Qualcomm Phones Home: Fool by Numbers

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On Jan. 24, 2007, after the market closed, Qualcomm (Nasdaq: QCOM) released fiscal first-quarter results for the period ended Dec. 31, 2006. Here are the quick and dirty details for the quarter.

• Sales grew 16% to $2 billion. Growth was attributed to "record 3G handset and chipset shipments."
• Total diluted earnings grew 5.6%, which includes stock-based compensation expense and other charges.
• Management is targeting 8%-14% sales growth for fiscal 2007 and diluted earnings per share of $1.44-$1.49, or a flat-to-3% increase from 2006.

(Figures in millions, except per-share data)

Income Statement Highlights

	Avg. Est.	Q1 2007	Q1 2006	Change
Sales	$2,070	$2,019	$1,741	16.0%
Net Profit	--	$648	$620	4.5%
EPS	$0.42	$0.38	$0.36	5.6%
Diluted Shares	--	1,685	1,702	(1.0%)

Three months ended Dec. 31, 2006 and Dec. 25, 2005.

Get back to basics with a look at the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross Margin	68.60%	70.30%	(1.70)
Operating Margin	28.53%	37.05%	(8.52)
Net Margin	32.10%	35.61%	(3.51)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$5,947	$6,984	(14.8%)
Accounts Rec.	$693	$728	(4.8%)
Inventory	$330	$195	69.2%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$471	$431	9.3%
Long-Term Debt	$0	$0	N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$789	$596	$193
Capital Expenditures	$322	$213	$109
Free Cash Flow	$467	$383	$84

Three months ended Dec. 31, 2006 and Dec. 25, 2005.

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Comparable companies:

• Texas Instruments (NYSE: TXN)
• Motorola (NYSE: MOT)
• Nokia (NYSE: NOK)
• Ericsson (Nasdaq: ERIC)
• Andrew Corp (Nasdaq: ANDW)

Related Foolishness:

• Foolish Fundamentals: Margins
• Foolish Fundamentals: Free Cash Flow
• Foolish Fundamentals: Return on Invested Capital
• Foolish Fundamentals: The Cash Flow Statement

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann is long shares of Qualcomm, Motorola, and Nokia but has no financial interest in any other company mentioned. The Fool has an ironclad disclosure policy. Feel free to email him with feedback or to discuss any companies mentioned further.