99 Annual Report
Big Ideas enabled by CDMA
High Data Rate
The Internet Unleashed
There’s something pretty Our people are creative thinkers. the campus-like environment at
special about the people here Resilient. Flexible. Innovative. our headquarters in San Diego,
at QUALCOMM. We’re fortunate to We have over 1,000 patents California. Recreational facili-
have a world-class workforce. issued or pending. But there’s ties mixed in with offices and
Sixty-one percent of our employ- more to QUALCOMM than technol- labs. Plenty of places for people
ees have college degrees. ogy. There’s a culture here that to gather and talk. We welcome
Twenty-five percent have one celebrates knowledge and exploration here.
or more graduate degrees. achievement. You can feel it in
We believe education is a global and science careers. In fact, philosophy. If it hasn’t been done,
riority. That’s why we have over QUALCOMM supports the com- we’ll do it. If it has been done,
00 different training programs munity through many outstanding we’ll strive to do it better. That’s
or our employees around the volunteer and philanthropic the spirit of invention. That’s
world. We’re dedicated to inspir- activities. It’s amazing what you QUALCOMM.
ng young students and teachers can do when you put your mind
n the community to pursue math to it. That’s at the heart of our
02. 04. 14.
Who we are: Letter to shareholders: What we do:
the sum of our parts financial milestones creating value
22. 24. 26. 27.
The heart of our company: Licensing our technology: Business development: The road to the future:
CSM and MSM wireless partners market drivers continuing technology
Year at a glance: Financial information:
summary of news releases table of contents
Except for the historical information contained herein, the following discussion contains forward-looking statements that involve risks and uncertainties. QUALCOMM’s future results could
differ materially from those discussed here. Factors that could cause or contribute to such differences include, but are not specifically limited to: the ability to develop and introduce cost
effective new products in a timely manner, avoiding delays in the commercial implementation of the CDMA technology; the risk that the rate of growth in the CDMA subscriber population will
decrease; risks associated with the scale-up, acceptance and operations of CDMA systems, including HDR technology; risks associated with component shortages; risks associated with
strategic opportunities or acquisitions, divestitures and investments the Company may pursue; risks related to the ability to sustain or improve operational efficiency and profitability; risks
relating to the success of Globalstar; developments in current or future litigation; the Company’s ability to effectively manage growth and the intense competition in the wireless communi-
cations industry; risks associated with vendor financing; timing and receipt of license fees and royalties; risks associated with international business activities; and risks related to customer
receivables and performance obligations, as well as the other risks detailed in this annual report and in the Company’s Form 10-K for fiscal year ended September 26, 1999. The Company’s con-
solidated financial data includes QPE and certain other consolidated subsidiaries of the Company.
QUALCOMM is a company full of people with big
ideas. Those ideas lead to technology and products
that help people communicate.
Behind every phone, integrated circuit and satellite
ground station is an innovative way of problem solving.
Take Code Division Multiple Access (CDMA) technol-
ogy for example. We had an idea for creating a better
form of digital wireless communications. CDMA is
widely available and used by more than 41 million
people today. We believe it’s only a matter of time
before CDMA becomes the communications technology
of choice for most major wireless operators around
Big ideas create big opportunities. And opportunities
open the door to creating value for our customers,
employees and shareholders. That is why QUALCOMM
will continue to innovate and lead.
WHO WE ARE
QUALCOMM is a leading supplier
of digital wireless communications
products and services and is
the innovator of CDMA, a digital
technology that has become the
fastest-growing digital standard
for the wireless communications
industry. QUALCOMM is proud
to employ many of the best people
in the industry. The Company is
headquartered in San Diego,
California and has offices in
13 countries around the world.
Since its founding in 1985,
QUALCOMM has developed
and commercialized innovative
that benefit people.
Today, the Company earns
revenues through manufacturing,
licensing its technology and
operating advanced communi-
QCT is a leading developer make small, fast and func-
QUALCOMM CDMA TECHNOLOGIES
and supplier of CDMA* chip- tional digital wireless phones
sets and software solutions and network infrastructure
for wireless voice and data equipment. To date, more
products. The division than 200 million chips have
provides manufacturers been shipped to CDMA man-
with tools and support to ufacturers worldwide.
QTL generates fees and equipment. Many of our
QUALCOMM TECHNOLOGY LICENSING
ongoing royalties from licensees are now contri-
the worldwide sales by buting to worldwide CDMA
QUALCOMM licensees of growth using QUALCOMM
CDMA phones, chipsets, intellectual property rights.
infrastructure and test
QWS includes two busi- Systems provides gateways,
QUALCOMM WIRELESS SYSTEMS AND
WIRELESS BUSINESS SOLUTIONS nesses. Wireless Business phones and contract ser-
Solutions is responsible for vices primarily for the
the OmniTRACS® family of Globalstar™ system.
systems for the transporta-
tion industry. Wireless
QCP designs, markets Electronics, is one of the
QUALCOMM CONSUMER PRODUCTS
and manufactures CDMA world’s largest manufactur-
digital wireless phones ers of CDMA digital phones.
that incorporate a variety QUALCOMM announced the
of features and crystal clear sale of its phone business
voice clarity. QUALCOMM to Kyocera Corporation of
Personal Electronics, our Japan in December of 1999.
joint venture with Sony
QUALCOMM DIGITAL MEDIA, QDM develops enabling broadcast capability and
EUDORA AND HDR technologies for processing end-to-end encryption.
