CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST! Message Board

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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!

QCOM 174.81

0.0%

Dec 26 9:30 AM EST

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To: xiang chen who wrote (1064)	10/28/1996 6:39:00 AM
From: Robert Scott	of 1819

I wouldn't be too concerned about earnings - key is revenue growth and communication systems gross margin. Gross margin appears to have stabalized at 24-25% after falling from 40+%. This is due to mostly Omnitracs year ago and more versus more and more infrastructure and subscriber unit sales recently that are low margin initially due to fewer numbers to spread over the initial investments. Important that the launches begin in earnest in QCOM's Q1 (calendar Q4). Shorters can no longer argue that CDMA doesn't work so now they focus on delays in rollouts and availability of subscriber units - these are real issues - fortunately, if material, only temporary.

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