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

To: Boplicity who wrote (47503)	11/3/1999 9:20:00 AM
From: Sig	Read Replies (1) \| Respond to of 152472

Re Downgrade: And also here comes the days first upgrade, analyst running to catch bandwagon after its already rolling. SES << Target raised to 300 at first union>>

To: Boplicity who wrote (47503)	11/3/1999 9:22:00 AM
From: 2brasil	Respond to of 152472

QUALCOMM Signs with Sprint to Offer the First CDMA Data Application for a Vertical Market - OmniExpress Introduced to the Transportation Market - SANTA CLARA, Wireless IT '99, Booth # 315, Calif., Nov. 3 /PRNewswire/ -- QUALCOMM Incorporated (Nasdaq: QCOM - news), worldwide leader in integrated wireless data solutions and Sprint's Wireless Division (NYSE: PCS - news) the nation's largest 100 percent digital, 100 percent PCS nationwide wireless network, today announced an integrated communications solution agreement that will allow QUALCOMM to use the Sprint PCS nationwide network to provide wireless data service for QUALCOMM's new OmniExpress(TM) fleet management product. OmniExpress is a mobile communications and tracking system that provides real-time messaging and position reporting between fleets and their operations centers. ''We plan to leverage our knowledge of the transportation industry combined with Sprint PCS' superior CDMA voice and data services,'' said Dave Brandos, vice president of marketing for QUALCOMM Wireless Business Solutions. ''As the pioneers of CDMA technology, and as a leader in integrated wireless data solutions, QUALCOMM understands the exceptional quality and superior advantages that a CDMA network will provide.'' ''Sprint PCS is excited to join QUALCOMM in offering OmniExpress customers a fully integrated voice and data communications solution,'' said Bernie Bianchino, chief business development officer, Sprint PCS. ''This agreement is another great example of the many capabilities of our 100 percent digital, 100 percent PCS nationwide CDMA network.'' For Sprint PCS, the agreement represents a new distribution opportunity that complements the company's business to business and national sales channels. Targeted at metropolitan-based fleets, OmniExpress will offer a low-cost wireless mobile communication solution by transmitting data over the Sprint PCS digital network, which currently serves the nation's major metropolitan areas including more than 4,000 cities and communities across the country. Similar to the successful OmniTRACS(R) satellite-based mobile communication system, this product will help transportation companies increase productivity and managerial control in a cost-effective manner. In addition, Sprint PCS will offer optional access to its nationwide wireless voice service to OmniExpress customers who want a fully integrated voice and data solution. With over a decade of expertise in providing fleet management products and services to the transportation industry, QUALCOMM has sold more than 300,000 OmniTRACS units worldwide. QUALCOMM's OmniTRACS system is a satellite-based mobile communications and tracking system that provides real-time messaging and position reporting between fleets and their operations centers. With over 5 million data transactions daily, QUALCOMM's Network Management Center is the worldwide leader in processing wireless data messages. Sprint PCS operates the largest 100 percent digital, 100 percent PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at sprintpcs.com. Sprint PCS is a wholly-owned tracking group of Sprint Corporation trading on the NYSE under the symbol ''PCS.'' Sprint is a global communications company at the forefront in integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is a leader in advanced data communications services. Sprint has $17 billion in annual revenues and serves more than 20 million business and residential customers. QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS and portions of the Globalstar(TM) system. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a FORTUNE 500(R) company traded on the Nasdaq under the ticker symbol QCOM. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 26, 1999, and most recent Form 10-Q. QUALCOMM and OmniTRACS are registered trademarks and OmniExpress is a trademark of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. All other marks are property of their respective owners.

