QCOM just an amzing stock, eh Fatt?
(COMTEX) B: QUALCOMM: QUALCOMM addresses fourth quarter analysts' ear
B: QUALCOMM: QUALCOMM addresses fourth quarter analysts' earnings expectations
SEP 15, 1999, M2 Communications - SAN DIEGO -- QUALCOMM Incorporated
(Nasdaq: QCOM - news) today announced that demand for its Code Division
Multiple Access (CDMA) chipsets and phones in the fourth fiscal quarter
is stronger than that of the third fiscal quarter ended June 27, 1999.
Actual royalty reports received to date from the Company's licensees
for the third fiscal quarter exceed the corresponding royalty accruals
included in the second fiscal quarter. Based on current performance in
each of its business units, the Company expects that fourth fiscal
quarter earnings from operations will meet or exceed analyst consensus
estimates of $.87 per share.
QUALCOMM is considering several strategic options for its
terrestrial-based phone business that currently holds an industry
leading position in CDMA handsets. With increased competition, parts
shortages and industry consolidation reducing margins in consumer
products, QUALCOMM desires to transition the business to a manufacturer
that will support its customer base and employees while providing
economies of scale, a strong purchasing base and other operating
efficiencies. Discussions are underway with a number of companies that
have expressed interest.
QUALCOMM has set an objective of completing discussions and entering
an agreement before the end of the calendar year.
In the meantime, QUALCOMM is reducing expenses and taking further
steps to improve margins. This may result in a non-recurring charge to
earnings. QUALCOMM is also reassigning personnel from QUALCOMM Consumer
Products to QUALCOMM CDMA Technologies (Applications Specific
Integrated Circuits) to support its rapidly expanding business and to
wireless data activities.
"In just under four years, we have built a leading organization that
has helped create an industry. Now is the time for QUALCOMM to build on
these strengths and to again respond to industry needs with new
innovations such as wireless data products and applications," said Dr.
Paul E. Jacobs, president of QUALCOMM Consumer Products. "We will
continue to support our customers and employees through an orderly
transition."
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing
and delivering innovative digital wireless communications products and
services based on the Company's CDMA digital technology. The Company's
major business areas include CDMA phones; integrated CDMA chipsets and
system software; technology licensing; and satellite-based systems
including OmniTRACSr and portions of the Globalstar(TM) system.
Headquartered in San Diego, Calif., QUALCOMM is included in the S&P
Index and is a 1999 FORTUNE 500r company traded on the Nasdaq under the
ticker symbol QCOM.
Except for the historical information contained herein, this news
release contains forward-looking statements that are subject to risks
and uncertainties, including the risk that unexpected developments will
cause fourth quarter earnings to end up below analyst consensus
estimates, the risk that the Company will not be successful in entering
an agreement with respect to its terrestrial-based phone business by
the end of calendar year 1999 or if at all, continued strong demand for
CDMA phones and chipsets and growth in CDMA subscribers and systems,
the ability of the Company's licensees to sell CDMA products, the
Company's ability to successfully manufacture and ship significant
quantities of CDMA phones and or other equipment on a timely and
profitable basis, and those related to changes in economic conditions
of the various markets the Company serves, as well as the other risks
detailed from time to time in the Company's SEC reports, including the
report on Form 10-K for the year ended September 27, 1998, and most
recent Form 10-Q.
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(C)1994-99 M2 COMMUNICATIONS LTDCONTACT: Christine Trimble, Corporate
Public
Relations
Tel: +1 858 651 3628
Tel: +1 858 651 2590
e-mail: ctrimble@qualcomm.com
*M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR
INFORMATION PROVIDED WITHIN M2 PRESSWIRE. DATA
SUPPLIED BY NAMED PARTY/PARTIES.*
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