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

To: JGoren who wrote (25833)	4/1/1999 8:32:00 PM
From: llwk7051@aol.com	Read Replies (1) \| Respond to of 152472

Qualcomm Shares Rise on Expected Surge in Sales San Diego, April 1 (Bloomberg) -- Qualcomm Inc. shares rose 10 percent to a record on optimism that the cellular-phone maker will see a surge in revenue from China as that country makes wider use of Qualcomm technology. San Diego-based Qualcomm rose 12 5/8 to 137 after earlier touching an all-time high of 138 3/8. The shares have gained 67 percent in the past two weeks. U.S. Commerce Secretary William Daley, wrapping up a four- day trade visit to China today, said China will let U.S. companies build code-division multiple access, or CDMA, networks across the country. Qualcomm's CDMA technology is a standard for digital cellular networks. ''China could be tremendously positive for Qualcomm earnings over the next year or two,'' said Mark Roberts, an analyst at Everen Securities Inc. in Chicago. China Unicom, that country's second-largest phone company, plans to spend about $2.86 billion this year to build cellular networks in 190 cities, most of which will use Qualcomm technology. Qualcomm's CDMA provides more capacity than rival standards and is considered more efficient for data services. Patent Settlement Qualcomm also got a lift on expectations that it will see a boost in royalty payments now that it has settled a patent dispute with rival Ericsson AB. Ericsson, the world's No. 3 cellular phone maker, on March 25 said it will begin using Qualcomm's technology to complement its own, an agreement that's expected to spread the use of Qualcomm's standards worldwide. Estimates that the company could receive $500 million in royalties from companies using its equipment and application specific integrated circuit, or ASIC, chips in China ''could be conservative,'' said Roberts, who rates the stock a ''buy.'' The companies' settlement allows each to use the other's technology for the newest mobile-phone equipment. Analysts and investors expect Qualcomm to get most of the royalty payments because it has the bulk of the patents. ''People are thinking this (settlement) will increase revenue growth,'' said Tim Luke, an analyst at Lehman Brothers Inc., who rates Qualcomm ''buy.'' Ericsson's U.S. shares rose 1 3/16 to 25. In addition, Qualcomm and Ericsson agreed to jointly support a single standard for new equipment that lets users send and receive e-mail, hold videoconferences and browse the Internet. That means Qualcomm could get a piece of more phone and equipment sales in a market that's expected to have as many as 1 billion users in five years. There are more than 23 million CDMA subscribers today, and Ericsson estimates the standard will account for about 15 percent of cellular subscribers by 2005. 19:01:42 04/01/1999