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

To: dougjn who wrote (8076)	2/6/1998 4:34:00 PM
From: Clarksterh	Respond to of 152472

Doug - Near term, Qcom has about as high an exposure to Korea's economic troubles (as opposed to banking/financial) as anybody I can think of. Along with the chip equip makers. Actually, most of the chip equ makers have comparatively little exposure. Lam, as an example, has only a 10% exposure to Korea, and less than 20% for all of the hurting countries. Plus, as an additional difference, most of QCOM's exposure in Asia was actual consumers in Asia, whereas the equ. makers are selling to manufacturers who primarily sell to economies which are not hurting. Thus, the equ makers may experience a temporary slow down, but someone else will soon (1 or 2 Q) pick up the slack because the end demand is still there whether SEA goes belly up or not. However, there aren't too many Q customers who say, 'Well, Joe Kim over in Korea couldn't buy a Q phone so I'd better.' Clark PS None of this is to say that QCOM can't pick up the slack by growing elsewhere, but it is likely to take more time than with equ. companies.

To: dougjn who wrote (8076)	2/6/1998 4:44:00 PM
From: dougjn	Read Replies (4) \| Respond to of 152472

Yes, I agree with you, Q does have more exposure to Korea than most (perhaps than all) chip equip makers. I knew Q had a lot of exposure to Korea before last night's conf. call, but had no idea just how large it is. (Sales to Korea are not the measure. Point is the hugh impact Asic profits, and in particular Korean asic profits, have on their net results, and offset losses elsewhere.) (Though paranthetically, I think that the fact that chips most sell through Asia to US and Europe is overplayed...Korean cos can't even get trade financing now, much less longer term equipment financing (unless the equipment makers decide that Korea is now a dandy financial risk, and decided to be banks to the area themselves.) Doug

To: dougjn who wrote (8076)	2/7/1998 3:49:00 PM
From: Elmer Flugum	Read Replies (1) \| Respond to of 152472

Soundview financial lowered their 1998 earnings forecast from $2.19 to $1.41 with an option to make small adjustments from there.