Qualcomm : FY 2019 1st Quarter Earnings Release

Exhibit 99.1

FOR IMMEDIATE RELEASE

Qualcomm Contact:

Mauricio Lopez-Hodoyan Vice President, Investor Relations

Phone: [phone] e-mail:[e-mail]

Qualcomm Announces First Quarter Fiscal 2019 Results

GAAP Revenues $4.8 billion

GAAP EPS $0.87, Non-GAAP EPS $1.20

SAN DIEGO - January 30, 2019 - Qualcomm Incorporated (NASDAQ: QCOM) today announced results for its fiscal first quarter ended December 30, 2018.

"Our fiscal first quarter results reflected continued strength in our semiconductor business, driven by strong product leadership and operating expense management," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "We continue to execute on our strategic objectives, including driving the global transition to 5G, protecting the established value of our technology and inventions and expanding into new industries and product categories."

First Quarter Results (GAAP)*

Revenues

$4.8B

$6.0B (20%)

$5.8B (16%)

Year-Over-
Q1 Fiscal	Q1 Fiscal	Year	Q4 Fiscal	Sequential
2019	2018 3	Change	2018 3	Change
Operating income (loss)	$0.7B	$0.0B	N/M	($0.7B)	N/M
Net income (loss) 1	$1.1B	($6.0B)	N/M	($0.5B)	N/M
Diluted earnings (loss) per share 1	$0.87	($4.05)	N/M	($0.36)	N/M
Operating cash flow 2	$0.4B	$1.8B	(80%)	($0.4B)	N/M

• 1 Throughout this news release, percentage changes are calculated based on the dollar amounts as disclosed in millions.

• 2 In the first quarter of fiscal 2019, we adopted new accounting guidance that changed the classification and presentation of certain cash receipts and cash payments and that requires companies to include changes in restricted cash and cash equivalents in the statement of cash flows. As a result, prior period cash flow amounts presented herein have been adjusted to conform to the current year presentation.

  3 In connection with the preparation of our condensed consolidated financial statements for the three months ended December 30, 2018, we identified an immaterial error related to the recognition of certain royalty revenues of our QTL (Qualcomm Technology Licensing) segment in the quarterly and annual periods in fiscal 2018 and third and fourth quarters and annual period in fiscal 2017. We have corrected this error in our GAAP and Non-GAAP results for all prior periods presented herein. See "Notes to Condensed Consolidated Financial Statements, Note 1. Basis of Presentation and Significant Accounting Policies Update" and "Note 11. Revision of Prior Period Financial Statements" included in our Quarterly Report on Form 10-Q for the fiscal quarter ended December 30, 2018 filed with the SEC.

  N/M - Not Meaningful

First Quarter Results (Non-GAAP)*

Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Further discussion regarding the Company's use of Non-GAAP financial measures and reconciliations between GAAP and Non-GAAP results are included within this news release.

Revenues

$4.8B

$6.0B (20%)

$5.8B (17%)

Q1 Fiscal	Q1 Fiscal	Year-Over-	Q4 Fiscal	Sequential
2019	2018	Year Change	2018	Change
Operating income	$1.2B	$1.6B	(26%)	$1.3B	(5%)
Net income	$1.5B	$1.4B	+2%	$1.3B	+16%
Diluted earnings per share	$1.20	$0.96	+25%	$0.89	+35%

* Beginning in the third quarter of fiscal 2017, GAAP and Non-GAAP results have been negatively impacted by our dispute with Apple and its contract manufacturers (who are our licensees). QTL revenues in the first quarter of fiscal 2019 and in fiscal 2018 do not include royalties due on sales of Apple or other products by Apple's contract manufacturers. We expect the actions taken by these companies will continue until this dispute is resolved. QTL revenues in the first quarter of fiscal 2019 included $150 million of royalties due under an interim agreement with Huawei (who was previously disclosed as the other licensee in dispute). QTL revenues in the fourth quarter of fiscal 2018 included $100 million received under a prior interim agreement with Huawei. These amounts represented partial payments for royalties due by Huawei while negotiations continue, and they do not reflect the full amount of royalties due under the underlying license agreement. We did not record any revenues in the first quarter of fiscal 2018 for royalties due on the sales of Huawei's products. If we do not reach a final agreement with Huawei prior to the conclusion of the interim agreement, Huawei may not make any other payments or may not make full payments under the existing license agreement.

The following should be considered in regard to the sequential and year-over-year comparisons:

• • The first quarter of fiscal 2019 GAAP results included: $180 million of restructuring and restructuring-related charges, or ($0.13) per share, related to our Cost Plan that was announced in the second quarter of fiscal 2018.

• • The first quarter of fiscal 2019 GAAP and Non-GAAP results included: $570 million tax benefit, or $0.47 per share, for GAAP and $552 million tax benefit, or $0.45 per share, for Non-GAAP relating to certain tax elections made in the first quarter of fiscal 2019.

$150 million of revenues, or $0.11 per share, resulting from an interim agreement with Huawei while negotiations continue.

• • The first quarter of fiscal 2018 GAAP results included: $6.0 billion charge, or ($4.03) per share, related to the enactment of the Tax Cuts and Jobs Act (the Tax Legislation) in the United States.

  $1.2 billion charge, or ($0.76) per share, for the fine imposed by the European Commission (EC).

