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I see you did jump on NVDA. I missed this post Zeev.
It's in the green again for ya...... @ $17.21.
Thanks! That & $5.00 will get me a cup of joe............
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@ SBUX
:-o
Just watching & commenting on the carnage. Are you long NVDA?
If so, I wasn't aware Zeev...... Sorry.
<edit> Back to $17.17
NVDA free falling again. Now in the $16's.....
$16.87 OUCH! Down $2.70.....
17:28 ET NVIDIA lowers Q3 guidance (NVDA) 17.65 -1.92: -- Update -- On call, management indicates Q3 (Oct) gross margins are to remain flat to slightly down and operating expenses are to increase 5-10%. The company expects Q3 revenues to increase 5-6%, implying a range of $482.8-487.4 mln. The Reuters Research consensus is for revenues of $495.9 mln.
17:20 ET Triton PCS misses by $0.08 (TPC) 5.52 +0.06: Reports Q2 (Jun) loss of $0.54 per share, $0.08 worse than the Reuters Research consensus of ($0.46); revenues rose 12.8% year/year to $206.5 mln vs the $206.2 mln consensus.
NVDA in free fall in AH. Down about $2 in a couple of minutes.
OT OT OT
"I think I remember seeing something about Ahhhhnold driving a hummer. I wonder if they make a stretch limo version?"
http://www.upfrontezine.com/travel/nyc-hummer.jpg
http://www.platinumlimo.com/fleet.html
http://www.platinumlimo.com/graphics/fleet/hummer-in.jpg
17:24 ET Cisco Systems releases guidance (CSCO) 18.86 -0.40: -- Update -- Revenues are expected to be up 2-4% Margins are forcasted to be 67- 69% Operating expenses up 2-3% in terms of dollars.
17:10 ET S&P to make changes to S&P 600, S&P 400 : S&P SmallCap 600 constituent Washington Federal Inc. (WFSL) will replace Clayton Homes Inc. (CMH) in the S&P MidCap 400 Index based on the planned completion (Aug.7, 2003) of CMH's acquisition by a subsidiary of Berkshire Hathaway; Brookline Bancorp Inc. (BRKL) will replace Washington Federal in the S&P SmallCap 600 Index on Thursday, August 7, 2003.
16:39 ET Cisco Systems earnings growth (CSCO) 18.86 -0.40: -- Update -- On the call, management states that future earnings growth will driven by topline growth -- suggests that more acquisitions are ahead.
16:09 ET Cisco Systems reports in line (CSCO) 18.79 -0.47: Reports Q4 (Jul) earnings of $0.15 per share, in line with the Reuters Research consensus of $0.15; revenues fell 2.6% year/year to $4.70 bln vs the $4.68 bln consensus.
16:07 ET Cisco Systems reports in line (CSCO) 18.79 -0.47:
From Briefing.com.........
14:43 ET Saddam rumor popping up again today :
14:25 ET Mortgage apps off sharply: warning on housing : Barrington Research comments on the 24.3% decline in mortgage applications for the week ended July 25. According to firm, at the current level, the composite index is below the year ago level for the first time in over a year. While Barrington does not see an actual housing bust unless rates rise substantially in the near-term, firm believes that in this age of short investor time horizons, housing-related stocks could come under pressure with further rises in mortgage rates and declines in mortgage activity. Notes that the plunge in refinancing activity is obviously a negative for banks and other financial institutions that have been major beneficiaries of the preceding boom.
14:10 ET Beige Book detail : The Beige Book reports 'somewhat stronger growth' amid increased optimism. Manufacturing activity edged higher despite weak capital spending as several Fed districts reported increased plans for investment. Consumer spending was termed 'lackluster' as the housing sector reaped the rewards of low interest rates. Prices (outside of energy) and wages were little changed. Commercial lending remained weak as mortgage demand rocketed higher. The Richmond Fed compiled the reports which are consistent with the slightly improved economic reports. Please see our Bond Ticker page for the Summary Text of the report.
14:03 ET Fed's Beige Book says economy "increased a notch" over the past couple months, but that capital expenditures remain "weak" :
Apparently so...... INTC up in AH.
NEW YORK (Dow Jones)--Corporate information technology spending in established economies remains flat to down, said Craig Barrett, chief executive of Intel Corp. (INTC).
Speaking during an interview with Morgan Stanley analyst Mark Edelstone, which was also broadcast over the Internet, Barrett said that while he is not sure if tech spending will be down for the year, he doesn't expected it to be up a "whole lot," particularly in established economies like the U.S. and Western Europe. The executive did note that spending by corporations on tech gear in Asia and Eastern Europe is growing.
While Barrett said it's hard to forecast further out than 30 days, he said he was confident that companies will eventually spend to upgrade their technology. It will take a quarter or so more of U.S. corporate profits to drive that, noted the executive.
It wasn't newsworthy enough for Briefing.com to report,
therefore it must be a lacking indicator.
:-o
QUALCOMM Announces Third Quarter Fiscal 2003 Results
Wednesday July 23, 4:00 pm ET
Revenues $922 Million, EPS $0.23
Revenues $891 Million, EPS $0.33 Excluding QSI Segment
SAN DIEGO, July 23 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News) today announced its third quarter fiscal 2003 results ended June 29, 2003. Revenues were $922 million in the third fiscal quarter, up 20 percent year-over-year. Third quarter net income was $192 million, compared to a loss of $14 million year-over-year. Earnings per share were $0.23, compared to a loss of $0.02 per share year-over-year.
Revenues excluding the QUALCOMM Strategic Initiatives (QSI) segment were $891 million in the third fiscal quarter, up 24 percent year-over-year. Net income excluding the QSI segment was $267 million, up 38 percent year-over- year. Earnings per share excluding the QSI segment were $0.33, up 38 percent year-over-year. Detailed reconciliations between total QUALCOMM results and results excluding QSI are included at the end of this news release. Prior period reconciliations are presented on our Investor Relations web page at www.qualcomm.com .
"Our business generates excellent positive cash flows at the same time revenues and earnings continue to grow. As a result, our Board approved a 40 percent increase in cash dividends to return value to our shareholders," said Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM. "During the third quarter, we announced several new multimode chips and the industry-leading MSM7xxx family of chips to further strengthen our product road map and support our customers."
"The China and India markets are gaining momentum, and we are encouraged by the performance of CDMA operators in the Americas, Japan and South Korea. During the quarter, Reliance Infocomm launched the first CDMA2000 1X nationwide commercial service in India, bringing advanced 3G wireless voice and data services to more than 250 cities. Reliance, Tata and the other CDMA operators in India totaled over three million subscribers at the end of June. China Unicom launched its prepaid service in several cities. VIVO in Brazil and China Unicom launched commercial BREW(TM) services, and BellSouth International has announced plans to commercially launch BREW in Latin America. Verizon Wireless in the U.S. reported impressive data revenues with its BREW-based Get It Now(SM) service. We believe these events, along with initial deployments of WCDMA in Japan and Europe, will set the stage for CDMA to capture a greater share of the total wireless market over the next year," Jacobs said.
Research and development (R&D) expenses were $136 million, including $1 million for QSI, in the third fiscal quarter, up 15 percent year-over year. The increase in R&D expenses compared to the year ago quarter was primarily related to QCT new product development efforts.
Selling, general and administrative (SG&A) expenses were $117 million, including $8 million for QSI, in the third fiscal quarter, down 23 percent year-over-year. The decrease in SG&A expense compared to the year ago quarter was primarily due to reduced expenses at Vesper, including the effects of foreign currency fluctuations.
Our fiscal 2003 effective income tax rate is now estimated to be 45 percent, compared to 22 percent in fiscal 2002. The change in the estimated 2003 effective tax rate from 43 percent used in the second quarter of fiscal 2003 results in a 48 percent effective tax rate in the third quarter of fiscal 2003. Excluding the QSI segment, our fiscal 2003 effective tax rate estimate remains at 33 percent, compared to 35 percent in fiscal 2002.
QUALCOMM Strategic Initiatives
The QUALCOMM Strategic Initiatives (QSI) segment includes our strategic investments and related income and expenses. Vesper losses before taxes were $20 million in the third fiscal quarter compared to $35 million in the year ago quarter. The balance of the net loss before taxes in QSI was $7 million for the third fiscal quarter compared to $250 million in the year ago quarter. The third quarter of fiscal 2003 net loss included asset impairment charges related to the valuation of our Australian wireless licenses, other-than- temporary losses on investments, our share of equity losses from our investment in Inquam and impairment of a note receivable. Significant offsetting gains included the realization of value of a portion of our Auction Discount Voucher transferred to two wireless operators, realized interest income from our Pegaso investment and realized gains on the sale of marketable securities.
Business Outlook
The following statements are forward-looking and actual results may differ materially. Please see Note Regarding Forward-Looking Statements at the end of this news release for a description of certain risk factors and QUALCOMM's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
Fourth Quarter Fiscal 2003
-- Based on the current business outlook, we anticipate that revenues
excluding the QSI segment in the fourth fiscal quarter will increase
by approximately 2-6 percent year-over-year. We anticipate that
earnings per share excluding the QSI segment will be approximately
$0.27-$0.29 in the fourth fiscal quarter, compared to $0.31 in the
year ago quarter. This estimate assumes shipments of approximately
19-21 million MSM phone chips during the quarter.
