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

To: Ramsey Su who wrote (12296)	7/13/1998 9:57:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

Ramsey - sorry, but even I did not understand what you mean (and, you may recall, I have worked as a trader on Wall Street). I have to fall back to my old - the reason it is up is usually "more buyers than sellers." Jon.

To: Ramsey Su who wrote (12296)	7/13/1998 10:14:00 AM
From: Gregg Powers	Read Replies (6) \| Respond to of 152472

Guys.... Let's not get too short-term here...the company has just announced a seminal event and people seem to be worrying about calibrating the next uptick. Qualcomm has publicly stated that the breakeven point for its infrastructure group is somewhere between $800mm and $900mm. This contract gets the company over 80% of the way there before the $200mm Ukraine deal, Chilisat ($140mm), Nortel ($200m+) and a litany of other smaller contracts. People should understand this better after Qualcomm announces its operator/money partner (which should be a major North American cellular operator like Airtouch, BellAtantic, BellMobility etc.). Think about these numbers. By my analysis, QC's infrastructure operation generated losses between $120mm and $150mm over the last four quarters. Over the same period QC reported (adjusted for noise), roughly $115mm in net income. Were everything to remain CONSTANT (i.e. NO ASIC, handset, license & royalty or Omnitracs growth), this contract (in combination with the other infrastructure revenue) should add roughly $80mm (after-tax) to the company's bottom line. Since we should expect EVERYTHING to grow, and handset margins to recover from the manufacturing difficulties, I challenge the Forum's participants to think through the outlook for 1999 earnings. I have always said that the tonic for the stock was EPS. I think we will now find out whether I was right. Best regards, Gregg