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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Seconds Out who wrote (7055)	10/11/1999 8:31:00 PM
From: John Madarasz	Respond to of 10081

interesting post from RB... Article out today on Qualcomm, with mention of Wireless Knowledge...where General Magic is involved.Monday October 11 3:03 PM ET Qualcomm Plans More Spending To Speed CDMA By Jessica Hall GENEVA (Reuters) - Qualcomm Inc (Nasdaq:QCOM - news)., which develops digital wireless telephone technology, said Monday it will use part of its $1.4 billion cash to invest in companies that would speed the adoption of the technology it pioneered. Qualcomm, known for developing CDMA (Code Division Multiple Access) wireless phone technology, would look for deals similar to previous ones with companies such as Leap Wireless, where it took a small stake, and with Brazilian companies that use wireless local loop technology, Qualcomm's Chairman Irwin Jacobs told Reuters at the Telecom 99 trade show in Geneva. Other initiatives could be a joint venture like its Wireless Knowledge venture with Microsoft Corp (Nasdaq:MSFT - news)., he said. Qualcomm is also looking to expand beyond its core phone business. It is currently studying how to distribute motion pictures digitally instead of by film, and working on speech-recognition technology, Jacobs said. Qualcomm said it hopes to announce new business and revenue-generating opportunities by the end of the year but Jacobs declined to elaborate. ''We've always been very opportunistic. Our strength in life has always been coming up with new technology...and we continue to look at new possibilities, reaching out in different directions,'' Jacobs said. ''You should think of Qualcomm as an energetic start-up with good cash flow,'' he said. Jacobs said he sees strong growth potential in HDR (high data rate) technology that would allow cellular phone companies to provide high-speed Internet access. Qualcomm ''would be working with other companies to support the development of that type of capability,'' Jacobs said. San Diego-based Qualcomm reiterated that it aims to sell its wireless handset business by the end of the year. It is talking to several potential buyers, including telephone handset manufacturers who want to get into the CDMA market and other manufacturers who want to break into the telephone business. While the sale of the handset business will eliminate some revenues, Qualcomm's profits would remain robust since it would still get royalties from the use of its technology in each phone that is sold, he said. Qualcomm reported net income of $59 million for its third quarter this year on revenues of $1.0 billion. The expected sale of the handset business, as well as the recent sale of its wireless infrastructure business earlier this year would leave Qualcomm mostly a chipset developer and research company. But Qualcomm could become a manufacturer again if an attractive opportunity arises. ''We don't mind manufacturing if it's an area where we're bringing a technology lead and a lead in the marketplace ... if the spread of technology can benefit from manufacturing,'' Jacobs said. ragingbull.com