Good Post WSJ>
DJ Qualcomm CFO: Use 86c/Shr As Basis For 4Q Net
Views
By Tom Locke
DENVER (Dow Jones)--Despite shortages in components for its wireless phones, Qualcomm Inc.
(QCOM) expects sequential growth in its phones production in the fourth quarter as well as growth
in overall earnings, according to executives speaking in a conference call with analysts late Monday.
Chief Financial Officer Anthony Thornley said that analysts should use Qualcomm's third-quarter pro
forma earnings-per-share number of 86 cents as a "basis for assessing fourth quarter performance."
That would mean an upward revision from the First Call fourth-quarter consensus estimate of 69
cents per share. A year ago, Qualcomm reported fiscal fourth quarter earnings per share of 27 cents.
The pro forma number is what Qualcomm would have reported for its fiscal third quarter ending June
27 excluding both one-time charges and operating results relating to its terrestrial code division
multiple access, or CDMA, wireless infrastructure business, which concentrates on cell site
equipment.
The San Diego maker of wireless telephone products sold that business to L. M. Ericsson Telephone
Co. (ERICY) in a deal that closed in late May.
Thornley declined to address one analyst's assumption that estimates for 2000 might be made by
annualizing the 86 cents, but he did warn that the company's tax rate will increase next year and other
factors may change. Based on the 86 cents, the annualized 2000 earnings-per share number would
be $3.44, 23% higher than the First Call consensus of $2.79 per share for 2000.
Qualcomm Chief Operating Officer Richard Sulpizio said in the conference call that Qualcomm's
third-quarter shipments of CDMA phone units, which totaled about 1.7 million, would have been
larger but for shortages of components.
He said the shortages were in a number of components "across the board" that affected a variety of
Qualcomm wireless phones, including its new thin phone. He said he expects those problems to last
another three to six months, but he still expects sequential growth in units produced.
"Our plans for the fourth quarter are still to produce more than we did in the third quarter," he said.
Thornley attributed the quarter's strength to a number of areas, including sales of CDMA phones,
sales of integrated circuits used in CDMA phones, and royalties paid on its CDMA technology.
|