Eudora® our highly popular
digital media, including a ,
digital cinema delivery e-mail software, is now mar-
system for motion picture keted in three user-selected
distributors. QDM also devel- modes. And we continue to
ops technology and products develop and commercialize
for the U.S. Government, our HDR technology to offer
including secure CDMA high-capacity, high-speed
wireless phones with net wireless data applications.
* Code Division Multiple Access technology is the digital wireless communications technology pioneered by
QUALCOMM that has become a recognized world standard for the telecommunications industry.
TO OUR SHAREHOLDERS
This has been a year of transforma- After a decade of successful innovation, QUALCOMM continues to be one of
tion and success for our Company. America’s fastest-growing companies. Wireless communication has proven
The digital wireless communications to be a very popular concept and we’re delivering products and services
technology we pioneered—CDMA— that people really want. We are creating technology innovations embodied
has become a world standard for in chips and are consistently delivering each new generation chipset on
mobile communications. schedule. This has enabled CDMA to become the fastest-growing tech-
nology in our industry.
CDMA is used in cellular, PCS and
wireless local loop systems both QUALCOMM is the world leader in the development and sales of CDMA
terrestrial and satellite-based. chipsets and system software solutions. We achieved significant market
share, making QUALCOMM the second largest digital handset manufacturer
More than 35 countries use our
in North America. As the innovator of CDMA, we benefit from licensing and
technology, and we expect this
royalty fees for any CDMA product sold by a licensee. There are now more
will expand as the next generation
than 75 leading telecom manufacturers around the globe licensed to build
of CDMA unfolds over the next
and sell products based on cdmaOne™ technology. In September, FORTUNE
magazine moved QUALCOMM up from the 74th position to number 16 on its
We had our first ever billion dollar list of America’s Fastest-Growing Companies.
quarter and total annual revenues
of $3.9 billion. This year, our stock
performance and revenue growth Substantial growth has been driven by the recent acceleration of phone
helped us gain entry to the S&P 500 shipments by QUALCOMM and its licensees to satisfy strong demand in
Index and the 1999 FORTUNE 500 ® list. North America, Latin America, South Korea and Japan. Over 41 million
people worldwide subscribe to CDMA wireless telephone service today.
Not only has the number of subscribers been going up rapidly, but the
Each one of our employees has con- amount of minutes they use is on the rise as well. Thanks to increased
tributed to QUALCOMM’s continued competition between wireless service providers, discounted rate plans
success in the global marketplace. are bringing down the cost per minute that customers have to pay.
Our people are creative and innova-
CDMA demand is growing rapidly around the world, and there was strong
tive thinkers who are applying
evidence of that this year in Japan when the first nationwide all-digital
technology to enrich people’s lives.
network rolled out in April of 1999. The country’s two major carriers, DDI
As a result, today our Company holds
and IDO, joined forces to make the launch possible, and soon they will
more than 350 U.S. patents with
merge, along with KDD, to form a unified carrier. They demanded strict
about 800 more pending.
specifications for their phones, and QUALCOMM was first-to-market with the
chips that enabled Japanese handset manufacturers to surpass the specifi-
cations and facilitate an on-time launch of the national network. Consumer
advertising campaigns in Japan coined the term “super digital” to describe
QUALCOMM Stock Price Performance
Compared to the Standard and Poor’s Index for Calendar Year 1999
S&P 500 +19.53%
01 02 03 04 05 06 07 08 09 10 11 12
(Data Source: Bridge Systems)
This was a year of big oper- market for products and
ating earnings growth and services based on CDMA,
improvements for QUALCOMM. the digital wireless com-
A key driver for us has been munications technology
the growing worldwide we pioneered.
100 BEST 100 BEST
1 0 0 F A S T E S T-
MANAGED C O M PA N I E S T O W O R K
G R O W I N G C O M PA N I E S
FOR IN AMERICA™
IN AMERICA™ C O M PA N I E S
This was a year of big their top 100 list for exempli-
recognition for our Company. fying the highest level of
FORTUNE named QUALCOMM operational and strategic
number 16 on its list of excellence. And, for the sec-
America’s Fastest-Growing ond year in a row, FORTUNE
Companies. It recognizes magazine ranked QUALCOMM
companies with 30% growth one of the 100 Best Companies
in revenue and earnings To Work For In America.
Evolving Strategy & Structure standard and have entered into patent cross licenses. The cross licenses
are royalty-bearing for CDMA subscriber units sold by either party. As part
From the day we first suggested that
of the deal, Ericsson purchased certain assets of our terrestrial CDMA wire-
CDMA technology offered a better
less infrastructure business located in San Diego, California and Boulder,
way to transmit wireless voice and
Colorado. The infrastructure business met its strategic goal of driving
data, the key to the growth of our
CDMA forward into new markets. Ericsson is well equipped to enter CDMA
business hinged on whether or not
markets around the world and take this business to new levels of revenues
the worldwide telecommunication
standards bodies shared our enthu-
siasm. Organizations such as the QUALCOMM continues to provide leading edge chipsets and system software
International Telecommunications to a wide range of infrastructure manufacturers. We entered into a major
Union (ITU) and others are focused agreement with Lucent to provide 3G CDMA chipsets and software for their
on determining the future world infrastructure base station equipment. QUALCOMM patents will be at the heart
standard, the so called third of the next generation of CDMA technology for wireless communications.
