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

To: Jon Koplik who wrote (17674)	11/4/1998 8:46:00 AM
From: METMAN	Read Replies (2) \| Respond to of 152472

Now that's what I call reporting [by CNBC]...(eom) metman

To: Jon Koplik who wrote (17674)	11/4/1998 9:31:00 AM
From: DaveMG	Read Replies (1) \| Respond to of 152472

Jon, While I don't agree with Goldmans reasons for saying results were mixed- lower revs than "expected", higher margins, cautious forward guidance- it does seem to me that it was a mixed quarter. Great growth but that nagging problem...Most of the profits are still being spent. Operating income, comm sys + contract svs =873 mil. Operating expenses 840 mil, profit of 33 mil or about 4% BEFORE taxes, writeoffs etc. Royalties of 52 mil= 70 cents/diluted share, which sums up the story in a nutshell. The rest of the business generating nothing for the bottom line, although to be fair about 1.50$/share was invested in R&D, which is great.LEAP is gone but it's really still there isn't it, financing commitments etc. It certainly was not the blowout quarter that I was hoping for. These guys have to work out these profitability issues before they're going to gain the complete respect that they otherwise deserve.And while the future is clearly ripe with opportunity, it's also full of potential pitfalls. Hopefully they won't have problems transitioning to the pdQ. This is the one issue Tero is right about. They are competing against companies with much larger economies of scale and at this point far greater profitability. On the other hand it seemed to me that managments tone was confident, but without swagger. I agree with whoever it was that said they've decided to err on the conservative side. I get the impression that IS95 network performance is really going to start blowing GSM out of the water over the next 2 years even if the handsets still don't have as much standby time, and momentum is really only begining to build in the mktplace.And now we've got the DEVIL on our side, and I presume that'll give Q more leverage in the standards fight too. Tero is welcome to God if he so chooses. My biggest complaint though is that for a company that calls itself Quality Communications, their conf calls sound worse than all others. Are Dr.J&Co doing this call from the bottom of an empty swimming pool? I'll never forget that Korea warning last spring. Everytime a jet flew overhead the call was essentially interrupted. This is horrible PR IMO. At any rate, despite "having run up" in recent weeks from pitiful lows, the stock is still not overpriced, and it's probably safe to assume the MSFT news is a positive. Ladies and Gentlemen...Start your engines.. DMG