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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (39296)	4/25/2001 8:28:11 PM
From: Stoctrash	Read Replies (1) \| Respond to of 50167

.....and if the econ is so strong QCOM would not have warned HUGE for next qtr now would they? You call a 33%+ earnings warning just a minor thing?? Wake up..smell the coffee, this is AMERICA not some London bungalow dude! ...& Quilcom is -8 AH, sweet!! =========== Qualcomm meets estimates, warns sharply for Q3 April 25, 2001 06:30 PM ET by Rex Crum RELATED STORIES •China delays 3G decision, Qualcomm feels the heat •Qualcomm steady after mixed reports •Qualcomm fighting fires • More by Rex Crum -------------------------------------------------------------------------------- Wireless technology company Qualcomm (QCOM) met the Street's estimates for its second quarter today but sharply lowered guidance for the coming quarter. Qualcomm earned 29 cents a share compared with 26 cents a share in the second quarter of 2000. Revenue came in at $713 million, beating analysts' estimates of $698 million and ahead of the $649 million it reported a year ago. The company also shipped a record 16 million of its MSM integrated circuit chips, which are used in Qualcomm's CDMA wireless technology platform. Pro forma gross margins grew to 65 percent, up from 64 percent in the same quarter last year. Lowered guidance for Q3 However, all those numbers are not likely to appear as gaudy next quarter as Qualcomm cut its earnings and chip-shipment forecasts due to what company officials said was a slowdown in customer orders. "The global economic uncertainty is resulting in slower growth," Qualcomm CEO Irwin Jacobs said in a conference call regarding Qualcomm's earnings. Qualcomm now expects that it will earn 21 cents a share -- far below analysts' expectations of 33 cents a share -- and ship 14 million of its chipsets during its third quarter. Jacobs also lowered Qualcomm's estimate of CDMA-based phones sold this year to 80 million units from 90 million. For the full year, Qualcomm now expects to earn $1.05 a share, while analysts surveyed by Thomson Financial/First Call were looking for $1.26 a share. The full-year results will include a loss of about 8 cents a share for its stake in satellite telephone company Globalstar (GSTRF). In after-hours trading, Qualcomm shares were down 7.7 percent, or $4.55, at $54.95. The stock has lost 54 percent in market value since reaching a 52-week high of $120 a share on May 2, 2000. Royalty revenue down too The majority of Qualcomm's revenue comes from royalties the company gets every time it licenses CDMA technology or a CDMA-based phone is sold. However, company officials said they believe there will be a 20 percent annual decrease in the prices of CDMA phones, thus resulting in lower revenue for Qualcomm. "We are hopeful this is a near-term issue," said Qualcomm President Richard Sulpizio, who added that the company is optimistic about a market turnaround in 2002 due to more commercial contracts for its third-generation networks that use CDMA technologies. Sulpizio added that Qualcomm had canceled its planned public offering of Spinco, its semiconductor business, and will instead distribute all of Spinco's stock to current Qualcomm shareholders.