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online interactive annual report. The Web-based report PricewaterhouseCoopers LLP
complements our printed report to provide a better
understanding of Qualcomm Incorporated. Corporate counsel
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Investor relations
John Gilbert Market information
Vice President of Investor and
The common stock of the Company is traded on the
Industry Analyst Relations
NASDAQ Stock Market under the symbol “QCOM.”
Additional copies of this report, Form 10-K, or our
Proxy Statement will be provided free of charge. To
Notice of annual meeting collaborate

Qualcomm Company Overview 2007

obtain these documents, please contact Qualcomm’s The annual meeting of stockholders will be held at 9:30 a.m.
Investor Relations Department: PST, Tuesday, March 11, 2008 at Copley Symphony Hall,
750 B Street, San Diego, California.
Qualcomm Incorporated
Investor Relations Department EOE statement
5775 Morehouse Drive Qualcomm is an equal opportunity employer. Our value of
San Diego, CA 92121 global diversity and inclusion is reflected in our employees,
Phone: (858) 658-4813 corporate culture and activities.
Fax: (858) 651-9303
Toll Free: (866) 658-4813 ©2007 Qualcomm Incorporated. All rights reserved.
Various products and brand names may also be trademarks
You can also contact us by sending an email to or registered trademarks that are the property of their

anticipate
[email protected] or by visiting the Investor Relations respective owners. [12/07]
page on the Company’s Web site at www.qualcomm.com create
Transfer agent
Computershare Investor Services LLC
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Phone: (312) 588-4990
Toll Free: (800) 619-9612

Qualcomm Headquarters
5775 Morehouse Drive
San Diego, CA 92121
Phone: (858) 587-1121
Fax: (858) 658-2100
www.qualcomm.com Company Overview 2007
 Board of directors Executive officers

Dr. Irwin Mark Jacobs Dr. Paul E. Jacobs

Chair: Strategic Committee Chief Executive Officer
Title: Chairman of the Board, Qualcomm
anticipate create Barbara T. Alexander
Steven R. Altman
President
Member: Audit and Governance Committees
Title: Independent Consultant Dr. Sanjay K. Jha
Executive Vice President, Chief Operating Officer and
Sir Donald G. Cruickshank Group President, Qualcomm CDMA Technologies
Member: Governance and Strategic Committees
Title: Chairman of Clinovia Group Ltd. and William E. Keitel
Formscape Group Ltd. Executive Vice President and

anticipate collaborate Raymond V. Dittamore

Chief Financial Officer

Chair: Compensation Committee Dr. Roberto Padovani

Member: Audit Committee Executive Vice President and
Title: Retired Audit Partner, Ernst & Young LLP Chief Technology Officer
create Dr. Paul E. Jacobs Marvin Blecker
Member: Finance and Strategic Committees Executive Vice President and President,
Title: Chief Executive Officer, Qualcomm Qualcomm Technology Licensing

Dr. Robert E. Kahn Jeffrey A. Jacobs

Member: Finance and Strategic Committees Executive Vice President and President,
Title: Chairman, Chief Executive Officer Qualcomm Global Development
and President, Corporation for National
collaborate Research Initiatives Margaret L. “Peggy” Johnson
invigorate create Sherry Lansing
Executive Vice President and President, Qualcomm
Internet Services and MediaFLO Technologies
Member: Governance Committee
Title: Founder and Chair of the Sherry Len J. Lauer
Lansing Foundation Executive Vice President and Group President
Duane A. Nelles Donald J. Rosenberg
Chair: Audit Committee Executive Vice President, General Counsel and
Member: Finance Committee Corporate Secretary
Title: Self-Employed, Personal Investment Business
Dr. Daniel L. Sullivan
Peter M. Sacerdote
Executive Vice President, Human Resources
Chair: Finance Committee
Member: Governance Committee
Title: Chairman of Whale Rock Capital As of November 2007.
Management LLC

General Brent Scowcroft

www.bakerbrand.com
Member: Compensation and Strategic Committees
anticipate create Title: President, The Scowcroft Group

We foresee the needs of the wireless market We invent new technologies that make Marc I. Stern
and act in advance to meet those needs — a wireless communications more effective Chair: Governance Committee
Member: Compensation Committee
Baker | Brand Communications™

key to Qualcomm’s long-term leadership in and useful — the driving passion behind Title: Chairman of Société Générale’s Global
wireless innovation. Qualcomm since its inception in 1985. Investment Management and Services
North America unit
Our business continues to be
a primary engine for the growth
of the wireless industry.

And we’re helping to redefine

the ways people interact with
the world.

collaborate invigorate
We work together with our partners We promote healthy competition
to overcome obstacles and create and stimulate industry growth — the
market opportunities — a cornerstone effect Qualcomm has on the wireless
of Qualcomm’s inclusive approach ecosystem worldwide.
to conducting business.
A force for change.

anticipate
Envisioning what comes next, Qualcomm is
continuously transforming the mobile experience,
and we’ve only just begun.
More than two decades ago, we opened Regardless of the path operators choose as
the door for many new companies to enter they seek to grow and evolve, Qualcomm
the market by sharing our inventions and is leading the industry in the convergence
creating an ever-evolving technology of multiple radio access technologies for
roadmap. We followed up with a ground- advanced networks and devices. By
breaking technology platform that energized anticipating new possibilities, and
mobile software developers worldwide. enabling new partners, we continue to
make wireless technologies more useful,
As operators choose their technologies for next- personal, affordable and accessible to
generation networks, Qualcomm is enabling people everywhere.
the transition with industry-leading chipset
solutions and support services that effectively
complement existing CDMA2000® and
WCDMA/HSPA deployments, and our success
in the development and commercialization of
OFDM/A gives us a significant advantage in
commercializing next-generation technologies.