• • The fourth quarter of fiscal 2018 GAAP results included: $2.0 billion charge, or ($1.41) per share, related to a termination fee paid to NXP Semiconductors N.V. (NXP) resulting from the termination of the purchase agreement. $676 million gain, or $0.48 per share, related to the settlement of the Taiwan Fair Trade Commission (TFTC) investigation.

  $265 million of restructuring and restructuring-related charges, or ($0.14) per share, related to our Cost Plan.

• • The fourth quarter of fiscal 2018 GAAP and Non-GAAP results included: $100 million of revenues, or $0.05 per share, resulting from an interim agreement with Huawei while negotiations continue.

Segment Results

First Quarter Fiscal 2019

(in millions, except percentages)	Q1 Fiscal 2019	Q1 Fiscal 2018	Year-Over-Year Change	Q4 Fiscal 2018	Sequential Change
QCT
Revenues	$3,739	$4,651	(20%)	$4,647	(20%)
EBT 1	$598	$955	(37%)	$796	(25%)
EBT as % of revenues	16%	21%	(5%)	17%	(1%)
MSMTM chip shipments	186	237	(22%)	232	(20%)
QTL
Revenues	$1,018	$1,266	(20%)	$1,113	(9%)
EBT 1	$590	$854	(31%)	$714	(17%)
EBT as % of revenues	58%	67%	(9%)	64%	(6%)

1 Earnings (loss) before taxes

We adopted accounting guidance (ASC 606) in the first quarter of fiscal 2019, which requires us to estimate and recognize QTL royalty revenues in the period in which the licensees' sales occur, resulting in an acceleration of royalty revenues by one quarter. As a result of recognizing revenues in the period in which the licensees' sales occur using estimates, adjustments to revenues will be required in subsequent periods to reflect changes in estimates as new information becomes available, primarily resulting from actual amounts reported by our licensees.

Return of Capital to Stockholders

In the fourth quarter of fiscal 2018, we announced a stock repurchase program authorizing us to repurchase up to $30 billion of our common stock. As of December 30, 2018, we have executed on $22.2 billion of share repurchases, primarily comprised of three Accelerated Stock Repurchase Agreements (ASRs) under which we paid $16 billion and a tender offer under which we paid $5.1 billion. The ASRs are scheduled to terminate in early September 2019. At December 30, 2018, $7.8 billion remained authorized for repurchase under our stock repurchase program.

During the first quarter of fiscal 2019, we returned $1.8 billion to stockholders, including $750 million, or $0.62 per share, of cash dividends paid and $1.0 billion through repurchases of 17 million shares of common stock. On January 14, 2019, we announced a quarterly cash dividend of $0.62 per share, payable on March 28, 2019 to stockholders of record at the close of business on March 7, 2019.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled $10.4 billion at the end of the first quarter of fiscal 2019, compared to $39.9 billion a year ago and $12.1 billion at the end of the fourth quarter of fiscal 2018. Stock repurchases and repayment of long-term debt significantly reduced our cash, cash equivalents and marketable securities balance at the end of the first quarter of fiscal 2019, compared to a year ago.

Effective Income Tax Rates

Our fiscal 2019 annual effective income tax rates are estimated to be 7% benefit for GAAP and 0% for Non-GAAP. The effective income tax rates for the first quarter of fiscal 2019 were 91% benefit for GAAP and 40% benefit for Non-GAAP. As a result of the Tax Legislation, in the first quarter of fiscal 2019, several of our foreign subsidiaries made tax elections to be treated as U.S. branches for federal income tax purposes effective beginning in fiscal 2018 and fiscal 2019. These elections resulted in a GAAP and Non-GAAP income tax benefit of $570 million and $552 million, respectively, which was recorded discretely in the first quarter of fiscal 2019.

Certain provisions of the Tax Legislation became effective for us in fiscal 2019, including new taxes due on certain foreign income, such as GILTI (global intangible low-taxed income), BEAT (base-erosion and anti-abuse tax) and FDII (foreign-derived intangible income). In response to the Tax Legislation, we implemented certain tax restructuring in fiscal 2018 and 2019. As a result, substantially all of our income is in the U.S. and qualifies for the preferential FDII tax rate, and the impact of GILTI and BEAT are negligible.

Business Outlook

The following statements are forward looking, and actual results may differ materially. The "Note Regarding Forward-Looking Statements" in this news release provides a description of certain risks that we face, and our most recent annual report on file with the Securities and Exchange Commission (SEC) provides a more complete description of risks.

Our outlook does not include provisions for future asset impairments or for pending legal matters, other than future legal amounts that are probable and estimable. Further, due to their nature, certain income and expense items, such as certain investment, certain derivative and foreign currency transaction gains or losses, cannot be accurately forecast. Accordingly, we only include such items in our financial outlook to the extent they are reasonably certain; however, actual results may differ materially from the outlook.

Our financial guidance for the second quarter of fiscal 2019 excludes QTL revenues for royalties due on sales of Apple and other products by Apple's contract manufacturers, as we expect the actions taken by these companies will continue until the respective disputes are resolved. Our financial guidance for the second quarter of fiscal 2019 includes $150 million of QTL revenues from Huawei. This represents a minimum, non-refundable amount for royalties due by Huawei while negotiations continue. This payment does not reflect the full amount of royalties due under the underlying license agreement.