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

To: gdichaz who wrote (31618)	6/3/1999 1:42:00 PM
From: Ruffian	Respond to of 152472

Bloomberg. Qualcomm Shares Rise on Optimism Earnings May Beat Estimates Qualcomm Shares Rise on Optimism Earnings May Beat Estimates San Diego, June 3 (Bloomberg) -- Shares of Qualcomm Inc., developer of the world's second-most popular cellular technology, rose as much as 8.5 percent on expectations earnings may beat estimates on demand for the company's wireless phones and semiconductors. Qualcomm rose 6 to 104 7/8 in late morning trading. Earlier, the shares, which have quadrupled this year, touched 107 5/16. Demand is increasing worldwide for chips and phones that use Qualcomm's code-division multiple access technology, Tim Luke, an analyst at Lehman Brothers Inc. wrote in a research report. Luke expects to raise his earnings estimates for the fiscal third quarter ending June 30 and the year ending Sept. 30 based on the sales and royalty payments from companies that use CDMA. ''We remain encouraged by the strong growth prospects for both Qualcomm and the global CDMA market,'' said Luke, who met with Qualcomm Chief Financial Officer Anthony Thornley yesterday. Luke, who rates Qualcomm ''strong buy,'' said his earnings estimates ''may be revised steadily upwards over the balance of 1999.'' He currently expects Qualcomm to earn 65 cents a share in the third quarter and $2.11 for the year. Analysts polled by First Call Corp. expect 61 cents for the quarter and $2.01 for the year. CDMA 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. Qualcomm shares had fallen from a record 119 3/4 in the last weeks on concern that sales and earnings would slow after the Korean government ordered local wireless providers to stop subsidizing phone sales starting April 1. Luke said orders for chips in Korea are still strong, and demand is accelerating in the U.S., Japan and Brazil. On May 18, Qualcomm said third-quarter earnings will meet or exceed analysts' estimates. Since then, the average estimate of analysts polled by First Call Corp. has risen to 61 cents a share from 59 cents. NYSE/AMEX

To: gdichaz who wrote (31618)	6/3/1999 3:14:00 PM
From: Gregg Powers	Read Replies (4) \| Respond to of 152472

Chaz: Be careful about what you ask for...you just might get it. As I now see the world, QC is better off without convergence as previously defined. Remember...prior to the ERICY deal, there was concern that the Europeans would attempt to circumvent QC's IPR with W-CDMA. QC said that could not/would not happen and ultimately Ericsson capitulated (and agreed to a royalty bearing license that provides for royalties regardless of the deployment mode). Do you get it? From a royalty standpoint, QC no longer cares whether the Europeans deploy cdma2000 or WCDMA. Now, from a strategic standpoint, I feel the multi-mode outcome has material long-term benefits to Qualcomm. Think about it this way. Had convergence been achieved, and the world settled on one mode, then everyone's resources would be directed at manufacturing ASICs, infrastructure and handsets compliant with a single standard. All of those resources, chasing a single standard, probably would have led to an accelerated commoditization curve...this would have been good for the carriers, but less attractive for the equipment vendors. Instead, we now get multi-modes...everyone's resources are split chasing a semi-proprietary strategies; Qualcomm gets royalties on everything AND Qualcomm is ideally positioned to protect (and expand) its ASIC franchise (since it will take far longer for everyone to sort out the multiple mode technologies). All the best, Gregg