generation (3G) for wireless
As part of our continuing effort to improve operations and focus on our core
competencies, we also made the strategic decision to examine alternatives,
With global profits at stake, it is including the sale of our phone manufacturing business. As carriers consoli-
not surprising that competing manu- date, the price they charge for phones goes down. We expect this to put
facturers fiercely asserted that their additional downward pricing pressure on manufacturers. We therefore
Intellectual Property Rights (IPR) determined the timing was right to seek buyers for QCP. On December 22,
should be accepted as the 3G 1999, we announced an agreement with Kyocera Corporation to transfer
standard. QUALCOMM’s primary our phone manufacturing operations and customer commitments. Kyocera,
competitor in this endeavor was the leading CDMA phone supplier in Japan, is now positioned to be a major
Swedish-based Ericsson, the leader supplier in North America and other markets.
in developing systems based on the
We are very proud of the accomplishments of our Consumer Products
competing GSM technology that has
Division. A major 1999 U.S. customer satisfaction and loyalty survey deter-
long dominated European markets.
mined that our products rated higher than Motorola, Nokia and Samsung. In
We resolved our patent litigation just four years, we gained substantial market share and manufactured more
with Ericsson this year and signed than 14 million CDMA digital wireless phones by the end of fiscal 1999.
important agreements that pave the
way for making CDMA the worldwide
standard. Under the agreements,
QUALCOMM and Ericsson are jointly
supporting a single CDMA world
Our CDMA technology got its start QWBS had its most profitable year ever in fiscal 1999, shipping more than
in the world through our strong 48,000 OmniTRACS systems and passing the 300,000 mark for units sold
leadership in the wireless market. worldwide. There were major new contracts in Brazil, Argentina and the
Now we are taking our Company U.S. In fact, we gained 200 new customers and 90 current customers
to the next level by once again renewed their commitments. Shortly after the end of the fiscal year, the
focusing on our core competen- People’s Republic of China agreed to allow us to bring our OmniTRACS
cies in CDMA technology. system to their country.
We have commercialized wireless QUALCOMM is a founding member of the Globalstar consortium, a constellation
voice technology and continue to of Low-Earth Orbiting (LEO) satellites that enables wireless communications
supply the semiconductor chips from virtually anywhere on the globe. The newly renamed QUALCOMM
that drive the worldwide growth Wireless Systems Division (QWS) provides contract services to Globalstar
of those markets. Now we have by building and maintaining terrestrial ground stations (gateways) for the
some big ideas for using our CDMA system. QWS has now shipped 38 gateways around the world. We are proud
expertise to enable other wireless to report that after a decade of research and development activities, the
communications applications to first phase in the commercial launch of the service took place in the
grow and evolve. closing months of 1999.
Enabling Technologies QWS also designs and manufactures satellite phone solutions for Globalstar.
After more than a million test calls on our handheld and fixed Globalstar
Our first commercial venture, the
phones, we were awarded approvals by the leading regulatory authorities
OmniTRACS system, has now stream-
in four continents, which paves the way for unrestricted use of our phones
lined operations for many of the
across all international borders.
major trucking firms in the U.S., and
contributed significantly to highway This service is designed to enable people in remote and underserved
safety along the way. The system locations in more than 100 countries to become connected to the world-
enables transportation companies wide global communications network.
to manage fleet information, track
QUALCOMM develops enabling technologies for people with big ideas and
truck locations and provide personal
the potential social and economic benefits are evidenced daily in the mar-
communications services to their
ketplace. For example, our digital compression and network management
drivers. The division was renamed
technologies may enable movie viewers to have a flawless film-going
QUALCOMM Wireless Business
experience in the future. Our Digital Media Division (QDM) is contributing
Solutions (QWBS) this year to reflect
to a movie industry effort to develop a practical “all-digital” cinema. This
its evolving mission. As part of the
promising new format was demonstrated this year when special test
division’s commitment to develop
screenings were conducted. As a developer for the “Condor Project,” the
new products and serve expanded
QDM Division is also enabling government clients to have secure wireless
markets, QWBS entered into exciting
phones with encryption and a net broadcasting capability that incorporates
development deals with Symbol
Technologies, ORBCOMM and others.
S&P F OR T U N E
00 This was a year of major We are extremely proud to
milestones for QUALCOMM. have entered the Standard &
Our Company was named Poor’s 500 Stock Index and to
to the prestigious FORTUNE have been named the top per-
500 list, which highlights forming stock on the S&P 500
the largest companies in 1999.
RECORD REVENUES FOR ONE QUARTER…
This was a year of big rev-
enues for our Company. In the
third quarter of fiscal 1999,
for the first time, QUALCOMM
earned more than a billion
dollars in revenues.
