12:37pm EDT 3-Aug-99 Salomon Smith Barney (CENA/NIELSEN 1-212-816-3158) QCOM QCOM: MOT Entry Into CDMA ASICs a Positive, NOT a Negative to QCOM
[FirstCall Notes · Rcvd: Aug 3, 12:40 PM EDT ]
--SUMMARY:--QUALCOMM, Inc.--Telecommunications Equipment
MOT, which has been paying QCOM royalty fees on its CDMA infra & handset
sales, could soon make CDMA ASICs, adding yet another royalty stream to
QCOM. In fact, MOT announced today it would make CDMA chipsets.
* We believe MOT's potential entry into the CDMA ASIC marketplace could
potentially be a boon for QCOM for several reasons: (1) Most, if not all,
3G phones will be CDMA based; (2) 5 Billion mobile phones could be sold
over the next 5 years; (3) There's 2 1/2x more mobile phones sold today
than PCs; (4) QCOM alone cannot supply the entire ASIC marketplace; (5)
ASIC mkt reqs met by other manufacturers ALL result in royalty fees to QCOM
* Believe this is a big POSITIVE for QCOM, not negative, which may be
initial reaction. Rate QCOM a 1H with $210 price target; would be buyers
of stock on weakness.
--EARNINGS PER SHARE--------------------------------------------------------
FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year
Actual 09/98 EPS $0.29A $0.13A $0.14A $0.27A $0.82A
Previous 09/99 EPS $0.30A $0.41A $0.75E $0.90E $2.40E
Current 09/99 EPS $0.30A $0.41A $0.75E $0.90E $2.40E
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
Footnotes:
--FUNDAMENTALS--------------------------------------------------------------
Current Rank........:1H Prior:No Change Price (8/2/99)......:$152.50
P/E Ratio 09/99.....:63.5x Target Price..:$210.00 Prior:No Change
P/E Ratio 09/00.....:38.1x Proj.5yr EPS Grth...:44.4%
Return on Eqty 98...:48.9% Book Value/Shr(99)..:7.01
LT Debt-to-Capital(a)0.2% Dividend............:$N/A
Revenue (99)........:3649.00mil Yield...............:N/A%
Shares Outstanding..:159.0mil Convertible.........:No
Mkt. Capitalization.:24247.5mil Hedge Clause(s).....:
Comments............:(a) Data as of the most recently reported quarter.
Comments............:
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