SAN DIEGO, December 20 /PRNewswire/ --

- 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 US$2.3 to US$2.4 billion compared to 
US$2.02 billion in the year ago quarter. We now anticipate first fiscal 
quarter Qualcomm pro forma diluted earnings per share to be approximately 
US$0.52 to US$0.53 compared to US$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 
US$0.50 to US$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 US$211, compared to our prior estimate of 
approximately 95 to 98 million units at an average selling price of 
approximately US$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 US$0.25-US$0.30 diluted 
earnings per share.

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

Business Outlook Summary
                           (All currency in US dollars) 

    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(e) (2) approx. 95M  - 98M(e)  approx. 95M(e)
      CDMA/WCDMA
       handset
       unit
       wholesale    
       average
       selling
       price (1)    approx. $208(e) (2)     approx. $212(e)   approx. $211(e) 

    (e) 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

Web site: http://www.qualcomm.com