental tax benefits from stock options exercised during the period.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 15 of 18

Qualcomm Incorporated
Reconciliation of Pro Forma Free Cash Flows to
Total Qualcomm (GAAP) net cash provided by operating activities
and other supplemental disclosures
(In millions)
(Unaudited)


	Three Months Ended September 28, 2008
				Estimated						Total
	Qualcomm			Share-Based						Qualcomm
	Pro Forma			Compensation			QSI			(GAAP)

Net cash provided (used) by operating activities	$	1,153		$	(98	)(a)	$	(65	)	$	990
Less: capital expenditures		(357	)		—			(57	)		(414	)

Free cash flow	$	796		$	(98	)	$	(122	)	$	576


Other supplemental cash disclosures:
Cash transfers from QSI (1)	$	2		$	—		$	(2	)	$	—
Cash transfers to QSI (2)		(128	)		—			128			—

Net cash transfers	$	(126	)	$	—		$	126		$	—


	Twelve Months Ended September 28, 2008
				Estimated									Total
	Qualcomm			Share-Based			In-Process						Qualcomm
	Pro Forma			Compensation			R&D			QSI			(GAAP)

Net cash provided (used) by operating activities	$	4,243		$	(408	) (a)	$	(14	)	$	(263	)	$	3,558
Less: capital expenditures		(725	)		—			—			(672	)		(1,397	)

Free cash flow	$	3,518		$	(408	)	$	(14	)	$	(935	)	$	2,161


Other supplemental cash disclosures:
Cash transfers from QSI (1)	$	61		$	—		$	—		$	(61	)	$	—
Cash transfers to QSI (2)		(970	)		—			—			970			—

Net cash transfers	$	(909	)	$	—		$	—		$	909		$	—


(1)		Cash from sale of strategic debt and equity investments.

(2)		Funding for strategic debt and equity investments, capital expenditures and other QSI operating expenses.


	Three Months Ended September 30, 2007
				Estimated						Total
	Qualcomm			Share-Based						Qualcomm
	Pro Forma			Compensation			QSI			(GAAP)

Net cash provided (used) by operating activities	$	1,136		$	(41	)(a)	$	(52	)	$	1,043
Less: capital expenditures		(220	)		—			(27	)		(247	)

Free cash flow	$	916		$	(41	)	$	(79	)	$	796


	Twelve Months Ended September 30, 2007
				Estimated									Total
	Qualcomm			Share-Based			In-Process						Qualcomm
	Pro Forma			Compensation			R&D			QSI			(GAAP)

Net cash provided (used) by operating activities	$	4,252		$	(240	)(a)	$	(10	)	$	(191	)	$	3,811
Less: capital expenditures		(726	)		—			—			(92	)		(818	)

Free cash flow	$	3,526		$	(240	)	$	(10	)	$	(283	)	$	2,993


(a)		Incremental tax benefits from stock options exercised during the period.


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 16 of 18

Qualcomm Incorporated
CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
(Unaudited)

ASSETS


	September 28,			September 30,
	2008			2007
Current assets:
Cash and cash equivalents	$	1,840		$	2,411
Marketable securities		4,571			4,170
Accounts receivable, net		4,038			715
Inventories		521			469
Deferred tax assets		289			435
Collateral held under securities lending		173			421
Other current assets		291			200

Total current assets		11,723			8,821
Marketable securities		4,858			5,234
Deferred tax assets		830			318
Property, plant and equipment, net		2,162			1,788
Goodwill		1,517			1,325
Other intangible assets, net		3,104			664
Other assets		369			345

Total assets	$	24,563		$	18,495


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	570		$	635
Payroll and other benefits related liabilities		406			311
Income taxes payable		20			119
Unearned revenues		394			218
Obligations under securities lending		173			421
Other current liabilities		728			554

Total current liabilities		2,291			2,258
Unearned revenues		3,768			142
Income taxes payable		227			—
Other liabilities		333			260

Total liabilities		6,619			2,660

Stockholders’ equity:
Preferred stock, $0.0001 par value; issuable in series;
8 shares authorized; none outstanding at September 28, 2008 and September 30, 2007		—			—
Common stock, $0.0001 par value; 6,000 shares authorized;
1,656 and 1,646 shares issued and outstanding at September 28, 2008 and September 30, 2007, respectively		—			—
Paid-in capital		7,511			7,057
Retained earnings		10,717			8,541
Accumulated other comprehensive (loss) income		(284	)		237

