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

To: LBstocks who wrote (6084)	2/1/2000 10:44:00 PM
From: Kent Rattey	Respond to of 13582

Qualcomm extends rally China Unicom deal done; chip shipment By Tomi Kilgore, CBS MarketWatch Last Update: 4:18 PM ET Feb 1, 2000 Market Pulse Movers & Shakers SAN DIEGO (CBS.MW) -- Qualcomm shares surged Tuesday after it announced an intellectual property agreement with China Unicom; it also announced an on-time chip shipment for wireless modems. Qualcomm (QCOM: news, msgs) roared 9 1/16, or 7.1 percent higher, to 136 1/16, following Monday's 15 percent rally. The company said that it had reached an agreement on a framework for the licensing of its CDMA wireless technology, and the making and sale of its CDMA phones by domestic Chinese manufacturers. The stock soared 15 percent on Monday following reports that the company was close to striking a deal. China Unicom plans to deploy a digital mobile communications network throughout China using CDMA technology by the end of 2000. Qualcomm's Chief Operating Officer Richard Sulpizio said that the Chinese company expects to sign 10 million subscribers in 2000. See related story. At present, GSM, the European standard, is prevalent in China. "This significant agreement allows for the rapid expansion of CDMA in China and supports China Unicom's plans for a nationwide deployment of CDMA," according to Dr. Irwin Mark Jacobs, Qualcomm's chairman and chief executive. Qualcomm also announced an on-time shipment of chip samples and system software for the MSM5000 Mobile Station Modem for CDMA handsets. Worldwide field trials are expected to begin by late March of this year by Qualcomm, manufacturers and carriers. The chipset and system software will allow manufacturers to design 3G handsets that will offer longer standby times and higher data rate capabilities. The surge follows Qualcomm's dip last week. On Friday, its shares fell nearly 8 percent, putting the stock at almost half its 52-week high. The company, which recently reported first-quarter earnings that were ahead of analysts' estimates, had warned that future shipments of its chips and phones could be lower than previously expected. Qualcomm was the highest-flying member of the S&P 500 ($SPX: news, msgs) in 1999. The company's shares skyrocketed about 2,500 percent last year.