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

To: Eric L who wrote (25010)	7/27/2002 10:27:30 AM
From: Eric L	Read Replies (1) \| Respond to of 196421

re: Wireless Week on Qualcomm Earnings >> CDMA Sales Boost Qualcomm's Balance Sheet Kristy Bassuener July 26, 2002 Wireles Week news@2 direct Standing out from many mobile-business companies, Qualcomm says it narrowed losses and increased revenue during its fiscal third quarter ended in June. The company reports a net loss of $14 million, or 2 cents per share, compared with a loss of $193.5 million, or 26 cents per share, one year earlier. Sales rose 17 percent to $771 million from $657 million the same quarter of 2001. Qualcomm's bottom line in the most recent quarter was hit by $194 million in charges related to investments in Leap Wireless International, which operates the flat-rate Cricket mobile service. On a pro forma basis, Qualcomm earned 24 cents per share, compared to 20 cents per share one year ago. Analysts predicted the company would report pro forma earnings of 22 cents per share. Qualcomm says its success is fueled by the uptake of chips for CDMA2000 1x wireless services. The company earns cash by licensing its patented CDMA technology to carriers and handset makers. Growth in Korea and KDDI's 3G launch in Japan using CDMA have bolstered Qualcomm's Asia sales, while Verizon Wireless and Sprint PCS have begun to roll out phones using that technology in the United States. The company says it shipped more than 16 million of its Mobile Station Modem chipsets during its third fiscal quarter, compared with 14 million one year earlier. Looking ahead, Qualcomm plans to ship 18 million to 19 million MSM chips during the current quarter. The company also predicts it will earn 26 cents to 27 cents per share on a pro forma basis. Qualcomm also expects that 80 million to 85 million CDMA phones will sell this year, bucking investor worries that belt-tightening consumers will hold off on buying new phones. Last year 74 million CDMA phones were sold, a Qualcomm spokeswoman says. ''In a clearly challenging wireless sector, Qualcomm remains [a] preferred pick and we maintain our 1 buy rating,'' writes Lehman Brothers analyst Tim Luke. At midday, the company's stock price rose more than 1 percent to $26. << - Eric -