Alex Cena's comments on Kyocera deal>
QCOM: Mobile Phone Operations Sold to Kyocera; Plus for Financials
Qualcomm Inc(QCOM)*
Rating: 1H
Salomon Smith Barney ~ December 22, 1999
12/21/99 QUALCOMM, Inc. (QCOM $485.38,1-H,Tgt $370.00) Alex M. Cena
--SUMMARY:--QUALCOMM, Inc.--Telecommunications Equipment
* We continue to recommend QCOM with a 1H rating
* QCOM wanted to sell its mobile phone oper based on the impact on its:
employees; customers; remaining businesses; & finally sales price. In
that order.
* QCOM just announced the sale of its handset operations to Kyocera
* Kyocera will purchase the majority of its ASIC and software needs from
QCOM over the next five years
* A big plus for QCOM since Kyocera was one of the few Japanese co's that
was not using QCOM's ASICs. I.e. Kyocera becomes a new ASIC customer
* While estimates are likely to move up and on the margin this move is a
big plus for QCOM, we believe some may be disappointed that the partner
was not one of the top tier players.
12/21/99 QUALCOMM, Inc. (QCOM $485.38,1-H,Tgt $370.00) Alex M. Cena
--EARNINGS PER SHARE--------------------------------------------------------
FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year
Actual 09/99 EPS $0.30A $0.41A $0.75A $0.91A $2.47A
Previous 09/00 EPS $N/A $N/A $N/A $N/A $4.00E
Current 09/00 EPS $N/A $N/A $N/A $N/A $4.00E
Previous 09/01 EPS $N/A $N/A $N/A $N/A $5.30E
Current 09/01 EPS $N/A $N/A $N/A $N/A $5.30E
Previous 09/02 EPS $N/A $N/A $N/A $N/A $N/A
Current 09/02 EPS $N/A $N/A $N/A $N/A $N/A
Footnotes:
12/21/99 QUALCOMM, Inc. (QCOM $485.38,1-H,Tgt $370.00) Alex M. Cena
--FUNDAMENTALS--------------------------------------------------------------
Current Rank........:1H Prior:No Change Price (12/21/99)....:$485.38
P/E Ratio 09/00.....:121.3x Target Price..:$370.00 Prior:No Change
P/E Ratio 09/01.....:91.6x Proj.5yr EPS Grth...:44.4%
Return on Eqty 99...:48.9% Book Value/Shr(00)..:9.90
LT Debt-to-Capital(a)0.2% Dividend............:$N/A
Revenue (00)........:4163.00mil Yield...............:N/A%
Shares Outstanding..:159.0mil Convertible.........:No
Mkt. Capitalization.:77175.4mil Hedge Clause(s).....:
Comments............:(a) Data as of the most recently reported quarter.
Comments............:
12/21/99 QUALCOMM, Inc. (QCOM $485.38,1-H,Tgt $370.00)
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