Regarding QCOM reports of Component shortages:
I was on the QCOM conference call this afternoon where it was confirmed that not only QCOM, but ERICY, MOT, and NOK, were all seeing component shortages across all areas (screens, filters, VCOs, etc). While I think that some analysts have been mislead by the implications (not as dire as some would have you believe), this could be VERY big for VARL.
This combined with the rumor (confirmed from various industry sources, but not in the form of a press release) that NOK just moved VARL to a “Preferred Provider” status from a “Qualified Provider”. What this means is that VARL will further lock up its stranglehold on commercial VCOs, AND it will be providing NOK with VCOs for handsets. Why is this significant? NOK should produce around 90 million handsets over the next twelve months. With two VCOs required for each handset, this means that NOK will have a demand for 180 million VCOs. If VARL even gets orders for just 10% (18 million VCOs) of what NOK needs that would DOUBLE gross revenues for VARL. Add to this an apparent component shortage and we could really see some earnings growth. |
