QUALCOMM INC/DE Files 10-Q for Period Ending 2023-12-24

TL;DR

<b>QUALCOMM INC/DE files its 10-Q report detailing financial performance and segment data for the quarter ending December 24, 2023.</b>

AI Summary

QUALCOMM INC/DE (QCOM) filed a Quarterly Report (10-Q) with the SEC on January 31, 2024. QUALCOMM INC/DE reported for the period ending December 24, 2023. The filing covers the fiscal quarter and year-to-date periods. Key financial statement components like common stock, retained earnings, and accumulated other comprehensive income are detailed. Segment data for Handsets, Automotive, and IoT within the QCT segment is provided for comparison periods. Customer concentration risk is noted for specific customers, including CustomerOne, CustomerTwo, and CustomerThree.

Why It Matters

For investors and stakeholders tracking QUALCOMM INC/DE, this filing contains several important signals. This filing provides investors with updated financial statements and segment performance, crucial for assessing the company's current operational health and future prospects. The inclusion of customer concentration risk highlights potential dependencies and vulnerabilities in QUALCOMM's revenue streams, requiring investor attention.

Risk Assessment

Risk Level: medium — QUALCOMM INC/DE shows moderate risk based on this filing. The filing details customer concentration risk with specific customers, indicating potential revenue instability if these relationships change.

Analyst Insight

Investors should closely monitor QUALCOMM's customer relationships and revenue diversification strategies in light of the noted customer concentration risks.

Key Numbers

• 2023-12-24 — Reporting Period End Date (Conformed Period of Report)
• 2024-01-31 — Filing Date (Filed as of Date)
• 0000804328 — Central Index Key (Filer's Central Index Key)
• 3663 — Standard Industrial Classification (Industry Code for QUALCOMM INC/DE)

Key Players & Entities

• QUALCOMM INC/DE (company) — Filer
• 2023-12-24 (date) — Conformed Period of Report
• 2024-01-31 (date) — Filed as of Date
• 0000804328 (company) — Central Index Key
• SAN DIEGO (location) — Business Address City
• CA (location) — Business Address State
• 92121 (postal_code) — Business Address Zip
• 8585871121 (phone_number) — Business Phone

Forward-Looking Statements

• QUALCOMM's strong retained earnings growth will likely lead to increased investor confidence. (QUALCOMM INC/DE) — medium confidence, target: 2024-06-30
• The company may consider increasing shareholder returns (dividends/buybacks) in the next fiscal year due to improved profitability. (QUALCOMM INC/DE) — medium confidence, target: 2024-09-29

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces customer concentration risk, with significant sales attributed to specific customers like CustomerOne, CustomerTwo, and CustomerThree.

Industry Context

QUALCOMM INC/DE operates in the Radio & TV Broadcasting & Communications Equipment industry. This sector is characterized by rapid technological advancements and global competition.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the detailed segment performance for Handsets, Automotive, and IoT to understand growth drivers and potential challenges.
2. Evaluate the impact of customer concentration risk on QUALCOMM's revenue stability and future growth prospects.
3. Review any forward-looking statements or guidance provided in the full filing to assess management's outlook.

Key Dates

• 2023-12-24: End of Reporting Period — Marks the end of the fiscal quarter for this 10-Q filing.
• 2024-01-31: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing provided for analysis, so no comparison to a previous filing is available.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value QCOM The Nasdaq Stock Market

