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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: Robert Scott who wrote (26645)4/10/1999 10:57:00 AM
From: Mike Buckley  Read Replies (1) of 152472
 
Sale of the infrastructure business to Ericson will greatly improve margins because it was a huge money loser.

One of the analysts recently lowered revenue estimates for FY2000 from $4.5 billion to $4.0 billion but raised EPS estimates from $3.55 to $4.35 based on the change in the business model without the infrastructure business. That estimate places the margins at north of 6%. Not typical of a gorilla but certainly better than north of 3%.

--Mike Buckley
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