SMIC Reports 2014 Second Quarter Results

SHANGHAI, Aug. 6, 2014 /PRNewswire/ — Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) (“SMIC” or the “Company”), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2014.

Second Quarter 2014 Highlights

  • Revenue was $511.3 million in 2Q14, an increase of 13.4% quarter over quarter.
  • Non-GAAP revenue excluding wafer shipments from Wuhan Xinxin reached a record high of $511.3 million in 2Q14, an increase of 1.9% year over year compared to $501.8 million in 2Q13.
  • Gross margin was 28.0% in 2Q14, compared to 21.3% in 1Q14.
  • Profit for the period attributable to SMIC was $56.8 million in 2Q14, compared to $20.3 million in 1Q14.
  • China-region revenue grew to 44.4% of overall revenue becoming the largest contributor to revenue regionally in 2Q14.

Third Quarter 2014 Guidance:

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under “Safe Harbor Statements” below.

  • Revenue is expected to increase 1% to 5% quarter over quarter.
  • Gross margin is expected to range from 24% to 26%.

Non-GAAP operating expenses excluding the effect of employee bonus accrual, government funding and gain from the disposal of living quarters are expected to range from $96 million to $101 million.

Dr. Tzu-Yin Chiu, SMIC’s Chief Executive Officer and Executive Director, commented, “Excluding Wuhan‘s contribution, SMIC achieved record high revenue in the second quarter, which is our ninth consecutive profitable quarter. We reached a gross margin of 28%–our highest since 2005.

Compared to Q1 2014, utilization was up more than 10 percentage points; while revenue increased 13.4% sequentially. When comparing Q2 2014 to Q1 2014, gross margin increased 6.7 percentage points, profit from operations nearly doubled, and net profit tripled. We continue to emphasize the priority of sustained profitability and carefully planned growth. Overall, we are optimistic about 2015 as we prepare our capacity and technology for many new and exciting opportunities.

One of our growth drivers for 2015 will be 28nm. We are happy to work with our long-time customer as we ramp up this new technology. We are on track to have production ramp up in 2015. We are also working with other customers who are targeting to capture the LTE handset IC market in China, AP for tablets, and RF applications on 28nm.

Our other growth driver for this year and more so in 2015 is our differentiated product offering. SMIC continues to experience high demand for 8-inch production capacity for PMIC, CIS, e-NVM, and sensors. Our effort in 12-inch specialty process development has recently yielded the industry’s leading 55nm embedded NVM solution. Our customer has entered into high volume production based on this technology.

The strong IC demand in China is continuing to drive our growth. For the first time in SMIC’s history, our China revenue has exceeded all other regions in the second quarter. Revenue from China now accounts for more than 44% of our total revenue.

The second quarter recovery ended with strong financials and profitability for SMIC. We are optimistic about 2015 as we prepare for growth on 8-inch and 28nm. We continue to have confidence in our strategy to capture growth opportunities in China.”

Conference Call / Webcast Announcement

Date: August 7, 2014

Time: 8:30 a.m. Shanghai time

Dial-in numbers and pass code:

China

400-620-8038

(Pass code: SMIC)

Hong Kong

852-2475-0994

(Pass code: SMIC)

Taiwan

886-2-2650-7825

(Pass code: SMIC)

United States, New York

1-845-675-0437

(Pass code: SMIC)

The call will be webcast live with audio at http://www.smics.com/eng/investors/ir_presentations.php or http://www.media-server.com/m/p/89si7vqg.

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

About SMIC

Semiconductor Manufacturing International Corporation (“SMIC”; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China. SMIC provides integrated circuit (IC) foundry and technology services at 0.35-micron to 28-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai; a 300mm mega-fab in Beijing with a joint-venture 300mm fab that is currently under construction; a 200mm fab in Tianjin; and a 200mm fab project under development in Shenzhen. SMIC also has marketing and customer service offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong.

For more information, please visit www.smics.com .

Safe Harbor Statements

(Under the Private Securities Litigation Reform Act of 1995)

This press release contains, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements under “Third Quarter 2014 Guidance” and the statements regarding our optimism about our 2015 opportunities, our expected 2015 growth driver of 28nm technology, our expectation to have production ramp up in 2015, our expectation of differentiated products offering being another growth driver for this year and more so in 2015, our anticipation to experience high demand for 8-inch production capacity for PMIC, CIS, e-NVM, and sensors and our confidence in our strategy to capture growth opportunities in China, as well as the statements regarding future 2014 capital expenditures are based on SMIC’s current assumptions, expectations and projections about future events. SMIC uses words like “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “target” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with the global economic slowdown, orders or judgments from pending litigation and financial stability in end markets.

Investors should consider the information contained in SMIC’s filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on April 14, 2014, especially the consolidated financial statements, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited (“SEHK”) from time to time, including current reports on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC’s future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.

About Non-Generally Accepted Accounting Principles (“Non-GAAP”) Financial Measures

To supplement SMIC’s consolidated financial results presented in accordance with IFRS, SMIC uses in this press release measures of operating results that are adjusted to exclude wafer shipments from Wuhan Xinxin Semiconductor Manufacturing Corporation (“Wuhan Xinxin”), which SMIC began gradually phasing out in 3Q13. There were no wafer shipments from Wuhan Xinxin from 1Q14 onwards. This earnings release includes non-GAAP revenue, non-GAAP cost of sales, non-GAAP gross margin and non-GAAP operating expenses, which consists of total operating expenses as adjusted to exclude the effect ofemployee bonus accrual, government funding and gain from the disposal of living quarters. It also includes third quarter 2014 guidance for non-GAAP operating expenses. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS.