anticipate

Qualcomm is a leader in the innovation and execution of wireless

technology. We have enabled many new market entrants and
have continued to deliver leading technologies that go beyond
the horizon, with product offerings outside traditional markets.
Ideas that matter.
Driven by a relentless passion for innovation, We opened the door to mobile location-based
Qualcomm engineers have developed many services with gpsOne®-enabled chipsets. Our
breakthroughs in wireless communications. gpsOne technology has been incorporated into
more than 300 million wireless devices.**
One of our early goals was to make the use of
our proprietary CDMA technology widespread We were first to provide a wireless solution
throughout the world and we have succeeded featuring a fully integrated low-power GPS
in that endeavor. Today there are over 530 baseband with RF capabilities.
million 3G CDMA subscribers worldwide.*
*Source: Wireless Knowledge, November 2007.

**As of November 2007.

create
Qualcomm serves the global wireless industry
by inventing breakthrough technologies that are
bringing the world’s most advanced and personal
mobile devices and services to life.
We delivered the world’s first 3G single-chip We were first to make a phone call on a 3G
solutions that integrate the radio transceiver, chip manufactured with 45 nanometer (nm)
baseband modem, power management process technology.
device and multimedia engines into a
single chip. We were first to deliver GHz processing
performance integrated with 3G connectivity
We were first to commercialize a chipset with our Snapdragon™ platform, adding
solution for HSDPA and HSUPA. expanded functionality to next generations
of electronics from gaming/portable
entertainment devices to pocket computers
and beyond.

create

For more than 20 years, Qualcomm has invested significantly

in R&D, which has resulted in thousands of innovative ideas,
methods and products that are changing the wireless world.
collaborate
Through our inclusive approach to partnership,
ongoing investments in next-generation technologies
and support for open standards, Qualcomm promotes
industry competition and market growth.
Relationships
that empower.
Qualcomm pioneered a new business model a wide range of critical support activities
that enables wireless vendors and operators to ranging from product development,
bring infrastructure, test equipment and mobile commercialization and testing to network
devices to market more quickly and at lower deployment and optimization.
costs. We offer an open and fair licensing model
that enables all interested companies — including Qualcomm has one of the most widely licensed
our competitors — to benefit from our ideas and intellectual property portfolio in the wireless
contribute to the growth of our industry. industry. Today our company licenses to more
than 140 manufacturers of wireless devices
To assist our partners in achieving business and infrastructure equipment worldwide, ranging
goals, our expert global development consultants from entrepreneurial start-up companies to
collaborate closely with companies throughout virtually every major global brand. More than
the wireless value chain. Our extensive 430 wireless network operators worldwide
engineering resources are dedicated to tailoring rely on technology innovated by Qualcomm
solutions that address specific market needs. to power their networks and differentiate the
As part of this ongoing effort, our teams provide devices and services they offer.

collaborate

Qualcomm has developed a range of fully integrated solutions

and services that enable manufacturers to capitalize on market
demand for diverse products and services, and improve time
to market and manage costs, while delivering the functionality
that operators and consumers want.
There’s more to wireless.

invigorate
We offer a variety of groundbreaking products and
services that enable software and content developers
to fuel the surging demand for compelling and useful
mobile applications and content.
Qualcomm CDMA Technologies continues to Qualcomm Government Technologies puts
redefine wireless mobility as a global leader mission-critical tools into the hands
in the development and manufacture of state-of- of federal, state and local government emergency
the-art chipsets, system software, development first responders, enabling them to access and
tools and products. share information anywhere at anytime.

Our revolutionary mobile TV platform developed Qualcomm Enterprise Services makes businesses
by MediaFLO™ Technologies is now commercially of all descriptions more efficient and
available through MediaFLO USA™, Inc. Offered in competitive with technologies and services
partnership with major carriers, MediaFLO USA’s that leverage wireless to support applications,
FLO™ TV service, featuring the world’s best including mobile work force management and
entertainment brands, is currently available advanced machine-to-machine communications.
in more than 50 major metropolitan areas in the
United States and growing.

There’s more to Qualcomm.

invigorate

Our user-interface solutions and application development

tools help ensure a steady flow of highly personalized
multimedia information and entertainment services to
mobile users worldwide.
 Dr. Paul E. Jacobs, CEO | Steven R. Altman, President

Technology
made personal.
A message from leadership

We are executing on our current and long-term strategies and our success
is clearly reflected in our financial results.

