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

To: Ruffian who wrote (36026)	7/20/1999 6:14:00 AM
From: JohnG	Read Replies (1) \| Respond to of 152472

Michael--Good summary from Yahoo JohnG Kool the correct comparison is based on by: johnqual 26433 of 26550 $0.86/share going forward. I listened to the earnings conference call--confusion reigns, but these are the facts. Comparing this $0.86 to Q2's $0.60/share pro forma makes it clear that there was a 43.3% increase in the earnings of the continuing operations after all of the infrastructure related expenses are stripped away. The Q should be valued based on earnings 0f $0.86/share and an ongoing sequential growth rate which was 43% this quarter. Tney sait that vendors are increasing parts production steadily--just not fast enough to meet industry demands. The one time charges that pulled it down were: 1) Added expenses due to infra structure division. The sale didn't close until 5/54. These expenses pulled it down to $0.75/share. 2) A separate non-recurring $113MM employee expense item which pulled earnibgs down fron $0.75 to $0.35/share. This item was anticipated in the Q2 conference call and involved paying generous benefits to EE's who were transferred to ERICY or let go. They said parts supply problems would disappear over the next 3 to 6 months (in time for Christmas??. All phone manufacturers are affected. I think the shortages will simply serve to keep phine prices high. If you are long term in Q, DON'T let any one panic you into selling your shares over the nekt few days. Institutions will come to understand the conference call and will buy.