SMIC believes that use of these non-GAAP financial measures facilitates investors’ and management’s comparisons to SMIC’s historical performance. The Company’s management regularly uses these non-GAAP financial measures to understand, manage and evaluate the Company’s business and make financial and operational decisions.

The accompanying table has more information and reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

For the full version of SMIC’s second quarter financial results, please see:
http://photos.prnasia.com/prnk/20140806/0861405533-a

Contact:

Investor Relations

+86-21-3861-0000 ext. 12804

ir@smics.com

 

E-House to Report Second Quarter 2014 Financial Results on August 20, 2014

SHANGHAI, Aug. 6, 2014 /PRNewswire/ — E-House (China) Holdings Limited (“E-House”) (NYSE: EJ), a leading real estate services company in China, today announced that it will report its unaudited financial results for the second quarter ended June 30, 2014 before the U.S. markets open on August 20, 2014.

E-House’s management will host an earnings conference call on August 20, 2014 at 8:15 a.m. U.S. Eastern Time (8:15 p.m. Beijing/Hong Kong time).

Dial-in details for the earnings conference call are as follows:

U.S./International:

+1-845-675-0437

Hong Kong:

+852-2475-0994

Mainland China:

+86-10-800-819-0121

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “E-House earnings call.”

A replay of the conference call may be accessed by phone at the following number until August 28, 2014:

International:

+1-646-254-3697

Passcode:

84809773

Additionally, a live and archived webcast will be available at http://ir.ehousechina.com.

About E-House

E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is China’s leading real estate services company with a nationwide network covering more than 250 cities. E-House offers a wide range of services to the real estate industry, including online advertising, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. E-House has received numerous awards for its innovative and high-quality services, including “China’s Best Company” from the National Association of Real Estate Brokerage and Appraisal Companies and “China Enterprises with the Best Potential” from Forbes. For more information about E-House, please visit http://www.ehousechina.com.

For investor and media inquiries, please contact:

In China:

Michelle Yuan
E-House (China) Holdings Limited
Phone: +86 (21) 6133-0754
E-mail: michelleyuan@ehousechina.com 

Mr. Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com

In the U.S.:

Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com

AMRI Announces Second Quarter 2014 Results

— Adjusted Diluted EPS of $0.22, up 100%

— Total Revenue of $68.2 million, including Contract Revenue of $61.5 Million, up 15%

— Company Increases 2014 Adjusted EPS Guidance to $0.87 – $0.92 to Reflect Addition of OsoBio and Strengthening Contract Business

ALBANY, New York, Aug. 5, 2014 /PRNewswire/ — AMRI (NASDAQ: AMRI) today reported financial and operating results for the second quarter ended June 30, 2014.

Highlights:

  • Second quarter contract revenue of $61.5 million, up 21% from 2013
  • Second quarter adjusted diluted EPS of $0.22 vs. $0.11 in 2013
  • Expanded second quarter contract margins to 27% from 16% in 2013
  • Acquired Oso Biopharmaceuticals Manufacturing in July 2014, expanding contract manufacturing capabilities to include commercial scale, complex injectable drug product

Updated Financial Guidance 2014:

  • Full year contract revenue guidance increased to between $275 and $283 million, an increase of 33% at the midpoint
  • Royalty revenue guidance of $25 million
  • Adjusted EBITDA between $59 and $63 million, up 24% at the midpoint
  • Adjusted diluted EPS range between $0.87 and $0.92, compared to $0.70 in 2013, an increase of 28% at the midpoint, despite a $10 to $12 million decrease in estimated royalties from Allegra
  • Operating cash flow of $27 to $30 million

Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures, which exclude certain items detailed later in this press release under the heading “Non-GAAP Adjustment Items.”  Reconciliations of these non-GAAP measures to GAAP measures are included in Tables 1 and 2 at the end of this press release.

“We are very pleased with our results this quarter, highlighted by a 34% growth in our large scale manufacturing business and the addition of Cedarburg Pharmaceuticals,” said William S. Marth, AMRI’s president and chief executive officer. “Importantly, contract margins improved across our entire operations as a result of increased capacity utilization and the addition of the higher margin Cedarburg Pharmaceuticals business.”

“We continue to see growth in our pipeline of discovery and development programs, notably the expansion of our innovative Insourcing chemistry program, together with the addition of new development and supply programs in our API and Drug Product divisions,” continued Mr. Marth. “Based on anticipated continued growth of our business and the recent addition of OsoBio, we are raising our outlook for 2014 with contract revenue growth of 33% and adjusted diluted EPS growth of 29% at the midpoint.”

Second Quarter 2014 Results

Total revenue for the second quarter of 2014 was $68.2 million, an increase of 15% compared to total revenue of $59.3 million reported in the second quarter of 2013.

Total contract revenue for the second quarter of 2014 was $61.5 million, an increase of 21% compared to contract revenue of $50.8 million reported in the second quarter of 2013. Contract margins were 26.7% for the second quarter of 2014, compared with 16.4% for the second quarter of 2013, driven by increased capacity utilization and the addition of Cedarburg Pharmaceuticals.

Royalty revenue in the second quarter of 2014 was $6.7 million, a decrease of 21% from $8.5 million in the second quarter of 2013. Royalty revenue for the second quarter of 2014 includes royalties from the Allegra® products as well as $2.5 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP was $3.7 million, or $0.11 per diluted share, in the second quarter of 2014, compared to a U.S. GAAP net loss of $(2.5) million, or $(0.08) per basic and diluted share for the second quarter of 2013. Net income on an adjusted basis in the second quarter of 2014 was $7.1 million or $0.22 per diluted share, compared to adjusted net income of $3.6 million or $0.11 per diluted share.  Net income on an adjusted basis excludes the following items that are included under U.S. GAAP:  the impact of restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains.

