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

To: Uncle Frank who wrote (41138)	9/15/1999 1:15:00 AM
From: waverider	Read Replies (1) \| Respond to of 152472

LOL!!!! QTip...now that is a good one. QTip, yes, I like that. Let the shorts refer to us as "QTippers" with the same disgust as they did with the "Dellhead" investors...as we make money year after year after year... I think there is a song there. Rick <H>

To: Uncle Frank who wrote (41138)	9/15/1999 2:46:00 AM
From: The Reaper	Read Replies (3) \| Respond to of 152472

Unq- With everything that went on today, we need to start trying to figure out what the Q! is going to look like without the handset division. What follows is my meager attempt to predict the upcoming Qtr. earnings pro forma without the handsets. What we know from 3rd qtr. report and statements made today. Pro forma 3rd qtr. revenues $966 mill. Gross Margin 3rd qtr. 42% Net income $154 mill. Shares out. 180 mill. EPS .86 handsets account for 40% of revenue. royalties are going to be about $110 mill. this qtr. Assumptions we must make: Assume 20% gross margins for handsets. Assume we can take 40% off R&D, G&A, and Selling expenses due to the discontinuance of handsets. Assume flat sales of ASIC business (not true we know) 3rd Qtr. would have looked like this..... Revenue $637 mill. Gross margin 54% Gross profit $344 mill. R&D -56 mill. G&A -30 mill. Selling -32 mill. Operating income $226 mill. For 4th Qtr. Add extra royalty income over 3rd $ 17 mill. UNCLE SAM (35%) -85 mill. Net Income 158 mill. Add 1% on $1 billion (tax exempt) 10 mill. EQUALS................................. $168 mill. or 168/180 shares = .93/share What's the conclusion? If Q! reports less than .93/share then the handsets are losing money! Now don't everybody start shooting holes in this ROUGH analysis. Let's use this as a starting point to find out what Q! is going to start earning from here. kirby