Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.07

-1.0%

3:59 PM EST

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To: JGoren who wrote (25433)	3/28/1999 7:24:00 PM
From: Ruffian	Read Replies (1) of 152472

The Deal From A "Good Source"> Notes from the Deal by: Tubed_1999 16369 of 16372 I had a great conversation yesterday with a soon to be ex-infrastructure QCOM employee. Following are some notes on the conversation. As you read this please keep in mind that this individual was not offering any kind of "insider" information. The following are purely this person's opinions only. 1. He/she thinks that Ericy purchased the infrastructure division for approximately $250 million. 2. QCOM could not continue in its effort to operate the infrastructure division due to the expected vendor financing from customers. When a CDMA manufacturer bids on a project the Buyer expects a certain level of vendor financing. The more the manufacturer is willing to offer vendor financing the better the chances of winning the bid. QCOM can not compete in this area because they do not have the money to finance potentially high-risk loans unlike Lucent, Nortel, MOT and now Ericy. The reason QCOM did not JV with ERICY on the infrastructure is because they would have been expected to participate in the liabilities in vendor financing. As a shareholder I would not want precious dollars heading out the QCOM door to finance high-risk deals (you know, like Russia!). So, as a result of the sale to Ericy there aren't incurred liabilities from future vendor financing! 3. In regards to WCDMA his/hers comments were "it's all the same just a derivative of CDMA, QCOM benefits regardless". Although this person indicated that they would be out of a job soon they felt very strongly that the Ericy deal was a fantastic arrangement. They also compared QCOM to the likes of Intel and Microsoft in that QCOM will benefit financially from anything and everything in one way or another to CDMA (and WCDMA). You do the math. We have a long ways upward to go! Tubed

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