-- Based on the current business outlook, we anticipate that total
QUALCOMM revenues in the fourth quarter will increase by
approximately 2-6 percent year-over-year. We anticipate that total
QUALCOMM earnings per share will be approximately $0.19-$0.21 in the
fourth fiscal quarter, including an estimated $0.08 loss per share
attributed to the QSI segment, compared to $0.23 per share in the
year ago quarter. Due to their nature, certain income and expense
items such as realized gains or losses, gains or losses on
derivatives, income related to the use of our FCC Auction Discount
Voucher and asset impairments cannot be accurately forecast.
Accordingly, the Company excludes such items from its business
outlook, and actual results may vary materially from the business
outlook if the Company incurs any such income or expense items.
Fiscal 2003
-- Based on the current business outlook, we anticipate that revenues
excluding the QSI segment will grow by approximately 31-33 percent
year-over-year and earnings per share excluding the QSI segment to be
in the range of $1.40-$1.42 for fiscal 2003, up 43-45 percent year-
over-year. We estimate the CDMA phone market to be 103-108 million
units in calendar 2003, and we estimate a decrease of approximately
five percent in average selling prices of CDMA phones for fiscal
2003, upon which royalties are calculated.
-- Based on the current business outlook, we anticipate that total
QUALCOMM revenues will grow by approximately 30-31 percent year-over-
year and total QUALCOMM earnings per share to be in the range of
$0.84-$0.86 for fiscal 2003, up 91-95 percent year-over-year,
including an estimated $0.56 loss per share attributed to the QSI
segment. Due to their nature, certain income and expense items such
as realized gains or losses, gains or losses on derivatives, income
related to the use of our FCC Auction Discount Voucher and asset
impairments cannot be accurately forecast. Accordingly, the Company
excludes such items from its business outlook, and actual results may
vary materially from the business outlook if the Company incurs any
such income or expense items.
Cash and Marketable Securities
QUALCOMM's cash, cash equivalents and marketable securities totaled approximately $5.0 billion at the end of the third quarter of fiscal 2003, compared to $4.4 billion on March 30, 2003, $3.9 billion on December 29, 2002 and $3.2 billion on September 29, 2002. We have invested $158 million in net stock repurchases and have paid $79 million in cash dividends since the inception of these programs in February 2003. QSI businesses required funding of $40 million in the third quarter of fiscal 2003, consistent with the second quarter of fiscal 2003. Collection of finance receivables from our Pegaso investment totaled $285 million in the third quarter of fiscal 2003. Detailed reconciliations between total QUALCOMM cash and cash equivalents and cash and cash equivalents including marketable securities and excluding the QSI segment are included at the end of this news release.
Results of Business Segments
The following tables present segment information (in thousands):
Third Quarter - Fiscal Year 2003
Reconciling
Segments QCT QTL QWI Items (1)
Revenues 557,240 242,479 113,882 (22,334)
Change from prior
quarter (15%) (7%) (5%) N/M
Change from prior year 38% 22% 4% N/M
Earnings (loss)
before taxes 163,114 218,363 6,396 10,181
Change from prior
quarter (27%) (8%) (13%) N/M
Change from prior year 39% 25% 308% N/M
Tax rates
Net income (loss)
Change from prior
quarter
Change from prior year
Diluted net earnings
(loss) per
common share (3)
Change from prior quarter
Change from prior year
QUALCOMM Total
Segments excluding QSI QSI QUALCOMM
Revenues 891,267 30,341 921,608
Change from prior
quarter (12%) 16% (12%)
Change from prior year 24% (39%) 20%
Earnings (loss)
before taxes 398,054 (27,563) 370,491
Change from prior
quarter (14%) 89% 72%
Change from prior year 34% 90% 784%
Tax rates 33% (172%) 48%
Net income (loss) 266,697 (75,008) 191,689
Change from prior
quarter (15%) 64% 86%
Change from prior year 38% 46% 1492%
Diluted net earnings
(loss) per
common share (3) 0.33 (0.09) 0.23
Change from prior
quarter (13%) 65% 77%
Change from prior year 38% 50% 1250%
Second Quarter - Fiscal Year 2003
Reconciling
Segments QCT QTL QWI Items (1)
Revenues 652,873 260,110 119,319 (15,524)
Earnings (loss)
before taxes 223,520 236,192 7,370 (6,431)
Tax rates
Net income (loss)
Diluted net earnings
(loss) per
common share (3)
QUALCOMM Total
Segments excluding QSI QSI QUALCOMM
Revenues 1,016,778 26,265 1,043,043
Earnings (loss)
before taxes 460,651 (245,775) 214,876
Tax rates 32% 14% 52%
Net income (loss) 313,858 (210,842) 103,016
Diluted net earnings
(loss) per
common share (3) 0.38 (0.26) 0.13
Third Quarter - Fiscal Year 2002
Reconciling
Segments QCT QTL QWI Items (1)
Revenues 404,253 198,853 109,581 8,631
Earnings (loss)
before taxes 117,524 174,450 (3,074) 8,906
Tax rates
Net income (loss)
Diluted net earnings
(loss) per
common share (3)
Goodwill
QUALCOMM Amortization Total
Segments excluding QSI QSI and Other (2) QUALCOMM
Revenues 721,318 49,456 143 770,917
Earnings (loss)
before taxes 297,806 (285,454) (66,496) (54,144)
Tax rates 35% 51% (1%) 75%
Net income (loss) 193,574 (139,872) (67,470) (13,768)
Diluted net earnings
(loss) per
common share (3) 0.24 (0.18) (0.09) (0.02)
Nine Months - Fiscal Year 2003
Reconciling
Segments QCT QTL QWI Items (1)
Revenues 1,919,794 758,012 342,182 (43,979)
Earnings (loss)
before taxes 674,916 683,964 16,527 5,598
Tax rates
Net income (loss)
Diluted net earnings
(loss) per
common share (3)
QUALCOMM Total
Segments excluding QSI QSI QUALCOMM
Revenues 2,976,009 85,811 3,061,820
Earnings (loss)
before taxes 1,381,005 (406,389) 974,616
Tax rates 33% 4% 45%
Net income (loss) 925,273 (389,234) 536,039
Diluted net earnings
(loss) per
common share (3) 1.13 (0.48) 0.66
Nine Months - Fiscal Year 2002
Reconciling
Segments QCT QTL QWI Items (1)
Revenues 1,107,212 603,611 329,140 33,306
Earnings (loss)
before taxes 282,189 534,673 (8,271) 28,492
Tax rates
Net income (loss)
Diluted net
earnings (loss)
per common share (3)
Goodwill
QUALCOMM Amortization and Total
Segments excluding QSI QSI Other (2) QUALCOMM
Revenues 2,073,269 92,262 143 2,165,674
Earnings (loss)
before taxes 837,083 (409,241) (195,794) 232,048
Tax rates 35% 56% 0% 27%
Net income (loss) 544,104 (178,370) (196,339) 169,395
Diluted net earnings
(loss) per
common share (3) 0.67 (0.22) (0.24) 0.21
(1) Reconciling items related to revenues consist primarily of other
non-reportable segment revenues less intersegment eliminations.
Reconciling items related to earnings before taxes consist primarily
of corporate expenses, charges that are not allocated to the
segments for management reporting purposes, unallocated net
investment income, non-reportable segment results, interest expense
and the elimination of intercompany profit.
(2) Starting in fiscal 2003, the Company no longer records goodwill
amortization, in accordance with Financial Accounting Standards No.
142. In the third quarter of fiscal 2002, goodwill amortization and
other adjustments included $61.5 million of amortization of
goodwill, $4.0 million of amortization of intangible assets and
$2.3 million of payroll expenses on stock option exercises, offset
by $1.0 million of credits related to the reduction of reserves
established in connection with the Globalstar business and $0.2
million of credits and $0.1 million of revenues related to the sale
of the terrestrial-based CDMA wireless infrastructure business. In
the first nine months of fiscal 2002, goodwill amortization and
other adjustments included $183.8 million of amortization of
goodwill, $10.1 million of amortization of intangible assets and
$5.4 million of payroll expenses on stock option exercises, offset
by $3.1 million of credits related to the reduction of reserves
established in connection with the Globalstar business and
$0.3 million of credits and $0.1 million of revenue related to the
sale of the terrestrial-based CDMA wireless infrastructure business.
With the adoption of FAS 142 in 2003 and given the immateriality of
the other adjustments, the Company no longer makes these adjustments
to its results excluding QSI in fiscal 2003.
(3) The sum of the earnings per share amounts may not equal total
earnings per share due to rounding.
N/M - Not Meaningful
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 29, 2003
Excluding QSI QSI Total QUALCOMM
Revenues:
Equipment and services $652,233 $30,341 $682,574
Licensing and royalty fees 239,034 -- 239,034
891,267 30,341 921,608
Operating expenses:
Cost of equipment and
services revenues 286,250 40,652 326,902
Research and development 134,436 1,254 135,690
Selling, general and
administrative 109,294 8,192 117,486
Amortization of other
acquisition-related
intangible assets 1,951 -- 1,951
Asset impairment charges -- 34,113 34,113
Other -- (30,356) (30,356)
Total operating expenses 531,931 53,855 585,786
Operating income (loss) 359,336 (23,514) 335,822
Interest expense (260) (9,503) (9,763)
Investment income, net 38,978 (a) 5,454 (d) 44,432
Income (loss) before income taxes 398,054 (27,563)(b) 370,491
Income tax expense (131,357)(c) (47,445) (178,802)(c)
Net income (loss) $266,697 $(75,008) $191,689
Net earnings (loss) per
common share:
Diluted $0.33 (e) $(0.09)(e) $0.23 (e)
Shares used in per share
calculations:
Diluted 815,856 815,856 815,856
(a) Includes $29 million in interest income related to cash, cash
equivalents and marketable debt securities, which are not part of the
Company's strategic investment portfolio.