Total stockholders’ equity		17,944			15,835

Total liabilities and stockholders’ equity	$	24,563		$	18,495


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 17 of 18

Qualcomm Incorporated
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)


	Three Months Ended					Twelve Months Ended
	September 28,			September 30,		September 28,			September 30,
	2008			2007		2008			2007
Revenues:
Equipment and services	$	1,866		$	1,569	$	7,160		$	5,765
Licensing and royalty fees		1,468			737		3,982			3,106

Total revenues		3,334			2,306		11,142			8,871


Operating expenses:
Cost of equipment and services revenues		922			725		3,414			2,681
Research and development		621			481		2,281			1,829
Selling, general and administrative		456			323		1,717			1,478

Total operating expenses		1,999			1,529		7,412			5,988


Operating income		1,335			777		3,730			2,883

Investment (expense) income, net		(228	)		171		96			743

Income before income taxes		1,107			948		3,826			3,626
Income tax (expense) benefit		(229	)		183		(666	)		(323	)

Net income	$	878		$	1,131	$	3,160		$	3,303


Basic earnings per common share	$	0.53		$	0.68	$	1.94		$	1.99

Diluted earnings per common share	$	0.52		$	0.67	$	1.90		$	1.95


Shares used in per share calculations:
Basic		1,650			1,660		1,632			1,660

Diluted		1,678			1,689		1,660			1,693


Dividends per share paid	$	0.16		$	0.14	$	0.60		$	0.52

Dividends per share announced	$	0.16		$	0.14	$	0.60		$	0.52


Qualcomm Announces Fourth Quarter and Fiscal 2008 Results		Page 18 of 18

Qualcomm Incorporated
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)


	Three Months Ended						Twelve Months Ended
	September 28,			September 30,			September 28,			September 30,
	2008			2007			2008			2007
Operating Activities:
Net income	$	878		$	1,131		$	3,160		$	3,303
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		120			100			456			383
Revenues related to non-monetary exchanges		(172	)					(172	)		—
Non-cash income tax expense (benefit)		158			(274	)		306			91
Non-cash portion of share-based compensation expense		148			117			541			488
Incremental tax benefits from stock options exercised		(98	)		(41	)		(408	)		(240	)
Net realized losses (gains) on marketable securities and other investments		3			(49	)		(155	)		(222	)
Other-than-temporary losses on marketable securities and other investments		332			16			535			27
Other items, net		2			(47	)		3			(43	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net		(475	)		46			(653	)		(16	)
Inventories		95			(87	)		(47	)		(234	)
Other assets		(52	)		41			(17	)		(96	)
Trade accounts payable		(59	)		82			(63	)		209
Payroll, benefits and other liabilities		149			70			161			139
Unearned revenues		(39	)		(62	)		(89	)		22

Net cash provided by operating activities		990			1,043			3,558			3,811

Investing Activities:
Capital expenditures		(414	)		(247	)		(1,397	)		(818	)
Purchases of available-for-sale securities		(2,736	)		(2,571	)		(7,680	)		(8,492	)
Proceeds from sale of available-for-sale securities		1,141			1,744			6,689			7,998
Increase in receivables for settlement of investments		(406	)		—			(406	)		—
Other investments and acquisitions, net of cash acquired		(15	)		(19	)		(298	)		(249	)
Change in collateral held under securities lending		153			(268	)		248			(421	)
Other items, net		(5	)		71			25			84

Net cash used by investing activities		(2,282	)		(1,290	)		(2,819	)		(1,898	)

Financing Activities:
Proceeds from issuance of common stock		484			82			1,184			556
Incremental tax benefits from stock options exercised		98			41			408			240
Repurchase and retirement of common stock		—			(1,218	)		(1,670	)		(1,482	)
Dividends paid		(266	)		(230	)		(982	)		(862	)
Change in obligations under securities lending		(153	)		268			(248	)		421
Other items, net		2			(1	)		1			16

Net cash provided (used) by financing activities		165			(1,058	)		# (1,307	)		(1,111	)

Effect of exchange rate changes on cash		(3	)		—			(3	)		2

Net (decrease) increase in cash and cash equivalents		(1,130	)		(1,305	)		(571	)		804
Cash and cash equivalents at beginning of period		2,970			3,716			2,411			1,607

Cash and cash equivalents at end of period	$	1,840		$	2,411		$	1,840		$	2,411