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

To: marginmike who wrote (122275)	7/26/2002 8:35:07 AM
From: John Carragher	Respond to of 152472

Qualcomm Could Exceed Expectations In 2nd Half, CFO Says DOW JONES NEWSWIRES By Pat Maio Of DOW JONES NEWSWIRES LOS ANGELES -- Qualcomm Inc. (QCOM) reported Thursday fiscal third quarter earnings that beat its own projections largely due to record shipments of mobile phone chips. The San Diego-based wireless technology company beat Wall Street earnings estimates and slightly raised its financial forecast for the year to the high end of its previous expectation. Anthony Thornley, president and chief operating officer, said in a phone interview that Qualcomm has a rosy outlook given demand for its new phone technology and well-managed inventory of its current products. Momentum is building in the pipeline for the second half, generally with new next-generation cell phones and wireless devices coming to market soon -- something Thornley sees as helping to fuel an uptick in replacements. "There is a potential for upside," he said. Verizon Communications (VZ), Sprint Corp. (FON), Alltel Corp. (AT) and others could contribute to a strong Christmas season for Qualcomm as they roll out handsets that include Qualcomm's wireless technology and software, Thornley said. "Last year, there was nothing exciting and new from the cellular phone operators but this year there'll be a whole range of new models," Thornley said. Sparking growth in the company's third quarter ended June 30 were strong shipments of its so-called mobile station modem, or MSM, phone chips and third-generation wireless phone chip technology. Qualcomm shipped over 16 million MSM phone chips during the third quarter compared with 14 million in both the same quarter last year and in its 2002 second quarter. The company expects demand to continue into its fourth quarter, with shipments of MSM phone chips reaching 18 million to 19 million. Analysts on the call were pleased to hear Qualcomm executives back a previous forecast that calls for shipping 80 million to 85 million chipsets that use the company's code division multiple access, or CDMA, this year. Qualcomm's CDMA technology is the main standard for wireless phones in the United States. Thornley said on the conference call with analysts after the close of the market Thursday that the company is seeing increasing demand for all of its products everywhere Latin America, where economic conditions continue to be weak. Generally, demand has been particularly strong for Qualcomm's third-generation 3G CDMA2000 1X chips, BREW software and global-position location technology. Qualcomm said it shipped about 11 million 3G CDMA2000 1X phone chips during the third quarter for a total of about 31 million in the year. In the fourth quarter, the company expects 15 million shipments. Verizon, Sprint and other wireless carriers have detailed rollout plans for 3G phones using Qualcomm's CDMA wireless technology. Much to do has been made of these futuristic wireless phones using CDMA technology because they will allow phone users to roam around more freely than current cell phones, have color screens and provide access to high-speed wireless Internet connections. Earlier Thursday, Qualcomm reported a third quarter loss of $13.7 million, or two cents a share, on revenue of $771 million. This compared to a loss of $193.5 million, or 26 cents a share, on revenue of $657 million, in the year-earlier period. Excluding investments and amortization of goodwill, Qualcomm reported a profit of 24 cents per share compared with 20 cents a year ago. Analysts surveyed by Thomson First Call estimated that Qualcomm would earn 22 cents a share. Qualcomm said previously that it would meet or beat the high end of its target of 21 cents a share to 23 cents a share. Shares of Qualcomm closed Thursday at $25.65, down $3.45, or 11.86%, on volume of 29.4 million, compared with daily average volume of 15.95 million. In the after-hours market, the stock gained $1.80, or 7%. The company estimated fourth quarter earnings per share, excluding items, at 26 cents or 27 cents a share, assuming shipments of about 18 million to 19 million MSM phone chips in the fourth quarter and 15 million 3G CDMA2000 1X chips. For the fiscal year ending in Septemeber, the company expects earnings of 93 cents a share or 94 cents a share, excluding items. -Pat Maio, Dow Jones Newswires; 323-658-3776; patrick.maio@dowjones.com By Pat Maio Of DOW JONES NEWSWIRES (This report was originally published late Thursday.)