Year to Date

Total revenue for the six-month period ended June 30, 2014 was $127.5 million, an increase of 7% compared to total revenue of $118.7 million for the same period in 2013.

Total contract revenue for the first six months of 2014 was $112.5 million, an increase of 16% compared to contract revenue of $97.3 million for the same period in 2013.

Royalty revenue for the first six months of 2014 was $15.0 million, a decrease of 30% from $21.4 million in 2013. Royalty revenue for the six-month period ended June 30, 2014 includes royalties from the Allegra® products as well as $4.8 million from the net sales of certain amphetamine salts sold by Actavis.

Net income under U.S. GAAP for the first half of 2014 was $7.2 million, or $0.22 per diluted share, compared to U.S. GAAP net income of $3.8 million, or $0.12 per diluted share for the first half of 2013. Net income on an adjusted basis in the first half of 2014 was $12.2 million or $0.37 per diluted share, compared to adjusted net income of $10.6 million or $0.34 per share in 2013. For a reconciliation of U.S. GAAP net income (loss) and earnings (loss) per diluted share as reported to adjusted net income (loss) and earnings (loss) per diluted share for the 2014 and 2013 reporting periods, please see Table 1 at the end of this press release. During the second quarter of 2014 we identified certain tax liabilities that should have been recorded as tax expense in various immaterial amounts during the periods from 2007 through 2013. Financial results for the three and six months ended June 30, 2013 have been updated from previously reported amounts to reflect the immaterial prior period income tax adjustments.

Segment Results

Discovery Services and Development/Small Scale Manufacturing

Discovery Services and Development/Small Scale Manufacturing (DDS) contract revenue for the second quarter of 2014 was $19.5 million, consistent with the second quarter of 2013 as decreases in Discovery Services were offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 19.1% for the second quarter of 2014, compared with 13.1% for the second quarter of 2013, driven by a stronger mix of business and the benefit of cost reduction initiatives in both Discovery Services and Development/ Small Scale Manufacturing.

DDS contract revenue for the first half of 2014 was $39.0 million, a decrease of 2% from the first half of 2013 as decreases in Discovery Services were largely offset by increases in Development/Small Scale Manufacturing. DDS contract margins were 17.8% for the first half of 2014, compared with 14.9% for the first half of 2013.

Large Scale Manufacturing
Large Scale Manufacturing (LSM) contract revenue for the second quarter of 2014 was $42.0 million, an increase of 34% from $31.3 million in 2013.  LSM contract revenue for the second quarter of 2014 includes $5.5 million of revenues from the Cedarburg Pharmaceuticals business that was acquired in April 2014. LSM adjusted contract margins were 30.5% in the second quarter of 2014, compared with 18.4% for the second quarter of 2013, driven by increased capacity utilization and improved mix including the Cedarburg business.

LSM contract revenue for the first half of 2014 was $73.5 million, an increase of 27% from $57.7 million in 2013.  LSM adjusted contract margins were 25.9% in the first half of 2014, compared with 19.2% for the first half of 2013.

Liquidity and Capital Resources

At June 30, 2014, AMRI had cash, cash equivalents and restricted cash of $136.9 million, compared to $171.0 million at March 31, 2014. The decrease in cash and cash equivalents for the quarter ended June 30, 2014 was primarily due to the use of $38.7 million to acquire Cedarburg Pharmaceuticals, $4.8 million in debt payments, and $3.5 million of capital expenditures, offset by cash flow from operations of $12.4 million. Total common shares outstanding, net of treasury shares, were 32,419,424 at June 30, 2014.  Since the close of the second quarter we subsequently used $109.3 million of cash to acquire the Oso Biopharmaceuticals Manufacturing business.

Second Quarter Results Conference Call

The conference call can be accessed by dialing 888-438-5525 (domestic calls) or 719-325-2354 (international calls) at 9:50 a.m. ET and entering passcode 9752010. The audio webcast will be available live via the Internet and can be accessed on the company’s website at www.amriglobal.com.

Replay of the conference call can be accessed by dialing 888-203-1112 (domestic calls) or 719-457-0820 (international calls) and entering passcode 9752010 from Tuesday, August 5, 2014 at 2:00 p.m. ET to Wednesday, August 6, 2014 at 2:00 p.m. ET.  Replay of the audio webcast can also be accessed for up to 90 days after the call via the investor area of the company’s website at www.amriglobal.com/investor_relations/.

About AMRI

Albany Molecular Research Inc. (AMRI) is a global contract research and manufacturing organization that has been working with the Life Sciences industry to improve patient outcomes and the quality of life for more than two decades. With locations in North America, Europe and Asia, our key business segments include Large Scale Manufacturing (LSM) and Discovery and Development Solutions (DDS). The LSM segment includes Active Pharmaceutical Ingredients (API) and Drug Product Manufacturing, which supports the commercial cGMP manufacturing of complex APIs, starting materials, clinical formulation development and aseptic fill and finish. Our DDS segment provides comprehensive services from hit identification to IND, including expertise with diverse chemistry, library design and synthesis, in vitro biology and pharmacology, drug metabolism and pharmacokinetics, as well as natural products. For more information about AMRI, please visit our website at www.amriglobal.com or follow us on Twitter (@amriglobal).

