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QUALCOMM Announces Third Quarter Fiscal 2001 Results Page 8
Business Segments - Third Quarter Fiscal 2001
QUALCOMM Technology Licensing (QTL)
' Signed the Company's first three commercial license agreements with Chinese manufacturers, as follows: a subscriber unit license agreement with ZTE Corporation and infrastructure license agreements with ZTE Corporation and Great Dragon Information
Technology Corporation, Ltd. In all three cases, the license agreements cover cdmaOne and CDMA2000 products.
' Signed a total of three license agreements during the third quarter of fiscal 2001, consisting of two new companies and one extension to an existing license agreement, resulting in one new WCDMA subscriber licensee. Subsequent to the end of the third quarter of fiscal 2001, the Company signed an infrastructure and subscriber license with Nokia covering all forms of second- and third-generation CDMA standards.
' Operating margin as a percentage of revenues in the QTL segment declined to 84 percent in the third quarter of fiscal 2001 due to higher expenses principally caused by increased bad debt reserves.
QUALCOMM CDMA Technologies (QCT)
' Shipped CSM infrastructure integrated circuits to support approximately five million equivalent voice channels in the first nine months of fiscal 2001, compared to approximately two million equivalent voice channels for the first nine months of fiscal 2000. Shipments of CSM equivalent voice channels nearly tripled from the second quarter of fiscal 2001 to the third quarter of fiscal 2001.
' Shipped approximately 14 million MSM phone integrated circuits to customers worldwide during the third quarter of fiscal 2001 compared to approximately 15 million units in the year ago period and approximately 16 million units in the second quarter of fiscal 2001. Cumulative shipments of MSM phone integrated circuits were approximately 163 million and total cumulative integrated circuit shipments exceeded 485 million units.
' Shipped more than two million 3G CDMA2000 1x MSM phone integrated circuits during the first nine months of fiscal 2001.
' Announced on-time sample shipments of the MSM5100 integrated circuit and system software, the world's first 3G CDMA2000 1x solution with advanced position location capabilities and support for data rates of up to 307 kbps. Also shipped on-time samples of the MSM5500 and CSM5500 integrated circuits, the world's first 1xEV-DO handset and infrastructure solutions supporting data rates of up to 2.4 Mbps.
' Announced SnapTrack wireless location server agreement with NEOLINK Technologies.
QUALCOMM Wireless Systems (QWS)
' Shipped approximately 11,000 OmniTRACS units and related products in the third quarter of fiscal 2001, compared to 14,000 units during the year ago quarter, for a cumulative total of over 392,000 units. Lower volumes of OmniTRACS unit shipments in the third quarter of fiscal 2001 primarily resulted from U.S. economic conditions affecting the domestic long-haul trucking industry.
' Signed an agreement with Swift Transportation, one of the nation's largest truckload motor carriers, to deploy QUALCOMM's untethered TrailerTRACS asset management system units across its entire fleet.
' Announced the formation of a wireless heavy equipment consortium to establish wireless communications standardization. Signed agreements with Komatsu America International Company, a global construction equipment leader, United Rentals, the world's largest equipment rental company, and Terex, a global leader in earthmoving and lifting equipment, to join the consortium.
' Signed an agreement with EarthKing to distribute QUALCOMM's heavy equipment asset tracking products and services for installation on mining and construction equipment.
Other Business Developments
QUALCOMM Internet Services (QIS)
'Announced public trials of BREW-enabled services by South Korean wireless carrier KT Freetel. Signed MOU agreements with a total of 11 carriers to date to support BREW including: ALLTEL (U.S.), Bell Mobility (Canada), LG Telecom Ltd. (So. Korea) Leap (U.S.), KDDI (Japan), KTF (So. Korea), Movicom (Argentina), Pegaso (Mexico), Telecom New Zealand, Telesp (Brazil) and Verizon (U.S.).
' Signed MOU agreements to support BREW with a total of 12 device manufacturers including: Airprime, Appeal, Cyberlane Inc., Denso of America and Denso of Japan, eAnywhere Tech Inc., Hyundai, Kyocera, LG Electronics Inc., PC-Ephone, Samsung and Telson Electronics.
' Attracted more than 800 wireless application developers, device manufacturers, carriers and other wireless industry professionals from around the world to QUALCOMM's inaugural BREW developers' conference.
' Released commercial software developers' kit, SDK version 1.0, on schedule. To date there have been more than 2,600 SDK downloads.
' Announced an agreement with VeriSign, the leading provider of Internet trust services, to integrate VeriSign's enhanced code-signing service to ensure that BREW platform developers are authenticated.
' Announced that Insignia Solutions is offering Jeode "Sun Authorized Virtual Machine" Technologies for the BREW platform.
' Announced that QUALCOMM and HP demonstrated a complementary technology with the rapid integration of HP's MicroChaiVM to the BREW platform.
QUALCOMM Digital Media (QDM)
' Delivered pre-commercial Digital Cinema product to motion picture studios, exhibitors and test bed facilities for customer evaluation. During the third quarter, QDM began testing and integration of Digital Cinema systems.
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 business areas include integrated circuits and system software; technology licensing; Eudora Ú email software for Windows Ú and Macintosh Ú computing platforms; satellite-based systems including portions of the Globalstar . system and wireless fleet management systems, OmniTRACS Ú and OmniExpress .. QUALCOMM owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. QUALCOMM has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2001 FORTUNE 500 Ú company traded on The Nasdaq Stock Market Ú under the ticker symbol QCOM. |
