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

To: Gregg Powers who wrote (11844)	6/26/1998 2:38:00 PM
From: Webster	Respond to of 152472

Well here is my $.02 worth of the "interpretation" of what's been written. My conclusion is that I believe john scurci is the most accurate. I believe that the wording of Cabi's statement is carefully constructed and attempts to bring out an issue which albeit real, is 3 to 4 months (or more) old and has already been addressed by Q management. Looking through my seven pages of notes on the conference call dated April 21, Irwin started the conference call with reference to strong revenues and then immediately talked about phones saying there was high overall demand but there were some problems during the quarter. After Irwin spoke Tony gave his report. The first analyst question was from Cowen & Co. which asked about the tax rate and then asked to discuss the phone situation in more detail....Irwin says there were two issues, one regarding an out of tolerance casing and the other a connector issue. He said these were supplier issues which have been addressed during the quarter and that he was satisfied the issue was behind them. My take on the gross margins during Q2 was that the warranty issues had driven margins lower. Later in the call Goldman Sachs asked about gross margins on comm systems on a go forward basis. Tony answered by saying that comm system margins in Q3 would improve. I believe the conservatism on the conference call is just that - q is conservative. Interpretation can leave one believing another person is less than forth coming. All indications are that net income in Q3 should be better than Q2 base on the answers to the questions raised by the analysts during the call. thanks. Web.

To: Gregg Powers who wrote (11844)	6/26/1998 3:33:00 PM
From: John Cuthbertson	Read Replies (2) \| Respond to of 152472

Gregg, Thanks a bunch for the quick contact with QCOM management. I'm very glad to hear that Dick Grannis said the problem has been "resolved." I am hoping that the exact connotation of "resolved" is that both: 1) they are currently selling the Q phones, and 2) the Q phones they are now selling are free of the defect. Would that be your understanding at this point? ==John Cuthbertson