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

To: golfinvestor who wrote (92755)	1/26/2001 6:31:33 PM
From: golfinvestor	Respond to of 152472

Management`s Discussions: 10-Q, QUALCOMM INC 2 of 2 In the first quarter of fiscal 2001, $193 million in cash was used by the Company in investing activities, including $138 million for investments in unconsolidated entities, $48 million for the issuance of notes receivable, and $27 million in capital expenditures, offset by $22 million in net sales and maturities of marketable securities. The Company intends to continue its strategic investment activities to promote the worldwide adoption of CDMA products and the growth of CDMA-based wireless data and CDMA-based wireless Internet products and solutions. As part of these investment activities, QUALCOMM may provide financing to facilitate the marketing and sale of CDMA equipment by authorized suppliers. In November 2000, QUALCOMM announced the formation of QUALCOMM Ventures, an organization that will make strategic investments in early stage companies globally to support the adoption of CDMA and use of the wireless Internet. QUALCOMM made a $500 million commitment to this strategic initiative that is expected to be invested over a period of four years. In the first quarter of fiscal 2001, the Company's financing activities provided $51 million, including $50 million from the issuance of common stock under the Company's stock option and employee stock purchase plans. In the first quarter of fiscal 2000, the Company's financing activities provided $42 million, including $31 million from the issuance of common stock under the Company's stock option and employee stock purchase plans and $12 million in net borrowings under bank lines of credit. Information regarding the Company's financial commitments at December 31, 2000 is provided in the Notes to the Condensed Consolidated Financial Statements. See "Notes to Condensed Consolidated Financial StatementsNote 3Composition of Certain Balance Sheet Captions, Note 5Investments in Other Entities, and Note 8Commitments and Contingencies." FUTURE ACCOUNTING REQUIREMENTS In December 1999, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. 101 (SAB 101), "Revenue Recognition in Financial Statements." The SEC staff subsequently amended SAB 101 to provide registrants with additional time to implement SAB 101. The Company is required to adopt SAB 101 by the fourth quarter of fiscal 2001, applied retroactively to the first quarter of fiscal 2001. The Company does not expect the adoption of SAB 101 to have a material effect on its consolidated financial position, results of operations or cash flows. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Financial market risks related to interest rates, foreign currency exchange rates and equity prices are described in the Company's 2000 Annual Report on Form 10-K. Available-for-sale equity securities and derivative instruments recorded at fair value under FAS 115 and FAS 133, respectively, subject the Company to equity price risk. The recorded value of available-for-sale equity securities decreased to $207 million at December 31, 2000 from $426 million at September 24, 2000. The recorded value of derivative instruments subject to FAS 133 at December 31, 2000 is $99 million. The Company generally invests in companies in the high-technology industry, and typically does not attempt to reduce or eliminate its market exposure on these securities. As of December 31, 2000, four equity positions constituted approximately 89% of the fair value of the available-for-sale equity securities portfolio. During the first quarter of fiscal 2001, many high-technology stocks experienced a significant decrease in value, negatively affecting the fair value of the Company's available-for-sale equity securities. The portfolio's concentrations in specific companies and industry segments may vary over time, and changes in concentrations may affect the portfolio's price volatility. At December 31, 2000, there have been no other material changes to the market risks described at September 24, 2000. Additionally, the Company does not anticipate any near-term changes in the nature of its market risk exposures or in management's objectives and strategies with respect to managing such exposures. (c) 1995-1999 Cybernet Data Systems, Inc. All Rights Reserved. Received by Edgar Online: Jan. 26, 2001 CIK Code: 0000804328 SEC Accession Number: 0000912057-01-002967