Eudora, our popular and award- This year, our fifth generation chip for handsets (the MSM3000™) and
winning e-mail software, continues its associated system software enabled digital phone manufacturers to
to evolve. At year-end we announced quickly build into their phones the most sophisticated voice recognition
a major free upgrade for the program capability available today. It allows for very long standby times of approxi-
and reconfigured our marketing mately 200 hours and can be packaged in extremely small phones. The
strategy. One core version of the division shipped millions of these chips, which also support data speeds of
program is now available in three up to 86 kilobits per second (kbps). This is the only chip solution in the
user-selected modes, including a industry that enables data to be transferred faster than traditional wired
feature-packed “free” version made modems used by most personal computers. The sixth generation MSM3100
possible through advertising spon- began shipping in the fourth quarter this year, enabling 300 hours standby
sorship. The new upgrade will be time and 50% smaller package size.
offered to over 16 million people
Leading The Way
worldwide who now subscribe to
Eudora Light. Growing interest in computing and the Internet has fueled public demand
for faster communications technologies. To support market needs and
As we contemplate the power
solidify our leadership in this field, QUALCOMM has developed High Data
of big ideas and the value created
Rate (HDR) technology. We think that technologies such as HDR today
through enabling technologies, we
(and 3G in the future) may be as revolutionary to the wireless Internet as
inevitably come back to another
CDMA technology has been to wireless voice communications.
division that went through a name
change this year. QUALCOMM‘s Today’s wireless communications networks (designated IS-95A) are capable
CDMA Technologies Division (QCT) of transmitting data at approximately 14.4 kbps. The next generation in
makes the chips that carry our vision network technology—IS-95B—supports 64 to 115 kbps. South Korea launched
forward. The division has an impres- the first commercial IS-95B network in 1999, and Japan followed suit
sive track record of on-time delivery in early 2000. To remain competitive, service providers in other markets,
of six generations of CDMA chipsets including the U.S., are making plans to offer wireless data applications.
and software solutions. QUALCOMM will strive to be there every step of the way with the technology
and support to spark the transition.
Our chip business has an excellent
reputation for giving manufacturers HDR has potential for both preceding and complementing 3G, the next
the functionality, features and inte- evolutionary step in the wireless communications technology timeline.
gration they need to build innovative QUALCOMM is in a unique position to enable growth and development in
and cost-effective CDMA products, the voice and data arenas of the wireless communications industry. We
and we do that consistently with believe we have the IPR and the people to continue to be a leader through
the fastest possible time-to-market. the next technology revolution.
Creating Value After being named to the S&P 500, we anticipated increased demand from
the index funds. We sold 6.9 million shares to these funds and gained net
We believe the Company performed
proceeds of over $1 billion to fund our future growth. Our total market capi-
exceptionally well this year and that
talization reached a milestone this fiscal year as QUALCOMM became a
fact was reflected not only in market
$109 billion company by the end of calendar 1999. Our ideas have clearly
acceptance of our technology but
led to results.
in increased revenues, profits and
stock value. Our Company gained additional capital this year through very strong revenues
across business units. Revenues grew to $3.9 billion, up 18% from last year.
QUALCOMM’s stock price growth
License, royalty and development fees for fiscal 1999 were $343 million,
led our Board of Directors to effect
compared to $218 million last year. Earnings before taxes this year increased
a two-for-one stock split in May 1999
by 106% to $307 million compared to $149 million last year.
and a four-for-one stock split in
December 1999. The outlook for fiscal 2000 and beyond is very positive as worldwide CDMA
continues to grow, and our Company is well positioned to succeed in
We continued to reduce overall
tomorrow’s wireless communications markets. We are very pleased with
expenses as a percentage of rev-
the demand for our products and services and want to conclude by thanking
enues and substantially improved
all the outstanding employees who are making QUALCOMM an exceptional
our margins this year. CIO Magazine
performer and the leader in our industry. Through ethical and intelligent
acknowledged our operational and
pursuit of excellence, all of us at QUALCOMM are pursuing big ideas to bring
strategic excellence by naming
meaningful benefits to people around the world.
QUALCOMM a recipient of the 1999
CIO-100 award for companies pos-
sessing the strategy to prosper into
the next century.
DR. IRWIN MARK JACOBS RICHARD SULPIZIO
Chairman and President and
Chief Executive Officer Chief Operating Officer
the journey of a
thousand miles begins
with a single chip
Our chipsets and software
solutions have been sold to
CDMA manufacturers world-
wide and can be found on
> Inspiring CDMA
is greater than the
sum of its parts
> Giving people power and control
with technology that matters and
makes life easier.
We help people
lead more mobile,
productive lives with
CDMA digital wire-
less phones that
provide a variety of
and crystal clear
no one is an island
> Bringing people together by fueling the
most advanced wireless networks and
offering wireless solutions for business.
We develop the
chipsets and system
software that help
drive the worldwide
growth of CDMA
what a wireless web
> Breaking the
for very fast
Our innovative satellite technology delivers
powerful tracking and information services to
the transportation industry. And the ground
stations and satellite phones we build for the
Globalstar network are enabling communica-
tions from virtually anywhere in the world.
I N N O VAT I O N I S T H E H E A R T O F O U R C O M PA N Y
These timelines represent a roadmap, tracing the
evolution of technology that put our Company on the
map and changing the way people communicate.
It’s a complex story, but here’s what it really means.
About a decade ago, QUALCOMM engineers pio-
neered the development of a revolutionary digital
wireless communications technology called CDMA
for commercial use. Compared to traditional analog
systems, CDMA dramatically increases system
capacity for network operators and enables superior
voice quality, greater coverage and extended talk
times for end users. CDMA phones also offer a wide
range of features such as caller ID, hands-free
calling and Internet data access.
Today, CDMA has gained global acceptance and is
the fastest-growing digital wireless communications
technology in history.