There are many exciting developments throughout the significant increases in revenues as consumers and enter-
wireless industry today, and Qualcomm technologies, prises buy new mobile phones and wireless-enabled laptops,
employees and partners play central roles in the expanding download applications and sign up for new services.
opportunities. Our company continues to drive the future
We are executing well
of mobility. We are continually enhancing our technology
We continue to successfully execute on our current and
leadership and looking beyond traditional products and
long-term strategies, and these efforts are clearly reflected
services to find new ways for mobile devices, networks and
in every Qualcomm operating division.
services to improve the lives of people around the world.
Qualcomm CDMA Technologies (QCT) continues to set
The market is strong
records with chipset shipments. Thanks to QCT’s excel-
We are pleased to report that the global wireless ecosystem
lent efforts, iSuppli named Qualcomm the world’s top
we serve had another tremendous year and is continuing
supplier of semiconductors for wireless applications. We
to grow at a rapid pace. There are more than 530 million
recently strengthened our leadership position in wireless
subscribers worldwide to the 3G CDMA networks enabled
semiconductor process technology by powering the
by Qualcomm products and technologies. Qualcomm-
world’s first 3G handsets based on 65-nanometer chips.
enabled networks continue to attract new users throughout
the world and our technology roadmap provides a Among the many new products introduced this year
strong evolutionary path for both CDMA2000 and are a low-cost single-chip solution for manufacturers of
WCDMA networks. EV-DO Rev. A devices and Gobi ™, an embedded global
mobile Internet and GPS solution for today’s notebook
In leading markets such as the United States, Europe,
computers. Our new Snapdragon platform is designed
Japan and South Korea, we continue to see strong demand
to take consumer electronics to the next level including
for high-end devices featuring increased display size,
the enabling of a whole new class of “pocket devices”
3-D graphics, expanding multimedia capabilities, multi-
with a wide range of applications and tremendous
megapixel cameras, more memory and greater processing
market potential.
power. Steady growth remains in other key regions of the
world as more operators opt to provide their users with MediaFLO USA service is now available in more than
high-speed data capabilities made possible by EV-DO 50 cities in the United States, and we remain excited
revisions for CDMA2000 networks and by HSDPA about potential MediaFLO technology expansion into
deployments in the WCDMA space. international markets. MediaFLO recently won the
“Best TV and Video Service” award by the European
The CDMA Development Group reports that more than
Mobile Entertainment Forum, further validating FLO
35 new operators launched CDMA2000 networks in
technology as a globally recognized open standard
2007 and low-priced, multi-featured phones are key
that provides the mass market with cost-effective,
growth drivers. Much of this growth is taking place in
high-quality multimedia content.
emerging markets where declining handset prices and
increasing data capabilities are fueling demand. Our BREW business also made significant strides this
year, gaining traction in WCDMA markets and support-
Our strong and ongoing commitment to Research and
ing exciting new services. Warner Music Group is now
Development (R&D) helps ensure that wireless users have a
using our comprehensive uiOne™ offering to deliver
steady flow of new devices and compelling mobile broad-
highly personalized over-the-air downloadable artist
band services to choose from. Network operators are seeing

Qualcomm Company Overview 1

themes to their mobile customers. And Major League R&D resources to enable the Android platform and
Baseball (MLB) became the first customer for our to optimize its functionality on our chipsets.
BREW BrandXtend™ Signature Solution, enabling fans
Shifting the industry dynamic
to download baseball content to their phones directly
Our strategy is to expand the industry by enabling as
from the MLB Web site. With Hutchison H3G, we
many manufacturers as possible to enter the wireless
recently launched a low-cost Skype-enabled BREW-based
marketplace. Qualcomm exemplifies the shift of the
WCDMA phone.
intellectual property rights business model away from
Qualcomm Government Technologies continues to the traditional focus on technology protection to a
contribute to public safety and national security by more inclusive approach to technology licensing and
leveraging the power of advanced wireless technologies proliferation. The Qualcomm Technology Licensing
for a broad range of government agencies. Among business funds R&D, creating wireless innovations
the notable accomplishments this year was the that we have transferred to more than 140 licensees.
deployment of a unique new 3G EV-DO network
Motivated by their own commercial considerations,
service to 17 jurisdictions in the National Capitol
some of our competitors have called our licensing policy
Region surrounding Washington, D.C.
into question, misrepresenting our business to advance
Wireless technology continues to transform today’s their own agendas. We welcome the opportunity to clarify,
workplace, and Qualcomm Enterprise Services achieved defend and promote the business model that has fostered
a number of milestones this year, including the intro- competition and increased the pace of delivering innova-
duction of a 3G-enabled telematics solution to the tive new capabilities into the hands of consumers.
construction industry in Europe and the acquisition and
We believe that the entire industry, including our company
integration of an industry-leading machine-to-machine
and our competitors, will benefit through open, rather
communications services company.
than restricted, licensing of our patented technology.
We are a partner of choice
Well positioned for future growth
The convergence of the wireless and Internet industries
We achieved record revenues, net income and operating
is creating new partnerships, evolving business models
cash flow in fiscal 2007 and returned a record $2.3 billion
and driving innovation. As part of our efforts to enhance
of capital to our stockholders through our cash dividend
the mobile experience, we continue to make acquisitions
and stock repurchase program. These achievements
and seek out new partners.
provide market validation for the innovative products
Our subsidiary, Qualcomm MEMS Technologies, and solutions made possible by Qualcomm.
launched its first mirasol™ display product this year in
Thanks to the energy and creativity of our outstanding
partnership with Audiovox, a Bluetooth headset that
global work force, we are well positioned for industry
extends battery life while delivering superior visibility,
leadership. We will continue to lead the convergence
even in low-light environments.
of mobile communications, computing and consumer
Continually working to drive increased consumer electronics with investments in innovative technologies
adoption of new mobile data services, in November that contribute to the success of our industry partners
2007, we acquired Firethorn Holdings, LLC, an industry- and benefit wireless users throughout the world.
leading mobile banking enabler which is working with
top wireless operators and financial industry partners
to turn the wireless phone into a digital wallet.

