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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: JGoren who wrote (21170)	4/5/2002 12:38:47 PM
From: Mark Fleming	Read Replies (1) \| Respond to of 196654

Goldman Sacks on QCOM chipset > > 26 QUALCOMM, Inc. [QCOM] $36.60 > QCOM: MSM5100/5105 defect detected and corrected; minor issue; > reiterate RL > Nathaniel Cohn (New York) 1 212 357-7512 > Seogju Lee (New York) 1 212 902-6785 > > EPS (FY Sep): 2002E US$0.90, 2003E US$1.11 - Recommended List > > * QCOM issued a press release yesterday indicating that it had detected a > defect on a small % of its initial shipments of MSM5100/5105 chipsets. > QCOM discovered the defect immediately and quickly put into place new > screening tests and replaced chips with defects in the field. We > believe QCOM issued a statement yesterday in response to inquiries it > received following Audiovox's conference call where Audiovox indicated > delay in getting 1x phones qualified due to chipset and software > issues, > which are expected to be resolved shortly. We continue to believe QCOM > is a name to own entering 2H02 as several 1x upgrades and new networks > go online and seasonality work in its favor. Reiterate RL rating. > * CHIPSET ISSUE RESOLVED, NO MATERIAL IMPACT TO NUMBERS > We believe that QCOM did not issue a press release on this issue > until yesterday despite it happening in the early stages of the > production ramp for these chipsets because the impact was so minor that > it was not material enough to do so. With a multitude of questions and > concerns surrounding comments made by Audiovox on its conference call, > QCOM decided to issue a statement in an attempt to mitigate concerns. > On Audiovox's conference call yesterday it cited the chipset issue and > software modifications as causes for the delay in its ability to get > its > 1x phones qualified at several US carriers. Audiovox did, however, > indicate that it expected to be qualified shortly and to be shipping > its > 1x phones based on the MSM5100 and MSM5105 within the month. We do not > believe that the full extent of the software issues causing Audiovox to > be delayed from volume shipments of its 1x phones relates to this issue > and we would also note that Kyocera is already shipping 1x phones in > high volume to the US market and has seen good success. Additionally, > we would note that the defect with QCOM's chips was characterized as > 'normal' yield related issues when beginning a production ramp and the > resolution required a new screening test rather than a re-spin of the > chip. We believe the percentage of chips impacted was very low and do > not see this as having any material financial impact for the company.