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


To: Kayaker who wrote (6185)2/3/2000 2:19:00 PM
From: slacker711  Read Replies (2) | Respond to of 13582
 
Notwithstanding the comments of Q's management.....it's always good to look at the competition. One good sign is that Kyocera dropped them....but who knows what's going on know that Intel bought them. This is from Sep. 21st 1999.

DSPC Unveils 6000 Series Chip for cdma2000 Handsets

New D6011 chip brings the power, flexibility and scalability of
cdma2000 technology to handsets

CUPERTINO, Calif. - (BUSINESS WIRE) - September 21, 1999 ---DSP
Communications (NYSE: DSP), a leading one-stop provider of digital wireless
technology solutions, today unveiled its first chip and system software solution for
the third generation (3G) air interface standard that has been submitted to the
International Telecommunications Union (ITU). The D6011 is DSPC's sixth-
generation digital baseband processor and the first to target the cdma2000?
standard. The DSPC D6011 chip successfully meets the requirements for
cdma2000 Phase One, or 1XRTT, set forth by the U.S. Telecommunications
Industry Association (TIA). Field trials of the cdma2000 chip are scheduled to
begin in early 2000 with commercial production following the trials.


"The introduction of DSPC's first cdma2000 chip illustrates our commitment to
delivering an alternative cdma2000 solution, including chip and system software,"
said Paul Washkewicz, General Manager, CDMA Business Unit at DSPC.
"DSPC's goal is to keep handset manufacturers and operators on the leading edge
of cdma2000 deployment by delivering competitive solutions that will enable the
introduction of new 3G services and products."

DSPC's next generation D6011 chip meets critical cdma2000 Phase One
requirements while ensuring full backward compatibility with existing IS-95A and
IS-95B networks. By implementing DSPC's D6011 versatile platform into existing
product lines, manufacturers and operators can preserve their investments and
maintain services for existing subscribers while gradually migrating to 3G system
capability. DSPC will also ensure its plans for the cdma2000 Phase Two chip
which will provide backward compatibility with cdma2000 Phase One, IS-95A
and IS-95B.

The Next Generation cdma2000 Solution
The D6011, DSPC's first baseband chip solution supporting the cdma2000
standard, supports several new features required for advanced 3G wireless
Internet access and data services. With high speed data rates of up to 153 kilobits
per second (kbps) for up and down link, the D6011 exceeds the ITU's
cdma2000 144 kbps mobile data speed requirements.

DSPC's cdma2000 Phase One chip, combined with a robust system software
package, form a complete solution enabling handset manufacturers to introduce a
new generation of sophisticated consumer devices. Specifically designed for an
open and modular architecture, the D6011 is comprised of proven building blocks
that include the Mobile ARM7TDMI? core and very rich micro controller
peripherals including USB, UARTs and timers. The D6011 solution also features
a TeakDSPCoreĆ’ for modem and audio functions to provide optimal operating
performance and low power consumption. Additional features include advanced
sleep, support for four fingers with a multi-code and low power rake receiver, and
an advanced multi-rate Viterbi decoder. The D6011 is designed to provide an
ideal, flexible solution for accelerating time-to-market and reducing development
costs, and to enable manfacturers to innovate and differentiate their handsets.

Headquartered in Silicon Valley, DSP Communications is a leading independent
developer and supplier of form-fit reference designs, chipsets and software to
mobile phone manufacturers. DSPC develops, markets, licenses, and sells
application specific integrated circuits (ASICs) based on digital signal processing
(DSP) technology, software stacks, and reference design development kits for
advanced wireless voice and data communications applications. DSPC wireless
technology products support leading global standards for CDMA, TDMA, and
PDC, and will also support emerging third generation (3G) standards such as
Wideband CDMA and cdma2000. The Company's customers include Cadence,
Denso, Kenwood, Kyocera, Kokusai, Lucent Technologies, Motorola, NEC,
Philips, Pioneer, Sanyo, Sharp, and SK Teletech. DSPC maintains a presence
worldwide with offices in the U.S., Japan, Israel, and Canada. DSPC stock is
traded on the New York Stock Exchange under the symbol DSP. For more
information, please visit dspc.com.

This press release contains forward-looking statements that are based on current
management expectations. Certain key factors could cause future results to differ
materially from those anticipated by management. Such factors include, but are not
limited to, risks associated with the development and manufacturing of DSPC's
D6011 cdma2000 Phase One chips, adoption of the cdma2000 standard and
international market acceptance of the cdma2000 chip, the success of DSPC's
OEM customers in developing superior third-generation handsets and in
competing in the handset market, fluctuations in quarterly sales of cdma2000 chips
due in part to the immaturity of this market, general economic conditions, and
other risks detailed from time to time in DSPC's filings with the Securities and
Exchange Commission.

Editor's Note: All products and company names used herein are trademarks or
registered trademarks of their respective companies.



To: Kayaker who wrote (6185)2/3/2000 5:34:00 PM
From: Jenne  Read Replies (1) | Respond to of 13582
 
4. RETHINKING THE QUALCOMM VALUATION
By Kenneth A. Toudouze, CFA

After listening to the Nokia (NOK) conference, we came away with several
pieces of valuable information. One of these was the confidence of the
CEO that Nokia will become No. 1 in CDMA handset manufacturing.

The acknowledgment that Nokia wants to dominate CDMA handsets, coupled
with Ericsson's (ERICY) resolve to gain 3% of additional market share
(12-15%), bodes well for Qualcomm (QCOM). This also is a positive for
Ericsson, because, as The StreetAdvisor mentioned February 1, it benefits
from the infrastructure sales, each time CDMA is deployed.

The decision by Unicom in China to license Qualcomm's CDMA technology will
be a momentous one. The bigger picture question is how big that market is
for Qualcomm. Unicom has indicated it intends to deploy a network with
capacity of more than 10 million subscribers by year-end. This plan is
probably optimistic, given the delayed agreement, but it could certainly
happen by 2001. Assuming 10 million CDMA handsets are sold at $200 per
unit in 2001, this is a $2 billion a year market opportunity, and Qualcomm
will reap $40 million (2%) in royalty fees per year from China alone
($0.01 of earnings per share per quarter). Assuming Qualcomm can sell a
few ASICs (chips) to handset manufacturers, it can profit from this as
well.

Qualcomm is scheduling an investor meeting on February 17th, which should
also add spark to the stock. At the meeting, we would look for more
information regarding the high data rate (HDR) initiatives and Internet
access through wireless devices. In addition, we will look for more data
regarding the Kyocera (KYO) deal and news that it is moving along faster
than originally anticipated. Although we cannot get excited about the
current valuation of Qualcomm, we admit there are excellent catalysts in
front of the stock to make it go higher.

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