QUALCOMM Incorporated

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm second quarter and fiscal 2021 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. If you would like to ask a question during this time, press star, then the number one on your telephone keypad. To withdraw your question, press star, then the number two. If you're using a speakerphone, please pick up your handset before pressing the numbers. Please submit your questions to one question and one follow-up. As a reminder, this conference is being recorded April 28, 2021. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 137-18356. I would now like to turn the call over to Mauricio Lopez-Hodoyan, Vice President of Investor Relations. Mr. Lopez-Hodoyan, please go ahead.

Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Steve Molenkopf, Cristiano Mon, and Akash Balkhawala. In addition, Alex Rogers and Don Rosenberg will join the question and answer session. You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. In addition, this call has been webcast on Qualcomm.com, and a replay will be available on our website later today. During the call, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends, or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC filings, including our most recent 10-K, which contain important factors that could cause actual results to differ materially from the forward-looking statements. And now to comments from Qualcomm's Chief Executive Officer, Steve Mollenkopf.

Thank you, Mauricio, and good afternoon, everyone. Thanks for joining us today. When we reported Q2 just one year ago, we were in the early stages of the pandemic. Much has happened since then, including many things that will define our future well beyond this past year. One of the undeniable things we have experienced and at an accelerated pace is the importance and reliance global citizens have on robust connectivity and the need for low power, high performance devices. This has reinforced and amplified our mission. Sitting here in San Diego today, we are optimistic about what we see on the horizon. Yet while the pandemic impacted nearly everyone at the same time last year, the experience today is very different depending on where you are in the world. In particular, I want to acknowledge our employees, customers, and partners in India. You and your families are in our thoughts, and we are here to support you through this very challenging time. Of the many things that have impressed me during my 26-year career at Qualcomm, At the top of the list is how our company mobilized in the past year, leading to strong results like we reported today. Our fiscal second quarter non-GAAP earnings of $1.90 per share exceeded the high end of our guidance, driven by higher licensing revenues and solid performance in our chipset business, representing non-GAAP revenue and EPS year-over-year growth of 52% and 116% respectively. Despite the backdrop of a challenging environment, These results and our guidance reflect the strength of the company and the importance of our technologies, not only to the mobile industry, but across many industries. Several years ago, we put in place a strategy to lead in 5G, which today is delivering results beyond our expectations. Even this fiscal year, with all the unusual challenges, we are on track to deliver results better than what we expected when we started the fiscal year. As exciting as our current performance is, I cannot underestimate the long-term opportunity for Qualcomm and how well positioned the company is, where we have a unique opportunity to exceed our success in handsets as industries adopt the wireless roadmap. This enviable position is what I find most rewarding when looking back over the past seven years. Undeniably, over my tenure as CEO, I dealt with and overcame unprecedented challenges, which I always put in perspective. Our mission and singular focus of inventing breakthrough technologies, transforming how the world connects, computes, and communicates is important and hard to do. Our challenges tightened our focus on this mission, and at the core, innovation was always the solution. As a result, Qualcomm enters the 5G era with our whole company stronger and more resilient. Most importantly, we never lost focus. on the impact and opportunity digitization will bring to our customers, partners, governments, and consumers worldwide as a result of our collective efforts. Speaking as a soon to be former CEO, I believe there is virtually no limit on where Cristiano can lead Qualcomm, the industries he can enter, and the role the company can play in the global ecosystem. I am very excited to watch this play out. To all our employees, I thank you for your tireless devotion. and commitment to our strong culture and core values. I know it is very exciting for everyone at Qualcomm to witness how our inventions change the lives of billions of people around the world, as we know they will. Thank you. I will now turn the call over to Cristiano.