Planetsurf, re: Paul / mid-teens growth rate
Paul said "We want to be cautious BUT ... we're looking for mid-teens growth rate over the medium term ... new device types .. new geographies."
Much appreciated comment- formally / publically stated for the record.
IMO, the most significant disclosure during the CC.
As previously posted, a Morgan Stanley report revealed that BK stated > 15% LT grow was achievable -- during a presentation to employees earlier this year in response to a question re: consensus estimates projecting same.
In order to reflect a growth stock multiple, a company must exhibit revenue / EPS growth rates at least in the mid-teens.
Now on the record, Paul must execute the plans to make it happen beginning with FY11 guidance.
>>>>>Edit- add DJ story >>>>>>>>>>>>>>>>>>>>>>>>>>>>
07/21 17:55 =DJ Qualcomm CEO Sees Return To Mid-Teen Revenue Growth Rate
By Roger Cheng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Qualcomm Inc. (QCOM) Chief Executive Paul Jacobs said he expects the company to return to its long-term revenue growth rate in the mid- teen range.
Jacobs told analysts he was confident in the growth rate, which he expects will be driven by a higher percentage of sales of smartphones and their more expensive chips. He also believes the move to next-generation networks in key markets such as China and India will drive results.
"This business is extremely well positioned to capture the industry trends," Jacobs said.
Chief Financial Officer Bill Keitel said the company is already benefiting from the move to "richer devices" with more capabilities. The phones require a more advanced processor, as well as wireless chip, which benefits Qualcomm.
Steve Mollenkopf, president of Qualcomm's CDMA Technologies unit, said there haven't been any shortages of its Snapdragon microprocessor. Two of the phones that use the chip, the Droid Incredible and EVO 4G, have suffered from shortages, with analysts pointing to the screen as the major bottleneck.
Qualcomm is working on improving the speed of the chip, including testing a dual-core chip and a 1.5 gigahertz processor, above the current 1 gigahertz processor.
"We feel we have a leadership position," Mollenkopf said.
He added there remains a premium applied to the chips because the phones tend to be high profile. But Mollenkopf said the company would lower the price as needed.
On Qualcomm's mobile-television business, Jacobs said the company is exploring alternatives for its FLO TV operations and is in talks with partners over its ultimate fate. The company had been investing on FLO TV as a potential new business.
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