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To: shane forbes who wrote (19403)	7/21/1999 2:13:00 AM
From: DWB	Read Replies (3) \| Respond to of 25814

From the Qualcomm quarterly release... "Communications Systems 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. Communications systems gross margin for the third quarter of fiscal 1999 was 35 percent compared to 24 percent in the third quarter of fiscal 1998, reflecting improved margins in all product areas with the exception of infrastructure products. Total CDMA phone shipments for the third fiscal quarter of 1999 were over 1.7 million units (cumulatively over 12 million). Component shortages limited production growth and margin improvement of the Company's phone products in the third fiscal quarter of 1999. These shortages are expected to continue and could affect the Company's results in the fourth fiscal quarter of 1999. Total MSM phone chip shipments for the third quarter of fiscal 1999 were over 11 million units (cumulatively over 50 million). In addition to substantial growth in the shipment of MSM phone chips, the book-to-bill ratio for the ASICs business was 1.2 for the third quarter of fiscal 1999. The book-to-bill ratio means the Company has $1.20 in ASICs orders for every $1.00 of product shipped. Total OmniTRACS shipments were approximately 12 thousand units (cumulatively over 290,000)." All of this growth, and... Japan is just ramping up (DDI and IDO CDMAone networks exploding) China is just starting their CDMA implementation Europe is (to date) CDMA free Sprint is adding customers exponentially... and third generation systems (which will all be CDMA based (WCDMA/CDMA2000), and all pay $'s to the Q are still a few years away. There's a lot of talk on the QCOM thread about the birth of a new "Gorilla"... it has a lot of the aspects of both INTC and MSFT... but that's for everyone to decide individually. All I know is they've gone from $25 to $160 this year, and analysts are still upgrading next year's earnings by 50% (CSFB did this today) but probably still underestimating the future reality (for a number of reasons). It was also interesting to see that with all of the selloff today, the Q was up $4+... DWB