Forward-looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements include, but are not limited to, statements regarding the company’s estimates of revenue, contract revenue, adjusted EBITDA adjusted diluted earnings per share for the full year 2014, statements made by the company’s Chief Executive Officer, including statements under the caption “Updated Financial Guidance,” statements regarding the strength of the company’s business and prospects, statements regarding the impact of recent acquisition activity, and statements concerning the company’s momentum and long-term growth, including expected results for 2014. Readers should not place undue reliance on our forward-looking statements. The company’s actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company’s control. Factors that could cause such differences include, but are not limited to, trends in pharmaceutical and biotechnology companies’ outsourcing of chemical research and development, including softness in these markets; sales of Allegra® and the impact of the “at-risk” launch of generic Allegra®, the OTC conversion of Allegra® and the generic and OTC sales of Allegra in Japan on the company’s receipt of significant royalties under the Allegra® license agreement; the success of the sales of other products for which the company receives royalties; the risk that the company will not be able to replicate either in the short or long term the revenue stream that has been derived from the royalties payable under the Allegra® license agreements; the risk that clients may terminate or reduce demand under any strategic or multi-year deal; the company’s ability to enforce its intellectual property and technology rights; the company’s ability to obtain financing sufficient to meet its business needs; the company’s ability to successfully comply with heightened FDA scrutiny on aseptic fill/finish operations; the results of further FDA inspections; the company’s ability to effectively maintain compliance with applicable FDA and DEA regulations; the company’s ability to integrate past or future acquisitions, including Cedarburg Pharmaceuticals and Oso Biopharmaceuticals Manufacturing , and make such acquisitions accretive to the company’s business model, the company’s ability to take advantage of proprietary technology and expand the scientific tools available to it, the ability of the company’s strategic investments and acquisitions to perform as expected, as well as those risks discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on March 17, 2014, and the company’s other SEC filings. Revenue, contract revenue, adjusted diluted EPS, adjusted EBITDA and other financial guidance offered by senior management today represent a point-in-time estimate and are based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. Numerous factors, including those noted above, may cause actual results to differ materially from the guidance provided. The company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

Non-GAAP Adjustment Items

To supplement our financial results prepared in accordance with U.S. GAAP, we have presented non-GAAP measures of income (loss) from operations, net income (loss) and income (loss) per diluted share, as adjusted to exclude certain restructuring charges, executive transition costs, convertible debt interest and amortization charges, business acquisition costs, litigation settlement charges, write-offs of deferred financing costs,  non-cash long-lived asset impairment charges, losses on disposals of assets related to restructuring activities, insurance demutualization gains, depreciation and amortization of purchase accounting adjustments, non-recurring income tax adjustments, and postretirement benefit plan settlement gains in the 2014 and 2013 periods.  We have also presented non-GAAP measures of adjusted EBITDA, which in addition to the items excluded above, further excluded the impact of interest income and expense, depreciation and amortization expense, and income tax expense or benefit.  Exclusion of these non-recurring items allow comparisons of operating results that are consistent over time.  We believe presentation of these non-GAAP measures enhances an overall understanding of our historical financial performance because we believe they are an indication of the performance of our base business. Management uses these non-GAAP measures as a basis for evaluating our financial performance as well as for budgeting and forecasting of future periods. For these reasons, we believe they can be useful to investors. The presentation of this additional information should not be considered in isolation or as a substitute for income (loss) from operations, net income (loss) or income (loss) per diluted share prepared in accordance with U.S. GAAP.  Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures are set forth in Tables 1 and 2.  Our projected 2014 adjusted EPS and EBITDA, however, are only provided on an adjusted basis.  It is not feasible to provide GAAP EPS guidance because the items excluded are difficult to predict and estimate and are primarily dependent on future events.

 

Albany Molecular Research, Inc.
Condensed Consolidated Statements of Operations (unaudited)

Three Months Ended

Six Months Ended

(Dollars in thousands, except for per share data)

June 30, 2014

June 30, 2013

June 30, 2014

June 30, 2013

Contract revenue

$ 61,474

$ 50,764

$ 112,512

$ 97,257

Recurring royalties

6,705

8,528

14,988

21,441

          Total revenue

68,179

59,292

127,500

118,698

Cost of contract revenue

45,038

42,450

86,648

80,272

Technology incentive award

424

569

1,017

1,683

Research and development

128

171

207

276

Selling, general and administrative

12,747

12,454

23,376

22,003

Postretirement benefit plan settlement gain

(1,285)

Restructuring charges

1,042

4,953

1,272

5,832

Property and equipment impairment charges

3,718

906

3,718

1,440

          Total operating expenses

63,097

61,503

114,953

111,506

Income (loss) from operations

5,082

(2,211)

12,547

7,192

Interest expense, net

(3,065)

(137)

(5,681)

(274)

Other (expense) income, net

(192)

377

(232)

884

Income (loss) before income taxes

1,825

(1,971)

6,634

7,802

Income tax (benefit) expense

(1,899)

504

(590)

4,000

Net income (loss)

$ 3,724

$ ( 2,475)

$ 7,224

$ 3,802

Basic income (loss) per share

$ 0.12

$ (0.08)

$ 0.23

$ 0.12

Diluted income (loss) per share

$ 0.11

$ (0.08)

$ 0.22

$ 0.12

 

Albany Molecular Research, Inc.
Selected Consolidated Balance Sheet Data
(unaudited)

(Dollars in thousands)

June 30,
2014

December 31,
2013

Cash and cash equivalents……………………..

$        130,417

$            175,928

Restricted cash……………………………..

6,467

714

Accounts receivable, net. …………………….

58,480

52,216

Royalty income receivable…………………….

6,541

7,523

Inventory………………………………….

44,277

31,991

Total current assets………………………….

260,818

279,019

Restricted cash…………………………………………

3,810

Property and equipment, net…………………..

131,619

127,775

Total assets………………………………..

520,150

445,268

Total current liabilities……………………….

50,168

48,849

Long‑term debt, excluding current installments, net of unamortized
   discount…….

