QUALCOMM Reports Second Fiscal Quarter Earnings / $.82

Operating EPS, Excluding Non-Recurring Charges SAN DIEGO (ots-PRNewswire) - QUALCOMM Incorporated (Nasdaq:QCOM) today reported revenues of $932 million and a net loss of$43 million, or $.59 per share (diluted), for the second quarterof fiscal 1999 (see Financial Data comparisons). Excluding non-recurring charges of $166 million associated primarily with thesale of the Company's terrestrial Code Division Multiple Access(CDMA) wireless infrastructure business and the restructuring ofits workforce, the Company reported record net income in thesecond quarter of $65 million, or $.82 earnings per share(diluted). This represents an increase in net income excludingnon-recurring items of 250 percent over second quarter of fiscal1998. Revenues in the second quarter of fiscal 1999 increased 23percent over the second quarter of fiscal 1998. The growth wasprimarily due to improved communications systems revenuesconsisting of strong sales of CDMA phones, Application SpecificIntegrated Circuits (ASICs) and OmniTRACS, as well as increasedroyalties. "The events of this quarter proved to be pivotal in ourCompany's 14-year history. We entered into a series of agreementswith Ericsson which will result in a global resolution of ourmutual patent disputes and the sale of our infrastructurebusiness," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMMIncorporated. "We saw robust demand for CDMA phones and chip setsand we announced innovative new products, including the ThinPhone(TM) and our sixth generation MSM(TM) phone chip. Ourroyalty revenues grew significantly as a result of increased CDMAproduct shipments by our licensees, which we believe is a clearindicator of the growth of CDMA technology around the globe. Ourfocus is to continue to support the growth of CDMA, to strengthenand grow our core businesses and to improve operationalefficiency and profitability." On March 25, 1999, QUALCOMM announced a series of definitiveagreements with Ericsson. These agreements included (a) thepurchase by Ericsson of certain assets and the assumption ofcertain liabilities related to the Company's terrestrial CDMAwireless infrastructure business, (b) joint support of a singleworld CDMA standard with three optional modes for the nextgeneration of wireless communications, (c) the signing of cross-licensing agreements, and (d) the settlement of legal disputesbetween QUALCOMM and Ericsson. Non-recurring pre-tax charges of $166 million were reportedprimarily in connection with the sale of the terrestrial CDMAwireless infrastructure business, write-down of certaininfrastructure business related assets not being acquired byEricsson, restructuring of the workforce and loss on cancellationof a portion of Leap Wireless warrants. In the third quarter offiscal 1999, the Company expects additional non-recurringexpenses of approximately $100 million relating to the sale ofthe infrastructure business. This includes compensation expensesrelated to employees being transferred to Ericsson. Stock Split On April 14, 1999, QUALCOMM's Board of Directors declared atwo-for-one stock split of the Company's Common Stock. The non-taxable stock dividend will be distributed on May 10, 1999 tostockholders of record on April 21, 1999. QUALCOMM Incorporated (Nasdaq: QCOM) is a leader in developingand delivering innovative digital wireless communicationsproducts and services based on the Company's CDMA digitaltechnology. The Company's major business areas include CDMAphones; Application Specific Integrated Circuits (ASICs);technology licensing; and satellite-based systems includingOmniTRACS(R) and portions of the Globalstar(TM) system.Headquartered in San Diego, Calif., QUALCOMM is a FORTUNE 500(R)company with fiscal 1998 revenues in excess of U.S. $3 billion.For more information, please visit the Company's web site athttp://www.qualcomm.com. Except for the historical information contained herein, thisnews release contains forward-looking statements that are subjectto risks and uncertainties. Actual results may differsubstantially from those referred to herein due to a number offactors, including but not limited to the risk that the closingconditions to agreements signed with Ericsson will not besatisfied, the risk that the rate of growth in the CDMAsubscriber population will decrease, risks associated with thescale-up and operations of CDMA systems, risks associated withthe ability to improve operational efficiency and profitability,risks associated with developments in current or futurelitigation, risks associated with timing and receipt of licensefees and royalties, risks associated with vendor financing andrisks associated with changes in economic conditions of thevarious markets the Company serves, as well as the other risksdetailed from time to time in the Company's SEC reports. QUALCOMM, OmniTRACS and Eudora are registered trademarks ofQUALCOMM Incorporated. All other trademarks are the property oftheir respective manufacturers. MSM and Thin Phone are trademarksof QUALCOMM Incorporated. Globalstar is a trademark of LoralQUALCOMM Satellite Services, Incorporated. Financial Data -- Second Quarter Fiscal 1999

1999

Non-Recurring

1999

Dollars in thousands except 2nd Qtr Charges

2ndQtr

per share data

As Reported

As Adjusted

Revenue

$932,395

-- $932,395

Gross Profit

$308,620

$10,123 $318,743

Gross Profit %

33%

-- 34%

R&D

$102,713

$3,063 $99,650

Selling & Marketing

$53,628

$459 $53,169

G&A

$51,266

$665 $50,601

Other Operating Expenses

$95,824

$95,824 $0

Total Operating Expenses $927,206

$100,011 $827,195

Operating Income

$5,189

$110,134 $115,323

Operating Income %

1%

-- 12%

Other Non-Operating Expense $70,757

$55,804 $14,953

Income (Loss) Before Taxes ($65,568)

($165,938) $100,370

Net Income (Loss)

($42,620)

($107,860) $65,240

EPS (Diluted)

($0.59)

($1.49) $0.82

Financial Data - Second Quarter Fiscal 1999 vs. SecondQuarter Fiscal 1998 Excluding Non-Recurring Charges/Gains

1999

1998

Change

1999

1998Change

Dollars in 2nd Qtr 2nd Qtr

%

1st Half

1st Half %

thousands

except Per

share data

Revenue

$932,395 $760,553 23% $1,873,618 $1,546,40721%

Gross Profit $318,743 $226,221 41%

$617,576

$458,46035%

Gross Profit %

34%

30% --

33%

30%--

Operating

Income

$115,323 $51,301 125%

$193,271

$116,17266%

Operating

Income %

12%

7% --

10%

8%--

Income Before

Taxes

$100,370 $26,222 283%

$166,291

$91,80581%

Net Income

$65,240 $18,618 250%

$110,089

$69,18159%

EPS (Diluted)

$0.82

$0.25 228%

$1.44

$0.9460% ots Original Text Service: QUALCOMM Incorporated Internet:http://www.newsaktuell.de Contact: Julie Cunningham, VicePresident, Investor Relations of QUALCOMM Incorporated, 619-658-4224, or fax, 619-651-9303, juliec@qualcomm.com Web site:http://www.qualcomm.com

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