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

To: SKIP PAUL who wrote (18605)	11/19/1998 10:42:00 PM
From: Jon Koplik	Respond to of 152472

Sad, but true (I think). Jon.

To: SKIP PAUL who wrote (18605)	11/22/1998 4:11:00 AM
From: Anthony	Respond to of 152472

Old news but a vote of confident and share the same kind of optimism us QC shareholders hold. THE DAY AHEAD: Qualcomm executes despite global turmoil By Larry Dignan TDAIN November 4, 1998 7:48am ZDII Qualcomm Inc. (Nasdaq: QCOM) may be among the hottest technology companies you have never heard of. You'll hear about them today as the company continues to execute in a tough global environment. The company easily topped Wall Street estimates with fourth quarter earnings of $40 million, or 54 cents a share, on sales of $926 million. So the company will be a Wall Street darling for a day. But it's far from a household name. You've undoubtedly have heard of Nokia (NYSE: NOK.A) and Motorola Inc. (NYSE: MOT) when it comes to the wireless and cellular players. Wireless carriers are enjoying strong demand as people leave the wires behind. As analog cellular phones give way to digital standards, Qualcomm also stands to benefit. Qualcomm makes wireless phones and infrastructure and the Eudora e-mail program. Mainly, Qualcomm licenses its Code Division Multiple Access (CDMA) digital wireless communications products, which is quickly becoming the standard. Qualcomm shipped 1.4 million digital phones in the quarter and 7 million for the year. It also recently launched a smartphone that will work with 3Com's PalmPilot. "We achieved record product shipments in all of our major product areas, despite a challenging world economic environment,'' said CEO Irwin M. Jacobs. That global focus is the benefit and the risk with this stock. Qualcomm had a record year, but it was a rocky road. The first quarter was strong, but the second and third quarters were hampered by problems in Asia and quality problems with its phones. The company plays in Russia, Asia and recently won a three-year, $650 million contract award to provide a nationwide wireless CDMA network to Pegaso PCS in Mexico. Despite global concerns, Qualcomm has earned its stripes when it comes to execution. The company has improved margins to 29 percent in the fourth quarter from 24 percent a year ago. The company also added it would be able to sustain that performance. On a conference call with analysts, officials said Qualcomm was looking for improved profitability for all of its units and operating costs would go down as a percentage of income. Qualcomm's execution has improved despite global economic turmoil. Communications services revenue was up 65 percent for the year, fueled by shipments to Mexico. The company, however, didn't record $29 million in sales from Russia. "The company is monitoring the underlying economics of business in that region, as well as other regions affected by the continuing world economic condition," the company said. The biggest problem area for Qualcomm is Korea where the company is in a court battle over back royalty payments. But despite a few glitches in emerging markets, Qualcomm is in a good position for a strong first quarter and 1999. Officials said they expected Russia and Asia sales to improve and the company is getting a foothold in India and China. "We expect royalties and unit shipments expect to be up even though we're cautious about the Korean market," said Jacobs. "We expect infrastructure revenue to grow substantially in 1999 with the sales from the U.S. and Mexico to increase significantly." TDAIN