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

To: jackmore who wrote (48377)	11/3/2005 10:18:57 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 196449

WSJ -- Qualcomm to Vigorously Defend Against Claims At EC ................................... November 3, 2005 8:00 a.m. Qualcomm to Vigorously Defend Against Claims At EC DOW JONES NEWSWIRES (This item was originally published Wednesday.) By Mark Boslet Of DOW JONES NEWSWIRES PALO ALTO, Calif. -- Qualcomm Inc. (QCOM) vowed to vigorously fight the claims of five competitors who complained last week to European antitrust regulators about its licensing practices. The company will "vigorously defend" itself and remains "committed to licensing on fair and reasonable terms," as it has been in the past, Chief Executive Paul Jacobs said on a conference call Wednesday. The companies, including Broadcom Corp. (BRCM), NEC Corp. (NIPNY), Nokia Corp. (NOK), Texas Instruments Inc. (TXN), Panasonic Mobile Communications and Telefon AB L.M. Ericsson (ERICY), claim the royalty fees Qualcomm charges for licensing its patents are excessive. They also say it has used tactics that keep other companies from entering the market. On the conference call, following the release of fiscal fourth-quarter earnings, Qualcomm President Steven Altman called the allegations without merit. He said the company would meet with members of the European Commission to disprove the points alleged in the complaint. "This appears to be nothing but licensing remorse," Altman said. Qualcomm has the "most widely and extensively licensed portfolio in the industry." He added that the coordinated attack was an attempt to rewrite history. If the terms were unfair, the companies wouldn't have signed the pacts, he said. Altman said Qualcomm's licensing agreements with more than 130 companies in the industry foster competition. It has never failed to license to a company and only in limited instances has it offered a small discount to some European companies, he said. Company officials said they also learned the companies behind the complaint had tried to solicit the support of other firms but were turned down. In an interview with Dow Jones, Altman said he is in the process of scheduling a meeting with the European Commission. He said he expected to receive a copy of the complaint shortly and then to be asked for information. "We will cooperate with them fully," Altman said. Within three to six months, the commission will decided whether to launch a more formal investigation or whether to dismiss the matter. On the conference call, Qualcomm said markets for 3G, or third-generation, phones were healthy during the quarter in North America and Japan. European, North American and Latin American markets are expected to be strong in the first quarter, the company said. "I think it's a very healthy market," Altman told Dow Jones. "There's very healthy competition." For the first quarter, Qualcomm said it expects pro-forma earnings of 36 cents to 38 cents a share and revenue of $1.67 billion to $1.77 billion. Wall Street had been looking for 35 cents a share on $1.66 billion in sales. For the second quarter, earnings could fall 2 cents to 3 cents a share from the first quarter due to a seasonal slowing in sales and continued hiring at the company. For the fourth quarter, sales rose 40% from last year to $1.56 billion and net income jumped 37% to $538 million, or 32 cents a share. By Mark Boslet; Dow Jones Newswires; 650-496-1366 mark.boslet@dowjones.com Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved.