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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Lance Bredvold who wrote (35889)	7/19/1999 7:11:00 PM
From: puzzlecraft	Read Replies (1) \| Respond to of 152472

Lance, because QCOM's price advanced so much since the end of the prior quarter, the fully diluted number of shares went up at lot to 187.883 million shares as most previously issued options are now well into the money. Pro forma income was $154 million, a very fat increase from the prior quarter's $98 million. This quarter's royalties were $93 million vs $77 in the prior quarter... so just looking at pro forma income derived from actually making things (backing out licenses and royalties), income jumped to $61 million from just $21 million in the prior quarter, a fabulous increase. The "making things" margins are low, but they are a lot better than they were for the prior quarter. John

To: Lance Bredvold who wrote (35889)	7/19/1999 7:19:00 PM
From: DOUG H	Respond to of 152472

<<<<<<<<<<Component shortages were forseen in last quarters conference call. I believe that there was some discussion about foundries having trouble producing enough ASICs as well, because reservations had to be made quite far in advance.>>>>>>>>>>>>>>> Lance, What I heard was that production problems were due underestimation of the huge demand for these phones. The company could have sold a lot more phones. These #'s could have been better and that was clear to all who heard the call.

To: Lance Bredvold who wrote (35889)	7/19/1999 7:27:00 PM
From: JohnG	Read Replies (1) \| Respond to of 152472

Lance--Factors you are missing: 1) Sony owns ~50% of the JV and we don't know what the transfer prices are froM JV to Q, but they may be hefty. Now Q is building a second phone plant in Gladalahara, Mexico and will own 100% (not 50%) of the margin from that plant. 2) Costs of air freighting parts from Japan, production stoppages and subbing out phone manufacturing to plants belonging to others must have been huge. No one asked haw much these inefficiencies cost in Q3. JohnG