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

To: 100cfm who wrote (46640)	10/30/1999 5:44:00 PM
From: JohnG	Read Replies (2) \| Respond to of 152472

100cfm. On $$0.87 street, $0.97 whisper and hope for more. Some clues are: 1)that some member of Q mgt said there would be a pleasant supprise, 2)At Q3 conf call, Q mgt said there would be sequential improvements in component supply, 3) Top two Sawtec customers for 9/30 quarter were MOT and QCOM, 4) Sawtec expects handset component sales to increase 400% (WAKE UP!!)(some inc due to more complex dual mode phones)for FYE 9/30/2000 over 9/30/99 after the largest expansion in their history, 5) Sawtec has their new high speed mfg equipment on line and is shipping production quantities,6) Sawtec revenues are only up ~9.8%, from $26.0MM for the 6/30/99 quarter to $28.5MM for the 9/30/99 quarter---safe period handset sales are up apx 8%--keep in mind here that NOK and MOT never got their CDMA phones off the ground during the last quarter. Conclusion is that given Q's learning curve and last Q's pro forma (wasn't it $0.86), Q should probably beat the whisper of $0.97--possibly hitting $1.03. Further, there could be a huge ramp up of component availibility from Sawtec starting in September and a huge demand for internet phones leading to significant increase in CDMA handset shipments during the 4th calendar quarter--Christmas sales. Thus there is a probability of a mild supprise and projctions of huge sequential increases starting 9/30. Realize that SAW filters may not be the only component that was short---RFMD was short too I believe. I really think the $5.00 projection for Q's Y2K earnings may prove WAY, WAY too low--the internet TORNADO is here. JohnG

To: 100cfm who wrote (46640)	10/31/1999 9:36:00 PM
From: quidditch	Read Replies (2) \| Respond to of 152472

the question in my mind is how would the dollars from the handset sale be accreted to earnings. is it a one shot deal or is it annualized?? Am about 150 posts behind, so please forgive a repetitive answer. But the gain on sale of handset division, if there were a gain, would be recognized all in the quarter in which the sale occurred. I think that, irrespective of the likely cash realized, the transaction will result in a charge to earnings, and not be accretive. Steve