(b) Includes $20 million loss, net of minority interest, of Vesper
Holdings from March 1, 2003 through May 31, 2003 due to the Company's
practice of consolidating foreign subsidiaries one month in arrears.
(c) The estimated fiscal year 2003 effective tax rate for operations
excluding QSI and total QUALCOMM are 33% and 45%, respectively. The
change in the estimated 2003 effective tax rate for total QUALCOMM
from 43% used in the second quarter of fiscal 2003 results in a 48%
effective tax rate in the third quarter of fiscal 2003.
(d) Includes $30 million interest income, $21 million other-than-
temporary losses on investments, $21 million equity losses in
investees and $18 million realized gains on marketable securities.
(e) The sum of the earnings per share amounts may not equal total
earnings per share due to rounding.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS
(In thousands, except per share data)
(Unaudited)
Nine Months Ended June 29, 2003
Excluding QSI QSI Total QUALCOMM
Revenues:
Equipment and services $2,243,708 $85,811 $2,329,519
Licensing and royalty fees 732,301 -- 732,301
2,976,009 85,811 3,061,820
Operating expenses:
Cost of equipment and
services revenues 978,754 118,077 1,096,831
Research and development 374,440 5,530 379,970
Selling, general and
administrative 333,050 68,159 401,209
Amortization of other
acquisition-related
intangible assets 5,888 -- 5,888
Asset impairment charges -- 194,258 194,258
Other -- (30,356) (30,356)
Total operating expenses 1,692,132 355,668 2,047,800
Operating income (loss) 1,283,877 (269,857) 1,014,020
Interest expense (1,974) (18,549) (20,523)
Investment income
(expense), net 99,102 (a) (117,983)(d) (18,881)
Income (loss) before
income taxes 1,381,005 (406,389)(b) 974,616
Income tax (expense) benefit (455,732)(c) 17,155 (438,577)(c)
Net income (loss) $925,273 $(389,234) $536,039
Net earnings (loss) per
common share:
Diluted $1.13 (e) $(0.48)(e) $0.66 (e)
Shares used in per share
calculations:
Diluted 816,563 816,563 816,563
(a) Includes $83 million in interest income related to cash, cash
equivalents and marketable debt securities, which are not part of the
Company's strategic investment portfolio.
(b) Includes $212 million loss, net of minority interest, of Vesper
Holdings from September 1, 2002 through May 31, 2003 due to the
Company's practice of consolidating foreign subsidiaries one month in
arrears.
(c) The estimated fiscal year 2003 effective tax rate for operations
excluding QSI and total QUALCOMM are 33% and 45%, respectively.
(d) Includes $111 million other-than-temporary losses on investments,
$110 million equity losses in investees, $45 million interest income,
$37 million minority interest in loss of consolidated subsidiaries
and $23 million realized gains on marketable securities.
(e) The sum of the earnings per share amounts may not equal total
earnings per share due to rounding.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH FLOWS FROM CASH
CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO TOTAL
QUALCOMM CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended June 29, 2003 (c)
Excluding Total
QSI QSI QUALCOMM
Earnings before taxes,
depreciation, amortization
and other adjustments (1) $424,137 $26,714 $450,851
Working capital changes
and taxes paid (2) (110,163) 4,411 (105,752)
Net cash provided by
operating activities 313,974 31,125 345,099
Capital expenditures (44,176) (10,859) (55,035)
Net cash provided by
operating activities less
capital expenditures 269,798 20,266 290,064
Net additional share capital 19,980 -- 19,980
Repurchases of common stock (42,047) -- (42,047)
Dividends paid (79,007) -- (79,007)
Net collections of finance
receivables 55 282,734 282,789
Other investments -- (2,062) (2,062)
Other items (1,349) (9,228) (10,577)
Changes in fair value and
other changes to marketable
securities 17,766 32,823 50,589
Marketable securities pending
settlement payment (receipt) 94,712 (4,830) 89,882
Transfer from QSI (3) 354,965 (354,965) --
Transfer to QSI (4) (39,837) 39,837 --
Net increase in cash, cash
equivalents and marketable
securities (5) $595,036 $4,575 $599,611
(1) Reconciliation to GAAP:
Net income (loss) $266,697 $(75,008) $191,689
Non-cash adjustments (a) 153,547 119,969 273,516
Net realized gains on
marketable securities
and other investments (9,892) (18,247) (28,139)
Plus: Taxes paid 13,785 -- 13,785
Earnings before taxes,
depreciation,
amortization and other
adjustments $424,137 $26,714 $450,851
(2) Reconciliation to GAAP:
(Decrease) increase in
cash resulting from
changes in working
capital $(96,378) $4,411 $(91,967)
Minus: Taxes paid (13,785) -- (13,785)
Working capital changes
and taxes paid $(110,163) $4,411 $(105,752)
(3) Cash from loan payments
and sale of equity
securities.
(4) Funding for strategic debt
and equity investments,
operations of Vesper and
other QSI operating
expenses.
(5) Reconciliation to GAAP
cash flow statement:
Net decrease in cash
and cash equivalents
(GAAP) $(185,846) $(9,170) $(195,016)
Plus: Net purchase
(proceeds) of
marketable securities 668,404 (14,248) 654,156
Plus: Net increase in
fair value and other
changes to marketable
securities 17,766 32,823 50,589
Plus: Net increase in
marketable securities
pending settlement
payment (receipt) 94,712 (4,830) 89,882
Net increase in cash,
cash equivalents and
marketable securities $595,036 $4,575 $599,611
(a) See detail following the nine month cash flow schedule.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH FLOWS FROM CASH,
CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO TOTAL
QUALCOMM CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended June 29, 2003 (c)
Excluding Total
QSI QSI QUALCOMM
Earnings before taxes,
depreciation, amortization
and other adjustments (1) $1,475,201 $(16,830) $1,458,371
Working capital changes
and taxes paid (2) (227,637) 23,692 (203,945)
Net cash provided by
operating activities 1,247,564 6,862 1,254,426
Capital expenditures (157,515) (28,491) (186,006)
Net cash provided by operating
activities less capital
expenditures 1,090,049 (21,629) 1,068,420
Net additional share capital 132,676 -- 132,676
Repurchases of common stock (158,488) -- (158,488)
Dividends paid (79,007) -- (79,007)
Net collections of finance
receivables 6,845 654,956 661,801
Other investments -- (33,800) (33,800)
Other items (2,628) (31,391) (34,019)
Changes in fair value and
other changes to marketable
securities 42,123 46,151 88,274
Marketable securities pending
settlement payment (receipt) 127,767 (9,542) 118,225
Transfer from QSI (3) 747,665 (747,665) --
Transfer to QSI (4) (149,330) 149,330 --
Net increase in cash, cash
equivalents and marketable
securities (5) $1,757,672 $6,410 $1,764,082
(1) Reconciliation to GAAP:
Net income (loss) $925,273 $(389,234) $536,039
Non-cash adjustments (b) 487,992 395,800 883,792
Net realized gains on
marketable securities
and other investments (16,011) (23,396) (39,407)
Plus: Taxes paid 77,947 -- 77,947
Earnings (loss) before
taxes, depreciation,
amortization and other
adjustments $1,475,201 $(16,830) $1,458,371
(2) Reconciliation to GAAP:
(Decrease) increase in
cash resulting from
changes in working
capital $(149,690) $23,692 $(125,998)
Minus: Taxes paid (77,947) -- (77,947)
Working capital changes
and taxes paid $(227,637) $23,692 $(203,945)
(3) Cash from loan payments
and sale of equity
securities.
(4) Funding for strategic
debt and equity
investments, operations
of Vesper and other
QSI operating expenses.
(5) Reconciliation to GAAP
cash flow statement:
Net increase (decrease)
in cash and cash
equivalents (GAAP) $402,188 $(14,067) $388,121
Plus: Net purchase
(proceeds) of
marketable securities 1,187,679 (16,132) 1,171,547
Plus: Net increase in
fair value and other
changes to marketable
securities 42,123 46,151 88,274
Plus: Net increase in
marketable securities
pending settlement
payment (receipt) 127,767 (9,542) 118,225
Less: Proceeds from
trading securities
included in working
capital change (2,085) -- (2,085)
Net increase in cash,
cash equivalents and
marketable securities $1,757,672 $6,410 $1,764,082
(b) See detail on the following page.