Filing Documents

• qcom-20231224.htm (10-Q) — 946KB
• qcom122423ex1024.htm (EX-10.24) — 169KB
• qcom122423ex1025.htm (EX-10.25) — 116KB
• qcom122423ex1026.htm (EX-10.26) — 86KB
• qcom122423ex311.htm (EX-31.1) — 10KB
• qcom122423ex312.htm (EX-31.2) — 10KB
• qcom122423ex321.htm (EX-32.1) — 5KB
• qcom122423ex322.htm (EX-32.2) — 5KB
• 0000804328-24-000017.txt (&nbsp;) — 4901KB
• qcom-20231224.xsd (EX-101.SCH) — 23KB
• qcom-20231224_cal.xml (EX-101.CAL) — 56KB
• qcom-20231224_def.xml (EX-101.DEF) — 91KB
• qcom-20231224_lab.xml (EX-101.LAB) — 475KB
• qcom-20231224_pre.xml (EX-101.PRE) — 268KB
• qcom-20231224_htm.xml (XML) — 460KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Operations 7 Condensed Consolidated Statements of Comprehensive Income 8 Condensed Consolidated Statements of Cash Flows 9 Condensed Consolidated Statements of Stockholders' Equity 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

SIGNATURES

SIGNATURES 49 3 Risk Factors Summary: Our business is subject to numerous risks and uncertainties, including those described in the section labeled "Risk Factors" in "Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Quarterly Report. These risks include, but are not limited to, the following: RISKS RELATED TO OUR OPERATING BUSINESSES We derive a significant portion of our revenues from a small number of customers and licensees, and particularly from their sale of premium tier handset devices. If revenues derived from these customers or licensees decrease or the timing of such revenues fluctuates, our business and results of operations could be negatively affected. Our business, particularly our semiconductor business, may suffer as a result of our customers vertically integrating (i.e., developing their own integrated circuit products). A significant portion of our business is concentrated in China, and the risks of such concentration are exacerbated by U.S./China trade and national security tensions. RISKS RELATED TO NEW INITIATIVES Our growth depends in part on our ability to extend our technologies and products into new and expanded product areas, and industries and applications beyond mobile handsets. Our research, development and other investments in these new and expanded product areas, industries and applications, and related technologies and products, as well as in our existing technologies and products, and new technologies, may not generate operating income or contribute to future results of operations that meet our expectations. We may engage in acquisitions and other strategic transactions or make investments, or be unable to consummate planned strategic acquisitions, which could adversely affect our results of operations or fail to enhance stockholder value. RISKS RELATED TO SUPPLY AND MANUFACTURING We depend on a limited number of third-party suppliers for the procurement, man

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) QUALCOMM Incorporated CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value amounts) (Unaudited) December 24, 2023 September 24, 2023 ASSETS Current assets: Cash and cash equivalents $ 8,133 $ 8,450 Marketable securities 3,921 2,874 Accounts receivable, net 3,513 3,183 Inventories 6,247 6,422 Held for sale assets 337 341 Other current assets 1,288 1,194 Total current assets 23,439 22,464 Deferred tax assets 3,579 3,310 Property, plant and equipment, net 4,907 5,042 Goodwill 10,722 10,642 Other intangible assets, net 1,387 1,408 Held for sale assets 69 88 Other assets 8,032 8,086 Total assets $ 52,135 $ 51,040 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 2,147 $ 1,912 Payroll and other benefits related liabilities 1,757 1,685 Unearned revenues 210 293 Short-term debt 914 914 Held for sale liabilities 336 333 Other current liabilities 3,805 4,491 Total current liabilities 9,169 9,628 Unearned revenues 93 99 Income taxes payable 1,056 1,080 Long-term debt 14,566 14,484 Held for sale liabilities 43 38 Other liabilities 4,150 4,130 Total liabilities 29,077 29,459 Commitments and contingencies (Note 5) Stockholders' equity: Preferred stock, $ 0.0001 par value; 8 shares authorized; no ne outstanding — — Common stock and paid-in capital, $ 0.0001 par value; 6,000 shares authorized; 1,118 and 1,114 shares issued and outstanding, respectively — 490 Retained earnings 22,565 20,733 Accumulated other comprehensive income 493 358 Total stockholders' equity 23,058 21,581 Total liabilities and stockholders' equity $ 52,135 $ 51,040 See accompanying notes. 6 QUALCOMM Incorporated CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended December 24, 2023 December 25, 2022 Revenues: Equipment and services $ 8,316 $ 7,784 Licensing 1,619 1

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