Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: marginmike who wrote (41070)	9/14/1999 5:19:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

WSJ> September 14, 1999 Wireless Firm Qualcomm Seeks Buyer for Phone-Handset Business Dow Jones Newswires SAN DIEGO -- Wireless-technology company Qualcomm Inc. said Tuesday it is seeking a buyer for its land-based phone business, which includes its code division multiple access, or CDMA, wireless phones. Qualcomm, which sells wireless chips, handsets and licenses, said it is in talks with "a number of companies that have expressed interest" and expects to have an agreement on the sale by the end of the year. The company also said it expects to meet or exceed analysts' fiscal fourth-quarter estimates because of strong demand for CDMA phones and chipsets, but it said further cost-cutting efforts could result in a one-time charge going forward. The news seemed to ease investor fears that component shortages would dampen the company's performance in the quarter ending Sept. 30. In afternoon trading, Qualcomm shares were atop the Nasdaq most actives, up $17, or 11%, at $170.375 on volume of 10.1 million shares. Qualcomm said increased competition, parts shortages and industry consolidation that have reduced margins spurred its decision to sell the phone business "to a manufacturer that will support its customer base and employees, while providing economies of scale, a strong purchasing base and other operating efficiencies." Paul E. Jacobs, president of Qualcomm's consumer products unit, said, "We will continue to support our customers and employees through an orderly transition." The company, which sold its money-losing wireless-equipment business to Sweden's Telefon AB L.M. Ericsson earlier this year, also said it is taking steps to reduce expenses and further improve margins, noting that the efforts may result in a nonrecurring charge. As part of the moves, the company said it is reassigning staff from its consumer products-division to its CDMA technologies division. Qualcomm said it will report earnings of 87 cents a share or higher for the fourth quarter. The mean estimate of 15 analysts surveyed by First Call/Thomson Financial was for earnings of 88 cents a share. In the year-ago quarter, Qualcomm posted earnings of $39.9 million, or 54 cents a diluted share, on revenue of $926 million. Although it reported better-than-expected third-quarter earnings in July, Qualcomm said component shortages limited production and profit margins and could affect fourth-quarter results. Analysts had doubted the company would be able to exceed earnings expectations -- in contrast to previous quarters -- because of falling prices and the tightness in component supplies.