Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Qualcomm: Unmatched in Wireless

By

The growing desire for people to be connected through smartphones and digital devices provides long-term growth opportunities for this world leader in wireless technologies.

PrintPRINT
In 1985, seven industry veterans came together in the den of Dr. Irwin Jacobs' San Diego home to discuss the idea of building "Quality Communications."

By 1989, Qualcomm (NASDAQ:QCOM) introduced the concept that a digital communication technique called CDMA (Code Division Multiple Access) could be commercially successful in cellular wireless communications.

Indeed, CDMA was highly successful, and Qualcomm has rapidly grown to become a world-leading provider of 3G, 4G, and next-generation wireless technology and services, with revenues now topping $19 billion.

Because Qualcomm led and continues to lead the development and commercialization of CDMA technology by investing 20% of sales in research and development, it owns significant intellectual property. About 35% of 2012 revenues was derived from licensing and royalty fees, including revenues from Samsung (OTCMKTS:SSNLF) and Apple's (NASDAQ:AAPL) suppliers.

In addition, Qualcomm is the world's largest fabless semiconductor producer, and the largest provider of wireless chipsets and software technology, which power the majority of all 3G devices available today.

The company's unmatched wireless innovations enable new generations of increasingly powerful smartphones, computers, tablets, and consumer electronics. The need to stay connected anywhere and anytime is driving strong demand for Qualcomm's products and services, especially for applications such as e-mail, access to the mobile Internet, downloading of videos, and social networking.

Sustained long-term growth opportunities will come from new mobile computing applications, emerging market growth, and increased data traffic.

Qualcomm's profitable operations have generated strong cash flows. Free cash flow more than doubled over the last five years, to $4.7 billion at the end of 2012.

The company returned a cumulative $20.3 billion to shareholders through dividends and share repurchases since 2003. Management recently increased the dividend 40% to an annualized rate of $1.40 per share. In addition, the company announced a new $5 billion stock repurchase program.

Long-term investors should use a wireless device to check out Qualcomm, a high-quality technology leader with outstanding financial strength and healthy growth.

Editor's Note: This article was written by Ingrid Hendershot of Hendershot Investments for MoneyShow.

Below, find some more great investing and trading content from MoneyShow:


TJX: A Value Stock for Value Shoppers

Don't Be Fooled By 3G Tech Flukes

China's Cash Crunch


Twitter: @TopProsTopPicks
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE