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

To: CAtechTrader who wrote (64118)	1/25/2000 5:30:00 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

Pro forma earnings were $.27 per share for the first quarter of fiscal 2000, excluding net non-recurring charges and operating results associated with the QUALCOMM Consumer Products (QCP) business that Kyocera Corporation agreed to purchase, as previously announced in December of 1999. The net non- recurring charges of approximately $24 million in the first quarter of fiscal 2000 were related primarily to the sale of QCP. I may get burned in about 15 minutes....but doesnt this mean that the pro-forma number excludes any profits that would have accrued if Kyocera had the handset divsion? It seems like they calculated pro-forma as if the handset division didnt exist. This would exlude quite a bit in royalties and ASIC profits. Of course I might be wrong.... The ASIC growth definitely seems to be missing.... Slacker

To: CAtechTrader who wrote (64118)	1/25/2000 5:37:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 152472

Good point, catech, the royalty stream upside surprise is very important, since this is where the new qualcomm will grow. Also, the pro forma 0.27 is at least a 50% annual earnings growth, and they said subsequent quarters should be at least as good as this one. The seasonal nature of their handset warning is a wash, just acknowledging the nature of the business. The fact that pros like you are buying at this level is encouraging. Given the mo factor and the volatility in the market in general, I suspect we may get some pretty good bargains over the next few days or weeks.