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

To: 2brasil who wrote (85288)	10/31/2000 11:37:33 PM
From: nbfm	Read Replies (1) \| Respond to of 152472

Qualcomm Expected to Report 4th-Qtr Sales Fell on Korea Demand San Diego, Oct. 31 (Bloomberg) -- Qualcomm Inc. will report lower fiscal fourth-quarter revenue Thursday on reduced demand for the company's mobile-phone chips in South Korea, Qualcomm's largest market, analysts said. Investors are watching to see how much the trouble in South Korea has hurt sales. Revenue from continuing operations in the period ended Sept. 24 could fall as much as 11 percent to $639 million, one analyst estimates. Per-share profit from continuing operations was little changed from a year earlier because of increased pure-profit royalty revenue, analysts said. A year ago, Qualcomm's profit was surging on steadily rising revenue from chips and royalties, and the stock rose more than 27- fold in 1999. As of June 1, the South Korean government banned cellular-phone discounts, slashing demand for phones there and Qualcomm's chips that run them. Qualcomm's shares are down 63 percent this year. ``The best-case scenario for Qualcomm would be if we see the beginnings of a recovery in demand in Korea,'' said First Union Securities analyst Mark Roberts, who rates the stock a ``strong buy.'' Analysts expect fourth-quarter profit from continuing operations was unchanged from a year earlier at 24 cents a share, the average estimate based on a poll by First Call/Thomson Financial. Forecasts range from 22 cents a share to 26 cents. The 1999 figure includes Qualcomm's money-losing phone-making business, which was sold to Kyocera Corp. in February. In the fiscal third quarter, Qualcomm had profit of 27 cents a share before acquisition and stock-option costs. San Diego-based Qualcomm will report results Thursday at about 4:30 p.m. New York time. Qualcomm shares fell $3.02 to $65.11 on the Nasdaq Stock Market. The stock is down 67 percent from a record $200 on Jan. 3. Reduced Forecasts Qualcomm sells phone chips and gets royalties from licensing its patents for the code division multiple access standard, used by more than 65 million people worldwide. About 26 million of those people are in South Korea. Analysts cut their revenue and profit forecasts for the third and fourth quarters and fiscal 2001 either after the discount ban or after Qualcomm said it would ship 2 million to 3 million fewer chips in the fiscal fourth quarter than the 15 million in the prior quarter. Qualcomm is also expected to detail how it will proceed with its investment in Globalstar Telecommunications Ltd., the satellite-telephone company that analysts say is slipping toward bankruptcy. Qualcomm, the second-largest shareholder of Globalstar behind Loral Space & Communications Ltd., also makes the bulky phones for the service. Three analysts' estimates of Qualcomm's fourth-quarter chip revenue range from $253 million to $275.1 million. That's down from $358.3 million a year earlier and $338.1 million in the third quarter. License and royalty revenue in the fourth quarter rose to $171 million to $177.1 million from $147.6 million, the analysts estimated. In the wireless systems division, which mainly includes OmniTracs truck-tracking equipment and Globalstar phones, Roberts estimates revenue fell to $185 million in the fourth quarter, while Credit Suisse First Boston analyst Marc Cabi said in a research note he expects revenue of $169.5 million. In the fourth quarter of fiscal 1999, the unit had revenue of $208.6 million. Including the phone business, net income in the fourth quarter of fiscal 1999 was $136 million, or 18 cents a share. That includes a charge of $34 million to write off receivables owed to it by a failed Russian phone company. Excluding those costs and including the phone business, profit was $170 million, or 23 cents a share. (Teleconference number: 888-849-9216. The call is Thursday at 5:30 p.m. New York time. The webcast is available through a link at qualcomm.com. A replay will be available starting at 7:30 p.m. at 800-633-8284, password 16406488, or at {QCOM US <Equity> TCNI AV <GO>}. Oct/31/2000 18:54 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 2000 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.