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To: Lizzie Tudor who wrote (52327)	4/22/1999 9:04:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

Michelle, Nothing on vert. Here is the link. dailystocks.com

To: Lizzie Tudor who wrote (52327)	4/23/1999 8:02:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Price: $140 5/8 12-18 Month Price Object $175 Estimates (Sep) 1998A 1999E 2000E EPS: $1.64 $3.70 $5.00 P/E: 85.7x 38.0x 28.1x EPS Change (YoY): 125.6% 35.1% Consensus EPS: $2.75 $3.76 (First Call: 15-Apr-1999) Q3 EPS (Jun): $0.27 $0.88 Cash Flow/Share: $3.54 $5.46 $6.71 Price/Cash Flow: 39.7x 25.8x 21.0x Dividend Rate: Nil Nil Nil Dividend Yield: Nil Nil Nil Opinion & Financial Data Investment Opinion: C-2-1-9 Mkt. Value / Shares Outstanding (mn): $12,276.6 / 87 Book Value/Share (Mar-1999): $13.60 Price/Book Ratio: 10.3x LT Liability % of Capital: 41.1% Est. 5 Year EPS Growth: 30.0% Stock Data 52-Week Range: $177-$37 3/4 Symbol / Exchange: QCOM / OTC Options: Chicago Institutional Ownership-Spectrum: 30.7% Brokers Covering (First Call): 15 ML Industry Weightings & Ratings** Strategy; Weighting Rel. to Mkt.: Income: Underweight (07-Mar-1996) Growth: Overweight (07-Mar-1996) Income & Growth: Overweight (07-Mar-1996) Capital Appreciation: Overweight (10-Feb-1999) Market Analysis; Technical Rating: Average (29-Mar-1999) Intermediate term opinion last changed on 03-Feb-1999. The views expressed are those of the macro department and do not necessarily coincide with those of the Fundamental analyst. For full investment opinion definitions, see footnotes. Investment Highlights: The company reported operating EPS of $0.82, well above consensus expectations of $0.59. * Revenues were basically in-line with our estimate but royalty payments were much higher than expected. * We are raising our fiscal 1999 EPS estimate from $2.75 to $3.70 and our fiscal 2000 EPS estimate from $3.60 to $5.00. We are also raising our 5 year EPS growth rate estimate from 25% to 30%. * We are raising our 12-18 month price objective to $175 based on 35-times our fiscal 2000 EPS estimate of $5.00. Fundamental Highlights: * March quarter results were driven by much higher royalty payments and stronger than expected ASIC sales. * The infrastructure business continues to be a drag on earnings. However, given the pending sale of this unit to Ericsson, QUALCOMM provided some insight as to what results could have been without this business. Excluding the infrastructure business, operating EPS would have been $1.20. * There continues to be tremendous leverage in operating margins based on exiting the infrastructure business and increasing royalty payments. Comment United States Telecommunications/Wireless Equipment 21 April 1999 Michael E. Ching Timothy P. Long QUALCOMM Worldwide CDMA Demand Drives Outstanding Results ACCUMULATE* Long Term BUY Reason for Report: Quarterly Results Reported Merrill Lynch & Co. Global Securities Research & Economics Group Global Fundamental Equity Research Department RC#20111166 Stock Performance 30 40 50 60 70 80 90 100 110 120 130 140 150 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 1996 1997 1998 1999 QualComm, Inc. Rel to S&P Composite Index (500) (Right Scale)