QUALCOMM Incorporated
SUPPLEMENTAL DETAIL TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE
SECURITIES
(In thousands)
(Unaudited)
Three Months Ended June 29, 2003
Excluding Total
QSI QSI QUALCOMM
(a) Non-cash adjustments are
comprised of:
Depreciation and
amortization $35,476 $7,567 $43,043
Asset impairment and
related charges -- 34,113 34,113
Change in fair values
of derivative
investments -- 1,381 1,381
Other-than-temporary
losses on marketable
securities and other
investments -- 21,105 21,105
Minority interest in
loss of consolidated
subsidiaries -- (242) (242)
Equity in losses of
investees 45 20,993 21,038
Non-cash income tax
expense 117,571 47,446 165,017
Other non-cash charges
and credits 455 (12,394) (11,939)
Total non-cash adjustments $153,547 $119,969 273,516
Nine Months Ended June 29, 2003
Excluding Total
QSI QSI QUALCOMM
(b) Non-cash adjustments are
comprised of:
Depreciation and
amortization $101,216 $31,353 $132,569
Asset impairment and
related charges -- 194,258 194,258
Change in fair values
of derivative
investments -- 1,261 1,261
Other-than-temporary
losses on marketable
securities and other
investments 349 111,306 111,655
Minority interest in
loss of consolidated
subsidiaries -- (36,795) (36,795)
Equity in losses of
investees 45 110,219 110,264
Non-cash income tax
expense 377,785 (17,155) 360,630
Other non-cash charges
and credits 8,597 1,353 9,950
Total non-cash adjustments $487,992 $395,800 883,792
(c) The Company's management uses this non-GAAP presentation to analyze
increases and decreases in certain of its liquid assets, comprised of
cash, cash equivalents and marketable securities. Management views
certain marketable debt securities as liquid assets available to fund
operations, which result from cash management strategies designed to
increase yields. However, these instruments do not meet the
definition of cash equivalents in accordance with Statement of
Financial Standards No. 95, "Statement of Cash Flows" and must be
excluded from the GAAP statements of cash flows. Since the GAAP
statements of cash flows reconcile the Company's beginning and ending
cash and cash equivalents balances, the purchases and sales of
marketable securities are presented as inflows and outflows. For
internal analysis of the Company's cash position, management does not
view these transactions as inflows and outflows from the business,
but as cash management transactions. If required, such investments
could be settled relatively quickly as additional cash resources are
needed. The Company believes that this non-GAAP presentation is a
helpful measure of the Company's liquidity.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
ASSETS
QUALCOMM
Excluding
QSI QSI (a)(b) QUALCOMM QUALCOMM
June 29, June 29, June 29, September 29,
2003 2003 2003 2002
Current assets:
Cash and cash
equivalents $1,785,824 $9,001 $1,794,825 $1,406,704
Marketable
securities 2,524,102 41,091 2,565,193 1,411,178
Accounts
receivable, net 577,016 43,064 620,080 536,950
Finance
receivables, net 3,505 382 3,887 388,396
Inventories, net 111,890 11,107 122,997 88,094
Deferred tax
assets (b) 608,528 -- 608,528 122
Other current
assets 114,244 22,000 136,244 109,322
Total current
assets 5,725,109 126,645 5,851,754 3,940,766
Marketable securities 469,903 133,673 603,576 381,630
Finance receivables,
net 4,187 180,083 184,270 442,934
Other investments 4,722 133,952 138,674 276,414
Property, plant and
equipment, net 508,918 110,471 619,389 686,283
Goodwill, net 344,753 1,865 346,618 344,803
Deferred tax
assets (b) 309,314 -- 309,314 7,493
Other assets 231,371 185,036 416,407 425,725
Total assets $7,598,277 $871,725 $8,470,002 $6,506,048
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts
payable $108,258 $64,834 $173,092 $209,418
Payroll and other
benefits related
liabilities 117,284 8,265 125,549 126,005
Unearned revenue 171,367 6,758 178,125 183,482
Current portion of
long-term debt -- 98,416 98,416 19,355
Other current
liabilities 243,210 28,936 272,146 136,726
Total current
liabilities 640,119 207,209 847,328 674,986
Unearned revenue 258,147 135 258,282 259,995
Long-term debt -- 107,118 107,118 94,288
Other liabilities 48,552 3,127 51,679 40,283
Total liabilities 946,818 317,589 1,264,407 1,069,552
Minority interest in
consolidated
subsidiaries 50 -- 50 44,540
Stockholders' equity:
Preferred stock,
$0.0001 par value -- -- -- --
Common stock,
$0.0001 par value 80 -- 80 79
Paid-in capital 6,184,743 -- 6,184,743 4,918,202
Retained earnings 1,061,656 -- 1,061,656 604,624
Accumulated other
comprehensive loss (29,421) (11,513) (40,934) (130,949)
Total
stockholders'
equity 7,217,058 (11,513) 7,205,545 5,391,956
Total
liabilities and
stockholders'
equity $8,163,926 $306,076 $8,470,002 $6,506,048
(a) Includes the consolidated Vesper Holdings balance sheet at May 31,
2003. The Company consolidates foreign subsidiaries one month in
arrears.
(b) Deferred tax assets and liabilities are not allocated to the
Company's segments. A valuation allowance was provided on all net
deferred tax assets of investments that are consolidated by QSI,
including Vesper, because of uncertainty regarding their realization.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
Revenues:
Equipment and
services $682,574 $575,434 $2,329,519 $1,568,656
Licensing and
royalty fees 239,034 195,483 732,301 597,018
921,608 770,917 3,061,820 2,165,674
Operating expenses:
Cost of equipment
and services
revenues 326,902 288,162 1,096,831 825,273
Research and
development 135,690 118,086 379,970 341,709
Selling, general
and administrative 117,486 152,072 401,209 376,797
Amortization of
goodwill and other
acquisition-related
intangible assets 1,951 65,024 5,888 192,437
Asset impairment
charges 34,113 -- 194,258 --
Other (30,356) 8,955 (30,356) 8,955
Total operating
expenses 585,786 632,299 2,047,800 1,745,171
Operating income 335,822 138,618 1,014,020 420,503
Interest expense (9,763) (8,639) (20,523) (17,357)
Investment income
(expense), net 44,432 (184,123) (18,881) (171,098)
Income (loss) before
income taxes 370,491 (54,144) 974,616 232,048
Income tax (expense)
benefit (178,802) 40,376 (438,577) (62,653)
Net income (loss) $191,689 $(13,768) $536,039 $169,395
Net earnings (loss)
per common share:
Basic $0.24 $(0.02) $0.68 $0.22
Diluted $0.23 $(0.02) $0.66 $0.21
Shares used in per share
calculations:
Basic 790,511 773,127 787,606 768,663
Diluted 815,856 773,127 (a) 816,563 809,169
Dividends declared
per share $0.05 $-- $0.10 $--
(a) The diluted share base excludes the potential dilutive effect of
common share equivalents related to outstanding stock options,
calculated using the treasury stock method, as these shares are anti-
dilutive.
16:04 ET Qualcomm beats by $0.03, guides in line (QCOM) 36.25 +0.01: Reports Q3 (Jun) earnings of $0.33 per share, ex items, $0.03 better than the Reuters Research consensus of $0.30; revenues were unchanged from the year-ago period at $891.3 mln. Company sees EPS of $0.27-0.29 vs consensus of $0.29.
QCOM off about $1.35 from 4 pm close already?
<EDIT> Down almost $1.60 a minute later.
North American Semiconductor Equipment Industry Posts June 2003 Book-to-Bill Ratio of 0.93
....."Billings by North American-based semiconductor capital equipment suppliers slid to the lowest point since January 2002 as the bookings level stabilized," said Stanley Myers, president and CEO of SEMI.....
http://www.semi.org/web/wpress.nsf/33fa5c225257afa5882565e3006d9c77/a7400d08a18330f788256d67007569d9...
....Richmond Federal Reserve Bank President Alfred Broaddus, in an interview with Dow Jones Newswires, expressed disappointment that the U.S. economy hasn't exhibited more vigor since the end of the Iraq (news - web sites) war. He said a more accommodative monetary policy will be needed if inflation falls further.
"We still don't have a critical mass of hard evidence that the economy is accelerating," Mr. Broaddus said.....
http://story.news.yahoo.com/news?tmpl=story&u=/dowjones/20030718/bs_dowjones/200307172003001647
SEMI Announces Mid-Year Consensus Forecast for Chip Equipment Industry
Semiconductor Equipment Companies Expect Sales of $20.5 Billion in 2003
SAN FRANCISCO, Calif., July 14, 2003 -- The leading manufacturers of semiconductor equipment expect sales to increase about 4 percent this year from the $19.8 billion posted in 2002 according to the mid-year edition of the SEMI Capital Equipment Consensus Forecast, released here today by Semiconductor Equipment and Materials International (SEMI) at the annual SEMICON West exposition.
....sustained improvement will depend on economic conditions and their effect on the business upgrade cycle. Recent Gartner IT Watch survey data confirms U.S. corporate budgets remain tight....
I also doubt we see 3.5% to 4% GDP growth in the second half.
Almost nothing is pointing to a fairly dramatic upswing that
has to happen two weeks ago or sooner in order to give this
economy a chance of meeting those growth estimates.
:-o
Reading comprehension problems metsin2?
Zeev's Turnips Patch-No Politics
GDP in the first half has been disappointing, consistently
below consensus estimates, with Q1 & Q2 GDP numbers being
lowered with reach revision. We'll be lucky to see 2% GDP
growth for the first half. Consensus estimates are for 3.5%
to 4% 2nd half GDP growth projected by many economists. If the
economy was going to end up growing that much more in the 2nd
half, then there should already be a number of signs of
expansion. Manufacturing continues to shrink, unemployment
continues to grow, global semi growth estimates have been
slashed & most noteworthy companies are only cautiously
guiding estimates in line or slightly uo going forward. Quite
a few are cutting forward estimates.
