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

To: dougjn who wrote (8078)	2/6/1998 4:29:00 PM
From: Candle stick	Respond to of 152472

This is a nice summary of what took place today: ****Qualcomm Stock Down On Earnings, Layoff Warnings SAN DIEGO, CALIFORNIA, U.S.A., 1998 FEB 6 (Newsbytes) -- By Bob Woods, Newsbytes. Shares of Qualcomm Inc. [NASDAQ:QCOM] were down more than 15 percent in early morning trading Friday, after the company warned it would lay off 700 temporary workers and would report reduced earnings in the second quarter, as a result of the economic trouble in Asia. Qualcomm was down 8.50 at 47.75 just before 10:00 AM EST on Wall Street. The number of Qualcomm shares traded at that point already exceeded the average volume seen over an entire day in the past 30 days. In addition, Merrill Lynch cut its near-term rating on Qualcomm to neutral from accumulate, and kept its long term rating at accumulate. First Call's consensus of analyst estimates had put Qualcomm earning $0.50 a share for its second quarter, Newsbytes notes. But that number was compiled before the layoff news, which was released after Thursday's stock market close. Qualcomm said the main reason behind the layoff and earnings warning came from partial cancellations or postponements of second quarter orders of Application Specific Integrated Circuits (ASICs) from two South Korean manufacturers. Also, Qualcomm concluded that a previously announced order for its new Q Phone, an 1800 megahertz (MHz) personal communications services (PCS) model, will not be fulfilled. Qualcomm also said that overall 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, a delay in introducing the 800 MHz cellular Q Phone, and a recent reduction in demand for 1900 MHz PCS Q Phones. Even though demand for Qualcomm's QCP models remains strong, and production ramp ups continue, the company said it was reducing its manufacturing workforce by approximately 700 temporary workers this week, partly due to the change in mix between the Q Phone, which requires more labor, and the QCP portable phones, with their lower labor content. Qualcomm also said that temporary worker employment levels fluctuate with product demand and cost improvements made by the company. Qualcomm Chairman and Chief Executive Officer (CEO) Dr. Irwin Jacobs said that even though South Korea is currently in economic turmoil, the region represents "vibrant" long-term opportunities for the company. Reported By Newsbytes News Network: newsbytes.com . -0- (19980206/Press Contacts: Christine Trimble, 619-651-3628) ================== RFC 822 Headers ================== Return-Path: Ian_C._Stokell@newsbytes.com Received: from newsbytes.com (uucp@localhost)