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| 8-K - FORM 8-K - QUALCOMM INC/DE | a59590e8vk.htm |
Exhibit 99.1
FOR
IMMEDIATE RELEASE
| Qualcomm Contacts: | ||
| Tina Asmar, Corporate Communications Phone: 1-858-845-5959 Email: corpcomm@qualcomm.com |
||
| Warren Kneeshaw, Investor Relations Phone: 1-858-658-4813 Email: ir@qualcomm.com |
Qualcomm Completes $3.1 Billion Acquisition of Atheros Communications
—
Combination Provides One of the Broadest Portfolios of
Mobile, Connectivity and Networking Solutions in the Industry —
Mobile, Connectivity and Networking Solutions in the Industry —
SAN DIEGO — May 24, 2011 — Qualcomm Incorporated (NASDAQ: QCOM), a leading developer and
innovator of advanced wireless technologies, products and services, today announced that it has
completed its acquisition of Atheros Communications, Inc. The Atheros team will operate as
Qualcomm Atheros, Inc., a wholly owned subsidiary of Qualcomm. In addition, the Qualcomm
connectivity team will shift over to Qualcomm Atheros to combine resources and roadmaps. This
creates one of the industry’s most robust portfolios of connectivity, networking and location
solutions for mobile, computing, enterprise and consumer electronic devices. Together, the two
companies will be able to utilize their technology leadership positions, relationships and assets
to more effectively address promising new business opportunities.
The acquisition, which was completed at an enterprise value of approximately $3.1 billion, enables
Qualcomm to expand its presence in existing businesses and grow into a variety of adjacent
businesses including home, enterprise and carrier networking. Going forward, we plan to continue
to invest in, support and grow Qualcomm Atheros’ robust portfolio of businesses and technologies.
While the accounting for the transaction is not yet finalized, Qualcomm estimates that on a
Non-GAAP basis the acquisition will be modestly dilutive to earnings per share in fiscal 2011 and
modestly accretive in fiscal 2012, consistent with our previous forecasts. In addition, based on
preliminary estimates, we expect the transaction to be further dilutive to GAAP earnings by
approximately $0.09 to $0.13 per share for the remainder of fiscal 2011 driven primarily by certain
near-term purchase accounting charges and secondarily by ongoing share-based compensation expense.
These near-term purchase accounting charges result from the requirement in ASC 805 to record
acquired inventory and backlog at fair value at the time of acquisition, which will result in
reduced margin contribution as inventory and backlog as of the acquisition date are converted to
revenues over the remainder of fiscal 2011.
“Today marks another milestone in Qualcomm’s mission to provide our customers with the
best-in-class connectivity and networking solutions needed to capitalize on expanding business
opportunities beyond handsets and tablets,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm.
“We believe that the complementary cultures, product portfolios, sales channels and leadership in
our respective fields will help make Qualcomm a leading force in the networking, computing and
consumer electronics industries for years to come.”
Dr. Craig Barratt, formerly CEO and president of Atheros, is now president of Qualcomm Atheros and
reports directly to Steve Mollenkopf, executive vice president and group president of Qualcomm.
About Qualcomm
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G and next-generation mobile
technologies. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of
wireless communications, connecting people more closely to information, entertainment and each
other. Today, Qualcomm technologies are powering the convergence of mobile communications and
consumer electronics, making wireless devices and services more personal, affordable and accessible
to people everywhere. For more information, visit Qualcomm around the Web:
www.qualcomm.com
Corporate Blog: www.qualcomm.com/blog
Twitter: www.twitter.com/qualcomm
Facebook: www.facebook.com/qualcomm
Corporate Blog: www.qualcomm.com/blog
Twitter: www.twitter.com/qualcomm
Facebook: www.facebook.com/qualcomm
Except for
the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties. If such risks or uncertainties materialize, the
results of Qualcomm could differ materially from those expressed or
implied by such forward-looking statements. Risks and uncertainties
include the possibility that expected benefits of the transaction may
not materialize as expected; that Qualcomm will not be able to
successfully integrate the products and employees of Qualcomm and
Qualcomm Atheros or ensure the continued performance or market growth
of Qualcomm Atheros’ products; as well as the other risks detailed
from time to time in the Company’s SEC reports, including the report
on Form 10-K for the year ended September 26, 2010, and most recent Form 10-Q.
###
Qualcomm is a registered trademark of Qualcomm Incorporated.