C D M A Te c h n o l o g y
• Commercial CDMA • Landmark agreements
• Regulatory body accepts
• Sprint PCS selects
• Full-scale CDMA
• QUALCOMM proposes a
service launches pave the way for
U.S. PCS standard
superior wireless telecom
in South Korea QUALCOMM’s CDMA
solution called CDMA • 1st commercial CDMA
to become the world
network • PCS PrimeCo
system deployed in
standard for the next
generation of wireless
PCS service in U.S.
telecom (called 3G)
• High volume
• Over 41 million cdmaOne
shipments of CDMA
• Field trials and • International telecom
demonstrations regulatory body accepts
1st CDMA standard
• South Korea selects
89 90 91 92 93 94 95 96 97 98 99
CSM Infrastructure Chipsets
CSM 1.0 offers an integrated CSM 1.5 developed CSM2000 developed CSM5000
1st CSM solution requires multiple chips
solution (all-in-one chipset) • Smaller, cheaper and • Works with • 3G CDMA 1x MC
• CSM modulation chip
• Works with IS-95A and uses less power IS-95A & IS-95B (world wireless standard
• CSM demod chip
IS-95B networks networks of the future)
• One channel
• Viterbi decoder chip
• Faster data rates per chip • CSM 1.5 compatible • Faster data rates
(up to 14.4 kbps) (up to 307.2 kbps)
• Faster data rates
• One channel per chip (up to 115.2 kbps) • 30+ channels per chip
• 8 channels per chip
89 90 91 92 93 94 95 96 97 98 99
MSM Phone Chipsets
3rd gen MSM 5th gen MSM (MSM3000) 6th gen MSM (MSM3100) MSM5000
1st gen MSM
(MSM2) • Chipset developed • Chipset developed • Compliant with
• R&D begins
• Chipset developed IMT-2000 1X MC
• Up to 200 hours standby time • 50% smaller
• Used in QCP800 phone • Up to 300 hours standby time • IS-95A and IS-95B
• Faster data rates (up to 86 kbps)
• IS-95A/IS-95B compliant • Mixed signal integration
• 2X voice capacity
• Supports USB data interface
• Faster data rates
(up to 153.6 kbps)
2nd gen MSM
4th gen MSM
•Supports HDR technol-
• Chipset developed
ogy (up to 2.4 Mbps)
• Highly cost-effective
• Advanced architec-
• Features dual
memory and more
• Supports 3rd party
89 90 91 92 93 94 95 96 97 98 99
CDMA: QUALCOMM’s pioneering Code Division Multiple Mbps: Megabits per second. Another measure of wire-
Access wireless telecommunications technology. less transmission speed.
CSM: Cell Site Modem. A chipset and system software MSM: Mobile Station Modem. A chipset and system
solution used in CDMA wireless network software solution used in CDMA wireless
infrastructure equipment. handsets.
Gen: Generation. PCS: Personal Communications Services. Mobile wire-
less telecommunications systems that operate at
HDR: High Data Rate technology.
1800-1900 MHz frequencies.
kbps: Kilobits per second. A measure of wireless trans-
R&D: Research and Development
Licensing Our Technology…
D I G I TA L W I R E L E S S
INFRASTRUCTURE TEST EQUIPMENT
Fujitsu Limited Advantest Corporation
QUALCOMM’s CDMA technology is
Hitachi, Ltd. ANDO Electric Co., Ltd.
the engine for the networks that
Hughes Network Systems, Inc. Anritsu Corporation
deliver the world’s most sophisti-
Hyundai Electronics Industries Co., Ltd. Comarco Wireless Technologies, Inc.
cated digital wireless technology.
LG Information & Communications, Ltd. Grayson Electronics Company
Commercial cdmaOne™ networks
Lucent Technologies Inc. Hewlett-Packard Company
around the world served over 41
Motorola, Inc. IFR Systems, Inc.
million subscribers by September
NEC Corporation Japan Radio Co., Ltd.
of 1999, and the number is growing.
Nortel Networks Corporation LCC Corporation
Samsung Electronics Co. Motorola, Inc.
Telefonaktiebolaget LM Ericsson Racal Instruments Ltd.
Rhode & Schwartz GmbH & Co.
Telefonaktiebolaget LM Ericsson
CABLE AND MISCELLANEOUS
License, royalty and development
fees generated $343 million during
the 1999 fiscal year.
QUALCOMM’s CDMA chipsets and
NEC Corporation system software solutions are used
Acer Peripherals, Inc.
NIPPONDENSO Co., Ltd. (DENSO) by manufacturers to build smaller,
Alps Electric Co./Alpine Electronics Inc.
Nokia Mobile Phones Ltd. faster, smarter phones. Our
Appeal Telecom Co., Ltd.
Oki Electric Industry Co., Ltd. MSM3000™ single-chip Mobile
Casio Computer Co., Ltd.
Pantech Co., Ltd. Station Modem (MSM™) baseband
Philips Electronics N.V. processing solution offers many
Samsung Electronics Co. new features, including longer
Haitai Electronics Co., Ltd.
Sanyo Electric Co., Ltd. standby times and higher data rates.
Sewon Co., Ltd. Higher data rates enable wireless
Sharp Corporation phone users to access a new breed
Hughes Network Systems, Inc.
Siemens Rolm Communications Inc. of Internet applications with fast
Hyundai Electronics Industries Co., Ltd.
Sierra Wireless, Inc. packet switched access to data-
SK Telecom Co., Ltd. bases, e-mail and web browsing.
Kokusai Electric Company
Standard Telecom Co., Ltd.
LG Information & Communications, Ltd.
LG Electronics Inc.
Telefonaktiebolaget LM Ericsson
Lucent Technologies Inc.
Telson Electronics Co., Ltd.