To: Boplicity who wrote (47503)	11/3/1999 9:29:00 AM
From: mts362	Respond to of 152472

November 3, 1999 J.P. MORGAN SECURITIES INC. - EQUITY RESEARCH GREGORY GEILING (1-212) 648-3320 Brantley Thompson (1-212) 648-7883 Qualcomm (BUY) INCREASING PRICE TARGET TO $315 AND RAISING ESTIMATES - STRONG 4Q RESULTS Fiscal QCOM Earnings Per Share P/E 52-Wk ------------------ --------- MkCap 11/2 Rge 9/99 9/00 9/01 1Q/00 1Q/99 9/00E 9/01E Yld ($MM) ---- ----- ----- ----- ----- ----- ----- ------ ------ --- ----- $224.81 $230-25 $2.46A $4.05E $5.60E $0.95E $0.33A 55.5 40.1 NA 43,670 Previous $3.90E $4.60E $0.92E Calendar QCOM Earnings Per Share P/E 52-Wk ------------------- --------- MkCap 11/2 Rge 12/98 12/99 12/00 4Q/99 4Q/98 12/00E 12/01E Yld ($MM) ---- ----- ----- ----- ----- ----- ----- ------ ------ --- ----- $224.81 $230-25 0.96A $3.01E $4.43E $0.95E $0.33A 74.7 50.7 NA 43,670 Previous $2.95E $4.10E $0.92E Event: QUALCOMM reported strong fiscal fourth-quarter results, as the company exceeded earnings expectations posting earrings of $0.91 per share, $0.03 above our estimate and the Street consensus. The upside resulted from stronger-than-expected royalty payments ($113 million) during the quarter, which boosted margins on what was roughly an in-line sales number of $1.1 billion. Royalty payments continued to be driven by robust growth in CDMA markets worldwide. Chipset results were also strong, as revenues and unit shipments increased sequentially (units shipments of 14 million were up 27% over the fiscal third quarter) and margins held steady despite normal price declines. Regarding the sale of the handset business, management clearly stated they are in discussions with multiple potential buyers and have already received a few offers that they are currently reviewing. Management is confident it will enter an agreement to sell the handset business by calendar year-end and expects to close a deal by the end of March. The sale of the handset business is expected to be accretive to 2000 earnings, as a result of favorable chip and royalty pricing built into the sale agreement (we therefore aren't expecting a significant cash payment up front for the handset business). During the quarter, the handset business was healthy in the face of continued component shortages. QUALCOMM shipped 1.9 million handsets in the quarter. We would expect to see an increase in handset unit shipments in the December quarter and stable margins, as the component shortage eases and the holiday selling season demand comes into full swing. The outlook for the handset business, as well as all CDMA products, continues to be extremely robust, and management expects the worldwide CDMA handset market to grow to over 70 million units in 2000 from 40 million this year. Our View: QUALCOMM's quarterly results reaffirmed our view that the company will continue to grow revenues 30-40% and EPS 40-45% over the next few years. Beyond the confirmation that management is well on its way to divest its handset business with several suitors and a few offers on the table, QUALCOMM's outlook for its chipset and royalty business continues to strengthen. We have increased our gross-margin assumptions for QUALCOMM chipset business in 2000, as we believe that QUALCOMM will be able to boost margins into the low 60% range from the current mid to high 50% range. Fueling this expansion is over 30-40% chipset revenue growth in 2000, the introduction of new chipset products, and favorable pricing associated with the sale of the handset business. Strong royalty revenues seen this quarter also contribute to a stronger 2000 outlook as our expected sequential increase in royalty revenues in the December quarter, from this quarter's $113 million, sets the stage for a $500 million year. To account for the robust outlook as well as the expected handset sale, we are increasing our fiscal year 2000 estimate to $4.05 per share from $3.90 per share and are establishing a fiscal 2001 earnings estimate of $5.60. We reiterate our BUY rating on QCOM shares. We are also establishing a new 18 month price target of $315, applying a 55 multiple to our new 2001 calendar year earnings estimate of $5.75 per share. Our earnings multiple is in-line with QUALCOMM's current growth rate, as well as with other chip and royalty companies focused on high- growth segments in the communications-equipment industry. It is also worth noting that QUALCOMM announced a 4 for 1 stock split that is expected to be approved at its December 20, 1999 shareholder meeting. QUALCOMM's last split was 2 for 1 in May of this year.