Also,I would expect to see a few bell weather companies cite,
at a minimum, improved visibility. I would not expect so many
bell weather companies to consistently cite no upswing in IT
spending, no growth projected for Cap Ex spending & no signs
of an economic recovery yet.
It seems to me that the market has priced in 3.5% - 4% 2nd
half GDP growth, perhaps quite a bit more. Valuations are
once again into nose bleed territory. The economy better start
expanding to bring these valuations back into the stratosphere
soon or equities prices will have to get them there.
JMHO
JNPR really didn't raise estimates, just as YHOO didn't
yesterday. Both gave a range slightly above & below current
estimates.
Besides, with everything already priced to perfection for the
next year or so, guidance needed to blow away current
estimates. JNPR & YHOO both were essentially in line to
slightly above at best.
JMHO
17:17 ET Juniper Networks raises guidance (JNPR) 13.80 -0.31: -- Update -- On call, management says company is expecting Q3 (Sep) revenues of $165 mln and non-GAAP EPS of $0.03. The Reuters Research consensus is for revenue of $160.9 mln and earnings of $0.02 per share.
JNPR slipping down in AH - $13.70
Price @ close was $14.11 - went to $14.33 after earngs released.
I agree. Right now it's about keeping us from a global
recession. Propping for the election won't happen until next
year IMO.
BWTHDIK?
From Bloomberg - LOL!
17:06 ET Yahoo! (YHOO) 35.29 +0.19: -- Update -- Apparently market was expecting some upside to guidance as stock has fallen to 33.35; was at 34.50 when number was released.
15:00 ET Yahoo! Earnings Preview (YHOO) 35.27 +0.17: -- Update -- Yahoo reports its Q2 after the close with Reuters Research consensus estimates of $0.08 per share and revenues of $313.3 mln. Credit Suisse First Boston believes the co will beat both its published and consensus estimates. Despite its lofty valuations, the analyst believes the stock could still have upside given the current market environment and analyst earnings revisions reflecting potentially higher guidance for the year. Deutsche Bank also shares some of the same sentiment on estimates with the analyst believing most of the revenue upside should be coming from the marketing services business. In addition, upside is suggested to come from improved pricing from the paid search segment along with a marked improvement in branded advertising segment.
YHOO didn't really raise their guidance. Their guidance was a
range of +/-2% with consensus estimates for the year. See the
bolded passage I inserted into the article in this link........
http://www.investorshub.com/boards/read_msg.asp?message_id=1185449
Reuters
Yahoo Posts Higher Net, Raises Guidance
<<guidance range lower by -1.5% to +2.3% higher>>
Wednesday July 9, 4:45 pm ET
LOS ANGELES (Reuters) - Internet media company Yahoo Inc. (NasdaqNM:YHOO - News) posted a higher quarterly profit on Wednesday, boosted by growing strength in online advertising and its fee-based services, and it raised its guidance for the year.
Yahoo reported a net profit of $50.8 million, or 8 cents per share, for the second quarter, compared with a year-earlier profit of $21.4 million, or 3 cents per share. Revenue rose to $321.4 million from $225.8 million a year earlier.
Analysts surveyed by Reuters Research were expecting earnings of 8 cents per share on revenue of $313.3 million.
The company said it now expects revenue of $318 million to $338 million for the third quarter and $1.26 billion to $1.31 billion for the year.
Analysts had expected revenue of $325.5 million for the third quarter and $1.28 billion for the year, according to Reuters Research.
Yahoo shares closed at $35.29, up 19 cents, on Nasdaq, before falling to $34.15 in after-hours trade as the news was released.
http://biz.yahoo.com/rb/030709/media_yahoo_earns_3.html
Yahoo! Reports Second Quarter 2003 Financial Results
Wednesday July 9, 4:31 pm ET
Company Posts Second Quarter Operating Income of $63 Million, Operating Income Before Depreciation and Amortization of $97 Million
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 9, 2003--Yahoo! Inc. (Nasdaq: YHOO - News) today reported results for the second quarter ended June 30, 2003. Net revenues for the second quarter totaled $321.4 million, a 42 percent increase over the $225.8 million reported for the same period in 2002. Operating income for the second quarter of 2003 was $62.8 million, compared to $7.5 million for the same period of 2002. Operating income before depreciation and amortization for the second quarter of 2003 was $97.3 million, compared to $35.0 million for same period of 2002. Cash flow from operating activities for the second quarter of 2003 was $92.1 million, compared to $103.4 million for same period of 2002. Free cash flow for the second quarter of 2003 was $67.7 million, compared to $64.0 million for same period of 2002.
Net revenues for the six months ended June 30, 2003 totaled $604.4 million, a 44 percent increase over the $418.5 million reported for the same period in 2002. Operating income for the six months ended June 30, 2003 was $117.7 million, compared to $3.3 million for same period of 2002. Operating income before depreciation and amortization for the six months ended June 30, 2003 was $181.3 million, compared to $53.8 million for same period of 2002. Cash flow from operating activities for the six months ended June 30, 2003 was $190.8 million, compared to $150.8 million for same period of 2002. Free cash flow for the six months ended June 30, 2003 was $142.8 million, compared to $102.3 million for same period of 2002.
"We're very excited about the results we have seen in the second quarter, the largest revenue producing quarter in our history. Each piece of our engine is working smoothly with the others, and the numbers show that over the last eighteen months, our performance has been stronger and better," said Terry Semel, chairman and chief executive officer, Yahoo!. "Some of the key drivers of success this quarter include more balanced growth in marketing services, from both traditional advertising and sponsored search, as well as ongoing success in converting consumers and small businesses to fee-based services. We are optimistic about the future and we remain steadfastly focused on execution against our priorities."
Business Outlook
"This quarter's results demonstrate continued balanced growth across all of our revenue contributors and strong trends in our key financial metric of overall free cash flow generation. As we exit our fifth consecutive quarter of GAAP profitability, we continue to execute upon the key business and financial objectives we have laid out as a company, resulting from a steadily increased base of hundreds of blue-chip traditional marketers, thousands of small- and medium-sized businesses, and millions of worldwide consumers. We are also upwardly revising our business outlook for revenues and operating income before depreciation and amortization for the full year 2003, and we are pleased that our own visibility in our financial prospects has increased," said Susan Decker, chief financial officer, Yahoo!. Please refer to the "Notes to Unaudited Condensed Consolidated Statements of Operations" attached to this press release for our business outlook.
Second Quarter 2003 Financial Highlights
Revenues: In the second quarter of 2003, Yahoo! reported net revenues of $321.4 million, a 42 percent increase from the same period in 2002. For the six months ended June 30, 2003, net revenues were $604.4 million, a 44 percent increase from the $418.5 million reported in the same period in 2002.
Marketing services revenues for the second quarter of 2003 totaled $219.2 million, a 44 percent increase from the same period in 2002. Marketing services revenues for the six months ended June 30, 2003 totaled $409.2 million, a 41 percent increase from the same period in 2002. These increases resulted from a combination of a strong increase in revenues from Yahoo!'s sponsored search services, as well as growth in the balance of Yahoo!'s global marketing services revenues.
Fees revenues for the second quarter of 2003 totaled $69.9 million, a 43 percent increase compared to the same period in 2002. Fees revenues for the six months ended June 30, 2003 totaled $133.7 million, a 51 percent increase compared to the same period in 2002. These increases were primarily driven by the growth in paying relationships for Yahoo!'s premium services, including the SBC Yahoo! DSL and Dial products, Yahoo! Personals, and our small business and communications suites of premium services, partially offset by a decrease in our event webcasting business.
Listings revenues for the second quarter of 2003 totaled $32.3 million, a 29 percent increase compared to the same period in 2002. Listings revenues for the six months ended June 30, 2003 totaled $61.5 million, a 52 percent increase compared to the same period in 2002. These increases were driven primarily by the incremental contribution of revenue from HotJobs, which was acquired in February 2002, as well as increases in our search and marketplace services revenues.
Operating income and Operating income before depreciation and amortization: Operating income for the second quarter of 2003 totaled $62.8 million, compared to $7.5 million in the same period of 2002. Operating income before depreciation and amortization for the second quarter of 2003 totaled $97.3 million, a 178 percent increase compared to the $35.0 million reported in the same period of 2002. Operating income margin was 20 percent of net revenues in the second quarter of 2003 compared to 3 percent of net revenues for the same period of 2002. Operating income before depreciation and amortization margin doubled to 30 percent of net revenues in the second quarter of 2003 compared to 15 percent of net revenues in the same period of 2002. The substantial increase in Operating income and operating income before depreciation and amortization reflects strong growth in net revenues and only an 18 percent increase in costs on a year over year basis as a result of our ongoing cost discipline.
Operating income for the six months ended June 30, 2003 totaled $117.7 million, compared to $3.3 million in the same period of 2002. Operating income before depreciation and amortization for the six months ended June 30, 2003 totaled $181.3 million, a 237 percent increase compared to the $53.8 million reported in the same period of 2002. Operating income margin was 19 percent of net revenues for the six months ended June 30, 2003 compared to 1 percent of net revenues for the same period of 2002. Operating income before depreciation and amortization margin increased to 30 percent of net revenues for the six months ended June 30, 2003 compared to 13 percent of net revenues in the same period of 2002.
