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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (48652)	11/7/2001 1:33:07 PM
From: Eric L	Respond to of 54805

re: QCOM FY 2001 and 2001 Q4 Earnings - GAAP Loss v. Pro Forma Profit << what should have been simple - get the bad accounting adjustments out before, repeat before, the year end cc. >> I totally agree. I can't for the life of me figure out why they did not. Thinking back on recent SSB reports (and others), I think they guided the analysts somewhat behind the scenes, but so far as I know, nobody ever mentioned the SAB 101 accounting adjustment of the substantial NOK license fee. I also think it's distracting to have to be listening to tales of, and thinking about, the Vespers, Pegasos, and Globalstars of the netherworld. Meantime, on the numbers and relative to traditional valuation which can't be ignored: * net loss of $44.5 million in the fourth quarter, missing Wall Street's lowered expectations by a nickel. * reported a profit, excluding one-time items and new accounting rules, of $186.1 million, or 23 cents a share, compared with pro forma earnigs of 25 cents a share the same time a year ago. * expects revenue growth of between 15 percent to 25 percent for all of 2002 and pro forma earnings of between $1.10 and $1.20 per share on the year ... estimate on the sale of 85 million and 95 million phones using Qualcomm's CDMA technology during 2002, along with a 10 percent drop in the average price of the phones. * For the year, Qualcomm lost $548 million or 73 cents a share on revenues of $2.7 Billion. ... [down from 3.2 Billion year prior]. >> Qualcomm Loses $44.5 Million in 4Q November 7, 2001 AP Wireless technology firm Qualcomm reported a net loss of $44.5 million in the fourth quarter Tuesday, missing Wall Street's lowered expectations by a nickel. Qualcomm said pro forma income fell 13 percent in the fourth quarter. The company reported a profit, excluding one-time items and new accounting rules, of $186.1 million, or 23 cents a share, compared with pro forma earnigs of 25 cents a share the same time a year ago. The company had been expected to report earnings of 25 cents a share, according to a survey of analysts by Thomson Financial/First Call. Qualcomm said a regulatory accounting change by the Securities and Exchange Commission lowered earnings by $32 million or 3 cents cents a share. It also said lower interest on loans to Pegaso, a Mexican wireless operator, lowered earnings another 2 cents. Qualcomm said it is in talks with an unidentified third party to sell its stake in Pegaso. For the year, Qualcomm lost $548 million or 73 cents a share on revenues of $2.7 billion. Qualcomm shares were up $1.65 to close at $54.73 in trading on the Nasdaq Stock Market, but fell $4.53, or more than 8 percent, in extended trading. Qualcomm expects pro forma revenues to increase 5-10 percent in the first quarter of 2002 and expects to report earnings for the quarter between 21 cents and 24 cents per share. With the global economy showing very low growth, Qualcomm said it expects revenue growth of between 15 percent to 25 percent for all of 2002 and pro forma earnings of between $1.10 and $1.20 per share on the year. The company based its estimate on the sale of 85 million and 95 million phones using Qualcomm's CDMA technology during 2002, along with a 10 percent drop in the average price of the phones. << Morningstar's Todd Bernier, ever conscious of valuation, comments: * messy results (as usual) * missed consensus analysts' estimates on both revenue and earnings ... * amazing to us that Qualcomm's inflated valuation ... has not yet been dismantled like that of its industry peers * ... even if the customary laundry list of pro forma adjustments are excluded. >> After Tuesday's market close, Qualcomm QCOM reported messy results (as usual) for the September quarter. The firm missed consensus analysts' estimates on both revenue and earnings, even if the customary laundry list of pro forma adjustments are excluded. On the conference call, management forecasted EPS for this fiscal year (September 2002) only modestly higher than the previous year. It is amazing to us that Qualcomm's inflated valuation--15 times sales, 50 times earnings--has not yet been dismantled like that of its industry peers, especially considering a lack of substantial EPS growth prospects. << ... but analysts in general like this company ... and so do we. Gorilla power? Overall Financial Health? Technology? - Eric -