Qualcomm Inc QCOM equity, debt and subsidiaries

Accuracy score :
97%

Qualcomm Inc QCOM

Summary (from latest annual and quarterly report)

  • Total equity: 23.92 billion USD
  • Market Cap is 82.02 billion USD (the last price of the stock is 55.41 USD)
  • Qualcomm develops and licenses wireless technology and also designs chips for mobile phones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks
  • Total equity has decreased from 31.21 billion USD in 2016 to 23.92 billion in 2017
  • The company has 33.36 billion USD in cash on the account (latest quarterly report)
  •  In 2017 long-term debt was 19.38 billion USD, short-term debt was 3.46 billion USD (In 2016 total debt was 11.7 billion USD)
  • Company's revenue decreased in 2017 to 22.29 billion USD from 23.55 billion in 2016
  • Net income in 2017 was 2.46 billion USD, Net income in 2016 was 5.7 billion USD
  • In 2017 company paid 3.25 billion USD dividend to its shareholders

Opinion about the company

Fundamentally it is a good company and in the future, we can expect its growth (Total debt is 22.84 billion USD, big amount of cash on company's account, ROE is negative, around -15 %).

 

Qualcomm Inc

Qualcomm Inc is a global leader in the development and commercialization of foundational technologies and products used in mobile devices and other wireless products, including network equipment, broadband gateway equipment and consumer electronic devices. Qualcomm is a pioneer in 3G (third generation) and 4G (fourth generation) wireless technologies, and now a leader in 5G (fifth generation) wireless technologies to empower a new era of intelligent, connected devices. The company derives revenues principally from sales of integrated circuit products and licensing its intellectual property, including patents, software and other rights. The company headquarters is located in San Diego, California, United States, and has more than 220 worldwide locations.

Technologies and products from Qualcomm are also used in industry segments beyond mobile, including automotive, IoT (Internet of Things), data center, networking, computing and machine learning, and allow millions of devices to connect with each other in new ways.

The company conducts business primarily through its QCT (Qualcomm CDMA Technologies) semiconductor business and its QTL (Qualcomm Technology Licensing) licensing business. QCT develops and supplies integrated circuits while QTL grants licenses to use portions of the intellectual property portfolio. The third segment of the company QSI (Qualcomm Strategic Initiatives) makes strategic investments.

  • QCT segment represents 70% of total revenues
  • QTL segment represents 29% of total revenues
  • QSI  segment represents 1% of total revenues

 

 Qualcomm Inc standalone subsidiaries and acquisitions :

  • In 2000, Qualcomm has acquired cell-phone tracking software company SnapTrack for 1 billion USD
  • In 2005, Qualcomm has acquired wireless company Flarion for 600 million USD
  • In the period from 2001 - 2010, Qualcomm had more than 20 smaller acquisitions worth around 1 billion USD
  • In 2011, Qualcomm has acquired wi-fi networking company Atheros for 3.1 billion USD
  • In 2011, Qualcomm has acquired Pixtronix Inc. for 170 million USD
  • In 2014, Qualcomm has acquired WiGig semiconductor products company Wilocity for 300 million USD
  • In the period from 2011 - 2015, Qualcomm had also more than 10 smaller acquisitions worth around 500 million USD
  • In 2015, Qualcomm has acquired CSR (Bluetooth and WiFi for Automotive) for 2.5 billion USD
  • On February 3, 2017, Qualcomm completed the formation of a joint venture with TDK Corporation (TDK), under the name RF360 Holdings Singapore Pte. Ltd. (RF360 Holdings), to enable delivery of radio frequency front-end (RFFE) modules and radio frequency (RF) filters into fully integrated products for mobile devices and Internet of Things (IoT) applications, among others. The joint venture is owned 51% by Qualcomm Global Trading - worth 1.5 billion USD
  • In April 2017, Qualcomm received approval from U.S. antitrust regulators for the acquisition of NXP for 47 billion USD
  • On June 20, 2017, Qualcomm announced a strategic investment in Amionx, a Carlsbad company that has developed technology to prevent fires and explosions in lithium-ion batteries. The amount of the investment was not disclosed.

 

Total =  57.67 billion USD

From Qualcomm annual report  - Smartphone adoption continues to expand globally, fueled by fast 3G/4G LTE multimode connectivity advanced multimedia features and enhanced location awareness capabilities, among others. In 2016, approximately 1.5 billion smartphones shipped globally, representing a year-over-year increase of approximately 5%, with cumulative smartphone shipments between 2017 and 2021 projected to reach approximately 8.6 billion. Most of this growth is happening in emerging regions, where smartphones accounted for approximately 75% of handset shipments in 2016 and are expected to reach approximately 92% in 2021