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SAN DIEGO, Dec. 20 /PRNewswire-AsiaNet/ –

Increases First Quarter Fiscal 2008 Revenue and Earnings per Share Guidance

Qualcomm Incorporated (Nasdaq: QCOM) today updated its financial guidance
for the first fiscal quarter ending December 30, 2007.
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
adjustments related to prior years and acquired in-process research and
development (R&D) expense.

Business Outlook
Based on the current business outlook, we now anticipate first fiscal
quarter Qualcomm pro forma revenues to be at the high end of the prior
guidance of approximately $2.3 to $2.4 billion compared to $2.02 billion in
the year ago quarter. We now anticipate first fiscal quarter Qualcomm pro
forma diluted earnings per share to be approximately $0.52 to $0.53 compared
to $0.43 in the year ago quarter. This estimate is based on the shipment of
approximately 78 million Mobile Station Modem(TM) (MSM(TM)) chips during the
quarter as compared to our prior estimate of 74 to 78 million units. We
previously anticipated first fiscal quarter Qualcomm pro forma diluted
earnings per share of approximately $0.50 to $0.52.

The majority of our licensees have reported royalties in the first fiscal
quarter for products shipped in the September quarter. Based on these reports
and our own estimate of unreported activity, we anticipate September quarter
estimated shipments of approximately 95 million CDMA units (CDMA2000(R) and
WCDMA) for the total market at an estimated average selling price of
approximately $211, compared to our prior estimate of approximately 95 to
98 million units at an average selling price of approximately $212.
Approximately 74 million CDMA units were shipped in the year ago quarter.

"Demand for CDMA-based devices and services continues to accelerate at a
rapid pace," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm.
"Our updated guidance reflects stronger than anticipated demand across all
tiers of CDMA2000 chipsets with particular strength in the low end as we
continue to bridge the digital divide in emerging markets. September quarter
handset shipment estimates indicate strong year-over-year growth across all
major regions as well as sequential growth in North America, Europe and
emerging markets. Even with this continued market growth, we believe the
worldwide CDMA inventory channel remains at less than 20 weeks."

"Together with our partners we continue to innovate and bring many new and
exciting products and services to the global wireless marketplace. We will
continue to execute and drive growth in 3G convergence and next generation
wireless technologies."

The following table summarizes total Qualcomm (GAAP) and Qualcomm pro
forma guidance for the first fiscal quarter of 2008 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.

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. In addition, our outlook does not include provisions for the
consequences of injunctions or significant possible damages related to
litigation matters unless damages have been awarded by a court. The
variability of our estimated quarterly CDMA device volumes and ASPs may widen
due to the increased use of our own estimates of unreported activity. Royalty
revenue is recognized based on royalties reported by our licensees; therefore,
such estimates of unreported activity do not impact our ability to accurately
report revenues.

Despite recent credit market volatility, our diversified cash investment
portfolio returns are not expected to change our earnings guidance for the
first fiscal quarter of 2008.

We are engaged in multiple disputes with Nokia Corp., including
arbitration over Nokia’s obligation to pay royalties for the use of certain of
our patents. As a result, under generally accepted accounting principles, we
are not recording royalty revenue attributable to Nokia’s sales after April 9,
2007 until an arbitrator (or court) awards damages or the disputes are
otherwise resolved by agreement with Nokia. We have excluded from our fiscal
2008 revenue and earnings guidance our estimate of royalties which we believe
Nokia is required to report and pay to us under our existing license agreement
in fiscal 2008 of approximately $0.25-$0.30 diluted earnings per share.

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

Business Outlook Summary

FIRST FISCAL QUARTER
Prior Prior Current
Year Guidance Guidance
Q1′07 Q1′08 Q1′08
Results Estimates Estimates

Qualcomm Pro Forma
At the high end
Revenues $2.02B $2.3B - $2.4B of prior guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.43 $0.50 - $0.52 $0.52 - $0.53
Year-over-year
change increase 16% - 21% increase 21% - 23%

Total Qualcomm (GAAP)
At the high end
Revenues $2.02B $2.3B - $2.4B of prior guidance
Year-over-year
change increase 14% - 19%
Diluted earnings
per share (EPS) $0.38 $0.42 - $0.44 $0.45 - $0.46
Year-over-year
change increase 11% - 16% increase 18% - 21%
Diluted EPS
attributable
to QSI ($0.01) ($0.03) ($0.02)
Diluted EPS
attributable
to estimated
share-based
compensation ($0.05) ($0.05) ($0.05)
Diluted EPS
attributable
to tax items
related to prior
years $0.02 n/a n/a

Metrics
MSM Shipments approx. 59M approx. 74M - 78M approx. 78M
CDMA/WCDMA
handset
units
shipped (1) approx. 74M* (2) approx. 95M - 98M* approx. 95M*
CDMA/WCDMA
handset
unit
wholesale
average
selling
price (1) approx. $208* (2) approx. $212* approx. $211*

* Shipments in Sept. quarter, reported in Dec. quarter

(1) CDMA/WCDMA handset unit shipments and average selling prices are
provided for the total market.
(2) We perform periodic audits of the royalties payable by our licensees.
As a result of our audit process, we determined during the fourth
quarter of fiscal 2007 that total CDMA-based handset unit shipments
and average selling prices (ASPs) should be adjusted for certain
periods. The adjustments related only to handset shipments and ASPs
and did not impact the amount or timing of our revenue. Historical
units presented herein for Q1′07 have been revised to reflect these
adjustments.

Sums may not equal totals due to rounding.

Qualcomm Incorporated (http://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 500 Index and is a 2007 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 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
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 Qualcomm Strategic
Initiatives (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 the executive bonus program, is excluded because
management views the valuation of options and other share-based compensation
as theoretical and unrelated to the Company’s operational performance. Further,
share-based compensation 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.
Moreover, it is generally not an expense that requires or will require cash
payment by the Company. 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 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; our dependence on major customers and licensees; 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;
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; the development, deployment and commercial acceptance of the
MediaFLO(TM) USA network and FLO(TM) technology; as well as the other risks
detailed from time-to-time in the Company’s SEC reports.

(C) 2007 Qualcomm Incorporated. All rights reserved. Qualcomm is a
registered trademark 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)

First Quarter - Fiscal Year 2007

Qualcomm Estimated Total
Pro Share-Based Tax Qualcomm
Segments Forma Compensation (1) Items QSI (2) (GAAP)
Revenues $2,019 $- $- $- $2,019
EBT 952 (130) - (43) 779
Net income (loss) 722 (86) 33 (21) 648
Diluted EPS $0.43 $(0.05) $0.02 $(0.01) $0.38
Diluted shares used 1,685 1,685 1,685 1,685 1,685

(1) 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.
(2) 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).

N/M - Not Meaningful
Sums may not equal totals due to rounding.

Qualcomm Contact:
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com

SOURCE Qualcomm Incorporated

/CONTACT: John Gilbert, Investor Relations of Qualcomm Incorporated,
+1-858-658-4813, ir@qualcomm.com/
/Web site: http://www.qualcomm.com /
(QCOM)