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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: SKIP PAUL who wrote (502)	8/3/1999 9:20:00 PM
From: JohnG	Respond to of 13582

Skip Paul. Under US PAtent laws, QCOM can give a preferential royalty rate to only one licensee. The rest must be treated the same. The quotation you supplied is vague and does not mean that both Lucent and MOT have a preferential royalty rate (which would volate the law). Don't try to read extra meaning into this statement. JohnG

To: SKIP PAUL who wrote (502)	8/3/1999 9:27:00 PM
From: GO*QCOM	Respond to of 13582

All this CDMA ASIC stuff coming from QUALCOMM Licences is a positive in the long run however we do have to compete with them for chip market share.QUALCOMM and Microsoft's CDMA/OS hybrid will become increasingly more important as all this will start to focus on the real market leadership which of course will be QUALCOMM.QUALCOMM's CDMA Operating system should keep on metamorphing and advancing beyond the competition due to the fact the R&D will be paid for by Motorola (just another good business plan by the MOT as if Iridium was not enough ).

To: SKIP PAUL who wrote (502)	8/3/1999 9:27:00 PM
From: GO*QCOM	Respond to of 13582

All this CDMA ASIC stuff coming from QUALCOMM Licences is a positive in the long run however we do have to compete with them for chip market share.QUALCOMM and Microsoft's CDMA/OS hybrid will become increasingly more important as all this will start to focus on the real market leadership which of course will be QUALCOMM.QUALCOMM's CDMA Operating system should keep on metamorphing and advancing beyond the competition due to the fact the R&D will be paid for by Motorola (just another good business plan by the MOT as if Iridium was not enough ).

To: SKIP PAUL who wrote (502)	8/3/1999 9:28:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 13582

Skip - Why on earth would QCOM issue such a license? First, I think we're getting too excited (including myself). But having said that, based on the 10K it is almost certainly true that the Motorola and Lucent licensing agreements are somehow different from those for DSP, VLSI and LSI. My guess as to the reason is that it is because they were early signers and at the time Qualcomm needed them much more than they would now. But a different royalty agreement isn't the same as non-existent royalty agreement, and in that I was jumping the gun. Perhaps Lucent and Motorola are not called out as royalty payers for ASIC manufacture because they don't pay royalties for internal use? However, if so, why isn't Samsung listed as well since they also manufacture some ASICs for their own use? Perhaps it is because unlike with most other licensees, Qualcomm owes some small fraction of the royalties it receives to Motorola, and thus there are 'mutual royalties' owed - albeit with Qualcomm netting a much bigger piece (although then why is Lucent, for which this is not true, included in this ASIC royalty call-out?). Or, most likely of all - this is one relatively small paragraph in a large 10K and examining the exact wording with a microscope is not a good idea. Certainly if everything I wrote were examined to that level of detail there would be mistakes made. If this is the case then although it is understandable, hopefully they will fix the paragraph in the next 10K, because it is definitely misleading. Clark PS It's reassuring that Gregg says that Motorola will still owe royalties for ASICs it sells, but I'd still like some clarification on the 10K paragraph since it is of material importance.

To: SKIP PAUL who wrote (502)	8/3/1999 10:30:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 13582

Qualcomm Falls as Motorola Looks to Compete in Chips Take notice of the bold from the company. San Diego, Aug. 3 (Bloomberg) -- Shares of Qualcomm Inc., which developed the world's second-most popular wireless phone technology, dropped 8.2 percent after Motorola Inc. said it will make semiconductors for phones to compete with Qualcomm. Qualcomm fell 12 1/2 to 140, its biggest percentage drop since April 19. Even with the decline, Qualcomm is the best- performing stock on the Standard & Poor's 500 Index this year. Motorola, the world's No. 2 cellular-phone maker, told analysts and investors it plans to start selling computer chips next year that compete with Qualcomm's. That could hurt San Diego- based Qualcomm, whose shares have risen more than fivefold this year on expectations that profit will surge with sales of chips and royalties from companies that use its technology. ''Motorola is a competitive threat to Qualcomm,'' said Brian Modoff, an analyst at Deutsche Banc Alex. Brown, who rates both Qualcomm and Motorola ''strong buy.'' Motorola, of Schaumburg, Illinois, said it will begin shipping the chips in large volumes in the first half of next year. Qualcomm sold 11 million of the chips, which use the company's code-division multiple access technology, in the quarter that ended June 27, helping it post record sales of $1 billion. CDMA offers more capacity on cellular networks than competing standards and is considered more efficient for data services like e-mail and Internet surfing. Qualcomm 'Not Concerned' Qualcomm, which developed CDMA, licenses the technology to other manufacturers and also makes chips for network equipment and phones that use the standard. Motorola, which makes both CDMA phones and network equipment, already makes the chips for its own gear. Today, the company said it will also sell the chips to other manufacturers. Motorola shares fell 2 1/8 to 90 3/4. Qualcomm, which still will receive royalties on all CDMA phones -- even those with Motorola chips -- downplayed Motorola's announcement. ''Financially, we're not concerned about the effects of this,'' said Richard Grannis, the company's vice president and treasurer. ''If it boosts the overall CDMA market, then that's good for Qualcomm.'' One thing helping Qualcomm is the time it will take cell- phone makers to adjust their models for chips from a different manufacturer. ''There's a significant lead time required for the phone manufacturer to adopt the changes,'' Grannis said. ''You might not see a phone with the chips until late next year, even if Motorola had a product ready today.'' Qualcomm's customers include Samsung Electronics, Sony Corp., LG Electronics and Toshiba Corp. The company said four other chip producers are licensed to provide CDMA chips to cell- phone makers. ''We've always expected others to introduce viable chips,'' Grannis said.<b/>