I forgot the guys who live out of the USA so here's the articile as well as the international phone number.
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Thursday February 5, 4:44 pm Eastern Time
Company Press Release
SOURCE: QUALCOMM Incorporated
QUALCOMM Provides Update on Korean Market Impact and Other
Events - Company Expects Reduction in Second Quarter Earnings From
Prior Quarter -
SAN DIEGO, Feb. 5 /PRNewswire/ -- QUALCOMM Incorporated (Nasdaq: QCOM - news) today announced that it expects a
reduction in second quarter earnings and Communications Systems margin from the prior quarter, due primarily to recent events
involving its customers in South Korea.
Two Korean manufacturers have just requested a partial cancellation or postponement of second quarter orders of Application
Specific Integrated Circuits (ASICs). Further, following a recent visit to Korea, the Company concluded that a previously
announced order for 1800 MHz Q(TM) phones will not be fulfilled. Sales of the Q phone are expected to be lower than planned in
the second quarter due to the loss of the Korean order for 1800 MHz Q phones, the delay in introducing the 800 MHz cellular Q
phone, and a recent reduction in demand for 1900 MHz PCS Q phones. Demand for the QCP models remains strong, and
production ramp up at QPE continues.
''We are confident that, despite the current economic turmoil, the Asian markets including South Korea represent vibrant
long-term opportunities for QUALCOMM and CDMA,'' said Dr. Irwin Jacobs, chairman and CEO of QUALCOMM
Incorporated. ''We are working actively with our Korean customers to help them weather this difficult economic downturn.
CdmaOne(TM) technology continues to be rapidly deployed around the world.
Although the financial markets remain in a state of flux, we anticipate the weaker won will strengthen Korean suppliers in their
export of CDMA and other products in future quarters. Further, we do not believe that the economic downturn in this region will
delay global acceptance of cdmaOne, now present in more than 30 countries around the world.''
Despite the continuing ramp up in capacity at QPE, the Company is reducing its manufacturing workforce by approximately 700
temporary workers this week. This reduction is partly due to the change in mix between the Q phone, with its higher labor content,
and the QCP portable phones, with their lower labor content, and partly to ongoing cost improvements and increased
manufacturing efficiencies. The Company previously indicated that temporary employment levels at QPE vary with changes in
production levels.
QUALCOMM continues to lead the evolution of cdmaOne, including higher data rates and capacity and the recent successful
demonstration of a GSM/CDMA overlay system. Looking forward, the Company notes the now central role of the Company's
technology in third generation (3G) systems, as indicated by the selection of W-CDMA by the European Telecommunications
Standards Institute (ETSI).
The Company plans a conference call at 5:30 p.m. Eastern time today to discuss these events and other issues of interest. U.S.
participants please call 1-800-205-9958, reservation number 3841892. International participants please call 1-415-908-4724,
reservation number 3841892.
The re-broadcast of today's conference call will begin at 7:30 p.m. Eastern time today and will be available for three business
days. Domestic participants should dial, 800-633-8284 -- reservation number 3841892. International participants should dial,
303-248-1201 -- reservation number 3841892.
Headquartered in San Diego, QUALCOMM develops, manufactures, markets, licenses and operates advanced communications
systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the
OmniTRACS(R) system (a geostationary satellite-based, mobile communications system providing two-way data and position
reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the
Globalstar(TM) low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro(TM)
electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers
worldwide. For more information on QUALCOMM products and technologies, please visit the Company's web site at
qualcomm.com.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to
risks and uncertainties, including the Company's ability to successfully manufacture and sell significant quantities of CDMA
handsets, ASICs and infrastructure equipment on a timely basis, changes in economic conditions of the various markets the
Company serves including the Asian markets, continued currency fluctuations and risk, the ability to develop and introduce cost
effective new products in a timely manner, potential delays in the commercial implementation of the Company's CDMA
technology, continued growth in the CDMA subscriber population and the scale-up and operations of CDMA systems,
developments in current or future litigation, the Company's ability to effectively manage growth and the intense competition in the
wireless communications industry, risks associated with vendor financing, timing and receipt of license fees and royalties, failure to
satisfy performance obligations, as well as the other risks detailed from time to time in the Company's SEC reports, including the
report on Form 10-K for the year ended September 28, 1997 and most recent Form 10-Q.
QUALCOMM, OmniTRACS and Eudora are registered trademarks of QUALCOMM Incorporated. Globalstar is a trademark of
Loral QUALCOMM Satellite Services, Incorporated. cdmaOne is a trademark of the CDMA Development Group.
SOURCE: QUALCOMM Incorporated
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