Cash flow from operating activities and Free cash flow: Cash flow from operating activities for the second quarter of 2003 totaled $92.1 million, compared to $103.4 million for the same period of 2002. Free cash flow for the second quarter of 2003 totaled $67.7 million, a 6 percent increase compared to the $64.0 million reported for the same period of 2002.
Cash flow from operating activities for the six months ended June 30, 2003 totaled $190.8 million, compared to $150.8 million for the same period of 2002. Free cash flow for the six months ended June 30, 2003 totaled $142.8 million, a 40 percent increase compared to the $102.3 million reported for the same period of 2002.
Net Income (Loss): Net income for the second quarter of 2003 was $50.8 million or $0.08 per diluted share, compared with $21.4 million or $0.03 per diluted share for the same period of 2002.
Net income for the six months ended June 30, 2003 was $97.5 million or $0.16 per diluted share, compared with income before the cumulative effect of accounting change of $31.9 million or $0.05 per diluted share for the same period of 2002. Net loss was $32.3 million or $0.05 per diluted share for the six months ended June 30, 2002, including the charge of $64.1 million for the cumulative effect of the accounting change for the implementation of Statement of Financial Accounting Standard No. 142 ("SFAS 142"). SFAS 142, which the Company adopted January 1, 2002, requires companies to assess the goodwill recorded from previous acquisitions, and as necessary, record an impairment charge that does not affect cash or the Company's operations.
Quarterly Conference Call
Yahoo! will host a conference call to discuss second quarter results at 5:00 p.m. Eastern Time today. A live Webcast of the conference call, together with supplemental financial information can be accessed through the Company's Investor Relations Web site at http://yhoo.client.shareholder.com/earnings.cfm. In addition, an archive of the Webcast can be accessed through the same link. An audio replay of the call will be available for 48 hours following the conference call by calling 877-213-9653 or 630-652-3041, reservation number: 7404923.
About Yahoo!
Yahoo! Inc. is a leading provider of comprehensive online products and services to consumers and businesses worldwide. Yahoo! is the No. 1 Internet brand globally and the most trafficked Internet destination worldwide. Headquartered in Sunnyvale, Calif., Yahoo!'s global network includes 25 World properties and is available in 13 languages.
This press release and its attachments contain forward-looking statements that involve risks and uncertainties concerning Yahoo!'s expected financial performance (as described without limitation in the Business Outlook section and quotations from management in this press release), as well as Yahoo!'s strategic and operational plans. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, decreases or delays in advertising spending; the actual increases in demand by customers for Yahoo!'s premium services; acceptance of new products and services; general economic conditions; risks related to the integration of recent acquisitions; the ability to adjust to changes in personnel, including management changes; and the dependence on third parties for technology, services, content and distribution. All information set forth in this release and its attachments is as of July 9, 2003, and Yahoo! undertakes no duty to update this information. More information about potential factors that could affect the Company's business and financial results is included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, including (without limitation) under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," which are on file with the Securities and Exchange Commission (the "SEC") and available at the SEC's website at www.sec.gov. Additional information will also be set forth in those sections in Yahoo!'s Quarterly Report on Form 10-Q for the three month period ended June 30, 2003, which will be filed with the SEC in the third quarter of 2003.
Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.
-0-
Yahoo! Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------
2003 2002 2003 2002
----------------------------------------
Net revenues $ 321,406 $ 225,792 $ 604,354 $ 418,457
Costs and expenses:
Cost of revenues 46,842 41,708 89,974 79,529
Sales and marketing 122,218 110,015 235,906 206,161
Product development 45,687 35,162 82,371 67,944
General and administrative 34,125 25,437 62,845 52,106
Amortization of intangibles 9,762 5,952 15,509 9,374
--------- --------- --------- ---------
Total costs and expenses 258,634 218,274 486,605 415,114
--------- --------- --------- ---------
Income from operations 62,772 7,518 117,749 3,343
Other income, net (1) 20,335 29,228 42,594 51,897
Minority interests in operations
of consolidated subsidiaries (1,126) 139 (3,034) 351
--------- --------- --------- ---------
Income before income taxes and
cumulative effect of
accounting change 81,981 36,885 157,309 55,591
Provision for income taxes 31,153 15,491 59,778 23,722
--------- --------- --------- ---------
Income before cumulative effect
of accounting change 50,828 21,394 97,531 31,869
Cumulative effect of accounting
change - - - (64,120)
--------- --------- --------- ---------
Net income (loss) $ 50,828 $ 21,394 $ 97,531 $ (32,251)
========= ========= ========= =========
Net income (loss) per
share - diluted:
Income before cumulative
effect of accounting
change $ 0.08 $ 0.03 $ 0.16 $ 0.05
Cumulative effect of
accounting change - - - (0.10)
--------- --------- --------- ---------
Net income (loss) per
share - diluted $ 0.08 $ 0.03 $ 0.16 $ (0.05)
========= ========= ========= =========
Shares used in per share
calculation - diluted (2) 628,577 615,542 622,183 612,781
========= ========= ========= =========
----------------------------------------------------------------------
Supplemental Financial Data (3)
Income from operations $ 62,772 $ 7,518 $ 117,749 $ 3,343
Operating income before
depreciation
and amortization $ 97,275 $ 34,994 $ 181,325 $ 53,774
Cash flow provided by
operating activities $ 92,123 $ 103,382 $ 190,751 $ 150,825
Free cash flow $ 67,652 $ 64,008 $ 142,764 $ 102,302
----------------------------------------------------------------------
(1) Other income, net for the three months ended June 30, 2003
includes approximately $2.3 million of net investment losses.
Other income, net for the six months ended June 30, 2003 includes
approximately $0.7 million of net losses, comprised of $1.6
million of net investment losses, $0.7 million of proceeds from
the termination of a contract, and $0.2 million of net gains on
disposal of assets. Other income, net for the three months ended
June 30, 2002 includes $4.9 million of net investment gains. Other
income, net for the six months ended June 30, 2002 includes $3.0
million of net investment gains and $2.5 million of proceeds from
the termination of contracts.
(2) Diluted net loss per share for the six months ended June 30, 2002
is computed excluding common share equivalents of 19,972 shares,
as their effect is anti-dilutive.
(3) The Company believes that certain non-GAAP measures, including
operating income before depreciation and amortization and free
cash flow are helpful, when presented in conjunction with the
comparable GAAP measures. Operating income before depreciation and
amortization is defined as income (loss) from operations before
depreciation and amortization. Operating income before
depreciation and amortization eliminates the effects of
depreciation and amortization from period to period, which we
believe is useful to management and investors in evaluating the
operating performance of the Company as depreciation and
amortization costs are not directly attributable to the underlying
performance of the business operations.
Free cash flow is defined as cash flow from operating activities
less capital expenditures, change in long-term deferred revenue
and non-cash investment gains (losses) and other. Change in long-
term deferred revenue represents cash payments received in advance
of revenue recognized related to the Company's agreement with its
sponsored search provider, which is expected to be recognized as
marketing services revenue in 2005. Non-cash investment gains
(losses) and other represents non-cash gains (losses) and
impairment of investments. Free cash flow is considered a
liquidity measure and provides useful information to management
and investors about the amount of cash generated after the
acquisition of property and equipment, non-cash investment gains
(losses), change in long-term deferred revenue and other, which
can then be used for strategic opportunities including, among
others, to invest in the business, make strategic acquisitions,
strengthen the balance sheet and repurchase stock.
In addition, management refers to these financial measures to
facilitate internal comparisons to the Company's historical
operating results, in making operating decisions and for budget
planning purposes. These measures should be considered in
addition to, not as a substitute for, or superior to, operating
income, cash flows from operating activities, or other measures of
financial performance prepared in accordance with generally
accepted accounting principles.
Yahoo! Inc.
