Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ruffian who wrote (64289)	1/25/2000 11:41:00 PM
From: LBstocks	Respond to of 152472

WSJ(1/26): Qualcomm Says Sales Of Phones, Sets May Slip Dow Jones News Service ~ January 25, 2000 ~ 10:40 pm EST By David Bank Staff Reporter of The Wall Street Journal Qualcomm Inc., one of the stock market's highest fliers, warned sales of its mobile phones and chip sets may slip, sending its shares down in after-hours trading. The San Diego maker of mobile-phone technology narrowly exceeded the consensus estimate of Wall Street analysts in its fiscal first quarter ended Dec. 26, but fell short of the more bullish "whisper" number some analysts had hoped for. Net income for the quarter was $177.1 million, or 23 cents a share, compared with $48.5 million, or eight cents a share, in the year-earlier period. The most recent results included a one-time charge of $24 million related to the sale of its consumerproducts business to Kyocera Corp. Excluding the charge, earnings were 25 cents. Wall Street analysts had forecast earnings of 24 cents a share, according to First Call/Thomson Financial, with some analysts "whispering" that earnings would hit 27 cents a share. But the biggest news was Qualcomm's warning that seasonal factors combined with inventory issues may cause secondquarter shipments of its phone chips and phones to fall below the first-quarter level. The company said that, excluding onetime charges, it expects to post fiscal second-quarter earnings of 25 cents a share, in line with analysts' expectations. Qualcomm's results were released after the close of regular trading. In regular trading on the Nasdaq Stock Market, Qualcomm's shares closed at $149.00, up $8.9375. In after-hours trading, however, Qualcomm was at $138.00. "Qualcomm's business is good, but this valuation is so high that it's hard to sustain it," said Ed Snyder, wireless-equipment analyst with Chase H&Q in San Francisco. "You've got to have lots of growth." Revenue for the quarter was $1.12 billion, up 6.4% from $941 million in the year-earlier period. Mr. Snyder said Qualcomm has shed most of its slower-growing divisions and now must focus on squeezing faster growth out of its core operations. The company said average selling prices for its handsets are declining and warned that operatingprofit margins are also falling. In addition, the company's book-to- bill ratio, an indication of future demand, is below one, another sign of slower growth in the future. Irwin Jacobs, Qualcomm's chairman and chief executive, said the company is targeting wireless Internet access as its next major growth market. He said the company in December began making chip sets for the commercial introduction of the next generation of cell-phone technology, known as 1X. (END) DOW JONES NEWS 01-25-00 10:40 PM