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

To: Skeeter Bug who wrote (68508)	3/4/2000 12:04:00 PM
From: slacker711	Read Replies (1) \| Respond to of 152472

management stated what was in their own self interest and left out the possibility that an order could be cut - which it was shortly after their "no impact" pronouncement. Well you had to go back to Feb. of '98....which is fair, the management is the same. However this is the same management that one month ago refused to emphasize China during their earnings conference call.....even though they must have known that they were close to a breakthrough. If they had, perhaps the lead story the next morning wouldnt have been the "slump" comment. Cramer complained about this on TheStreet.com....but I think that this is simply the way management operates. As to QPE....I will have to find where it says that 40% of QPE production was laid off (Honestly dont remember these numbers). However since Qualcomm only produced 2.7m phones last quarter, compared to 14m ASIC's, I am more worried about demand for CDMA in Korea and the US. Those will be the final determinants on the strength to this quarter. Slacker

To: Skeeter Bug who wrote (68508)	3/4/2000 12:04:00 PM
From: marginmike	Read Replies (2) \| Respond to of 152472

"qpr production was hacked in a serious way. you don't lay off 40% or so of your work force and not reduce production. the REAL loss to qcom is in asic sales.' Qcom is a fabless semi manufacturer, the Jobs they cut were for strictly new product development(in handsets). They also didnt account for a royalty on QPE phones. Now that they are being sold outside Q they will recieve a royalty as well as chip sales income. As you know IPR $ is 95% profit they were not booking. That is why the sale is accreative to earnings. The Managemet made all of this quite clear in Earnings CC. As for your opinion that chip business is being hurt, it is in complete contradiction of what QCOM MGMT has publicly disclosed. In the Analyst meeting two weeks ago QCOm stated they were gaining ASIC market share, and that MOT is their biggest growing customer and NOK was in Negotiations as a new customer. I would also point out that KYO is now a ASIC customer wherein they were not before. I would also be curious to why KYO has no interest in making phones? QPE is at full capacity and the phones are being sold as QCOM phones still. Their sales have been maintained as evidenced by Radio Shacks good numbers.

To: Skeeter Bug who wrote (68508)	3/4/2000 12:06:00 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

Mr. Bug -- in case you have forgotten, the ultimate lesson from the Asia DELAY of some stuff (it was NOT rescinded !) was ... During "hard" times, people cut back on their trips to New Zealand (even without knowing that Maurice lives there), but DID NOT cut back on their "uptake" of wireless stuff. In fact, "uptake" in Korea accelerated during hard times there. This (to me) was yet another compelling sign that "wireless is the place to be" for at least quite a while longer. Jon.

To: Skeeter Bug who wrote (68508)	3/5/2000 11:07:00 PM
From: q_long	Read Replies (1) \| Respond to of 152472

Skeeter ... << your surface analysis of "qpe not being profitable" notwithstanding. again, qpe wasn't. qcom made a bundle selling asics to qpe. a bundle. that is why they gave qpe away for 1/3 of revs (at best!).>> This is contrary to statements made by Sulpizio in a December conference call on the Kyocera agreement. In fact the 30 million loss included any profits of ASIC sales to QPE. It was only recently that QCOM was required to report division by division that has hidden QPE's true damage to the bottem line. In other words, the losses of QPE would have been much greater without ASIC sales. Multiply 15 million handsets x ($12 or so) per ASIC's that KYO will purchase and add it to the earnings. This was crystal clear in the announcement of the handset sell and I think many people miss this very important point. The only downside is a slow down in gross revenues though margains will improve.