Matsushita Communication Industrial Co.
Maxon Electronics Co., Ltd.
Mitsubishi Electric Corporation
United Computer & Telecommunication, Inc.
Wide Telecom Co., Ltd.
SUBSCRIBER EQUIPMENT (GLOBALSTAR) ASICS
Ericsson OMC DSPC, a subsidiary of Intel
Telital S.r.l LSI Logic Corporation
DATA RATE EVOLUTION
Speed and bandwidth are key to
giving people the data and Internet
applications they want. QUALCOMM’s
High Data Rate (HDR) technology
and the next generation of digital
wireless technology, called “3G,” Fast enough
are expected to break that speed
barrier wide open. QUALCOMM engi-
neers are preparing the chipsets media
and software that can launch the
new standard. But being innovative
means being there first. We’re experience,
commercializing a wireless data almost full
speed for Makes the web
solution right now to offer 3G graphics experience
benefits sooner. HDR is a versatile easy and fun,
even full web
high-capacity, high-speed wireless
telecommunications technology downloads
that can change the way people use, only in
will access the Internet. HDR works text modes
on existing 1.25 MHz channel net-
works and optimizes data packets
at speeds up to 2.4 Mbps. It can
overlay existing wireless networks
or work as a stand-alone system.
9.6 kbps 28.8 kbps 56 kbps 128 kbps 384 kbps 2 + Mbps
It works on fixed, portable, and
mobile applications. And it’s another
example of QUALCOMM’s innovative
thinking. We’re meeting the high
speed challenge head on… and
we’re not waiting for the next
generation to do it.
HDR is to wireless Internet
access as CDMA is to
wireless voice service.
THE ROAD TO THE FUTURE…
CDMA TECHNOLOGY ROADMAP
The world’s most advanced digital
wireless technology, QUALCOMM’s
CDMA, meets the radio air interface
needs for the next generation of
IS-95A IS-95B 3G MC 1X 3G Multi-
• 14.4 kbps data • Up to 115.2 kbps data • Up to 384 kbps data wireless communications, called
• Overlay AMPS • Advanced soft handoff • Double voice capacity • Voice and data
IMT-2000 CDMA. This flexible stan-
• Voice quality • Access handoff • Double standby time • Up to 2 Mbps data
dard functions in three modes—
• Spectral efficiency • Mobile-assisted
• Capacity inter-frequency Multi-Carrier, Direct Spread, and
Time Division Duplex—and oper-
ates with ANSI-41 and GSM MAP
networks. CDMA will have the
whole world covered. And with
CDMA chosen as a next generation
• Voice and data
• Up to 2 Mbps data
standard for the industry, carriers
across the globe will have clear
migration paths for transitioning
their networks. Manufacturers
working on next generation prod-
• Data-only: dedicated and optimized
ucts gain cost advantages and
1.25 MHz channel
• Up to 2.4 Mbps peak rate
faster time-to-market. Users will
• Up to 7 Mbps average per cell
truly have untethered commu-
nications at high transmission
speeds. Whether you’re a network
operator, a manufacturer or an end
95 96 97 98 99 00 01 02 03
user, CDMA 3G is the promise of
CDMA is the technology for
the next generation. 27
Y E A R AT A G L A N C E : A S U M M A R Y O F N E W S R E L E A S E S
A new network optimization tool for
Eudora E-mail by Phone Service $35M Handset Agreement in Brazil
field test engineers, The Retriever
The newest release of QUALCOMM’s The largest telecom company in
pilot scanner/test phone provides
popular e-mail software allows Brazil agrees to purchase QUALCOMM
technicians with portable, wireless
e-mail access by phone thanks to CDMA digital handsets. The Company,
over-the-air testing of network and
text-to-speech technology that con- TELESP, serves 30 million people.
handset performance over CDMA
verts e-mail into digitized speech.
digital cellular and PCS networks.
QUALCOMM: One Of The Fast 500
OmniTRACS Division Renamed Deloitte & Touche names QUALCOMM
Ericsson Supports Convergence
The OmniTRACS Division changes to its “Fast 500 ” list for the second
Ericsson publicly supports the
its name to QUALCOMM Wireless consecutive year. The 500 fastest
convergence of cdma2000™ and
Business Solutions (QWBS). growing technology companies in
W-CDMA, the proposals based on
the U.S. are based on a five-year
CDMA for 3G digital wireless tech-
OmniTRACS Contract Extended
percentage growth in revenues.
nology. QUALCOMM invites them to
Prime, one of the top ten U.S. trucking
QUALCOMM revenues grew at a
join in the discussions.
firms, signs on for five more years
compound annual rate of 88% from
Best Companies List
FORTUNE magazine names QUALCOMM
Record Earnings & Revenues
Q Phone Award
to its list of “100 Best Companies to
• 4th quarter fiscal 1998 revenues:
PC Computing magazine awards
Work for in America.”
$926M (up 54% over Q4 FY97)
Q phone the 1998 Most Valuable
• 4th quarter net income: $40M Product award in the Digital Office
or $.27 per share (diluted) Business Tools division for Best
(up 33% and 29% over Q4 FY97, First Quarter Results
respectively) QUALCOMM reports the highest quar-
terly revenues in its 13-year history.
