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To: Uncle Frank who wrote (3691)	7/12/1999 11:05:00 PM
From: William	Read Replies (1) \| Respond to of 54805

At first look it seems like an OUCH. But it does mean about $600 million cash deposited into our Q. Any other thoughts? William

To: Uncle Frank who wrote (3691)	7/12/1999 11:26:00 PM
From: Mike Buckley	Read Replies (4) \| Respond to of 54805

Frank, About QCOM's additional shares: Assuming the worst-case scenario, 4,600,000 shares will be added including the over-subscription allotment. That will result in a teensy weensy 3% dilution and will add $700 million to the cash coffers. In my mind, it's a non-event in context of the big picture. The most important aspect is that management is probably telling us before the earnings report has been released that it will be very good. If you were the CEO, would you announce the decision to issue more shares just days before the earnings report if you didn't expect a great reaction to the report? (Rhetorical question. :) --Mike Buckley

To: Uncle Frank who wrote (3691)	7/12/1999 11:36:00 PM
From: Brian K Crawford	Read Replies (2) \| Respond to of 54805

I see 71.43 million shares out. Average estimate for year end 9/00 is $2.74 so total earnings are estimated at $195,718,200 before secondary. Secondary raises $600,000,000. Investment yield gross = 6.00%. After tax, say 3.6% After tax increase in investment income from secondary proceeds = $21,600,000. New total shares out = 75,430,000. New estimated net income = $21,600,000 + $195,718,200 = $217,318,000 Per share, post secondary = 217,318,000/75,430,000 = $2.88 No problem? Brian