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To: voop who wrote (4091)	7/20/1999 12:26:00 AM
From: Mike Buckley	Read Replies (4) \| Respond to of 54805

Folks, go to Q's web site. Click on Investor Relations. Click on the most recent press release. Take notes. Then click on the previous quarter's press lease. Compare the two. Lots of info there! Pro forma total revenue: Q2 - $908 million Q3 - $966 million 6% sequential increase. No big deal that it's so small. That's because it's total revenue, including all the divisions that aren't in tornados. Pro forma net income: Q2 - $98 million Q3 - $154 million 57% sequential increase (not to be confused with the 43% sequential increase of earnings per share). YOWZA!!!! 57%! WOW! If revenue increased only 6%, how did net income increase 57%? Because the net MARGIN increased. Pro forma net margin: Q2 - 11% Q3 - 16% Sequential increase in the net margin of 45%. When was the last time you saw the net margin increase 45% from one quarter to the next? When you look at the press release at the web site, focus on the comparisons made between Q3 of 1999 with Q3 of 1998 excluding non-recurring charges. There are some nifty comparisons, depending on your taste. The most impressive one for me was the operating income margin -- 21% this year compared to 6% in the same quarter last year. Amazing. Now about those component shortages. Comparing the last two press releases shows why that's important. CDMA phone shipments: Q2 - "over 1.7 million units" Q3 - "over 1.7 million units" That's not my mistake. The units of phone shipments in both quarters was worded exactly the same for both quarters. The lack of increase, no doubt, is caused at least partially by the component shortages. Is that awful? Nope, because licensing is growing hugely and management was very clear in saying they expect that to continue. The component shortage issue is simply the one thing that keeps us in touch with reality. The company's growth would be better if there were no shortage, but it's still going to be stellar based on all indications. I'm done. I don't care what tomorrow's trading brings, though I'm not unfeeling towards those who have very short-term options. For me, it's strictly long-term stuff for which this earnings report makes it very easy for me to sleep tonight. Oops. One last thing. You'll see lots of stuff about "operating income" and "income from continued operations" in the threads. Don't get the two confused. Simply put (too simply), operating income is income before taxes. Income from continued operations is the total net income less the net income derived from discontinued operations. Make sense? --Merlin Buckley (Damn if that doesn't sound better than being a horse's ass.)

To: voop who wrote (4091)	7/20/1999 12:44:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

voop, I'm disappointed that Clark convinced you, because I was just about to yell EUREKA! The highlighted portion of the following paragraph lifted from the PRNewswire release tells the story: Communications systems revenues increased 9 percent to $824 million in the third quarter of fiscal 1999 from $759 million in the year ago quarter, with increased sales of ASICs, OmniTRACS units and CDMA phones. Communications systems revenues in the third quarter of fiscal 1998 included significantly higher revenues from Globalstar gateways, terrestrial CDMA wireless infrastructure products and QUALCOMM Personal Electronics (QPE) sales to Sony. Excluding these items in the year ago quarter, revenue growth would have been 49 percent. Pretty good, huh, Merlin <g>?