CDMA2000 is DDI's Final Decision; Big Psychological Positive
Qualcomm Inc(QCOM)*
Rating: 1H
Salomon Smith Barney ~ May 12, 2000
05/12/00 QUALCOMM, Inc. (QCOM $99.31,1-H,Tgt $200.00) Alex M. Cena
--SUMMARY:--QUALCOMM, Inc.--Telecommunications Equipment
* DDI, the third largest cell phone operator in Japan, made its final
decision on 3G choosing to adopt the CDMA2000 standard.
* This is a big psychological positive for Qualcomm as the financial impact
is neutral whether operators choose CDMA2000 or W-CDMA as it receives
royalties from both standards.
* Motorola (MOT-$92-2M) is likely to remain the prime network supplier to
DDI.
* We believe more positive news flow for QCOM is forthcoming as additional
3G decisions and licensing agreements are made. Currently, less than 20%
of QCOM's 80 licensees have fully extended licenses
05/12/00 QUALCOMM, Inc. (QCOM $99.31,1-H,Tgt $200.00) Alex M. Cena
--EARNINGS PER SHARE--------------------------------------------------------
FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year
Actual 09/99 EPS $0.08A $0.10A $0.19A $0.23A $0.62A
Previous 09/00 EPS $0.26A $0.26A $0.27E $0.31E $1.10E
Current 09/00 EPS $0.26A $0.26A $0.27E $0.31E $1.10E
Previous 09/01 EPS $N/A $N/A $N/A $N/A $1.45E
Current 09/01 EPS $N/A $N/A $N/A $N/A $1.45E
Previous 09/02 EPS $N/A $N/A $N/A $N/A $N/A
Current 09/02 EPS $N/A $N/A $N/A $N/A $N/A
Footnotes:
05/12/00 QUALCOMM, Inc. (QCOM $99.31,1-H,Tgt $200.00) Alex M. Cena
--FUNDAMENTALS--------------------------------------------------------------
Current Rank........:1H Prior:No Change Price (05/11/00)....:$99.31
P/E Ratio 09/00.....:90.3x Target Price..:$200.00 Prior:No Change
P/E Ratio 09/01.....:68.5x Proj.5yr EPS Grth...:0.0%
Return on Eqty 99...:96.4% Book Value/Shr(00)..:4.00
LT Debt-to-Capital(a)0% Dividend............:$N/A
Revenue (00)........:2986.30mil Yield...............:N/A%
Shares Outstanding..:801.3mil Convertible.........:No
Mkt. Capitalization.:79577.1mil Hedge Clause(s).....:
Comments............:(a) Data as of the most recently reported quarter.
Comments............:
05/12/00 QUALCOMM, Inc. (QCOM $99.31,1-H,Tgt $200.00) |
