Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (65691)	2/7/2001 11:50:19 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

The following snippet is from sellreport who also doubts QCOM's revenue growth. Despite the revenue shortfall from GLOBALSTAR and Omnitracs, the company was able to beat the analysts' consensus of $0.28 by one penny. But some onetime occurrences allowed it to do so: 1.The company reported a $15 million equity gain in one of its outside investments. 2.It was able to lower its affected tax rate to 35% from 37% because a greater percentage of its business came from countries that had lower tax rates compared to last year's business. Also, in its business, which licenses the CDMA technology to network service providers, the company was able to collect on several onetime up-front license fees from cell phone companies that bought the operating system to build out their 3G (the "third generation" wireless broadband technology). While the company will eventually collect revenue from these companies as it starts to sell the 3G devices, the onetime only licensee fees should go down for a few quarters until the phones are being sold to consumers. The market always values the phone license revenue higher than the onetime-only fees because it is more likely to be repeat revenue. Yet with declining handset sales, and the constrained capital markets, the company will probably not see substantial 3G phone license revenue for quite some time. So the company finds itself in a difficult position. It must grow its first generation CDMA product in order to justify its obscene 70 P/E ratio while hoping that its service providers roll out the 3G product as quickly as possible. But judging from recent results at MOTOROLA (MOT), L.M. ERICSSON TELEPHONE (ERICY), AT&T WIRELESS (AWE) and others, it seems clear that the first generation cell phone networks are reaching a peak in popularity and the 3G phones are still a bit off in the future. M

To: mishedlo who wrote (65691)	2/7/2001 11:53:43 PM
From: marginmike	Respond to of 436258

Their outlook was positive and the orders for Chips were constrained by production glitches. Qcom is in the midst of a product switch, and has lost 2-3 cents do to GSTRF. The numbers may have been massaged a bit, but they are one of the few chip companies whom have good Book to bill and backlogs do to new products. Since they own 90% of CDMA chip market the mere increase in SUBS and sales, be it 20%-40% almost guarentee them real top and bottomline growth.