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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 155.82-1.3%Jan 23 9:30 AM EST
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To: kech who wrote (40468)4/21/2004 7:12:13 PM
From: Jon Koplik   of 197348
 
Qualcomm: Circuit Costs May Rise As Co Combats Shortages

DOW JONES NEWSWIRES

April 21, 2004 6:12 p.m.

WASHINGTON -- Qualcomm Inc. (QCOM) said Wednesday that the costs for some of its integrated circuits may rise as a result of steps the company is taking to alleviate supply shortages.
In its second-quarter report, filed late Wednesday with the Securities and Exchange Commission, Qualcomm said that its integrated circuits business recently has experienced "supply constraints" and therefore was unable to meet certain customer demands.
Shortages of Qualcomm's circuits have "caused some customer frustration, which could negatively affect our future business," the company said.
Qualcomm, the San Diego maker of mobile phone chips, said it's working to mitigate the shortages. As part of that effort, the company has extended its firm orders to its suppliers to improve the delivery of parts and components. In addition, Qualcomm said it's working to add capacity to its existing supply base and is "evaluating potential new suppliers to augment our needs."
As a result of those steps, Qualcomm said it expects costs for certain of its integrated circuits to go up. The company didn't specify the amount of the expected cost increase.

-By David Enrich; Dow Jones Newswires; 202-862-1340;
david.enrich@dowjones.com

online.wsj.com
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