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

To: SKIP PAUL who wrote (25119)	3/25/1999 11:52:00 PM
From: JGoren	Respond to of 152472

I wondered same thing about vendor financiing. Qcom still has commitments to Leap; could use it for some of the non-US handset vendor financing for some of the start-ups. I interpret Irwin's answer as whatever cash will be left, will be retained for vendor financing rather than borrowing money. If this goes as hoped, there will be a big cash need to support the heavy increase in sales. There may be a time lag in ASIC's, too, since the chips are shipped for infra purposes well before the equipment is built and delivered and then paid for.

To: SKIP PAUL who wrote (25119)	3/26/1999 12:44:00 AM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

Skip - I guess QCOM could porvide vendor financing for CSM ASIc's. What makes you think there is no excess cash? As far as I know the terms were not disclosed. I went back and listened to two parts of the conference call again, one in particular being the question to Dr. J asking what was going to be done with the cash from the sale. The answer was 'Both companies will provide substantial cash for future infrastructure [my emphasis] growth' This is not an exact quote, but the point was that much of the cash will be used for infrastructure growth (he didn't actually say vendor financing, but he did very specifically say infrastructure.) I think it is very important to know what that means. Clark