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

To: Kayaker who wrote (56154)	12/22/1999 9:35:00 PM
From: 2brasil	Respond to of 152472

After news of the long-awaited deal, shares of Qualcomm fell nearly 10 to about 476 in after-hours trading. That drop came after the stock fell 11-7/16 to 485-7/16 in the regular session on the Nasdaq as investors nervously waited for a briefing to announce the agreement. Financial terms were not disclosed, but Qualcomm said Kyocera would purchase its phone inventory, manufacturing equipment and customer commitments, as well as buy ''a majority'' of the phone chipsets and system software. Qualcomm holds many key patents on code division multiple access, or CDMA, wireless telephone technology that forms the foundation of the next-generation mobile networks being laid across the world. It put the handset business up for sale in September, saying it would focus on designing and selling the chipsets that power the phones and licensing its technology. For the San Diego, Calif.-based company, the deal lifts the burden of a money-losing operation and promises to help spread CDMA to Japan, Korea and other parts of Asia where Kyocera has a strong business. Qualcomm originally set up the phone-making business to ensure a hardware base for its then-untested technology. But although it shipped 1.9 million phones in its fourth quarter, pricing pressures were dragging on profits. ''For the (handset) company to be profitable, it is essential to have a worldwide base and a strong manufacturing base. That's one of the strengths Kyocera brings,'' Qualcomm Chief Executive Irwin Jacobs told a news briefing. ''We feel our best role is to go ahead and do the innovation and let others do the manufacturing,'' Jacobs said. Kyocera, in turn, will get a bigger foothold in the North American mobile telephone market and propel it toward its goal of joining the ranks of wireless titans such as Nokia, Motorola and Ericsson. ''Kyocera will now have a comprehensive global infrastructure for producing and delivering CDMA handsets -- from world-leading R&D and production to sales, marketing and support,'' Kyocera President Yasuo Nishiguchi said in a statement. The acquisition would help Kyocera ramp up total output of all kinds of mobile phones to 16 million units by the end of March 2001, the company said. Qualcomm also will create a new subsidiary to help support Kyocera's phone business for three years. The arrangement means it would take a one-time, pre-tax charge of $30 million in its first quarter. ''Today's alliance amounts to a true breakthrough for Kyocera to expand the wireless telecommunications business on a global basis,'' Rod Lanthorne, president of Kyocera's North American operations, said at a news briefing. Although the deal triggered a sell-off in its stock, Qualcomm has been one of the best-performing companies on the Nasdaq this year, and analysts said its prospects were still bright. ''This could be one of those things where you buy on the rumor and sell on the news,'' Mark Cavallone, an analyst with the S&P Equity Group, said before details of the deal were disclosed. Earlier Stories

To: Kayaker who wrote (56154)	12/22/1999 9:37:00 PM
From: 2brasil	Read Replies (3) \| Respond to of 152472

excuse me but that looks alot better than any nokia cdma phone i've ever seen 700 hrs standby 64 bps amazing!!! bruce