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Qualcomm Executives File to Sell as Stock Rises: Insider Focus
Qualcomm Executives File to Sell as Stock Rises: Insider Focus
San Diego, May 3 (Bloomberg) -- Qualcomm Inc. insiders filed to sell as much as $93 million of the
cellular-equipment maker's stock last week as the shares approached a record on better-than-
expected profit and optimism for its cell-phone technology.
Co-Vice Chairman Andrew Viterbi filed to sell 200,000 shares valued at as much as $40.2 million.
President and Chief Operating Officer Richard Sulpizio, Chief Financial Officer Anthony Thornley,
Executive Vice President Steven Altman and at least two other executives also filed to sell,
according to documents from the U.S. Securities and Exchange Commission.
Qualcomm's shares surged 39 percent on April 21, the day after the company said fiscal
second-quarter earnings more than tripled on sales of its new digital cell phones and computer
chips. A series of filings followed, with executives and directors announcing intentions to sell as
the stock reached a then-record five days later. The shares reached a new high today. ''If I
worked at Qualcomm, I'd probably be selling too,'' said Ken Zschappel, portfolio manager of Aim
Advisors Inc.'s Constellation Fund, which owns more than 350,000 Qualcomm shares.
Zschappel said he bought Qualcomm shares in October at $52 each and is holding them because
he thinks the increase in the company's profits ''will keep driving the stock higher over the long
term.''
San Diego-based Qualcomm shares rose 18 3/8 to 218 3/8, after touching 220 1/4.
Most of the sales were options-related, said Julie Cunningham, Qualcomm's vice president for
investor relations.
An option gives the holder the right to buy or sell shares of stock at a specific price by a specific
date. Company executives who are given options as part of their compensation often are barred
from selling such shares except during certain time periods. ''This is one of the few windows they
had to sell,'' Cunningham said.
Executive Sales
Viterbi filed to sell 100,000 shares on April 26, when the shares rose to 203 1/2, their highest
close before today. He filed to sell another 100,000 on April 29, when the stock closed at 198
1/4.
Thornley filed to sell 65,000 shares on April 28. If the shares were sold at Qualcomm's close of
190 7/16 that day, the sales would have been valued at $12.4 million.
Sulpizio filed to sell 25,000 shares April 29 in sales which would have been worth as much as
$4.96 million, while Altman filed to sell 13,500 shares on the same day, worth as much as $2.68
million.
Senior Vice President Phil White filed to sell 25,338 shares on April 29 and 21,338 on April 28.
The sales would have been valued at a total of $9.09 million if they were executed at the
respective closing prices on the two days.
Other insiders who filed to sell, along with the amounts they would have received if they'd sold at
the closing prices on the filing date, were Senior Vice President Donald Schrock on April 26,
$6.51 million; director Duane Nelles on April 28, $5.71 million; Senior Vice President Paul Jacobs
and his wife, Stacy, on April 29, $4.96 million; Senior Vice President Gerald Beckwith on April 26,
$3.46 million; and director Adelia Coffman on April 28, $2.48 million.
The filings follow sales earlier this year when insiders sold more than 259,000 shares. The filings
were reported by the Washington Service, which tracks insider trading activity.
NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.
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