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

To: Cooters who wrote (43684)	12/10/2004 11:36:40 AM
From: lbmiller2000	Respond to of 197445

From Lehman's SF tech conference Dec. 9th: "QCOM COO Tony Thornley also sounded confident on trends across all key regions and we believe our estimates for Dec Q and CYO5 are also likely conservative." Here's Lehman's summary: "WIRELESS EQUIP: Handset demand appears robust with MOT's COO hosting an upbeat dinner with some suggestion our estimates for handset units may see further upside. We believe our recently raised 4q est for MOT may prove conservative. Similarly QCOM COO Tony Thornley also sounded confident on trends across all key regions and we believe our estimates for Dec Q and CYO5 are also likely conservative. " QUALCOMM Confident Tone, 1-OW While no major new initiatives were unveiled, we remain encouraged by management's confident tone. Near term, we believe QUALCOMM is tracking in line or slightly above its guidance range for the December Q with solid trends across core geographies. We maintain our revenue and EPS estimates for the December Q of $1.38 billion and $0.25 and maintain or 1-OW rating. With respect to chipset channel inventories, QUALCOMM estimates weeks of inventories should move lower from ~17 weeks in 3Q; Management notes normal levels of chip inventories average between 15 and 20 weeks. Looking further ahead, we believe a possible Nextel/Sprint combination could provide incremental opportunities for QUALCOMM. Management also noted that demand trends appear poised to strengthen through 2005 in the key regions of India (carrier promotions and lower priced phones) and China (carrier mgmt changes and new licenses). During the presentation, management underlined the themes of carrier competition driving growth and innovation. In addition, management emphasized the opportunities associated with mobile video and MediaFlo. With respect to QUALCOMM’s positioning in W-CDMA chipsets, management continues to remain upbeat around 2005, particularly with the launch of its new multi-media GSM/WCDMA 6250 chipset which is expected to launch in between 5 and 15 new handsets in 1H05 (depending on the timing of carrier approvals). QUALCOMM notes it continues to work with its licensees to aide their progress in penetrating new carrier accounts. QUALCOMM continues to work closely with Hutchison, Vodafone, Orange and others. Cingular also remains a focus for the company with LG.