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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: brian h who wrote (1445)	7/27/2000 4:41:32 AM
From: Ibexx	Respond to of 196958

From Prudential's Petersen (7/26), in excerpts: Valuing Spinco. We are now comparing Spinco against our average communications semiconductor companies CY01 EPS multiple of 90x. Using that multiple, Spinco if alone, could trade today at $53 or 90x our CY01 EPS estimate for Spinco of $0.59. On the other hand, if assigned a multiple in line with best of breed communications semiconductor companies, such as those with high proprietary and high added value patents such as Broadcom (BRCM, currently trading at 179x its CY01 EPS estimate), Spinco could trade at $105 or 179x CY01 EPS estimate, if it were a stand alone today. The 3-year EPS growth rate for the communications semiconductor companies is at 45%, which is in line with our EPS growth rate estimate for Spinco at 44%. Valuing the ongoing Qualcomm Business. As for the onging Qualcomm business, it will be dominated by licensing and royalty revenues. (over 50% of its revenue base). There is not a clear segment for licensing and royalty base companies but we feel that certain software industry segment, specifically B2B E-commerce software companies have similar revenue structure and growth rates. This segment trades on average at 83% CY01 EPS estimate. Using that multiple, we believe the ongoing Qualcomm business could trade at $62 or 83x our CY01 EPS estimate of $0.74. Using best of breed for a company that has strong licensing and royalties revenue stream, the multiple would be higher. Using Siebel Systems Inc (SEBL), a software company which derives 70% of its revenue from licensing and royalties (trading at 125 CY01 EPS estimate), an ongoing Qualcomm could trade as high as $93 or 125x CY01 EPS of $0.74, in our opinion. he average 3 year EPS growth rate for the B2B E-commerce software companies is about 30%, which is in line with our EPS growth rate estimate for the ongoing Qualcomm business at 27%. .... Ibexx

To: brian h who wrote (1445)	7/27/2000 9:05:14 AM
From: brian h	Read Replies (1) \| Respond to of 196958

Thursday July 27, 8:20 am Eastern Time Company Press Release Ericsson and PEGASO sign contract valued at more than USD 200 million for CDMA network expansion in Mexico STOCKHOLM, Sweden--(BUSINESS WIRE)--July 27, 2000--Ericsson (NASDAQ:ERICY - news) has been awarded a contract valued at more than USD 200 million by PEGASO for CDMA equipment and services to expand the network in Mexico. Ericsson, demonstrating its position as the world's leading supplier of wireless infrastructure, will deliver CDMA equipment and services to further PEGASO's build-out of a nation-wide, all-digital PCS network. The expansion, which extends coverage outside Mexico City, Tijuana, Monterrey and Guadalajara, will bring the high quality voice and data service offerings of PEGASO to an increased portion of the Mexican market. ``Ericsson is committed to supporting PEGASO's continued growth, in terms of network capacity, footprint and the introduction of wireless data services,'' said Ake Persson, head of Ericsson's CDMA Systems business unit. ``The equipment we are supplying comes with a clear migration path to cdma2000, allowing PEGASO to take advantage of our premier 3G offering in the near future.'' ``As we continue to expand our network and bring advanced services such as mobile Internet to customers throughout Mexico, it is important for us to partner with leading vendors like Ericsson. We believe their CDMA solution will provide us with state-of-the-art technology that will allow us to quickly and cost-effectively upgrade to cdma2000,'' said Michael Robinson, Chief Operating Officer of PEGASO. The contract includes Ericsson's leading 1106 and 1107 Compact Radio Base Stations, CMS 11 AXE switches, JAMBALA(TM) based HLR, a billing mediation platform, network management products and a full portfolio of services. Deployment is set to begin immediately with plans for initial commercial operation by December of this year throughout the four regions. Brian H.