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

To: Caxton Rhodes who wrote (40401)	9/10/1999 7:08:00 PM
From: MileHigh	Respond to of 152472

Thanks, I am not as familiar with the Q barriers to enry and its relationships in the industry. Regards, MileHigh

To: Caxton Rhodes who wrote (40401)	9/10/1999 7:59:00 PM
From: Ruffian	Respond to of 152472

This Summs It Up> eal Having chatted with management recently, I suspect that next Wednesday's analyst meeting will provide comfort without any particularly profound disclosures. There will be no changes in guidance...simply a reaffirmation of management's prior comment that 'last quarter's $0.88 is a good starting place to model from'...this translates, by my interpretation, into $0.90 to $0.94 for the September quarter. December will be significantly better...which makes one wonder how the Street can be modeling to $3.60 for Fiscal 2000. Quarterly revenue will be strong across the portfolio, with particularly good results in ASICs. Royalties will be up nicely as will handset volumes and revenue. Component shortages have impacted handset margins, but one needs to keep the magnitudes in perspective...management indicates that the operating margin delta is roughly 100 basis points...so on roughly $550 million in estimated handset revenue, the component shortage probably cost the company $5 to $7 million pretax. The short's hysteria seems pretty damn disproportionate consider a $0.03/shr (after tax) earnings impact. This is particularly the case when one considers that the reported earnings comparison will be $0.90-$0.94 versus $0.27 last year. It would seem that the trend remains very much our friend. I guess one man's broken momentum stock is another man's dream.... Don't be concerned with noise about defective handsets, this criticism applies to Nokia handsets rather than Qualcomm's. Several carriers have commented about delayed shipments from Nokia, as the company struggles to solve continuing technical problems with its software. Motorola's phones are stable, but of course, a growing percentage of them are using Qualcomm's chipsets...so the newfound stability is hardly inexplicable. Yields on the Thin Phone have been excellent and the product is quite stable. Maybe one day the shorts will offer something more substantive than vitriole. Maybe one day, they will learn to express themselves with decorum, sans the lamentable "HA HA HE HE" routine...which could be described an infantile, but probably doesn't even rise to this standard...semi-simian is probably more appropo. Maybe one day this forum could be used to exchange well considered opinions and insight. Well, so much for fantasyland. Au revoir....EAL