We announced our participation with Google in the Open

Dr. Paul E. Jacobs, Chief Executive Officer
Handset Alliance, an alliance of technology and mobile
industry leaders whose mission is to help build the leading
open-source application platform for 3G networks.
The proliferation of open-source-based handsets can
provide an exciting new opportunity to create compelling
Steven R. Altman, President
services and devices. As a result, we are committing

2 Qualcomm Company Overview

Strong execution,
record results in fiscal 2007.
REVENUEs AND RESEARCH AND DILUTED earnings
GROSS MARGINS(1)(2)* DEVELOPMENt* PER SHARe (gaap)(2)(3)*
($ in billions) ($ in billions)

70% 21%

71% 20%

71%
70% 18%

15%

$8.87 2007 $1.83 2007 $1.95 2007

$7.53 2006 $1.54 2006 $1.44 2006
$5.67 2005 $1.01 2005 $1.26 2005
$4.88 2004 $0.72 2004 $1.03 2004
2004-2007 2004-2007 2004-2007

% = Gross Margin % = Percentage of Revenues

PRO FORMA DILUTED CASH, CASH EQUIVALENTS AND FREE CASH FLOW(4)(5)(6)**
earnings PER SHARE(2)(3)(4)** MARKETABLE SECURITIES ($ in billions)
($ in billions)

$2.01 2007 $11.82 2007 $2.99 2007

$1.64 2006 $9.95 2006 $2.57 2006
$1.16 2005 $8.68 2005 $2.11 2005
$1.07 2004 $7.64 2004 $2.14 2004
2004-2007 2004-2007 2004-2007

*Fiscal 2006 and 2007 results presented reflect the impact of share-based compensation related to our adoption of FAS 123R.
**See reconciliation to GAAP amounts on page 21.
See notes (1)(2)(3)(4)(5)(6) on page 22.

Qualcomm Company Overview 3

An exemplary organization.
Select honors and distinctions Forbes
Qualcomm is among the members of the S&P 500 “400 Best Big Companies in America”
Index, FORTUNE 500® and NASDAQ 100™, and
is a winner of the U.S. Department of Labor’s Financial Times
“Secretary of Labor’s Opportunity Award.” “Financial Times Global 500”

FORTUNE For a more detailed listing, visit our Web site

“100 Best Companies to Work For in America” at www.qualcomm.com/about/awards.html
for nine years in a row

“America’s Most Admired Companies”

$7.2 billion in capital

returned to stockholders.*
Share repurchase quarterly cash dividend per common share
program (Based on date payable)
($ in billions)
$0.14 $0.14

$0.12 $0.12 $0.12 $0.12

$0.09 $0.09 $0.09 $0.09

$0.07 $0.07 $0.07

$0.05
$0.035
JUNE

JUNE

JUNE

JUNE
SEPT

SEPT

SEPT

SEPT
MAR

MAR

MAR

MAR
JAN

JAN

JAN

2005-2007 2004 2005 2006 2007

$1.5 2007
$1.5 2006
$1.0 2005

*Cumulative: Fiscal 2003 to November 7, 2008.

4 Qualcomm Company Overview

 The technologies we’re building
will enable the convergence
between consumer electronics,
computing, the Internet and
wireless communications.

Inventing the future.

Born of inspired thinking, we are proud to be an Our EV-DO technology extends the value of
engine for new ideas that is driving the future of CDMA2000 for many years to come and our HSDPA/
wireless. We are innovators of CDMA wireless HSUPA technology takes WCDMA to the next level.
technology, the foundation for today’s 3G-based In the future, the Ultra Mobile Broadband™ (UMB™)
technology, which has opened the market for wireless and Long-Term Evolution (LTE) technologies we are
high-speed data applications worldwide. Building on developing today have the potential to revolutionize
that success, we developed a technology roadmap for our industry.
bringing faster and more efficient services to life.
Qualcomm Company Overview 5
Important innovations.
We are a world leader in wireless innovation From our inception, Qualcomm has sought to stimulate
At its core, Qualcomm is a technology developer industry growth through competition by licensing
and enabler. Our company invents and develops new broadly and promoting innovation throughout our
technology through investing in R&D and strategic industry. We have fostered competition by offering
acquisitions. Qualcomm continues to develop an to provide the rights to use our patented technology
industry-leading patent portfolio that enables the to interested companies — including our competitors
evolution of newer and better products and solutions  — which has helped grow the wireless industry.
for consumers, enterprises and governments.
Learn more at www.qualcomm.com/technology/licensing
We commercialize our technological innovations by
incorporating them into highly integrated chipsets.
In combination with advanced system software, these
chipsets are essential components for manufacturers of
wireless infrastructure equipment and mobile devices.

With more than one billion cumulative Mobile Station

Modems™ (MSMs™) chipset solutions shipped to
date, Qualcomm CDMA Technologies has achieved
1 billion
worldwide leadership, delivering solutions for a cumulative MSMs shipped.
broad array of addressable markets and providing our
manufacturing customers and network operator partners
Continued record shipments
with a solid technology roadmap for the future.
over nine consecutive quarters.
Learn more at www.cdmatech.com

We’re making
wireless pervasive,
connecting people to
wireless
new possibilities and
enabling new ways
computing communications
to communicate.

consumer
electronics

6 Qualcomm Company Overview

Immense opportunities.
Our industry is growing and evolving total service revenue worldwide.* We believe the growing
Worldwide uptake for high-speed wireless services availability of 3G-enabled devices will accelerate the
continues to grow rapidly. Qualcomm is working demand for many wireless data services on a global basis
on many fronts to support our industry partners in and thus lead to an increased replacement rate of 3G
the effort to upgrade existing networks, deploy new mobile devices. Affordable wireless broadband data
ones and ensure a steady supply of advanced devices, connectivity is important to the consumer and enterprise,
applications and services that fuel market momentum. and its demand will continue to drive the evolution
of wireless standards.
Analysts estimate that more than 2.5 billion people will
be using mobile data services by 2011 and the revenue *Source: Yankee Group, October 2007.
produced from these services will account for 23% of

Analysts estimate that more than 2.5 billion people will be using mobile
data services by 2011 and the revenue produced from these services
will account for 23% of total service revenue worldwide.

23%
Qualcomm Company Overview 7
 Fast forward.

8 Qualcomm Company Overview

Analysts predict that by the year 2011,
more than 57% of all wireless handsets
shipped will be enabled by 3G.*
* Source: Average of Strategy Analytics, July 2007; ABI Research, Q1 2007

“We believe Qualcomm’s intellectual property (IP) position continues to strengthen: In the last
10 years, Qualcomm’s IP portfolio has grown extensively to over 6,500 patents. In 2007,
Qualcomm also indicated that it had significant patent positions in OFDMA-based systems.
We believe that Qualcomm charging the same royalty rates for their ever-increasing IP portfolio
is of great value to their licensees. We believe that aggregation of royalties to fund further IP and
merchant chips is in the best interest of the wireless handset industry.”
– Jefferies & Company, Inc., November 15, 2007

“With increased R&D expenses in FY08, we believe these investments will result in strong
longer-term growth, as Qualcomm builds on its industry leadership position and extends
its solutions to new end markets.”
– Piper Jaffray, November 15, 2007

“We remain encouraged by healthy business fundamentals at Qualcomm, supported by strong

3G growth. Following solid reports from several wireless handset and component vendors,
we believe the overall market remains healthy in both emerging markets and 3G.”
– Lehman Brothers, November 15, 2007

Qualcomm Company Overview 9

Impressive progress.
Improving technology for the future Qualcomm Internet Services is committed to delivering
The comprehensive technology roadmap developed complete solutions that make life easier for our customers.
by Qualcomm CDMA Technologies is enabling One key example is the growing array of Signature
the continuing evolution of today’s WCDMA and Solutions that enable our partners to save time and
CDMA2000 networks. We believe that the future lies money in the development and delivery of new content
in integrating multiple airlinks, including those based on services to mobile wireless consumers. Examples include
emerging complementary technologies such as OFDMA, BREW Gaming™ and most recently the BrandXtend
and maximizing them for the proper application. Signature Solution. Qualcomm Internet Services has
also developed the QChat® push-to-talk solution that
One key to our success is our commitment to providing equips users with an easy to use, virtually instantaneous
our customers with comprehensive and highly integrated communications functionality. QChat technology will
solutions. Our innovative Qualcomm Single-Chip provide an entirely new realm of efficiency to enterprises
Solutions integrate a radio transceiver, baseband modem, facing time-critical situations, including medical and
power management device and multimedia engines into emergency response personnel.
a single chip that lowers handset development costs,
lowers power requirements and dramatically reduces Learn more about BREW at www.qualcomm.com/brew
the number of components needed.

The new Snapdragon chipset platform features

unprecedented integration, extremely fast data speeds
and minimal power consumption. We are looking to
Snapdragon to revolutionize coming generations of
wireless computing devices.

Revolutionizing future generations of wireless computing devices.

10 Qualcomm Company Overview

Transforming life and work The MediaFLO system we developed is transforming the
Another key to the success of the Qualcomm business mobile TV experience and enabling content providers to
model is our commitment to building a powerful services extend their brands through a new mobile medium. With
organization that helps our customers achieve their MediaFLO technology, wireless and pay-TV operators
business goals by putting life-transforming technologies can now deliver streaming television, entertainment and
into the hands of consumers, professionals and information services to mobile devices. Now commer-
government agencies. cially available in the United States from MediaFLO
USA, this breakthrough technology is undergoing trials
Qualcomm Government Technologies is transforming in Europe and Asia.
life for emergency responders by providing them with
highly advanced situational awareness capabilities. Learn more about MediaFLO technologies at
The business recently upgraded its deployable base www.qualcomm.com/mediaflo. Learn more about
station offering to take advantage of today’s high-speed MediaFLO USA at www.mediaflousa.com
networks and helped implement the first wireless
broadband 700MHz network in the United States Qualcomm Enterprise Services (formerly known as
dedicated to public safety workers. Qualcomm Wireless Business Solutions) is continuing
to make our company a value-added service provider
Learn more about Qualcomm Government to public and private organizations around the world
Technologies at www.qualcomm.com/qgov that are leveraging wireless into their daily business
operations. Ambitious new developments are resulting
in service platforms for enterprises to better serve their
customers, providing the highest quality and visibility.

Learn more about Qualcomm Enterprise Services at

www.qualcomm.com/qes

Qualcomm Company Overview 11

Immeasurable
impact.

12 Qualcomm Company Overview

 We are making
a difference.

We believe that wireless technology changes

people’s lives for the better. In the pages that
follow, we highlight some examples of creative
wireless programs and services that are making a
real difference in the world. From first-time phone
calls to extraordinary new broadband capabilities,
wireless mobility is bringing people together in
exciting new ways and transforming modern life.

Qualcomm engineers are proud to bring the benefits

of advanced wireless technology to people around
the world.

Qualcomm Company Overview 13

 Fishermen in India’s tsunami-affected Tamil Nadu region are
putting advanced wireless technology to work, thanks to a
collaboration that includes industry giant Tata Teleservices
and the nonprofit M.S. Swaminathan Research Foundation.
Using a BREW application called “Fisher Friend,” fishermen
can now quickly access crucial information regarding weather
conditions, approved fishing locations and market prices — all
in their local language. Using low-cost phones that run on
Tata’s high-speed 3G network, the easy-to-use application
provides fishermen with a much-needed tool that enhances
their safety and livelihood.

This project is part of Qualcomm’s Wireless Reach™ initiative,

a program aimed at empowering underserved communities worldwide
via advanced wireless connectivity.

Learn more about Qualcomm’s Wireless Reach initiative at:

www.qualcomm.com/wirelessreach

Befriending fishermen
in rural India.

