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

To: Ruffian who wrote (70383)	4/10/2000 8:47:00 PM
From: T L Comiskey	Respond to of 152472

Monday - 19:57 04/10/2000, EST Sierra Club Opposes U.S.-China Trade Pact WASHINGTON (Reuters) - The 550,000-member Sierra Club environmental group said on Monday it would oppose President Clinton's market-opening trade pact with China, joining forces with organized labor in what is shaping up to be this year's biggest legislative fight. The San Francisco-based group said it would mobilize environmental activists across the country as part of a lobbying campaign organized by the AFL-CIO labor federation. Sierra Club Executive Director Carl Pope said the goal was to block legislation that permanently would guarantee Chinese goods the same low-tariff access to U.S. markets as products from nearly every other nation. Pope said the group also would send letters to lawmakers warning that legislation granting permanent normal trade relations to China would harm the environment. China's illegal trade in animal parts threatened Asian tigers, African rhinos and North American black bears, the Sierra Club added. The announcement came as the AFL-CIO gears up for its biggest offensive yet against the trade pact a Capitol Hill rally scheduled for Wednesday that is expected to draw more than 10,000 activists. ``We are mobilizing rank-and-file workers all across the country to lobby their individual members of Congress, Republicans and Democrats,' said AFL-CIO President John Sweeney. ``This is an uphill fight, but we are making tremendous gains.' The White House defended the trade agreement, saying it would have no impact on U.S. environmental laws and could lead to better standards in China as its economy grows. The Sierra Club's position could cause problems for Vice President Al Gore, who favors the agreement with China. The presumptive Democratic presidential nominee is counting on support from environmentalists as well as union members in the Nov. 7 election. Despite the disagreement over China, Pope made clear that Gore still was likely to secure the Sierra Club's endorsement. He cited Gore's promise to include labor and environmental protection in future trade deals if elected president. The trade agreement, which would pave the way for China's entry into the Geneva-based World Trade Organization, calls on Beijing to open a wide range of markets, from agriculture to telecommunications. In exchange for China opening its markets, Clinton says Congress must grant Beijing permanent normal trade relations status. China now receives normal trade relations with the United States only after an annual congressional review. Senate support for permanent normal trade relations is virtually assured, but the legislation faces stiff opposition in the House of Representatives from Democrats closely allied with the AFL-CIO, the Sierra Club and other groups.

To: Ruffian who wrote (70383)	4/10/2000 9:51:00 PM
From: LBstocks	Respond to of 152472

