Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 176.90

+0.5%

9:44 AM EST

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To: dougjn who wrote (6388)	12/13/1997 2:46:00 PM
From: VultureInvest	Read Replies (3) of 152472

Selloff a BIG MISTAKE. Let's interpret the downgrade that caused this jitter. Downgrade claimed that due to Korean economic crisis Qualcomm will receive lower royalities. Big deal! 1. Royalities are less than 10% of expected revenues so shouldn't have much impact next quarter at all. Furthermore, Qualcomm infrastructure to large extent already recognized revenue for Korean buildout. I don't even think they are a large handset provider in Korea, only Samsung. So Korean consumers may be slow to purchase for a while. Punish Samsung not Qualcomm. Samsung sales elsewhere will only start to materialize over the next couple of quarters I don't think they are a large CDMA royality generating customer when compared to Lucent, Motorola, Oki, NORTEL, etcc.. at least at this point 2. People are forgetting about the $2.3BILLION in backlog orders. I'll bet the farm that it does not have one component of Korea factored in to the figure. Most of it is for U.S. deployment, and fixed wireless in India, Russia, China, Brasil, etc... 3. Just the demand in the U.S. over the next couple of quarters will keep Qualcomm fat and happy. One will only see if the downgrade was properly interpreted over the next month or so. Perhaps Qualcomm should release a statement that Korean economic situation has no significant impact on bottom line.

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