Some old news:
24-Mar-1998 Tuesday
Qual comm expects China delay
Qualcomm Inc. said yesterday that it expects a slight delay in getting
China's approval to set up manufacturing plants for its CDMA wireless
telecommunications technology, due to a recent restructuring of China's
government. The company also had expected China to award it contracts to
develop CDMA systems in Xian, Beijing, Shanghai and Guangzhou, but still is
waiting for the official go-ahead.
Qualcomm is facing a bumpy road
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DON BAUDER
22-Mar-1998 Sunday
Code Division Multiple Access, or CDMA technology, which was developed by
telecommunications superstar Qualcomm, will have 15 percent of the
subscriber base for global personal communications services by 2000, says
Brian T. Modoff of BT Alex. Brown.
CDMA also will account for 28 percent of infrastructure spending in this
field, Modoff says. That should provide a juicy long-term market for
Qualcomm.
However, the company faces a bumpy road in 1998, he says. Although Qualcomm
is a leading maker of CDMA handsets, the competition is heating up, and
demand is shifting toward lower-end products that provide less profit
margin.
The company's big exposure in South Korea is also a problem, but one way or
another, the Korean crisis will be resolved, Modoff says.
Earnings and revenue growth will decelerate in the next two quarters. Thus,
Modoff gives the stock a so-so (3) or "market perform" rating. |