122,154

123,135

Total liabilities……………………………..

266,877

204,511

Total stockholders’ equity…………………….

253,273

240,757

Total liabilities and stockholders’ equity………….

520,150

445,268

 

Table 1:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations, net income (loss) and earnings (loss) per diluted share to adjusted income from operations, adjusted net income and adjusted earnings per share:

(Dollars in thousands, except for per share data)
Non-GAAP Measures

Second Quarter

Second Quarter

YTD

YTD

2014

2013

June 30, 2014

June 30, 2013

Income (loss) from operations, as reported

$              5,082

$              (2,211)

$           12,547

$           7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Purchase accounting depreciation and amortization

275

275

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

$               11,449

$                 5,954

$         18,821

$         16,770

Net income (loss), as reported

$              3,724

$              (2,475)

$         7,224

$         3,802

Adjustments, net of tax:

Impairment charges

2,417

906

2,417

1,253

Restructuring charges

653

3,553

850

4,182

Executive transition costs

(9)

251

407

251

Business acquisition costs

875

1,084

Purchase accounting depreciation and amortization

179

179

Postretirement benefit plan settlement gain

(835)

Convertible debt interest and amortization charges

1,641

3,257

Write-off of deferred financing costs

286

286

Non-recurring income tax adjustments

(2,715)

46

(2,715)

92

Litigation settlement

1,248

1,248

Insurance demutualization gain

(252)

Loss on disposal of assets

63

63

Net income (loss), as adjusted

$                 7,051

$                 3,592

$         12,154

$         10,639

Income (loss) per diluted share, as reported

$                0.11

$                (0.08)

$            0.22

$            0.12

Adjustments, net of tax:

Impairment charges

0.07

0.03

0.07

0.04

Restructuring charges

0.02

0.11

0.03

0.14

Executive transition costs

0.01

0.01

0.01

Business acquisition costs

0.03

0.03

Purchase accounting depreciation and amortization

0.01

0.01

Postretirement benefit plan settlement gain

(0.03)

Convertible debt interest and amortization charges

0.05

0.10

Write-off of deferred financing costs

0.01

0.01

Non-recurring income tax adjustments

(0.08)

(0.08)

Litigation settlement

0.04

0.04

Insurance demutualization gain

(0.01)

Loss on disposal of assets

Earnings per diluted share, as adjusted

$                0.22

$                0.11

$             0.37

$             0.34

 

Table 2:  Reconciliation of three and six months ended June 30, 2014 and 2013 reported income (loss) from operations to adjusted EBITDA:

QTD

QTD

YTD

YTD

June 30,
2014

June 30,
2013

June 30,
2014

June 30,
2013

Income (loss) from operations, as reported

$ 5,082

$ (2,211)

$ 12,547

$ 7,192

Impairment charges

3,718

906

3,718

1,440

Restructuring charges

1,042

4,953

1,272

5,832

Executive transition costs

(14)

386

626

386

Business acquisition costs

1,346

1,668

Postretirement benefit plan settlement gain

(1,285)

Litigation settlement

1,920

1,920

Income from operations, as adjusted

11,174

5,954

18,546

16,770

Add: Non-operating (expense) income net, as reported

(192)

377

(232)

844

Deduct: insurance demutualization gain

(388)

Add: Loss on disposal of assets

97

97

Add: Depreciation and amortization

4,263

3,949

8,024

8,012

Adjusted EBITDA

15,245

10,377

26,338

25,335

 

Darling Ingredients Inc. Announces Second Quarter 2014 Earnings Conference Call And Webcast

IRVING, Texas, Aug. 5, 2014 /PRNewswire/ — Darling Ingredients Inc. (NYSE: DAR) will hold a conference call and webcast on Friday, August 8, 2014, to discuss the Company’s second quarter 2014 financial results. The teleconference will begin at 8:30 a.m. Eastern Time and will be hosted by Mr. Randall C. Stuewe, CEO and Chairman of the Board, and Mr. Colin Stevenson, CFO. The related press release will be issued after the market closes on August 7, 2014.

Due to historically high call volume, the company is offering participants the opportunity to register in advance for the conference through the following link: http://dpregister.com/10050348

Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them immediate access to the call on August 8, 2014.

Participants who do not wish to pre-register for the call may dial in using 877-270-2148 (U.S. callers) or 412-902-6510 (international callers), and ask for the “Darling Ingredients” call. A replay will be available two hours after completion of the call through August 14, 2014. To access the replay, please dial 877-344-7529 (U.S. callers) and 412-317-0088 (international callers) and reference passcode 10050348. The live webcast and archived replay also can be accessed on the Company’s web site at http://ir.darlingii.com.

ABOUT DARLING

Darling Ingredients Inc. is the world’s largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and specialty products for customers in the food, pet food, pharmaceutical, feed, technical, fuel, bioenergy, and fertilizer industries. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into broadly used and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts used cooking oil and commercial bakery residuals into valuable feed and fuel ingredients. In addition, the Company provides grease trap services to food service establishments, environmental services to food processors and sells restaurant cooking oil delivery and collection equipment. For additional information, visit the Company’s website at http://ir.darlingii.com.

