IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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69

Qualcomm

(NasdaqNM: QCOM)

USA

No one likes the sound of cell-phone chimes more than Qualcomm, one of the world's leading makers of chips for cell phones. The San Diego company's proprietary CDMA-based chips power the handsets for an estimated 16% of the world's 2.3 billion wireless phone subscribers, according to the company. Moreover, it is making inroads in the fast-growing Chinese market, where it currently gets 15% of its revenues, up from 9% a year ago. And it is making grudging headway in Western Europe, where the rival GSM standard remains the phone of choice. Wherever they live, consumers are snapping up cell phones at a dizzying pace, making forecast upgrades nearly a quarterly event for Qualcomm. On June 13, the company increased its 2006 revenue estimate to at least $1.91 billion, a 41% jump from 2005, on the basis of 31% more CDMA-powered phones being sold. Down the road, Qualcomm intends to go into the network TV business, snapping up broadcast spectrum licenses and signing up TV channels like CNN for its MediaFLO network, a first-of-its-kind service to broadcast signals to phones that partner Verizon is expected to launch early in 2007.

Company Info

2005 Rank

63

Sales*
($ Millions)

6,493.0

Sales Growth
(over prev. year)

25 %

Profits*
($ Millions)

2,311.0

Return on Equity

17.2 %

Total Return on Sales (12-mo.)

22.4

Share Price
As of 5/31/06

45.21

CURRENT
MARKET INFO

NasdaqNM: QCOM

No. of Employees

9,300

Industry Communications Equipment
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

QUALCOMM engages in the design, development, manufacture, and marketing of digital wireless telecommunications products and services based on its Code Division Multiple Access (CDMA) technology. It develops and supplies CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions, and global positioning system products to wireless device and infrastructure manufacturers. The company grants licenses to use portions of its intellectual property portfolio, which includes patent rights essential to or used in the manufacture and sale of CDMA products. It provides satellite and terrestrial-based two-way data messaging and position reporting services for transportation companies, private fleets, construction equipment fleets, and other enterprise companies. The company provides the Binary Runtime Environment for Wireless products and services to wireless network operators, handset manufacturers, and application developers and support for developing and delivering over-the-air wireless applications and services. It also makes strategic investments to provide worldwide adoption of CDMA products and services for wireless voice and Internet data communications. The company markets its products through direct sales force, partnerships, and distributors in the U.S., Europe, the Middle East, Argentina, Brazil, Canada, China, Japan, South Korea, and Mexico. QUALCOMM was incorporated in 1985 and is based in San Diego, Calif.


Data provided by Capital IQ
 
Paul Jacobs

Paul Jacobs, 42

Chief Executive Officer and Director

Total Compensation

$1,304,661

Value of Options

$83,269,260

University of California Berkeley - BS, University of California Berkeley - MS, University of California Berkeley - PhD

Paul Jacobs has been chief executive officer of Qualcomm since July, 2005. Jacobs served as group president of Qualcomm's wireless & Internet group from July, 2001, until June, 2005. Jacobs served as executive vice-president of Qualcomm from 2000 until June, 2005. He served as president of the consumer products division from February, 1997, to February, 2000, and as senior vice-president of Qualcomm and vice-president and general manager of the consumer products division from April, 1995, to February, 1997. He joined Qualcomm in September, 1990, as senior engineer and was promoted to engineering director in April, 1993. Jacobs has been a director of Qualcomm since June, 2005. Jacobs serves as a director of A123 Systems. Jacobs holds a bachelor's degree in electrical engineering and computer science, a master's degree in electrical engineering, and a PhD degree in electrical engineering and computer science from the University of California at Berkeley. Jacobs is the son of Irwin Mark Jacobs, chairman of Qualcomm.



Executive Data provided by Capital IQ