Qualcomm Says Vesper Hldg Needs $60M-$70M Cash 1H FY03
November 26, 2002
DOW JONES NEWSWIRES
WASHINGTON -- Qualcomm Inc. (QCOM) said it expects its majority-owned Vesper Holding subsidiary to require $60 million to $70 million in cash funding in the first half of the fiscal year ending Sept. 30, 2003, according to a regulatory filing Tuesday.
Qualcomm, which holds an 84% equity interest in the Brazilian unit, didn't say in its annual report filed with the Securities and Exchange Commission how Vesper intends to meet its anticipated funding requirements.
Qualcomm continues to seek strategic partners or acquirers to provide funding, though to date it hasn't secured any long-term commitments.
Qualcomm said it expects Vesper to incur operating losses and negative cash flows from operations through 2003 as it expand operations and enters new markets.
Vesper expects a tower sale-leaseback arrangement set to close before the end of the year to provide net cash inflows during 2002, the filing said.
Qualcomm originally held a 15% stake when Vesper was launched in 2000, but it became majority owner when it bought out two foreign partners.
Qualcomm said its existing commitments over the next 12 months total $70 million, for long-term purchase commitments, future minimum operating lease payments, capital leases and long-term debt.
-Robert L. Grant; Dow Jones Newswires; 202-393-7851
robert.grant@dowjones.com
Updated November 26, 2002 6:46 p.m. EST
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