Alex Cena's new report on MOT> MOT: March Quarter Results-- Salomon Smith Barney ~ April 10, 2000 04/09/00 Motorola, Inc. (MOT $153.00,1-M,Tgt $200.00) Alex M. Cena --SUMMARY:--Motorola, Inc.--Telecommunications Equipment * Last night after the close, MOT reported stronger than expected 1Q00 (March) qtr results due to stronger revs and margins. * Operating EPS of $0.59 compares to our consensus est of $0.58. * Ongoing Revs increased 13% to $8.8bn vs our $8.4bn forecast. * Operating mgn of 7.9% was better than our 6.8% est while gross mgn of 40.7% was also 110 bp higher than our est. * Surprise in qtr due to earlier than expected turn in some bizs. For ex, Infra biz had revs & op profit of $1.8bn & 15.5%, respectively, vs our est of $1.5bn & 12%. * However, Pers Comms biz had revs & op profit of $3.2bn & 1.5% vs. our est of $3.5bn & 7.8% while semi revs & op profit were $1.9bn & 6.5% vs our est of $1.9bn & 8%. * Phone mgs lower due to pdct mix twd low-end phones & ramping up of higher mgn phones late in 1Q/early Apr. Believe ests likely to rise & full yr ests reasonable, if not conservative 04/09/00 Motorola, Inc. (MOT $153.00,1-M,Tgt $200.00) Alex M. Cena --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 12/99 EPS $0.28A $0.44A $0.53A $0.82A $2.08A Previous 12/00 EPS $0.58E $0.70E $0.79E $1.12E $3.20E Current 12/00 EPS $0.58E $0.70E $0.79E $1.12E $3.20E Previous 12/01 EPS $N/A $N/A $N/A $N/A $4.25E Current 12/01 EPS $N/A $N/A $N/A $N/A $4.25E Previous 12/02 EPS $N/A $N/A $N/A $N/A $N/A Current 12/02 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: 04/09/00 Motorola, Inc. (MOT $153.00,1-M,Tgt $200.00) Alex M. Cena --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:1M Prior:No Change Price (04/06/00)....:$153.00 P/E Ratio 12/00.....:47.8x Target Price..:$200.00 Prior:No Change P/E Ratio 12/01.....:36.0x Proj.5yr EPS Grth...:0.0% Return on Eqty 99...:7.9% Book Value/Shr(00)..:37.75 LT Debt-to-Capital(a)21.9% Dividend(00)........:$.48 Revenue (00)........:37420.00mil Yield...............:0.3% Shares Outstanding..:625.0mil Convertible.........:No Mkt. Capitalization.:95625.0mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: 04/09/00 Motorola, Inc. (MOT $153.00,1-M,Tgt $200.00) --OPINION:------------------------------------------------------------------ OVERALL A GOOD 1Q REPORT: ABOVE CONSENSUS Last night, Motorola reported its financial results for the quarter ending March. For the quarter, operating earnings were $0.59 compared to our consensus estimate of $0.58. Ongoing revenues increased 13% year on year to $8.8 billion from $7.7 billion. Ongoing revenues exclude businesses that were sold or divested. We believe estimates are likely to move higher and that full year estimates are reasonable, if not conservative. We characterize the report as a strong quarter that was above consensus. The surprise in the quarter is from an earlier than expected turn in a couple of businesses. 1) The infrastructure business was much stronger than expected both in revenues and operating profits; 2) Overall corporate operating and gross margins were better than expected; 3) Semiconductors were in line with top line estimates and the business continues to improve, but not to the extent that we expected; 4) The handset business was strong as units increased sequentially, as expected, but margins were lower than expected largely due to product mix toward the low-end of the range while the impact from the newer, higher margin phones is still to come. REVENUE STRENGTH NETWORK COMMUNICATIONS Revenues were driven by Network Communications, which increased 11%, to $1.8 billion compared to our estimate of $1.5 billion. Operating margins were 15.5% vs. our estimate of 12%. Revenues in Personal Communications were $3.2 billion vs. our estimate of $3.5 billion while operating margins were 1.5% vs. our estimate of 7.8%. Mobile phone unit sales were higher sequentially, as expected, due to the pent-up demand from the December quarter. However, margins were lower than expected due to product mix toward the lower end of phones. Additionally, the company's new, higher margin phones began shipping at the end of March/early April and thus did not have a significant impact in the March quarter. Semiconductor revenues were $1.9 billion in line with our estimates although operating margin was lower than our 8% estimate at 6.5%. OVERALL CORPORATE MARGINS BETTER THAN EXPECTED DRIVEN BY INFRASTRUCTURE. Gross margin for the company was 40.7% vs our estimate of 39.6% while operating margin was 7.9% vs our estimate of 6.8%. The margin strength was driven by Network Communications but offset by lower than expected margins in Personal Communications and Semiconductors. GENERAL INSTRUMENTS NOW REFLECTED IN OPERATING RESULTS. Motorola's acquisition of General Instruments, which closed on January 5, 2000, is now reflected in the company's results, and 1999 figures have been restated to reflect the acquisition. Our March quarter estimates did not include General Instruments. For the quarter, the Broadband and Communications business, which includes the acquisition, as well as Motorola's existing cable modem and telephony business, showed revenues of $678 million vs. $590 million a year ago. Operating profits were 13.4% vs 10.3% a year ago.

To: Ruffian who wrote (70383)	4/10/2000 10:06:00 PM
From: LBstocks	Read Replies (2) \| Respond to of 152472

Alex Cena's earnings preview on QCOM> QUALCOMM (1H). Results Due April 18, After the Close Pro forma EPS (excluding handset division) should be in line with consensus of $0.24 and compared with estimated pro forma EPS of $0.13 a year ago. Sales of CDMA ASICs should be up 32% year over year and down slightly (12%) sequentially. Royalties should be up 55% to $158 million versus $94.5 million last year and down slightly (4%) sequentially. However, excluding intercompany eliminations, royalties should be up sequentially as well. We estimate pro forma gross margin and operating margin for the fiscal second quarter of 2000 of 64.8% and 44.2%, respectively. Focus for the quarter should be on the ASIC book to bill, which is expected to be >1.0, and the general tone of the business, which is expected to be upbeat. Incremental news flow should be upbeat since in line quarter is already in the stock. We believe that all is on track for QUALCOMM to be in line with consensus and in line with management's guidance earlier in the quarter. The most important issues in the quarter on which to focus are the ASIC book to bill, which is expected to be greater than 1.0, and the general tone of business, which is expected to be upbeat. We estimate that pro forma fiscal second quarter 2000 EPS should be $0.24 versus $0.13 reported last year (on a pro forma basis), and compared with consensus of $0.24. Both ASIC sales and royalty fees should be up slightly year over year but down slightly sequentially. We estimate ASIC sales to increase 32% year over year to $310 million and to decrease by 12% sequentially. Royalties are estimated to increase by 55% year over year to $158 million and to decrease by 4% sequentially. Pro forma gross margin and operating margin for the quarter should be 64.8% and 44.2%, respectively. The historical pro forma results mentioned are our estimates, because the company has not yet reported its results to reflect the recent sale of its handset division.