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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: rel4490 who wrote (3476)	11/22/1999 10:42:00 AM
From: llwk7051@aol.com	Read Replies (1) \| Respond to of 13582

It is the Nov. 4, 1999 report in pdq format. Robert 1999 ú Company exceeded our estimate of $0.84 by $0.07 on lower revenue, higher royalties and lower operating expenses. ú ASIC book-to-bill continued to delcine from 1.7 in 2Q99 to 1.2 in 3Q99 to 0.91 this quarter. Management is guiding for a sequentially flat book-to-bill in 1Q00. ú Company is forecasting a modest increase in ASIC unit volumes on flat chip revenue in 1Q00. ú Handset pricing is firming although mobile phone gross margins declined sequentially. ú Raising estimates for near-term on lower expenses and near-term demand in ASICs. FY Ends Sep Current Price $260 1/2 52-Week Range $39-261 Market Cap(M) $50,603 Shares Out(M) 194 Book Value $14.78 Net Cash/Share $8.31 3-Year EPS Gth 13% CY00 P/E-to-Gth 376% 1999 A Previous Est 2000 E Previous Est Q1 EPS 0.33A $0.33 0.94 $0.79 Q2 EPS 0.41A 0.41 0.77 0.69 Q3 EPS 0.75A 0.75 0.62 0.60 Q4 EPS 0.91A 0.91 0.62 0.62 FY EPS 2.40A 2.40 2.95 2.70 FY REVS(B) 3,937 3,397 4,374 4,452 CY EPS 3.01 3.01 2.61 2.39 CY P/E 86.5 86.5 99.6 109 Qualcomm provides wireless infrastructure, handsets and chipsets based on its proprietary implementation of CDMA which was adopted as the IS-95 digital cellular standard. The company also supplies fleet tracking equipment and services through its OmniTracs products as well as engineering resources and earth stations for the Globalstar satellite system. Notes: a,f Exceed earnings forecast on lower operating costs and higher royalty income estimates. Qualcomm reported $0.91 which exceeded our estimate of $0.84 and consensus of $0.88. Revenue of $1.059 B was 4.1% below our estimate of $1.104 B primarily due to weak handset pricing. Tight control of operating expenses and higher estimates of royalty income offset the revenue shortfall to deliver the upside to earnings. The company is forecasting flat ASIC revenue for 1Q00, the sale of the handset business by January 2000 and a 25% - 30% decline in chip pricing in 2000.