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

To: Caxton Rhodes who wrote (30279)	5/18/1999 5:12:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Some Good "Pro" Q Comments> Qualcomm Sees 3rd-Qtr Profit at or Above Estimates (Update3) Qualcomm Sees 3rd-Qtr Profit at or Above Estimates (Update3) (Updates with closing share activity.) San Diego, May 18 (Bloomberg) -- Qualcomm Inc., which developed the second-most-used wireless technology, said it expects fiscal third-quarter profit to meet or exceed analysts' estimates on demand for its cell phones and chips that run them. The San Diego-based company is expected to earn 59 cents a share in the quarter ending in June, the average estimate of analysts polled by First Call Corp. A year earlier, the company earned $25 million, or 17 cents a share. Qualcomm said demand for its phones and semiconductors has increased since the second quarter, as have royalties from companies that use its code-division multiple access wireless technology. Qualcomm shares have more than quadrupled this year as its standard gains customers in new markets including Japan and Brazil. ''The overall wireless market is very robust, and CDMA is the fastest-growing segment,'' said Tim Luke, an analyst at Lehman Brothers Inc. who rates Qualcomm ''strong buy.'' CDMA provides more capacity than competing digital cellular standards and is considered more efficient for data services that let users send and receive e-mail and browse the Internet. In the second quarter ended March 28, profit rose to 41 cents a share, after adjusting for a 2-for-1 stock split last week. Korea, Japan Qualcomm fell 5 9/16 to 103 3/16. The Wall Street Journal reported today that the company is facing investor concerns as sales in Korea have fallen after the government ordered local wireless providers to stop subsidizing phone sales starting April 1. The company denied that sales and earnings will be hurt by the change. ''We're continuing to see strong demand and not just in Korea,'' said Julie Cunningham, a Qualcomm spokeswoman. ''Korea was the first market to deploy CDMA, but we're seeing lots of other regions build systems now.'' Analysts said that although sales in Korea have fallen, they're rising in Japan, where two of the country's largest cellular companies recently completed a nationwide network that uses Qualcomm's technology. ''Korea's being offset by Japan,'' said Gregory Geiling, an analyst at J.P. Morgan Securities Inc. who rates Qualcomm shares ''buy.'' Lehman's Luke estimates the number of CDMA subscribers worldwide will more than double to 52 million this year and rise to 85 million in 2000. ''This subsidy issue in Korea is really a speed bump,'' Luke said.