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To: DaveMG who wrote (175)	8/3/1999 3:45:00 PM
From: DaveMG	Read Replies (3) \| Respond to of 426

12:37pm EDT 3-Aug-99 Salomon Smith Barney (CENA/NIELSEN 1-212-816-3158) QCOM QCOM: MOT Entry Into CDMA ASICs a Positive, NOT a Negative to QCOM [FirstCall Notes · Rcvd: Aug 3, 12:40 PM EDT ] --SUMMARY:--QUALCOMM, Inc.--Telecommunications Equipment MOT, which has been paying QCOM royalty fees on its CDMA infra & handset sales, could soon make CDMA ASICs, adding yet another royalty stream to QCOM. In fact, MOT announced today it would make CDMA chipsets. * We believe MOT's potential entry into the CDMA ASIC marketplace could potentially be a boon for QCOM for several reasons: (1) Most, if not all, 3G phones will be CDMA based; (2) 5 Billion mobile phones could be sold over the next 5 years; (3) There's 2 1/2x more mobile phones sold today than PCs; (4) QCOM alone cannot supply the entire ASIC marketplace; (5) ASIC mkt reqs met by other manufacturers ALL result in royalty fees to QCOM * Believe this is a big POSITIVE for QCOM, not negative, which may be initial reaction. Rate QCOM a 1H with $210 price target; would be buyers of stock on weakness. --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 09/98 EPS $0.29A $0.13A $0.14A $0.27A $0.82A Previous 09/99 EPS $0.30A $0.41A $0.75E $0.90E $2.40E Current 09/99 EPS $0.30A $0.41A $0.75E $0.90E $2.40E Previous 09/00 EPS $N/A $N/A $N/A $N/A $4.00E Current 09/00 EPS $N/A $N/A $N/A $N/A $4.00E Previous 09/01 EPS $N/A $N/A $N/A $N/A $5.30E Current 09/01 EPS $N/A $N/A $N/A $N/A $5.30E Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1H Prior:No Change Price (8/2/99)......:$152.50 P/E Ratio 09/99.....:63.5x Target Price..:$210.00 Prior:No Change P/E Ratio 09/00.....:38.1x Proj.5yr EPS Grth...:44.4% Return on Eqty 98...:48.9% Book Value/Shr(99)..:7.01 LT Debt-to-Capital(a)0.2% Dividend............:$N/A Revenue (99)........:3649.00mil Yield...............:N/A% Shares Outstanding..:159.0mil Convertible.........:No Mkt. Capitalization.:24247.5mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: