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

To: Greg B. who wrote (8649)	2/18/1998 8:41:00 PM
From: Caxton Rhodes	Read Replies (1) \| Respond to of 152472

04:52 PM ET 02/17/98 INTERVIEW - Qualcomm optimistic on Korea long-term By Jessica Hall NEW YORK, Feb 17 (Reuters) - Qualcomm Inc. is concerned about the current volatility in South Korean financial markets but remains optimistic about the nation's long-term prospects, President Harvey White said Tuesday in a telephone interview. On Feb. 5, the wireless telecommunications equipment maker said its second-quarter earnings will fall below first-quarter levels due to canceled or delayed orders from South Korea, its major export market. Qualcomm also said it would cut about 700 temporary jobs. Since then, Qualcomm said it contacted its other Korean customers and does not expect any other order cancellations or delays. The company also is in talks to see if the cancelled order could be rescheduled for later in the year. "The situation in Korea is still volatile and there are still things that could happen...but we don't see any change from what we reported a week or two ago," White said. Qualcomm expects its second-quarter margins to fall below the first-quarter numbers, but believes they will be similar to the levels seen in the second quarter a year ago, White said. White declined to comment on how the cancelled and delayed orders will affect results for the full year. "It is a little uncertain, given the things we've been talking about," White said. He declined to provide more specific guidance. On a consensus basis, analysts expect the company to earn about $1.71 a share for the year ending in September, compared with $1.12 a share a year ago, according to First Call. Despite the recent weakness in South Korea's economy, "we think in the long run, the Koreans will be very healthy exporters and, in the long run, will have a very healthy business," White said. Beyond South Korea, Qualcomm said it expects minimal impact from weakness in other Asian markets. "Certainly we're watching the whole Asian system...but we have minimal current exposure in the rest of Asia besides Korea," White said. Qualcomm has a presence in the Philippines, Indonesia and Thailand. In Japan, Qualcomm said its business has been "ramping up." The South Korean market will represent proportionately less of Qualcomm's revenues as the company begins to expand in markets such as the United States, Eastern Europe, Latin America and other parts of Asia, White said. "While Asia is very important, the telecommunications needs in Latin America, Eastern Europe and even Africa...will continue to grow very rapidly," White said. Qualcomm's stock gained 3/16 to 46-3/4 in Tuesday's exchange trading, after rising as high as 47-3/4 during the day. Qualcomm's stock has lost more than 15 percent since it warned its second-quarter results would fall below expectations. ((Jessica Hall, New York Newsdesk, 212-859-1610))