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

To: Ron M who wrote (36048)	7/20/1999 8:00:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

To all - WSJ's article about earnings (sorry if already posted). July 20, 1999 Strong Sales of Phones, Chips Boosts Qualcomm's Earnings By a WALL STREET JOURNAL Staff Reporter SAN DIEGO -- Qualcomm Inc. exceeded analysts' expectations for fiscal third-quarter operating income, behind strong sales of its cellular phones and chips for cell phones made by others, although the company warned that component shortages were hampering growth. Qualcomm, San Diego, reported net income of $59 million, or 35 cents a diluted share, for the fiscal third quarter ended June 27, compared with net income of $5.8 million, or four cents a share, for the same period a year earlier. Excluding a $117 million one-time charge related to the sale of its wireless-phone infrastructure business, Qualcomm said it would have earned $135 million, or 75 cents a share. Analysts had been expecting income of 63 cents a share, according to a survey by First Call/Thomson Financial. The year-earlier results also were affected by one-time charges. Qualcomm completed the sale of its infrastructure business to Telefon AB L.M. Ericsson in late May. Excluding the infrastructure business entirely, Qualcomm said it would have earned 86 cents a share. Tim Luke, an analyst for Lehman Brothers, said he would raise his earnings estimates for the company based on that figure. Revenue increased 15% to $1 billion from $875 million in the year-earlier period. Licensing and royalty revenue nearly doubled, to $93 million, from $47 million in the year-earlier period. Income grew faster than revenue because Qualcomm limited the growth of its expenses. Qualcomm said operating expenses declined to 20% of revenue, compared to 23% in the year-earlier period, excluding one-time charges. But Qualcomm said "component shortages" had limited growth in its cellular-phone business. The company said the shortages "are likely to continue" and could affect its fiscal fourth-quarter results. Qualcomm announced its results after stock markets closed. Earlier, Qualcomm shares rose 43.75 cents to $158.6875 in Nasdaq Stock Market trading. In after-hours trading Monday, Qualcomm shares fell to $152, according to Instinet. Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.