Q Mar/00 qtr will likely beat estimates
by: tech_210
3/30/00 2:18 pm
Msg: 164730 of 164788
With Motorola capitulation and Nokia CDMA threat non-existent, Q treasuries will be rapidly filling up with new royalty and
license monies. Dr Jacobs stated at the Dec/99 conference call that Q will meet the projected estimates for the Mar/00 qtr
even though CDMA sales may be seasonally slow. With spectacular happenings for Q in the Mar qtr, the main question now
would seem to be by how much they will beat the $0.24 estimates, and how much of these new monies goes to the Jun/00
qtr. These answers are only known by Q's accountants. However what can be noted is the new monies flowing to Q that
became apparent in the Mar/00 qtr. These monies would likely not have been known or counted on at the end of the Dec/
99 qtr. Some of these are:
(1) Motorola [03/28/00] must now pay all CDMA royalties that they held back since Jul 3,1995. Their CDMA handset
quality, probably due to their own chipset, is below that of Q. They have no choice or otherwise continue to lose market
share to Korean and Japanese that license complete Q technology.
(2) Nokia CDMA USA threat is non-existent. Sprint and Bell Atlantic will not sell Nokia handsets for CDMA digital band
because of poor quality and dropped calls. Therefore all CDMA handsets in USA are either Q phones or Asian phones (
Korean or Japanese) that are paying full royalties to Q. This became apparent in the Mar/00 qtr and was likely unknown in
the Dec/99 qtr. Whether Nokia signs deal now with Q is a mute point as they are technically out of the CDMA USA picture
until they license Q technology. Bell's phone is LGIC (Korean) made and Sprint's phone is Q made. Q of course will be
replaced by Kyocera.
(3) New multi-million dollar royalty-bearing CDMA licensing deals with Hitachi [03/23/00], Taiwan's Compal Electronics
[02/28/00], and Korea's Telson [02/23/00] Hitachi will pay Q multi-million dollar up-front.
(4) New OmniTRACS contracts with JB Hunt [03/14/00], Ryder [03/08/00], Dart Transist [02/16/00], and
Schneider[02/08/00]
(5) Feb 22/00 Q and Kyocera close the handset sale agreement . This was later disclosed at the annual meeting to be 235
million dollars paid to Q.
(6) Feb 07/00 licensing deal with Bell Canada for Q's PdQ Smartphone.
The rumors that Q has met the Mar/00 qtr earnings already by the end of Feb/00 would appear to have considerable
credence based on the above activities. I think those buying Q stock in the last few weeks, both institutions and individuals,
already know this. Once this Naz correction is over with, Q will be heading up to +200 and could likely be there by the Apr
18 meeting. There also could possibly be a 2:1 split announcement at that meeting.
Good Luck Longs
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