Cautionary Statements Regarding Forward-Looking Information:

{This media release contains “forward-looking” statements regarding the business operations and prospects of Darling Ingredients Inc. and industry factors affecting it. These statements are identified by words such as “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,” “potential,” “continue,” “momentum,” and other words referring to events that may occur in the future. These statements reflect Darling Ingredient’s current view of future events and are based on its assessment of, and are subject to, a variety of risks and uncertainties beyond its control, each of which could cause actual results to differ materially from those indicated in the forward-looking statements. These factors include, among others, existing and unknown future limitations on the ability of the Company’s direct and indirect subsidiaries to upstream their profits to the Company for payments on the Company’s indebtedness or other purposes; general performance of the U.S. and global economies; disturbances in world financial, credit, commodities and stock markets; any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets; volatile prices for natural gas and diesel fuel; climate conditions; unanticipated costs or operating problems related to the acquisition and integration of Rothsay and Darling Ingredients International (including transactional costs and integration of the new enterprise resource planning (ERP) system); global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, reduced demand for animal feed, or otherwise; reduced finished product prices; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the National Renewable Fuel Standard Program (RFS2) and tax credits for biofuels both in the U.S. and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of Bird Flu including, but not limited to H1N1 flu, bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the U.S. or elsewhere; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign regulations (including, without limitation, China) affecting the industries in which the Company operates or its value added products (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations); risks associated with the renewable diesel plant in Norco, Louisiana owned and operated by a joint venture between Darling Ingredients and Valero Energy Corporation, including possible unanticipated operating disruptions; risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; and/or unfavorable export or import markets. Other risks and uncertainties regarding Darling Ingredients Inc., its business and the industries in which it operates are referenced from time to time in the Company’s filings with the Securities and Exchange Commission. Darling Ingredients Inc. is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.}

For More Information, contact: 

251 O’Connor Ridge Blvd.
Suite 300
Melissa A. Gaither, Director
Investor Relations
Irving, Texas 75038
Phone: +1-972-717-0300

Qualcomm Announces Record Third Quarter Fiscal 2014 Results

SAN DIEGO, July 24, 2014 /PRNewswire/ — Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today announced results for the third quarter of fiscal 2014 ended June 29, 2014.

“We are pleased to report another record quarter with revenues, earnings per share and chip shipments reaching all-time highs, driven by broad-based demand for our industry-leading 3G/4G chipset solutions,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “Looking forward, although we have lowered our near-term financial outlook for the licensing business, we are pleased to be raising our fiscal year earnings per share guidance on better than expected performance in our semiconductor business.”

Third Quarter Results (GAAP)*

  • Revenues: 1 $6.81 billion, up 9 percent year-over-year (y-o-y) and 7 percent sequentially.
  • Operating income: 1 $2.08 billion, up 24 percent y-o-y and 4 percent sequentially.
  • Net income: 2 $2.24 billion, up 42 percent y-o-y and 14 percent sequentially.
  • Diluted earnings per share: 2 $1.31, up 46 percent y-o-y and 15 percent sequentially.
  • Effective tax rate: 1 10 percent.
  • Operating cash flow: $2.67 billion, up 29 percent y-o-y; 39 percent of revenues.
  • Return of capital to stockholders: $2.06 billion, including $1.35 billion through repurchases of 17.0 million shares of common stock and $706 million, or $0.42 per share, of cash dividends paid.

1 Throughout this news release, revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates are from continuing operations (i.e., before adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.

2 Throughout this news release, net income and diluted earnings per share are attributable to Qualcomm (i.e., after adjustments for noncontrolling interests and discontinued operations), unless otherwise stated.

Non-GAAP Third Quarter Results*

Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items and tax items.

  • Revenues: $6.81 billion, up 9 percent y-o-y and 7 percent sequentially.
  • Operating income: $2.43 billion, up 19 percent y-o-y and 4 percent sequentially.
  • Net income: $2.47 billion, up 35 percent y-o-y and 10 percent sequentially.
  • Diluted earnings per share: $1.44, up 40 percent y-o-y and 10 percent sequentially.
  • Effective tax rate: 13 percent.

Detailed reconciliations between GAAP and Non-GAAP results are included within this news release.

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

  • The third quarter of fiscal 2014 results included:
    • $208 million of income, or $0.12 per share, of which $184 million was recorded in other income, due to the reversal of accruals related to our litigation with ParkerVision; and
    • $164 million of charges, or $0.08 per share, that resulted from an impairment on goodwill and long-lived assets related to our QMT (Qualcomm MEMS Technologies) division.
  • The third quarter of fiscal 2013 results included:
    • $158 million charge, or $0.06 per share, that resulted from an impairment on long-lived assets related to our QMT division.

Third Quarter Key Business Metrics

  • MSM™ chip shipments: 225 million units, up 31 percent y-o-y and 20 percent sequentially.
  • March quarter total reported device sales: approximately $58.1 billion, up 3 percent y-o-y and down 13 percent sequentially.
    • March quarter estimated 3G/4G device shipments: approximately 250 to 254 million units, at an estimated average selling price of approximately $228 to $234 per unit.

Cash and Marketable Securities

Our cash, cash equivalents and marketable securities totaled $32.7 billion at the end of the third quarter of fiscal 2014, compared to $30.4 billion a year ago and $32.1 billion at the end of the second quarter of fiscal 2014. On July 18, 2014, we announced a cash dividend of $0.42 per share payable on September 24, 2014 to stockholders of record as of the close of business on September 3, 2014.

Research and Development

($ in millions)

Non-GAAP

QSI

Share-Based 
Compensation

Acquisition- 
Related 
Items

GAAP

Third quarter fiscal 2014

$

1,251

$

1

$

174

$

3

$

1,429

As % of revenues

18%

21%

Third quarter fiscal 2013

$

1,130

$

1

$

166

$

1

$

1,298

As % of revenues

18%

21%

Year-over-year change ($)

11%

N/M

5%

N/M

10%

N/M – Not Meaningful

Non-GAAP research and development (R&D) expenses increased 11 percent y-o-y primarily due to an increase in costs to develop CDMA-based 3G, OFDMA-based 4G LTE and other technologies for integrated circuit and related software products and to expand our intellectual property portfolio.

