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

To: David E. Taylor who wrote (92994)	1/30/2001 3:09:15 PM
From: JohnG	Respond to of 152472

QUALCOMM (QCOM) : On January 26, Deutsche Banc Alex. Brown reiterated its STRONG BUY on the shares of QUALCOMM. The wireless company announced its fiscal first quarter 2001 (ended December) results, prompting the report. Deutsche Banc had projected revenues of $705 million and share earnings of $0.28; QUALCOMM actually posted a top line of $684 million and $0.29 a share in profits. The results would have been better, but the company suffered from its investment in GLOBALSTAR (GSTRF). The satellite-telephone consortium, which QUALCOMM shares with, among others, ALCATEL (ALA) and VODAFONE GROUP (VOD), announced that it would not be servicing its debt. QUALCOMM was expecting a $22 million payment on Jan. 15, and GLOBALSTAR made the announcement on Jan. 16. QUALCOMM therefore wrote off $595 million in assets relating to GLOBALSTAR, and, owing to more conservative recognition of payments, recognized a $0.03 loss per share from its investment in the consortium. (If that sounds accounting-heavy, so does the report.) However, most other QUALCOMM operations are looking up. The company's guidance indicated that its second quarter results would remain as previously expected despite the developments above. The firm's projections are based on the belief that QUALCOMM's code division multiple access technology will drive growth through 2001 as next-generation deployment ramps up. The firm projects share earnings of $1.26 in 2001 and $1.70 in 2002. Its price target of $105 is based on a price-to-earnings metric. There were 1371 reports accessed from and 80 reports contributed to the Multex.com database during the week of January 15 to 21. thetelecommanalyst.com