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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mtnlady who wrote (16428)	1/25/2000 6:41:00 PM
From: StockHawk	Read Replies (3) \| Respond to of 54805

>>QCOM's revenue growth is slowing -quarter to quarter has been +8%, +6% and now +4%.<< Frank just mentioned that QCOM has taken a dive in the after hours market during the last two earnings reports. I think you have found the reason, which is that the numbers on the surface do not show the true picture. QCOM provides segment information. Note the revenue growth from CONTINUING Operations: QUALCOMM CDMA Technologies Revenue 352,395 Change from prior year 82% QUALCOMM Technology Licensing Revenue 177,545 Change from prior year 140% Total combined revenue from these two divisions increased approximately 98%. Those divisions represent the primary parts of the company going forward. Next we have QUALCOMM Wireless Systems Revenue 442,294 Change from prior year 16% This division showed slow growth, but this is the part of the business they are selling to Kyocera. Finally we have a division that is declining: QUALCOMM Wireless Systems Revenue 214,964 Change from prior year (28%) The reason for the decline is that they sold the terrestrial CDMA wireless infrastructure business in May, 1999 and just kept the satellite portion - so the decline is not real, it is an apples to oranges comparison. As stated above the important divisions grew 98% in revenue. More significantly, the 140% growth in the QUALCOMM Technology Licensing division is almost pure profit. Earnings before taxes are 92% in that division. This is what will drive the bottom line growth going forward. This is the evidence of the tornado. StockHawk