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Technology Stocks : QUALCOMM-The Wireless Wonder in 1999 -- Ignore unavailable to you. Want to Upgrade?

To: GO*QCOM who wrote (336)	6/16/2000 8:02:00 PM
From: GO*QCOM	Respond to of 343

Qualcomm Doesn't Plan to Add to Globalstar Stake Now New York, June 16 (Bloomberg) -- Qualcomm Inc. doesn't immediately plan to invest more cash into satellite-telephone company Globalstar Telecommunications Ltd. and could take up to a $600 million charge if Globalstar fails, Qualcomm's chief financial officer said. That's not chicken feed! Qualcomm, which makes satellite phones for Globalstar, would take the one-time charge if Globalstar isn't recoverable, CFO Anthony Thornley said in an interview. Qualcomm, which has invested $500 million in Globalstar, would consider investing more money if Qualcomm believes Globalstar will succeed, he said. Qualcomm has a 6.5 percent interest in Globalstar. Globalstar, 40-percent owned by Loral Space & Communications Ltd., is the only satellite-phone company that hasn't filed for bankruptcy protection or shut down. Rival ICO Global Communications Ltd. was bought by cellular pioneer Craig McCaw and is now being reorganized. Iridium LLC is in bankruptcy court after ceasing its 66-satellite operation in mid-March. Globalstar last month said it had $234.7 million in cash and was spending about $125 million a quarter to build its satellite system. First-quarter revenue totaled $609,000. Globalstar has said it needs $160 million in revenue this year. Qualcomm is committed to Globalstar, but admitted growth has been slow, Thornley said. Qualcomm isn't ``committed to put more money in but would consider it if we feel confident Globalstar requires money and their business plan is satisfactory,'' Thornley said. Globalstar hasn't approached any of its investors for funding because it doesn't immediately need the money, said Bernard Schwartz, Chairman and CEO of Globalstar and Loral. ``Around September or October we will require more cash,'' Schwartz said. ``We'll take the most appropriate way available, but it's a decision I don't have to make now because I think our situation is going to get stronger ... through phone sales.'' Globalstar shares rose 3/32 to 6 17/32. The New York-based company's shares have fallen 85 percent this year as phone production delays slowed the introduction of its service. Qualcomm contributed to the delay when it failed to deliver phones in January. Globalstar started service in October. Globalstar has said it will run out of money in four months without more funding. The company is negotiating with Chase Manhattan Bank to extend a $250 million line of credit beyond June 30, Globalstar said. ``We'll need a maximum of $160 million depending on revenue,'' Schwartz said. Loral estimates it will have $450 million in cash at year's end, but wouldn't disclose how much it may give to Globalstar, a Loral spokesman said. Globalstar, which hasn't reported subscriber numbers, plans to detail how many phones it's sold in August, Schwartz said. Chase H&Q analyst Ed Snyder reduced his fiscal-year 2000 and 2001 earnings estimate yesterday on Qualcomm and said Globalstar could reduce Qualcomm's earnings by 10 cents a share next year if Globalstar goes bankrupt. Globalstar other investors include Vodafone AirTouch Plc, China Telecom Ltd. and DaimlerChrysler AG. Shares of San Diego, California-based Qualcomm rose 4 5/16 to 65 3/4.

To: GO*QCOM who wrote (336)	6/16/2000 8:10:00 PM
From: GO*QCOM	Read Replies (1) \| Respond to of 343

Qualcomm Up 7%; First Union, Deutsche Banc Issue Notes Dow Jones Newswires By Desiree Hanford ST. LOUIS -- Shares of Qualcomm Inc. (QCOM) pushed higher Friday after two analysts published research notes that were more upbeat than at least one other published this week. The stock recently traded at 65 11/16, up 4 1/4, or 6.9%, on volume of 20.9 million shares, compared with a daily average of 21.2 million. A Qualcomm spokeswoman said the San Diego company doesn't comment on its stock movement. First Union Securities Inc. analyst Mark Roberts issued a bullish report to the firm's institutional clients Thursday morning, but he said retail investors didn't get word of it until Friday. Roberts said he wanted investors to know where he stood on Qualcomm and the global demand for code division multiple access, or CDMA, handsets, particularly after another analyst made some bearish comments about the company and reduced his earnings estimates on Thursday. Based on discussions he's had with Qualcomm and Korean manufacturers, Roberts said he can't find any evidence of a slowdown in the global demand for CDMA handsets. He noted that those manufacturers expect that as the Korean market slows down, the manufacturing capacity that's freed up will be used to make phones for export to other markets, mainly North America and Latin America. "That's contrary to what a number of our competitors are saying," Roberts said. Qualcomm will receive the same royalty rate regardless of which version of third-generation technology - the company's or another - carriers select, he said. There will be CDMA in China, Roberts said, and it's a matter of when - not if - that will occur. Qualcomm said at a conference this week that the Korean government's decision to cease handset subsidies could have an impact on demand in Asia. The company also said prospects in China are uncertain. Deutsche Banc Alex. Brown analyst Brian T. Modoff said in a research note Friday that uncertainty about the potential impact of the Korean subsidy termination and other recent events, such as delays in China, are weighing on Qualcomm's stock. Still, Modoff thinks the company is in good shape to benefit from the pending carrier upgrades to 1XRTT technology. In addition, Modoff said that his model shows an accelerating revenue and earnings trend going into 2002, as carriers begin the buildout of wideband code division multiple access, or WCDMA, networks in Europe. Modoff said he views the current share price weakness of Qualcomm as an opportunity to buy the stock, and he maintained his strong buy rating on it.