• FY98 revenues: $3.3B (up 60% 12.08.98
• 1st quarter fiscal 1999 revenues:
Truck Fleet Selects OmniTRACS
$941M (up 20% over Q1 FY98)
• FY98 EPS: $.73 per share (diluted) Omaha-based Cornhusker Motor
• 1st quarter net income: $49M
(up 15% over FY97) Lines signs a contract to outfit their
(up 32% over Q1 FY98)
• Excluding non-recurring charges, entire fleet with OmniTRACS.
• 1st quarter EPS: $.33 per share
FY98 EPS: $.94 per share (diluted)
WLL Network In Africa
(diluted) compared with $.25
Mauritius Telecom contracts for a
per share (diluted) in Q1 FY98
cdmaOne (IS-95) WLL network that
Joint Venture With Microsoft adds 50,000 subscribers to its digital
QUALCOMM and Microsoft form a wireline network. Mauritius has the
new joint venture company named highest phone penetration in Africa.
Wireless Knowledge LLC. The JV
was formed to enable carriers to
offer mobile customers wireless
access to data and applications
over their choice of wireless net-
works and enterprise systems.
01.25.99 02.08.99 03.25.99
15,000 Truckers Get CabCARD®
New “Thin Phone” CDMA Agreement With Ericsson
The QUALCOMM Thin Phone (the 4th The nation’s largest trucking firm, Ericsson and QUALCOMM agree to
generation of CDMA digital wireless Schneider, contracts for CabCARD jointly support a single CDMA world
phones) features an ultra-thin design e-mail and pre-paid phone services. standard with three optional modes
and weighs only four ounces. for the next generation of wireless
6th Generation Chips
communications, to enter into
The 6th generation MSM3100™
01.26.99 royalty-bearing cross licenses for
chipset and system software solu-
their respective patent portfolios
Cheaper E-mail For Truckers tion features a 50 percent reduction
and to settle the existing litigation
QUALCOMM reduces prices dramati- in chip size and up to 300 hours of
between the companies. As part of
cally on CabCARD,® providing e-mail standby time. The first baseband
the agreement, Ericsson purchased
savings to over 85,000 truck drivers. modem to offer on-chip hardware
our terrestrial CDMA wireless infra-
support for in-phone GPS-based
structure business, including its R&D
01.27.99 CDMA position and location ser-
resources, located in San Diego,
vices, it enables manufacturers to
30 Million MSMs California and Boulder, Colorado.
meet the FCC mandate for emer-
Mobile Station Modem chip ship-
gency location tracking (E911).
ments pass the 30 million mark. 04.09.99
Advanced Voice Recognition
5th Generation Chips FORTUNE 500 List
An add-on option for the
Production shipping begins for the FORTUNE magazine names QUALCOMM
MSM3000/3100 system software,
5th generation CDMA chipset and to its 1999 FORTUNE 500 ® list, which
PureVoice VR™ voice recognition
system software. Twenty-one leading highlights the largest companies
software allows manufacturers to
CDMA handset manufacturers agree in America.
quickly add powerful speech capa-
to purchase the MSM3000 chipset
bilities to CDMA handsets without
and system software. 04.14.99
03.15.99 The Board declares a 2-for-1 stock
New Chip Packaging split of the Company’s Common
$14M Mobile Development
New packaging debuts for the Stock distributed (on May 10) to
MSM3000 and IFT3000™ and stockholders of record on April 21.
QUALCOMM and Symbol Tech-
IFR3000™ fully integrated Inter-
nologies, Inc. will develop mobile
mediate Frequency (IF) chipsets. 04.19.99
vehicle computer and integrated
Manufacturers can design smaller
technology solutions for the trans- Japan’s First CDMA Network
handsets with longer stand-by times
portation industry. QUALCOMM’s 5th generation MSM3000
and higher data-rate services. It is
chipsets are featured in the phones
the first single-chip baseband solu-
03.17.99 developed by three Japanese manu-
tion to enable data speeds up to 86.4
facturers for the country’s first
kbps. Handheld wireless devices 10 Millionth Phone Shipped
nationwide cdmaOne network.
using the chipset will be faster than QUALCOMM Personal Electronics
personal computers equipped with (QPE), a joint venture between
standard modems. subsidiaries of QUALCOMM and
Sony Electronics Inc., ships its
ten millionth CDMA phone.
Y E A R AT A G L A N C E : A S U M M A R Y O F N E W S R E L E A S E S
04.20.99 05.19.99 06.11.99
Second Quarter Earnings High-Speed Packet Data To Asia Chairman Honor
• 2nd quarter fiscal 1999 revenues: QUALCOMM’s innovative new The Smithsonian recognizes
$932M (up 23% over Q2 FY98) software solution facilitates High- QUALCOMM Chairman and CEO Dr.
Speed Packet Data (HSPD) service in Irwin Mark Jacobs for his achieve-
• 2nd quarter net loss: $43M
Japan and Korea. It is the industry’s ments in the application of information
(down 264% from Q2 FY98)
only technology solution delivering technology to the benefit of society.
• 2nd quarter EPS: $.29 per share
86.4 kbps data. A record of his life and career is
loss compared with $.18 per
included in the Smithsonian’s
share (diluted) in Q2 FY98
05.21.99 National Museum of American
Excluding Non-Recurring Charges: History.