Notes to Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts and percentages)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------
2003 2002 2003 2002
----------------------------------------
Net revenues for groups of
similar services:
Marketing services $ 219,198 $ 151,710 $ 409,163 $ 289,385
Fees 69,926 49,063 133,655 88,609
Listings 32,282 25,019 61,536 40,463
--------- --------- --------- ---------
Total net revenues $ 321,406 $ 225,792 $ 604,354 $ 418,457
========= ========= ========= =========
Net revenues by segment:
United States $ 271,345 $ 187,465 $ 509,891 $ 354,077
International 50,061 38,327 94,463 64,380
--------- --------- --------- ---------
Total net revenues $ 321,406 $ 225,792 $ 604,354 $ 418,457
========= ========= ========= =========
Operating income before
depreciation and
amortization reconciliation:
Income from operations $ 62,772 $ 7,518 $ 117,749 $ 3,343
Depreciation and
amortization 34,503 27,476 63,576 50,431
--------- --------- --------- ---------
Operating income before
depreciation and
amortization $ 97,275 $ 34,994 $ 181,325 $ 53,774
========= ========= ========= =========
Margin percentage:
Income from operations margin
percentage 20% 3% 19% 1%
Operating income before
depreciation and amortization
margin percentage 30% 15% 30% 13%
Operating income (loss) before
depreciation and
amortization by segment:
Operating income before
depreciation and amortiz-
ation - United States $ 90,555 $ 38,554 $ 167,503 $ 65,383
Operating income (loss)
before depreciation and
amortization - International 6,720 (3,560) 13,822 (11,609)
--------- --------- --------- ---------
Operating income before
depreciation and
amortization $ 97,275 $ 34,994 $ 181,325 $ 53,774
========= ========= ========= =========
Operating income (loss)
before depreciation and
amortization by segment
reconciliation:
United States
Income from operations $ 60,472 $ 13,874 $ 111,472 $ 20,603
Depreciation and
amortization 30,083 24,680 56,031 44,780
--------- --------- --------- ---------
Operating income before
depreciation and amortiz
-ation - United States $ 90,555 $ 38,554 $ 167,503 $ 65,383
========= ========= ========= =========
International
Income (loss) from
operations $ 2,300 $ (6,356) $ 6,277 $ (17,260)
Depreciation and
amortization 4,420 2,796 7,545 5,651
--------- --------- --------- ---------
Operating income (loss)
before depreciation
and amortization
- International $ 6,720 $ (3,560)$ 13,822 $ (11,609)
========= ========= ========= =========
Free cash flow reconciliation:
Cash flow from operating
activities $ 92,123 $ 103,382 $ 190,751 $ 150,825
Acquisition of property
and equipment, net (20,770) (14,301) (41,273) (21,588)
Change in long-term
deferred revenue - (30,000) - (30,000)
Non-cash investment gains
(losses) and other (3,701) 4,927 (6,714) 3,065
--------- --------- --------- ---------
Free cash flow $ 67,652 $ 64,008 $ 142,764 $ 102,302
========= ========= ========= =========
Yahoo! Inc.
Notes to Unaudited Condensed Consolidated Statements of Operations
Business Outlook
The following business outlook is based on current information and
expectations as of July 9, 2003. Yahoo!'s business outlook as of today
is expected to be available on the Company's Investor Relations Web
site throughout the current quarter. It is currently expected the full
business outlook will not be updated until the release of Yahoo!'s
next quarterly earnings announcement, notwithstanding subsequent
developments; however, Yahoo! may update the full business outlook or
any portion thereof at any time.
Three months Twelve months
ending ending
September 30, December 31,
2003 2003
--------------- ----------------
Revenue outlook (in millions): $318-$338 $1,260-$1,310
Operating income before depreciation
and amortization outlook reconciliation
(in millions):
Income from operations $60-$67 $240-$260
Depreciation and amortization $34-$37 $135-$140
--------------- ----------------
Operating income before
depreciation and amortization $94-$104 $375-$400
=============== ================
Yahoo! Inc.
Unaudited Consolidated Summary Balance Sheet Data
(in thousands)
June 30, December 31,
2003 2002
----------------------------------
ASSETS
Cash and cash equivalents $ 1,075,582 $ 310,972
Investments in marketable debt
securities 1,238,382 1,223,066
Accounts receivable, net 142,372 113,612
Property and equipment, net 371,794 371,272
Goodwill 636,434 415,225
Intangible assets, net 130,939 96,252
Other assets 326,018 259,782
-------------- -------------
Total assets $ 3,921,521 $ 2,790,181
============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses $ 321,726 $ 276,313
Deferred revenue 155,997 135,501
Long term debt 750,000 -
Long term liabilities 102,374 84,540
-------------- -------------
Total liabilities 1,330,097 496,354
-------------- -------------
Minority interests in consolidated
subsidiaries 34,591 31,557
Stockholders' equity 2,556,833 2,262,270
-------------- -------------
Total liabilities and
stockholders' equity $ 3,921,521 $ 2,790,181
============== =============
Yahoo! Inc.
Unaudited Consolidated Summary Cash Flow Data
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------------
2003 2002 2003 2002
------------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) $ 50,828 $ 21,394 $ 97,531 $ (32,251)
Adjustments to reconcile
net income (loss) to net
cash provided by
operating activities:
Depreciation and
amortization 34,503 27,476 63,576 50,431
Tax benefits from stock
options 28,588 13,952 49,645 20,756
Cumulative effect of
accounting change - - - 64,120
Earnings in equity
interests (10,001) (5,500) (19,730) (9,800)
Minority interests in
operations of
consolidated
subsidiaries 1,126 (139) 3,034 (351)
Noncash (gains) losses
and impairments of
investments 2,867 (4,955) 5,968 (3,101)
Other noncash charges 2,559 1,147 3,045 6,776
Changes in assets and
liabilities, net of effects
of acquisitions:
Accounts receivable,
net (8,182) 3,510 (23,529) (3,526)
Prepaid expenses and
other assets (9,180) (2,796) (3,965) 23,874
Accounts payable (3,008) 1,449 (405) (67)
Accrued expenses and
other liabilities (5,193) 7,227 (933) (10,613)
Deferred revenue 7,216 10,617 16,514 14,577
Long-term deferred
revenue - 30,000 - 30,000
---------- --------- ---------- ---------
Net cash provided by
operating activities 92,123 103,382 190,751 150,825
---------- --------- ---------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Acquisition of property
and equipment, net (20,770) (14,301) (41,273) (21,588)
Purchases of marketable
securities (528,738) (286,298) (666,178) (543,037)
Proceeds from sales and
maturities of marketable
securities 219,981 181,822 650,499 495,745
Acquisitions, net of cash
acquired - - (228,318) (189,168)
Proceeds from sales
(purchases) of other
investments (7,555) - (6,274) 687
---------- --------- ---------- ---------
Net cash used in investing
activities (337,082) (118,777) (291,544) (257,361)
---------- --------- ---------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of
debt 733,125 - 733,125 -
Proceeds from issuance of
Capital Stock, net 105,044 20,005 128,611 35,699
---------- --------- ---------- ---------
Net cash provided by
financing activities 838,169 20,005 861,736 35,699
---------- --------- ---------- ---------
Effect of exchange rate
changes on cash and cash
equivalents 3,929 4,733 3,667 1,796
Net change in cash and cash
equivalents 597,139 9,343 764,610 (69,041)
Cash and cash equivalents,
beginning of period 478,443 294,248 310,972 372,632
---------- --------- ---------- ---------
Cash and cash equivalents,
end of period $1,075,582 $ 303,591 $1,075,582 $ 303,591
========== ========= ========== =========
Supplemental noncash
financing activity:
Long-term deferred
financing costs $ 17,550 $ - $ 17,550 $ -
Yahoo! Inc.
Unaudited Supplemental Financial Information and Business Metrics
(in thousands, except per share amounts and percentages)
Q2 Q1 Q4
------------ ------------- -------------
2003 2003 2002
---------------------------------------------------
NET REVENUES:
Net revenues for groups of similar services:
Marketing
services $ 219,198 $ 189,965 $ 196,422
Fees 69,926 63,729 62,001
Listings 32,282 29,254 27,364
------------ ------------- -------------
Total net
revenues $ 321,406 $ 282,948 $ 285,787
============ ============= =============
Net revenues for groups of similar services (Trailing Twelve Months):
Marketing
services $ 771,346 $ 703,858 $ 651,568
Fees 252,987 232,124 207,941
Listings 114,631 107,368 93,558
------------ ------------- -------------
Total net
revenues $ 1,138,964 $ 1,043,350 $ 953,067
============ ============= =============
Net revenues by segment:
United States $ 271,345 $ 238,546 $ 242,386
International 50,061 44,402 43,401
------------ ------------- -------------
Total net
revenues $ 321,406 $ 282,948 $ 285,787
============ ============= =============
Net revenues by segment (Trailing Twelve Months):
United States $ 962,412 $ 878,532 $ 806,598
International 176,552 164,818 146,469
------------ ------------- -------------
Total net
revenues $ 1,138,964 $ 1,043,350 $ 953,067
============ ============= =============
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION:
Operating income before depreciation and amortizaton:
Income (loss)
from operations $ 62,772 $ 54,977 $ 55,368
Depreciation and
amortization 34,503 29,073 29,207
------------ ------------- -------------
Operating income
before
depreciation and
amortizaton $ 97,275 $ 84,050 $ 84,575
============ ============= =============
Operating income (loss) before depreciation and amortizaton (Trailing
Twelve Months):
Income (loss)
from operations $ 202,594 $ 147,340 $ 88,188
Depreciation and
amortization 122,534 115,507 109,389
------------ ------------- -------------
Operating income
(loss) before
depreciation and
amortizaton $ 325,128 $ 262,847 $ 197,577
============ ============= =============
Margin percentage:
Income (loss)
from operations
margin
percentage 20% 19% 19%
Operating income
before
depreciation and
amortizaton
margin percentage 30% 30% 30%
Margin percentage (Trailing Twelve Months):
Income (loss)
from operations
margin
percentage 18% 14% 9%
Operating income
(loss) before
depreciation and
amortizaton
margin percentage 29% 25% 21%
Operating income (loss) before depreciation and amortizaton by
segment:
Operating income
before
depreciation and
amortizaton -
United States $ 90,555 $ 76,948 $ 81,315
Operating income
(loss) before
depreciation and
amortizaton -
International 6,720 7,102 3,260
------------ ------------- -------------
Operating income
before
depreciation and
amortizaton $ 97,275 $ 84,050 $ 84,575
============ ============= =============
Operating income (loss) before depreciation and amortizaton by segment
(Trailing Twelve Months):
Operating income
before
depreciation and
amortizaton -
United States $ 306,439 $ 254,438 $ 204,319
Operating income
(loss) before
depreciation and
amortizaton -
International 18,689 8,409 (6,742)
------------ ------------- -------------
Operating income
(loss) before
depreciation and
amortizaton $ 325,128 $ 262,847 $ 197,577
============ ============= =============
Operating income (loss) before depreciation and amortizaton by segment
reconciliation:
United States
Income from
operations $ 60,472 $ 51,000 $ 55,021
Depreciation and
amortization 30,083 25,948 26,294
------------ ------------- -------------
Operating income
before
depreciation and
amortizaton -
United States $ 90,555 $ 76,948 $ 81,315
============ ============= =============
International
Income (loss)
from operations $ 2,300 $ 3,977 $ 347
Depreciation and
amortization 4,420 3,125 2,913
------------ ------------- -------------
Operating income
(loss) before
depreciation and
amortizaton -
International $ 6,720 $ 7,102 $ 3,260
============ ============= =============
Operating income (loss) before depreciation and amortizaton by segment
reconciliation (Trailing Twelve Months):
United States
Income (loss)
from operations $ 197,244 $ 150,646 $ 106,375
Depreciation and
amortization 109,195 103,792 97,944
------------ ------------- -------------
Operating income
before
depreciation and
amortizaton -
United States $ 306,439 $ 254,438 $ 204,319
============ ============= =============
International
Income (loss)
from operations $ 5,350 $ (3,306) $ (18,187)
Depreciation and
amortization 13,339 11,715 11,445
------------ ------------- -------------
Operating income
(loss) before
depreciation and
amortizaton -
International $ 18,689 $ 8,409 $ (6,742)
============ ============= =============
FREE CASH FLOW:
Free cash flow reconciliation:
Cash flow from
operating
activities $ 92,123 $ 98,628 $ 79,358
Acquisition of
property and
equipment, net (20,770) (20,503) (16,672)
Change in long-
term deferred
revenue - - -
Non-cash
investment
gains (losses)
and other (3,701) (3,013) (1,285)
------------ ------------- -------------
Free cash flow $ 67,652 $ 75,112 $ 61,401
============ ============= =============
Free cash flow reconciliation (Trailing Twelve Months):
Cash flow from
operating
activities $ 342,374 $ 353,633 $ 302,448
Acquisition of
property and
equipment, net (71,238) (64,769) (51,553)
Change in long-
term deferred
revenue - (30,000) (30,000)
Non-cash
investment
gains (losses)
and other (9,669) (1,041) 110
Non-cash
restructuring
charges - - -
------------ ------------- -------------
Free cash flow $ 261,467 $ 257,823 $ 221,005
============ ============= =============
Q3 Q2 Q1
------------ ------------- --------------
2002 2002 2002
----------------------------------------------------
NET REVENUES:
Net revenues for groups of similar services:
Marketing
services $ 165,761 $ 151,710 $ 137,675
Fees 57,331 49,063 39,546
Listings 25,731 25,019 15,444
------------ ------------- --------------
Total net
revenues $ 248,823 $ 225,792 $ 192,665
============ ============= ==============
Net revenues for groups of similar services (Trailing Twelve Months):
Marketing
services $ 603,358 $ 566,728 $ 561,673
Fees 178,426 150,865 130,138
Listings 74,407 55,906 38,061
------------ ------------- --------------
Total net
revenues $ 856,191 $ 773,499 $ 729,872
============ ============= ==============
Net revenues by segment:
United States $ 210,135 $ 187,465 $ 166,612
International 38,688 38,327 26,053
------------ ------------- --------------
Total net
revenues $ 248,823 $ 225,792 $ 192,665
============ ============= ==============
Net revenues by segment (Trailing Twelve Months):
United States $ 723,094 $ 652,324 $ 613,970
International 133,097 121,175 115,902
------------ ------------- --------------
Total net
revenues $ 856,191 $ 773,499 $ 729,872
============ ============= ==============
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION:
Operating income before depreciation and amortizaton:
Income (loss)
from operations $ 29,477 $ 7,518 $ (4,175)
Depreciation and
amortization 29,751 27,476 22,955
------------ ------------- --------------
Operating income
before
depreciation
and amortizaton $ 59,228 $ 34,994 $ 18,780
============ ============= ==============
Operating income (loss) before depreciation and amortizaton (Trailing
Twelve Months):
Income (loss)
from operations $ 7,514 $ (48,325) $ (129,677)
Depreciation and
amortization 116,223 118,553 123,319
------------ ------------- --------------
Operating income
(loss) before
depreciation
and amortizaton $ 123,737 $ 70,228 $ (6,358)
============ ============= ==============
Margin percentage:
Income (loss)
from operations
margin
percentage 12% 3% (2%)
Operating income
before
depreciation
and amortizaton
margin
percentage 24% 15% 10%
Margin percentage (Trailing Twelve Months):
Income (loss)
from operations
margin
percentage 1% (6%) (18%)
Operating income
(loss) before
depreciation
and amortizaton
margin
percentage 14% 9% (1%)
Operating income (loss) before depreciation and amortizaton by
segment:
Operating income
before
depreciation
and amortizaton
- United States $ 57,621 $ 38,554 $ 26,829
Operating income
(loss) before
depreciation
and amortizaton
- International 1,607 (3,560) (8,049)
------------ ------------- --------------
Operating income
before
depreciation
and amortizaton $ 59,228 $ 34,994 $ 18,780
============ ============= ==============
Operating income (loss) before depreciation and amortizaton by segment
(Trailing Twelve Months):
Operating income
before
depreciation
and amortizaton
- United States $ 140,036 $ 97,631 $ 29,551
Operating income
(loss) before
depreciation
and amortizaton
- International (16,299) (27,403) (35,909)
------------ ------------- --------------
Operating income
(loss) before
depreciation
and amortizaton $ 123,737 $ 70,228 $ (6,358)
============ ============= ==============
Operating income (loss) before depreciation and amortizaton by segment
reconciliation:
United States
Income from
operations $ 30,751 $ 13,874 $ 6,729
Depreciation and
amortization 26,870 24,680 20,100
------------ ------------- --------------
Operating income
before
depreciation
and amortizaton
- United States $ 57,621 $ 38,554 $ 26,829
============ ============= ==============
International
Income (loss)
from operations $ (1,274) $ (6,356) $ (10,904)
Depreciation and
amortization 2,881 2,796 2,855
------------ ------------- --------------
Operating income
(loss) before
depreciation
and amortizaton
- International $ 1,607 $ (3,560) $ (8,049)
============ ============= ==============
Operating income (loss) before depreciation and amortizaton by segment
reconciliation (Trailing Twelve Months):
United States
Income (loss)
from operations $ 35,540 $ (7,949) $ (80,217)
Depreciation and
amortization 104,496 105,580 109,768
------------ ------------- --------------
Operating income
before
depreciation
and amortizaton
- United States $ 140,036 $ 97,631 $ 29,551
============ ============= ==============
International
Income (loss)
from operations $ (28,026) $ (40,376) $ (49,460)
Depreciation and
amortization 11,727 12,973 13,551
------------ ------------- --------------
Operating income
(loss) before
depreciation
and amortizaton
- International $ (16,299) $ (27,403) $ (35,909)
============ ============= ==============
FREE CASH FLOW:
Free cash flow reconciliation:
Cash flow from
operating
activities $ 72,265 $ 103,382 $ 47,443
Acquisition of
property and
equipment, net (13,293) (14,301) (7,287)
Change in long-
term deferred
revenue - (30,000) -
Non-cash
investment
gains (losses)
and other (1,670) 4,927 (1,862)
------------ ------------- --------------
Free cash flow $ 57,302 $ 64,008 $ 38,294
============ ============= ==============
Free cash flow reconciliation (Trailing Twelve Months):
Cash flow from
operating
activities $ 236,073 $ 192,226 $ 83,240
Acquisition of
property and
equipment, net (49,223) (52,743) (52,043)
Change in long-
term deferred
revenue (30,000) (30,000) -
Non-cash
investment
gains (losses)
and other (545) (16,796) (18,648)
Non-cash
restructuring
charges (3,132) (3,132) (14,791)
------------ ------------- --------------
Free cash flow $ 153,173 $ 89,555 $ (2,242)
============ ============= ==============
--------------------------------------------------------------------------------
Contact:
Yahoo! Inc.
Nissa Anklesaria, 408/349-7738 (Media Relations)
nissa@yahoo-inc.com
Cathy La Rocca, 408/349-5188 (Investor Relations)
cathy@yahoo-inc.com
or
Fleishman-Hillard
Michael Lynam, 415/318-4109 (Media Relations)
lynamm@fleishman.com
YHOO tanking an AH
15:13 ET FOMC Minutes : The May FOMC minutes reveal the Fed's concerns regarding disinflation risk as the committee saw higher risk given the level of excess industrial capacity. The disinflation concerns were softened by the weak dollar (higher import costs) as the tax cuts and low interest rates provided impetus for a stronger economy. The uncertainty surrounded the timing and severity of an upturn was the chief economic concern given the lack of business confidence which continues to restrain investment. As opposed to yesterday's policy dissent (Parry) in favor of a stronger ease the May discussion included two members who preferred a balanced directive rather than the weakness tied to disinflation risk.
Thanks for the data PH.
:-o