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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 159.59-3.9%Nov 20 3:59 PM EST
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To: Ramsey Su who wrote (3356)11/17/1999 7:55:00 PM
From: John Cuthbertson  Read Replies (2) of 13582
 
QCOM's CFO Anthony Thornley spoke to the Financial Analysts Society of San Diego today. Although probably mostly old news, here are a few notes from his talk:

* The handset division sale process is "going very well." They are looking to sell to a manufacturer who will drive the CDMA market and who "will buy ASICs from us." They are planning to keep the Globalstar handset mfg. business, which they see as a very different business.

* The handset division's Gross Profit Margin is on the order of 20%. After the sale, the GPM for QCOM as a whole should rise from around 40% to around 60%, with Operating Profit Margin around 40% (wow!).

* The company is looking to push HDR as a de facto standard, rather than going through the standards bodies to make it an official standard, a process that "obviously takes too long."

* A question was asked about the uses for the company's big pile of cash. Thornley said that while they were certainly considering acquisitions, for acquisitions of a "significant" size they would think about using cash rather than stock. The cash is intended to be used for smaller investments focusing on developing the CDMA market, such as the investments in Phone.com and KT Freetel

==John C.
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