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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (69550)	5/20/2002 4:21:01 PM
From: 2MAR$	Read Replies (1) \| Respond to of 99280

Qualcomm reiterates full year guidance By Yukari Iwatani NEW YORK, May 20 (Reuters) - Wireless technology company Qualcomm Inc. <QCOM.O> on Monday reiterated its full year earnings and revenue guidance and said the effect of a crackdown on mobile phone subsidies in South Korea is not as bad as first expected. Qualcomm Chairman and Chief Executive Irwin Jacobs told Reuters at the Lehman Brothers wireless conference here that it still expects 2002 revenue to rise 4 percent to 8 percent with pro forma earnings of 90 cents to 95 cents a share. Jacobs said he did not plan on changing the guidance at the company's analyst meeting on Wednesday in New York. "We're very comfortable with the guidance," he said. San Diego-based Qualcomm owns most of the relevant patents to Code Division Multiple Access (CDMA), the dominant wireless technology standard in the United States. The company, like other telecommunications equipment firms, has been suffering from the sluggish economy and lower industry spending. The stock has fallen 36.5 percent since the beginning of this year. In April, the company's shares fell drastically after reports that Korean mobile phone makers would sell far fewer phones in South Korea due to a government crackdown on subsidies. A decline in handset sales in South Korea could have a significant impact on Qualcomm because the South Korean wireless industry, which bases its networks on CDMA technology, is one of Qualcomm's key customers. "Indications are that the strong concerns over the reduction was too strong," Jacobs said, adding that he believed the South Korean business would return "pretty much to normal" next quarter, helped by promotions during the World Cup soccer tournament, which South Korea is sponsoring this summer with Japan. Jacobs also said Qualcomm was on track to ship 15 million to 16 million chips in the third quarter. Jacobs said he planned to tell analysts on Wednesday that the company was on track with its guidance from April. "Essentially the message is that 1X is alive (and) very well," Jacobs said of its next-generation CDMA technology that offers high-speed Internet connections. "KDDI in Japan is off to a very strong start and very good things are happening in Korea with new models and new phones coming out. U.S. is very promising... Overall things are moving as we anticipated in our conference call." Japanese wireless telephone company KDDI launched its CDMA2000 1X service in April. CDMA2000 1X is expected to be a key growth driver for Qualcomm. Shares of Qualcomm closed off 60 cents at $31.89 on Nasdaq. ((Yukari Iwatani, Chicago Equities News, 312-408-8131)) REUTERS * end of story *