Selling, General and Administrative

($ in millions)

Non-GAAP

QSI

Share-Based 
Compensation

Acquisition- 
Related 
Items

GAAP

Third quarter fiscal 2014

$

484

$

4

$

88

$

6

$

582

As % of revenues

7%

9%

Third quarter fiscal 2013

$

505

$

6

$

96

$

6

$

613

As % of revenues

8%

10%

Year-over-year change ($)

(4%)

(33%)

(8%)

N/M

(5%)

N/M – Not Meaningful

Non-GAAP selling, general and administrative (SG&A) expenses decreased 4 percent y-o-y primarily due to a decrease in selling and marketing expenses.

Effective Income Tax Rates

Our fiscal 2014 annual effective income tax rates are estimated to be 14 percent for GAAP and 15 percent for Non-GAAP, both of which include the United States federal R&D tax credit generated through December 31, 2013, the date on which the credit expired. During the third quarter of fiscal 2014, we recorded a $66 million tax benefit as a result of an agreement reached with the Internal Revenue Service related to transfer pricing on our fiscal 2013 tax return, which was excluded from Non-GAAP results.

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 quarterly report on file with the Securities and Exchange Commission (SEC) provide 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 realized investment and certain derivative 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.

During the fourth quarter of fiscal 2014, we expect to complete a minimum of $1 billion in stock repurchases under our current stock repurchase program. Our outlook for fiscal 2014 diluted earnings per share includes an estimate of the benefit related to stock repurchases.

China continues to present significant opportunities for us, particularly with the rollout of 4G LTE, but also presents significant challenges, as our business practices continue to be the subject of an investigation by the China National Development and Reform Commission (NDRC). Please refer to our Quarterly Report on Form 10-Q for the third quarter ended June 29, 2014 filed with the SEC for our most recent disclosures regarding the NDRC investigation.

We also believe that certain licensees in China currently are not fully complying with their contractual obligations to report their sales of licensed products to us (which includes certain licensees underreporting a portion of their 3G/4G device sales and a dispute with a licensee) and that unlicensed companies may seek to delay execution of new licenses while the NDRC investigation is ongoing. We expect calendar year 2014 3G/4G device shipments to be approximately 1.3 billion globally. However, our estimate of calendar year 2014 3G/4G device shipments that we currently expect to be reported to us is approximately 1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to us, are in dispute or are currently unlicensed. We are taking steps to address these issues, although the timing of any resolution is uncertain.

The following table summarizes GAAP and Non-GAAP guidance based on the current outlook. The Non-GAAP outlook presented below is consistent with the presentation of Non-GAAP results included elsewhere herein.

Qualcomm’s Business Outlook Summary

FOURTH FISCAL QUARTER

Q4 FY13

Results

Current Guidance

Q4 FY14 Estimates

Revenues

$6.48B

$6.5B – $7.4B

Year-over-year change

even – increase 14%

Non-GAAP diluted earnings per share (EPS)

$1.05

$1.20 – $1.35

Year-over-year change

increase 14% – 29%

Diluted EPS attributable to QSI

($0.01)

$0.00

Diluted EPS attributable to share-based compensation

($0.13)

($0.13)

Diluted EPS attributable to acquisition-related items

($0.04)

($0.04)

GAAP diluted EPS

$0.86

$1.03 – $1.18

Year-over-year change

increase 20% – 37%

Metrics

MSM chip shipments

190M

230M – 245M

Year-over-year change

increase 21% – 29%

Total reported device sales (1)

approx. $60.2B*

approx. $53.0B – $59.0B*

Year-over-year change

decrease 2% – 12%

*Est. sales in June quarter, reported in September quarter

FISCAL YEAR

FY 2013

Results

Prior Guidance

FY 2014 Estimates (2)

Current Guidance 
FY 2014 Estimates

Revenues

$24.87B

$26.0B – $27.5B

$26.3B – $27.2B

Year-over-year change

increase 5% – 11%

increase 6% – 9%

Non-GAAP diluted EPS

$4.51

$5.05 – $5.25

$5.21 – $5.36

Year-over-year change

increase 12% – 16%

increase 16% – 19%

Diluted EPS attributable to QSI

$0.02

($0.01)

($0.01)

Diluted EPS attributable to share-based compensation

($0.51)

($0.51)

($0.51)

Diluted EPS attributable to acquisition-related items

($0.16)

($0.16)

($0.16)

Diluted EPS attributable to tax items

$0.04

N/A

$0.04

GAAP diluted EPS

$3.91

$4.37 – $4.57

$4.57 – $4.72

Year-over-year change

increase 12% – 17%

increase 17% – 21%

Metrics

Est. fiscal year* 3G/4G device average selling price range (1)

approx. $223 – $229

approx. $218 – $228

approx. $222 – $228

*Shipments in Sept. to June quarters, reported in Dec. to Sept. quarters

CALENDAR YEAR Device Estimates (1)

Calendar 2013

Estimates

Prior Guidance
Calendar 2014

Estimates

Current Guidance

Calendar 2014

Estimates

Est. 3G/4G device shipments

March quarter

approx. 244M – 248M

not provided

approx. 250M – 254M

June quarter

approx. 260M – 264M

not provided

not provided

September quarter

approx. 276M – 280M

not provided

not provided

December quarter

approx. 295M – 299M

not provided

not provided

Est. calendar year range (approx.)

