Sounds like good News.
(MORE) DOW JONES NEWS 06-14-00
11:45 AM DJ Qualcomm CFO: Confident Of Globalstar But Growth Slow
(MORE) DOW JONES NEWS 06-14-00
11:49 AM *DJ Qualcomm CFO: Globalstar Demise Could Cut 10c From FY01
(MORE) DOW JONES NEWS 06-14-00
11:55 AM =DJ Qualcomm CFO -2: Confident Globalstar Will Survive By Marcelo Prince
NEW YORK (Dow Jones)--Qualcomm Inc. (QCOM) financial chief Anthony Thornley said
Wednesday it's too early to estimate the impact the South Korean government's decision to end
handset subsidies will have on the company's business.
Speaking to a room overflowing with investors at a Bear Stearns technology conference, Thornley
said the company is evaluating South Korea's decision last week telling service providers they
must end subsidized wireless phone purchases. But he noted that the government has been
unsuccessful in making previous orders, which lasted for one to two months, stick.
However, since Korea accounts for 20% to 25% of the total worldwide CDMA market, if
domestic Korean handset sales dry up it could "potentially have an impact," he said.
Thornley said the company hoped to provide further guidance on the issue in its third-quarter
earnings conference call in July.
When asked about the status of Globalstar Telecommunications LTD. (GSTRF), a struggling
satellite phone service, Thornley admitted that its "growth has been very slow," but he said
Qualcomm remains committed to the venture.
"There is a cash question, existing cash runs out relatively soon," but Thornley said he's confident
that Globalstar will ultimately attract enough subscribers to survive. He said Globalstar needs one
million subscribers to break even. He noted Qualcomm has shipped 40,000 phones with its
technology so far to South America and plans to ship another 40,000 for Global Star customers
by the end of its fiscal year.
In response to a question, Thornley said if Globalstar fails, it could have a 10 cent a share impact
on Wall Street's earnings estimate of $1.45 a share for fiscal 2001, depending on how much other
sales could offset the Globalstar business.
Qualcomm shares recently traded at 75 3/16, down 6 3/16, or 7.7%, on volume of 16.4 million
shares, compared with average daily volume of 20 million.
Globalstar shares recently traded at 7 1/4, up 1/4, or 3.6%, on volume of 2.6 million shares,
compared with average daily volume of 3.6 million.
01:17 PM |
