Qualcomm also announced today that its board of directors has approved a $30 billion stock repurchase program to replace the company's existing $10 billion stock repurchase program. Qualcomm expects to complete most of the stock repurchase by the end of FY2019.
By implementing the stock repurchase program and achieving other previously announced strategic objectives, including a $1 billion cost plan and diversified business growth in new industries, Qualcomm continues to maintain significant growth and value for shareholders.
Qualcomm Incorporated CEO Steve Morenkov said: 'We continue to push Qualcomm's technology into industries with greater growth opportunities. This core strategy remains unchanged. We will continue to do our best to maintain these industries. Strong growth momentum, the company's revenue from these areas is expected to reach approximately US$5 billion in FY18, up more than 70% from FY2016. We believe that our technical leadership and strong execution will create for our shareholders. Great value. '
Qualcomm continues to achieve strong business growth thanks to its accelerated expansion and growth in the Internet of Things, automotive, RF front-end, computing and networking:
● Internet of Things - Qualcomm continues to lead the development of the Internet of Things, with revenues in the IoT field exceeding $1 billion in fiscal 2017. The company has established indirect channels to serve more than 9,000 customers through third parties (including more than 25 global distributors). ● Automotive - Qualcomm can provide powerful connectivity solutions and leading intelligence for future networked vehicles. As of January 2018, we have received orders for products worth a total of $3 billion, by July 2018. The number has grown to $5 billion. ● RF front-end – Qualcomm's RF front-end solutions have been adopted by many of the top smartphone manufacturers, and we have four leading OEMs – Lenovo, OPPO, vivo and Xiaomi A non-binding RF front-end procurement memorandum of understanding has been signed, with a total value of $2 billion. ● Advanced Computing - Qualcomm is redefining the connected PC experience. Asus, HP and Lenovo have released Qualcomm® based SnapdragonTM 835 mobile platform Networked PC products. ● Networking - Qualcomm's technology is driving the industry, leading home and enterprise wireless networks and Mesh Wi-Fi (Wi-Fi mesh) The development of the network.
Qualcomm will continue to lead 5G, and as cellular technology dramatically changes across industries, Qualcomm faces significant growth opportunities in both the short and long term. These new opportunities will help Qualcomm scale its Serviceable Addressable Market. Expanded to $100 billion. Advanced computing, connectivity and artificial intelligence are key components of 5G. Qualcomm's leadership in these areas provides a significant advantage for the company to stay ahead in these emerging areas.
About Qualcomm The basic technology invented by Qualcomm has changed the way the world connects, calculates and communicates. Connecting mobile phones to the Internet, our invention opened the era of mobile internet. Today, the basic technology we invented has given birth to products, experiences and industries that change people's lives. Qualcomm leads the world towards 5G, and we see a new wave of cellular technology revolutions that will ignite a new era of intelligent interconnection and create new opportunities in networked vehicles, telehealth services and the Internet of Things. Qualcomm Incorporated includes technology The License Business (QTL) and most of our patent portfolio. Qualcomm Technologies, Inc. (QTI) is a wholly owned subsidiary of Qualcomm Incorporated, which operates all of our engineering, R&D activities and all product and service businesses with its subsidiaries. These include the semiconductor business QCT.
Cautionary Note Regarding Forward-Looking StatementsIn addition to the historical information contained herein, this news release contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding; Qualcomm River Holdings payment of a termination fee of $2 billion to NXP on July 26, 2018; the Company' s intent to execute on a significant stock repurchase program, and the timing thereof; the Company' s expansion into adjacencies/growth areas and its expectations regarding continued progress in, and the financial contributions of, those areas; the Company' s business, financial, product and technology strategies and its being well-positioned to drive significant accretion and value for stockholders by executing on those strategies; and the Company' s opportunities, the size of those opportunities, and its ability to take advantage of those opportunities. Forward-looking statements are generally identified by words such as 'estimates,' 'guidance,' 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks' and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to: risks associated with our proposed acquisition of NXP, and our termination of that acquisition; commercial network deployments, expansions and upgrades of CDMA, OFDMA and other communications technologies, our customers' and licensees' sales of products and services based on these technologies and our customers' demand for our products and services; competition in an environment of rapid technological change; our dependence on a small number of customers and licensees; our dependence on the premium-tier device segment; attacks on our licensing business model, including current and future legal proceedings and governmental investigations and proceedings, or actions of quasi-governmental bodies or standards or industry organizations; potential changes in our patent licensing practices, whether due to governmental investigations, private legal proceedings challenging those practices, or otherwise; the enforcement and protection of our intellectual property rights; our ability to extend our technologies, products and services into new and expanded product areas and adjacent industry segments; risks associated with operation and control of manufacturing facilities of our joint venture, RF360 Holdings; the continued and future success of our licensing programs, which requires us to continue to evolve our patent portfolio, and which may be impacted by the proliferation of devices in new industry segments such as automotive and IoT, and the need to extend license agreements that are expiring; our dependence on a limited number of third-party suppliers; claims by third parties that we infringe their intellectual property; strategic acquisitions, transactions and investments or our inability to consummate planned strategic acquisitions; our cost plan; our compliance with laws, regulations, policies and standards; our use of open source software; our stock price and earnings volatility; our indebtedness and our significant proposed stock repurchase program; security breaches or other misappropriation of our intellectual property or proprietary or confidential information; potential tax liabilities; global regional or local economic conditions that impact the industries in which we operate; our ability to attract and retain qualified employees; foreign currency fluctuations; and failures in our products or services or in the products or services of our customers or licensees, including those resulting from security vulnerabilities, defects or errors. These and other risks are set forth in the Company' s Quarterly Report on Form 10-Q for the fiscal quarter ended June 24, 2018 filed with the SEC. Our reports filed with the SEC are available on our website at www.qualcomm.com. We undertake no obligation to update, or continue to provide information with respect to, any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
Qualcomm and Snapdragon are registered trademarks of Qualcomm Incorporated in the US and other countries. Qualcomm Snapdragon is a product of Qualcomm Technologies, Inc. and/or its subsidiaries.