THIS IS PART ONE OF THREE PARTS QUALCOMM REPORTS RECORD FISCAL 1997 RESULTS; REVENUES EXCEED $2 BILLION, $1.27 EPS SAN DIEGO, Nov. 11 /PRNewswire-AsiaNet/ -- QUALCOMM Incorporated (Nasdaq: QCOM) today reported revenues of $601 million for the fourth quarter of fiscal 1997 and $2.1 billion for the fiscal year ended September 28, 1997. These figures represent 112 percent and 158 percent increases over revenues of $283 million and $814 million for the year ago fourth quarter and for fiscal 1996, respectively. Net income for the fourth quarter was $30 million, or $.41 per share, resulting in fiscal 1997 net income of $92 million or $1.27 per share. These results approximately quadruple both the fourth quarter 1996 net income of $8 million, or $.11 per share and fiscal 1996 net income of $21 million or $.30 per share. Total backlog and contracts as of September 28, 1997 were $2.3 billion, reflecting a 35 percent increase over the previous year. "Our 1997 results reflect the tremendous growth and momentum of cdmaOne mobile and fixed wireless communications systems, which are currently being deployed in more than 30 countries around the globe," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM Incorporated. "As we look into 1998, we are focused on extending our competitive advantage in CDMA and OmniTRACS products, preparing for the commercial launch of the Globalstar system and further growing our revenues and profits. These initiatives will enable us to continue to build the wireless future worldwide." During fiscal 1997, QUALCOMM achieved numerous milestones including: -- The successful transition to its new line of phone models including the QCP-2700(TM), the first of its kind dual-band Code Division Multiple Access CDMA/analog phone for Personal Communications Services (PCS) subscribers and the Q(TM) phone, both of which began shipping during the fourth quarter of fiscal 1997. The new models deliver exciting new features in a smaller size for CDMA cellular and PCS customers. -- The cumulative shipment of approximately 3 million CDMA handsets since production began at QUALCOMM Personal Electronics (QPE), a joint manufacturing venture between QUALCOMM and Sony Electronics. QPE sold out of its first generation phones. -- The cumulative shipment of over 10 million Mobile Station Modem (MSM) chips since shipments began to CDMA phone manufacturers, including QPE, and the cumulative shipment of over 1 million Cell Station Modem (CSM) chips to CDMA infrastructure manufacturers, including QUALCOMM. The Company also recently introduced and delivered samples of its fourth generation CDMA MSM chip set, providing increased functionality and decreased power consumption. -- The collaboration among the CDMA Development Group (CDG), QUALCOMM, Lucent, Motorola, Nortel and Samsung on a "third generation" system based on IS-95 technology. This approach will offer wider-band options for data- intensive applications while also maintaining full compatibility with cdmaOne(TM) systems and their evolutionary enhancements. Both cdmaOne enhancements and third generation cdmaOne systems will support high burst rate access to the Internet. -- The commercial launch of the Company's CDMA wireless local loop systems in India and Russia. In addition, the Company began deployment of a nationwide PCS mobile system in Chile and a wireless local loop system in Ukraine using QUALCOMM's infrastructure and subscriber products. -- The worldwide acceptance of QUALCOMM's IS-95 technology was evidenced by the growing CDMA subscriber base, which currently includes more than 3.5 million users in South Korea and over one million users in North America and elsewhere. This acceptance is underscored by the addition of 13 new IS-95 licensees during fiscal 1997, with a total of nine CDMA subscriber licensees, one infrastructure licensee, one ASIC licensee and two test equipment licensees. This brings the total number to over 50 companies now authorized to build and sell equipment based on QUALCOMM's CDMA technology. -- The launch of a GSM-CDMA field trial and economic study with Vodafone in the United Kingdom to demonstrate CDMA wireless access integrated into a GSM network. -- The receipt of a contract from Globalstar(TM) for over $300 million in commercial gateway equipment. The contract, which is for 38 gateways initially, includes options to expand orders to over $600 million. -- The shipment of 36,000 OmniTRACS units, bringing the total number of units installed worldwide to 210,000. -- The introduction of the Eudora Productivity Toolkit(TM), an enhancement that solves e-mail's biggest challenges: security, virus protection, file compression and attachment viewing. In addition, the Company announced a PureVoice(TM) plug-in for voice enabled software applications. The PureVoice plug-in is also compatible with cdmaOne phones. -- The naming rights to the San Diego stadium where the Super Bowl game will be played in 1998. The Company secured these rights for a 20-year period as part of a brand name awareness effort for its CDMA products. ENDS PART ONE MORE ...