14 Qualcomm Company Overview

 Upgrading to 3G has transformed the workplace for
police in Raleigh, North Carolina. More than 700
wireless-enabled laptops allow officers to connect
to critical data at broadband speeds. With real-time
access to DMV and criminal databases, officers can pull
warrants, check file photos and submit reports without

Strengthening having to return to base. The system saves taxpayers

money and makes life easier for those who protect
and serve.

the police in Recognized by Qualcomm’s 3G A-List Awards program, which

honors creative 3G wireless implementations in the workplace
worldwide.

North Carolina. Learn more about Qualcomm’s 3G A-List Awards

program at: www.3galist.com

Qualcomm Company Overview 15

 The Korean National Emergency Management Agency
provides national coverage of disaster management including
fire, Emergency Medical Systems and rescue needs from
16 local province headquarters with 205 stations and
30,000 employees. Previously hampered by its reliance on
landline phones, the agency struggled to ascertain rescue
information and inform responders. Since implementing a
gpsOne-enabled 3G mobile broadband system, the agency
now has the ability to pinpoint the locations of callers, access
a nationwide database for victim locations, obtain contact
information of relatives and transmit information and video

Emergency
to assist responders transporting patients to hospitals.

Recognized by Qualcomm’s 3G A-List Awards program, which honors

creative 3G wireless implementations in the workplace worldwide.

services in Learn more about Qualcomm’s 3G A-List Awards program at:

www.3galist.com

South Korea.

16 Qualcomm Company Overview

Remote medicine
in 15 countries.
Headquartered in Santa Barbara, California, InTouch Health has been deploying
Remote Presence Robotic System technology to physicians since 2003. Using a
3G-enabled laptop, physicians can “call up” a robotic device in another city to
monitor vital signs and conduct a wireless medical patient consult. The hospital
side of the system features a five-foot tall mobile robot. While there are only
about 120 such systems in commercial use in hospitals today, InTouch Health
anticipates the number of installations to grow significantly.

Recognized by Qualcomm’s 3G A-List Awards program, which honors creative 3G wireless

implementations in the workplace worldwide.

Learn more about Qualcomm’s 3G A-List Awards program at: www.3galist.com

Qualcomm Company Overview 17

anticipate. create.
collaborate. invigorate.

18 Qualcomm Company Overview

Through our innovation, execution and partnership approach to
doing business, we will continue to fuel the growth of the wireless
industry, extending the value of today’s technology while paving
the way for future generations of wireless innovation.

Qualcomm Company Overview 19

Note regarding use of non-GAAP financial measures

In addition to presenting GAAP results, the Company presents In the fourth quarter of fiscal 2004, the Company began recording
financial information excluding certain items in order to royalty revenue based solely on royalty reports received from licensees
provide supplemental information about the Company’s for royalty bearing sales of equipment in the prior quarter. Therefore,
operating performance. results prior to this change have been adjusted as though this new
method of recording royalties had been in effect for all periods to
The Company presents pro forma financial information that is provide a comparable presentation. The Company presents pro forma
used by management (i) to evaluate, assess and benchmark the financial results as though the new method of recording royalties had
Company’s operating results on a consistent and comparable basis, been in effect for fiscal 2004 to facilitate evaluation by management,
(ii) to measure the performance and efficiency of the Company’s investors and analysts of the results for those years on a comparable
ongoing core operating businesses, including the Qualcomm CDMA basis to the Company’s current results, current guidance and future
Technologies, Qualcomm Technology Licensing and Qualcomm periods. The Company believes that this presentation is useful in
Wireless & Internet segments, and (iii) to compare the performance evaluating its performance on a consistent and comparable basis.
and efficiency of these segments against each other and against
competitors outside the Company. Management believes pro forma The Company presents free cash flow, defined as net cash
financial information represents a more meaningful and comparable provided by operating activities less capital expenditures, to
set of financial performance measures for the Company and its facilitate an understanding of the amount of cash flow generated
business segments by eliminating the episodic impact of strategic that is available to grow its business and to create long-term
investments in QSI and items such as acquired in-process R&D shareholder value. The Company believes that this presentation
and tax adjustments, as well as the inherent, non-operational is useful in evaluating its operating performance and financial
volatility of share-based compensation. As a result, management strength. In addition, management uses this measure to evaluate
compensation decisions and the review of executive compensation the Company’s performance, to value the Company and to compare
by the Compensation Committee of the Board of Directors focus its operating performance with other companies in the industry.
primarily on pro forma financial measures applicable to the
Company and its business segments. The non-GAAP pro forma financial information presented herein
should be considered in addition to, not as a substitute for, or
The QSI segment is excluded from pro forma results because the superior to, financial measures calculated in accordance with GAAP.
Company expects to exit its strategic investments at various times In addition, “pro forma” is not a term defined by GAAP, and, as
and the effects of fluctuations in the value of such investments are a result, the Company’s measure of pro forma results might be
viewed by management as unrelated to the Company’s operational different than similarly titled measures used by other companies.
performance. Certain tax adjustments related to prior years are
excluded for fiscal 2005, 2006 and 2007 in order to provide a
clearer understanding of the Company’s ongoing tax rate and after-
tax earnings. Estimated share-based compensation, other than
amounts relating to share-based awards granted under the executive
bonus program, is excluded because management views the valuation
of options and other share-based compensation as theoretical and
unrelated to the Company’s operational performance. Further, share-
based compensation is affected by factors that are subject to change,
including the Company’s stock price, stock market volatility, expected
option life, risk-free interest rates and expected dividend payouts in
future years. Moreover, it is generally not an expense that requires
or will require cash payment by the Company. Acquired in-process
R&D expense in fiscal 2006 and 2007 is excluded because such
expense is viewed by management as unrelated to the operating
activities of the Company’s ongoing core businesses.