1,075M – 1,091M

1,220M – 1,300M

1,040M – 1,130M (3)

 

(1)

Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, 3G/4G devices). The reported quarterly estimated ranges of average selling prices (ASPs) and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same way (e.g., some licensees report sales net of permitted deductions, including transportation, insurance, packing costs and other items, while other licensees report sales and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. In addition, certain licensees may not report (in the quarter in which they are contractually obligated to report) their sales of certain types of subscriber units, which (as a result of audits, legal actions or for other reasons) may be reported in a subsequent quarter. Accordingly, total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that was not reported by the licensee until such particular period.

(2)

Our prior guidance for fiscal 2014 GAAP diluted EPS excluded a $66 million tax benefit that we recorded in the third quarter of fiscal 2014 as a result of an agreement reached with the Internal Revenue Service, which was excluded from our Non-GAAP results.

(3)

We expect calendar year 2014 3G/4G device shipments to be approximately 1.3 billion globally. However, our estimate of calendar year 2014 3G/4G device shipments that we currently expect to be reported to us is approximately 1.04 billion to 1.13 billion, which is adjusted for units that we believe may not be reported to us, are in dispute or are currently unlicensed. We are taking steps to address these issues, although the timing of any resolution is uncertain.

N/A – Not Applicable

Sums may not equal totals due to rounding.

Results of Business Segments

The following table reconciles our Non-GAAP results to our GAAP results ($ in millions, except per share data):

SEGMENTS

QCT

QTL

Non-GAAP Reconciling 
Items (1) (2)

Non-GAAP (3)

QSI (3)

Share-Based Compensation (3)

Acquisition- 
Related 
Items (3)

Tax 
Items

GAAP

Q3 – FISCAL 2014

Revenues

$4,957

$1,803

$46

$6,806

$—

$—

$—

$—

$6,806

Change from prior year

17%

(3%)

(70%)

9%

9%

Change from prior quarter

17%

(13%)

(13%)

7%

7%

Operating income (loss)

$2,425

($5)

($274)

($71)

$—

$2,075

Change from prior year

19%

29%

2%

—%

24%

Change from prior quarter

4%

17%

(9%)

21%

4%

EBT

$1,116

$1,550

$177

$2,843

($1)

($274)

($71)

$—

$2,497

Change from prior year

51%

(5%)

N/M

29%

N/M

2%

—%

31%

Change from prior quarter

51%

(15%)

N/M

7%

97%

(9%)

21%

10%

EBT as % of revenues

23%

86%

N/M

42%

37%

Net income (loss)

$2,470

$—

($232)

($66)

$66

$2,238

Change from prior year

35%

N/M

(5%)

(3%)

N/M

42%

Change from prior quarter

10%

N/M

(17%)

19%

N/M

14%

Diluted EPS

$1.44

$0.00

($0.14)

($0.04)

$0.04

$1.31

Change from prior year

40%

N/M

(8%)

—%

N/M

46%

Change from prior quarter

10%

N/M

(27%)

20%

N/M

15%

Diluted shares used

1,714

1,714

1,714

1,714

1,714

1,714

Q2 – FISCAL 2014

Revenues

$4,243

$2,071

$53

$6,367

$—

$—

$—

$—

$6,367

Operating income (loss)

2,337

(6)

(251)

(90)

1,990

EBT

$740

$1,834

$78

2,652

(39)

(251)

(90)

2,272

Net income (loss)

2,255

(17)

(198)

(81)

1,959

Diluted EPS

$1.31

($0.01)

($0.11)

($0.05)

$—

$1.14

Diluted shares used

1,719

1,719

1,719

1,719

1,719

1,719

Q3 – FISCAL 2013

Revenues

$4,222

$1,867

$154

$6,243

$—

$—

$—

$—

$6,243

Operating income (loss)

2,035

(7)

(280)

(71)

1,677

EBT

$738

$1,633

($161)

2,210

51

(280)

(71)

1,910

Net income (loss)

1,823

43

(222)

(64)

1,580

Diluted EPS

$1.03

$0.02

($0.13)

($0.04)

$—

$0.90

Diluted shares used

1,765

1,765

1,765

1,765

1,765

1,765

Q4 – FISCAL 2013

Revenues

$4,457

$1,874

$149

$6,480

$—

$—

$—

$—

$6,480

Operating income (loss)

1,940

(11)

(274)

(67)

1,588

EBT

$702

$1,622

($151)

2,173

(11)

(274)

(67)

1,821

Net income (loss)

1,818

(24)

(226)

(67)

1,501

Diluted EPS

$1.05

($0.01)

($0.13)

($0.04)

$—

$0.86

Diluted shares used

1,738

1,738

1,738

1,738

1,738

1,738

SEGMENTS

QCT

QTL

Non-GAAP Reconciling 
Items (1) (2)

Non-GAAP (3)

QSI (3)

Share-Based Compensation (3)

Acquisition-
Related 
Items (3)

Tax 
Items

GAAP

9 MONTHS – FISCAL 2014

Revenues

$13,816

$5,774

$205

$19,795

$—

$—

$—

$—

$19,795

Change from prior year

13%

2%

(54%)

8%

8%

Operating income (loss)

$6,611

($16)

($806)

($231)

$—

$5,558

Change from prior year

(2%)

20%

3%

(3%)

(1%)

EBT

$2,762

$5,054

($217)

$7,599

($36)

($806)

($231)

$—

$6,526

Change from prior year

11%

2%

N/M

3%

N/M

3%

(3%)

2%

EBT as % of revenues

20%

88%

N/M

38%

33%

Discontinued operations, net of tax (4)

$430

$—

$—

$—

$—

$430

Net income (loss)

$6,888

($13)

($655)

($213)

$66

$6,073

Change from prior year

13%

N/M

1%

—%

3%

13%

Diluted EPS

$4.01

($0.01)

($0.38)

($0.12)

$0.04

$3.53

Change from prior year

16%<