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

To: Elroy who wrote (113246)	2/14/2002 1:28:54 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 152472

>> How about asking how long it will take for Q's numbers to show the always promised improvements? Actually, that's what I was doing, Elroy. The business plan seems on track, with major wins in China, continued leadership in chip design, innovation in areas like digital theater, BREW, etc. It's frustrating that earnings and sales haven't reflected this progress, but all of us believe it will or we wouldn't be here. uf

To: Elroy who wrote (113246)	2/14/2002 7:49:15 AM
From: Keith Feral	Read Replies (1) \| Respond to of 152472

I am very impressed with the revenue gains that Qualcomm has shown in QCP. The sale of the profitless handset division in Feb 2000 drained a lot of revenue out of the company. Writedowns in Globaltar, Pegaso, and Vesper have been a major problem. What do we have now. A company with $5 billion in assets that is generating a 66% profit margin with a very clean balance sheet - for now.<g> Revenue growth is pegged at 20% off the guidance that the wireless industry has established for 2002 in the US. Global ASIC sales are expected to rise from 74 to 80 or 90 million units. Qualcomm now has about 100 wild cards up it's sleeve with 3G CDMA now hitting center stage. It's 100 CDMA licensees are beginning to launch the largest global product launch in the history of telecommunciations. Everyone needs to forget about where Qualcomm has been and focus on the growth of CDMA subs from 103 million today (per the real CDG global sub estimate) to 250 million by 2005. I think this estimate is too conservative based on the lack of visibility for WCDMA. However, I would expect the visibility to improve in the 2H 2002 economic improvement. Actually, I think CDMA sales will be ripping by June with most of the global CDMA operators looking for 3G voice and data models. Starting with the introduction of CDMA2000 nationwide by June, 1xRTT can be rapidly evolved into 1xEV - Rev A, Rev B, Phase 1, 1xEV DO, 1xEV DO. The great thing is that Qualcomm's customers will be able to interoperate all phones and wireless equipment on all CDMA2000 networks without having to worry about backward compatibility. I think this will encourage more flexibility for handset makers and equipment makers to drive the innovation the industry needs for universal acceptance of 3G CDMA.