Thin Phone In Canada
• 2nd quarter net income: $65M
Canada’s Clearnet Communications
(up 250% over Q2 FY98) 06.14.99
chooses QUALCOMM’s new Thin
• 2nd quarter EPS: $.41 per share Phone for its pre-paid PCS offering. Subscriber Equipment License
(diluted) (up 23% over Q2 FY98) QUALCOMM grants Sierra Wireless a
05.24.99 royalty-bearing license for cdmaOne
04.28.99 and cdma2000 wireless applications,
including cellular, PCS and wireless
Better Trailer Tracking Solutions QUALCOMM announces the first
QUALCOMM and ORBCOMM will offer 3G CDMA chipset and system soft-
a comprehensive satellite-based ware solution, the MSM5000™ and
trailer tracking system. CSM5000™ A single chip will handle
32 simultaneous calls. Initial data Wireless Business Solution
05.06.99 rates of 153 kbps (increasing to 724 Solutions, Inc. chooses the
2 Mbps) will facilitate Internet-ready pdQ smartphone as one of the key
More CabCARD Truck Fleets
consumer products over IS-95A/B platforms for its new wireless
Ohio-based Roberts Express plans
and cdma2000 networks. financial services solution in market
to offer CabCARD services to all of
trial by the Bank of Montreal and
its independent contractors. Infrastructure Sale Completed,
Bell Mobility. The system enables
Patent Disputes Settled
financial institutions to deliver per-
05.11.99 The sale of QUALCOMM’s terrestrial
sonalized banking, brokerage and
CDMA wireless infrastructure busi-
$120M Phone Deal With US WEST information content on a variety of
ness to Ericsson closes. Patent
US WEST agrees to purchase CDMA Internet access devices.
litigation is settled.
digital PCS phones, including the
new pdQ smartphone™ and Thin 07.12.99
Phone, for its CDMA network in 14
Western and Midwestern states. OmniTRACS In Tennessee
QUALCOMM is added to the S&P
Customers will have advanced Nashville-based Star Transportation
CDMA digital services, including replaces its communication system
wireless Internet access. with QUALCOMM’s OmniTRACS. It
orders 430 OmniTRACS units.
Lucent Emergency Caller Project
QUALCOMM and Lucent will jointly
develop technology that locates
wireless phone users in distress.
Voice Recognition Contracts
LG Information and Communications
Third Quarter Earnings 1999 CIO-100 Award
and Acer Peripherals select PureVoice
• 3rd quarter fiscal 1999 revenues: CIO Magazine recognizes
VR for their CDMA wireless handsets.
$1B (up 15% over Q3 FY98) QUALCOMM for operational and
• 3rd quarter net income: $59M strategic excellence.
(up 909% over Q3 FY98)
Next Generation CDMA Chipsets
• 3rd quarter EPS: $ 35 per share 08.24.99
QUALCOMM ships samples of the 6th
(diluted) compared to $.04 per
South American Mobile Deal
generation MSM3100 CDMA chipset
share (diluted) in Q3 FY98
QUALCOMM and AUTOTRAC Comércio
and system software that supports
Excluding Non-Recurring Charges: e Telecomunicacões S.A. of Brazil
data rates up to 86.4 kbps.
• 3rd quarter net income: $135M will bring OmniTRACS to Argentina.
pdQ smartphone to Israel
(up 445% over Q3 FY98)
Israel’s Pele-phone Communications
• 3rd quarter EPS: $.75 per share 08.25.99
buys QUALCOMM’s pdQ smartphones
100 Fastest-Growing Companies
for its national network.
FORTUNE magazine names QUALCOMM
New Mobile Station Modem Family
to the list of the 100 Fastest-Growing
The iMSM product family promises
More Powerful Voice Recognition Companies in America. Eligible
expanded data capabilities and very
PureVoice VR 2.1 software enables companies have a 30% annual
advanced wireless Internet services.
manufacturers to add powerful revenue and EPS growth rate.
speech capabilities to their CDMA
World’s Smallest Satellite Phone
handsets in English, Japanese 09.14.99
QUALCOMM’s tri-mode portable phone
provides access to the Globalstar
Phone Business Transition
network, an advanced combination
$400M Phone Deal With Sprint QUALCOMM announces that the
of satellite and wireline technology,
Sprint PCS purchases QUALCOMM’s terrestrial phone business may
and also accesses cellular networks.
new Internet-capable Thin Phone be transitioned.
and pdQ smartphone for its national
New pdQ smartphone Application
pdQ suite Applications
WaveWare Communications chooses
The pdQ suite package offers
the pdQ smartphone for its WaveSync
Enhanced Audio Palm Pilot users applications
server, allowing Palm Computing
PureVoice Audio AGC software for that support e-mail control and
users to synchronize multiple
the MSM3000 and MSM3100 enables wireless Internet browsing.
superior sounding handsets without
additional hardware. 09.16.99
CRST Buys 1,150 OmniTRACS
Lucent and QUALCOMM 3G Alliance
Iowa-based CRST replaces its
QUALCOMM will provide CSM5000
Common Stock Offering mobile communication system
infrastructure chips and software for
QUALCOMM places 6.9 million shares with QUALCOMM’s OmniTRACS.
Lucent’s CDMA base station equip-
of common stock in a public offering
ment. Technology being developed
at $156.50 per share. Net proceeds 09. 21.99
by the two CDMA leaders is called
are $1.079 billion.
MSM3000 Paves Way To Future
cdma2000 1X RTT, and is the first
29 manufacturers are now designing
phase of the industry approved
products based on QUALCOMM’s
IS-2000 3G standard.
High-Speed Data In Korea MSM3000.
QUALCOMM will join high-speed
data trials on KT Freetel’s advanced
CDMA network, the world’s first