20 Qualcomm Company Overview

 Reconciliation of non-GAAP financial measures

Reconciliation of Pro Forma and GAAP Net Income and Diluted Earnings Per Share

(In millions, except per share data) 2007 2006 2005 2004(1)
Total GAAP net income $ 3,303 $ 2,470 $ 2,143 $ 1,720
Less: QSI net (loss) income (137) (32) 102 12
Less: Other pro forma adjustments, net of tax (2) 34 (302) 71 (92)
Pro forma net income $ 3,406 $ 2,804 $ 1,970 $ 1,800

Total GAAP diluted earnings per share $ 1.95 $ 1.44 $ 1.26 $ 1.03
Less: QSI diluted (loss) earnings per share (0.08) (0.02) 0.06 0.01
Less: Other pro forma adjustments, net of tax per share (2) 0.02 (0.18) 0.04 (0.06)
Pro forma diluted earnings per share $ 2.01 $ 1.64 $ 1.16 $ 1.07

Shares used in per share calculations:(3)

Diluted shares 1,693 1,711 1,694 1,675

Prior to the fourth quarter of fiscal 2004, the Company recorded royalty revenues from certain licensees based on estimates of royalties during the period they were earned.
(1)

Starting in the fourth quarter of fiscal 2004, the Company began recognizing royalty revenues solely based on royalties reported by licensees during the quarter. The change
in the timing of recognizing royalty revenue was made prospectively, and consequently, GAAP results for fiscal 2004 reflect only partial economic performance of the
Company’s licensing business as royalty revenue that would have been recognized in the fourth quarter of fiscal 2004 was recognized in the first quarter of fiscal 2005.

Other pro forma adjustments, net of tax are comprised of:

(2)

2007 2006 2005 2004

Estimated share-based compensation $ (487) $ (495) $ — $ —
Acquired in-process research and development (10) (22) — —
Adjustment to reflect the new method of recognizing royalty revenue (1) — — — (151)
Total pro forma adjustments before taxes $ (497) $ (517) $ — $ (151)
Tax adjustments related to prior years 364 40 71 —
Income tax benefit related to pro forma adjustments before taxes 167 175 — 59
Total pro forma adjustments, net of tax $ 34 $ (302) $ 71 $ (92)

Net other pro forma adjustments on a diluted per share basis $ 0.02 $ (0.18) $ 0.04 $ (0.06)

The Company effected a two-for-one stock split in August 2004. All references to number of shares and per share amounts have been restated to reflect this stock split.
(3)

Reconciliation of free cash flow to net cash provided by operating activities

(In millions) 2007 2006 2005 2004*

Net cash provided by operating activities (GAAP) $ 3,811 $ 3,253 $ 2,686 $ 2,469
Less: Capital expenditures (GAAP) (818) (685) (576) (333)
Free cash flow $ 2,993 $ 2,568 $ 2,110 $ 2,136

* Cash flow for fiscal 2004 has been revised to combine cash flow from continuing operations with cash flow from discontinued operations, which resulted from
the sale of the Company’s former subsidiaries, the Vésper Operating Companies and the Vésper Towers, and the return of personal mobile service licenses to Anatel,
the telecommunications regulatory agency in Brazil.

Qualcomm Company Overview 21

 Financial highlights notes continued from page 3

(1)
 uring fiscal 2004, the Company sold its consolidated subsidiaries,
D The Company effected a two-for-one stock split in August 2004. All
(3)

the Vésper Operating Companies and the Vésper Towers, and returned references to per share amounts have been restated to reflect the stock split.
personal mobile service licenses to Anatel, the telecommunications
regulatory agency in Brazil. The results of operations, including gains and
See “Note regarding use of non-GAAP financial measures” on page 20
(4)
losses realized on the sales transactions and the licenses, are presented
and “Reconciliation of non-GAAP financial measures” on page 21.
as discontinued operations. As such, revenues and gross margin results
presented do not include the results from these discontinued operations.
Free Cash Flow is calculated as net cash provided by operating activities
(5)

less capital expenditures, both of which are presented in the GAAP

(2)
Prior to the fourth quarter of fiscal 2004, the Company recorded royalty
statement of cash flows.
revenues from certain licensees based on estimates of royalties during
the period they were earned. Starting in the fourth quarter of fiscal 2004,
the Company began recognizing royalty revenues solely based on royalties Free Cash Flow for fiscal 2004 has been revised to combine cash flows
(6)

reported by licensees during the quarter. The change in the timing of from continuing operations with cash flows from discontinued operations,
recognizing royalty revenue was made prospectively, and consequently, which resulted from the sale of the Company’s former subsidiaries, the
GAAP results for fiscal 2004 reflect only partial economic performance Vésper Operating Companies and the Vésper Towers, and the return
of the Company’s licensing business as royalty revenue that would have of personal mobile service licenses to Anatel, the telecommunications
been recognized in the fourth quarter of fiscal 2004 was recognized in regulatory agency in Brazil.
the first quarter of fiscal 2005.

