Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 168.09

+1.8%

Nov 28 9:30 AM EST

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To: Mr. Stocks who wrote (7359)	1/20/1998 8:56:00 PM
From: Bush Hogger	Read Replies (1) of 152472

Interestingly from the conference call --- License fees and royalty payments are accounted for in arrears. Thus you don't see an impact from the devaluation of the Won in Q1, but you will see an impact in Q2. However, the company does believe it will be able to offset this some what with increased shipments in Q2. Japan is starting to come online this quarter. Management wasn't clear, but indicated that net- net royalty payments could be adversely affected by a few million in Q2. Also a large backlog for CDMA phones in Korea that had built up prior to Q1, seems to have been worked off. Management also believes that the ASP of CDMA phones will begin to approach the ASP of GSM phones by the end of the year. So we will continue to see margin pressures on phones, however, the company continues to see improving margins from its own manufacturing efforts, offseting the declining ASPs. Phone capicity is currently approaching 600,000 handsets.

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