Safe harbor statement

In addition to the historical information contained herein, this costs we incur in connection therewith, including potentially
Company Overview contains forward-looking statements, including damaged relationships with customers and operators who may
expectations of industry developments and market trends, that be impacted by the results of these proceedings; fluctuations
are subject to risks and uncertainties. Actual results may differ in the demand for products, services or applications based on
substantially from those referred to herein due to a number of our technologies; foreign currency fluctuations; strategic loans,
factors, including but not limited to risks associated with: the rate investments and transactions we have (the Company has) or
of deployment of our technologies in wireless networks and of may pursue; our dependence on third party manufacturers
3G wireless communications, equipment and services, including and suppliers; our ability to maintain and improve operational
CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both efficiencies and profitability; the development, deployment and
domestically and internationally; our dependence on major customers commercial acceptance of the MediaFLO USA network and FLO
and licensees; attacks on our business model, including results of technology; as well as the other risks detailed from time to time
current and future litigation and arbitration proceedings as well as in our (the Company’s) SEC reports.
actions of governmental or quasi-governmental bodies, and the

Cert no. SCS-COC-00949

This corporate overview is printed entirely on FSC-certified stock. The text portion is printed on 100% PC stock, which is made
This paper is made carbon neutral within Mohawk’s production with 100% post-consumer recycled fiber. Savings derived from
processes by offsetting thermal manufacturing emissions with VERs, choosing post-consumer recycled fiber in lieu of virgin fiber to
and 100% of the emissions from purchased electricity with RECs make the text paper, 73,546 pounds solid waste was not generated
from Green-e certified windpower projects. — the equivalent of saving 664,688 gallons of wastewater flow,
or preserving 1,564.8 trees for the future.

22 Qualcomm Company Overview

 Board of directors Executive officers

Dr. Irwin Mark Jacobs Dr. Paul E. Jacobs

Chair: Strategic Committee Chief Executive Officer
Title: Chairman of the Board, Qualcomm
anticipate create Barbara T. Alexander
Steven R. Altman
President
Member: Audit and Governance Committees
Title: Independent Consultant Dr. Sanjay K. Jha
Executive Vice President, Chief Operating Officer and
Sir Donald G. Cruickshank Group President, Qualcomm CDMA Technologies
Member: Governance and Strategic Committees
Title: Chairman of Clinovia Group Ltd. and William E. Keitel
Formscape Group Ltd. Executive Vice President and

anticipate collaborate Raymond V. Dittamore

Chief Financial Officer

Chair: Compensation Committee Dr. Roberto Padovani

Member: Audit Committee Executive Vice President and
Title: Retired Audit Partner, Ernst & Young LLP Chief Technology Officer
create Dr. Paul E. Jacobs Marvin Blecker
Member: Finance and Strategic Committees Executive Vice President and President,
Title: Chief Executive Officer, Qualcomm Qualcomm Technology Licensing

Dr. Robert E. Kahn Jeffrey A. Jacobs

Member: Finance and Strategic Committees Executive Vice President and President,
Title: Chairman, Chief Executive Officer Qualcomm Global Development
and President, Corporation for National
collaborate Research Initiatives Margaret L. “Peggy” Johnson
invigorate create Sherry Lansing
Executive Vice President and President, Qualcomm
Internet Services and MediaFLO Technologies
Member: Governance Committee
Title: Founder and Chair of the Sherry Len J. Lauer
Lansing Foundation Executive Vice President and Group President
Duane A. Nelles Donald J. Rosenberg
Chair: Audit Committee Executive Vice President, General Counsel and
Member: Finance Committee Corporate Secretary
Title: Self-Employed, Personal Investment Business
Dr. Daniel L. Sullivan
Peter M. Sacerdote
Executive Vice President, Human Resources
Chair: Finance Committee
Member: Governance Committee
Title: Chairman of Whale Rock Capital As of November 2007.
Management LLC

General Brent Scowcroft

www.bakerbrand.com
Member: Compensation and Strategic Committees
anticipate create Title: President, The Scowcroft Group

We foresee the needs of the wireless market We invent new technologies that make Marc I. Stern
and act in advance to meet those needs — a wireless communications more effective Chair: Governance Committee
Member: Compensation Committee
Baker | Brand Communications™

key to Qualcomm’s long-term leadership in and useful — the driving passion behind Title: Chairman of Société Générale’s Global
wireless innovation. Qualcomm since its inception in 1985. Investment Management and Services
North America unit
Stockholder information

Online annual report Independent registered

We invite you to www.qualcomm.com to view our public accounting firm
online interactive annual report. The Web-based report PricewaterhouseCoopers LLP
complements our printed report to provide a better
understanding of Qualcomm Incorporated. Corporate counsel
DLA Piper
Investor relations
John Gilbert Market information
Vice President of Investor and
The common stock of the Company is traded on the
Industry Analyst Relations
NASDAQ Stock Market under the symbol “QCOM.”
Additional copies of this report, Form 10-K, or our
Proxy Statement will be provided free of charge. To
Notice of annual meeting collaborate

Qualcomm Company Overview 2007

obtain these documents, please contact Qualcomm’s The annual meeting of stockholders will be held at 9:30 a.m.
Investor Relations Department: PST, Tuesday, March 11, 2008 at Copley Symphony Hall,
750 B Street, San Diego, California.
Qualcomm Incorporated
Investor Relations Department EOE statement
5775 Morehouse Drive Qualcomm is an equal opportunity employer. Our value of
San Diego, CA 92121 global diversity and inclusion is reflected in our employees,
Phone: (858) 658-4813 corporate culture and activities.
Fax: (858) 651-9303
Toll Free: (866) 658-4813 ©2007 Qualcomm Incorporated. All rights reserved.
Various products and brand names may also be trademarks
You can also contact us by sending an email to or registered trademarks that are the property of their

anticipate
[email protected] or by visiting the Investor Relations respective owners. [12/07]
page on the Company’s Web site at www.qualcomm.com create
Transfer agent
Computershare Investor Services LLC
250 Royall Street
Canton, MA 02021
Phone: (312) 588-4990
Toll Free: (800) 619-9612

Qualcomm Headquarters
5775 Morehouse Drive
San Diego, CA 92121
Phone: (858) 587-1121
Fax: (858) 658-2100
www.qualcomm.com Company Overview 2007