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 QUALCOMM REPORTS 81 PERCENT REVENUE INCREASE
 AND NET EARNINGS FOR THIRD QUARTER
 SAN DIEGO, July 19 /PRNewswire/ -- QUALCOMM Inc. (NASDAQ-NMS: QCOM) today reported revenues for the third quarter ended June 27, 1993, of $49.1 million, an increase of $22.0 million, or 81 percent from the same quarter last year. For the first nine months of fiscal 1993, revenues were $116.0 million, an increase of $37.5 million, or 48 percent over the same period of fiscal 1992.
 Communications systems revenues were $33.7 million in the third quarter, an increase of 58 percent over the same quarter in fiscal 1992 and license and development revenues were $6.2 million for the quarter, an increase of 110 percent, compared to the same quarter for fiscal 1992. Contract services revenues were $9.2 million in the third quarter, an increase of 231 percent from the same quarter in fiscal 1992.
 The growth in revenue is primarily due to an increase of 81 percent in OmniTRACS(R) domestic and international unit sales from 3,651 units in the third quarter of fiscal 1992 to 6,624 units in the third quarter of fiscal 1993. The company has shipped more than 50,000 OmniTRACS terminals since its introduction in late 1988. Additional revenues were recognized from previously announced cellular and Personal Communication Service (PCS) contracts using QUALCOMM's Code Division Multiple Access (CDMA) technology, CDMA and OmniTRACS license fees and continuing progress on the production subcontract to supply Data Link Subsystems to the Department of Defense.
 On July 6, the company completed a new issue of 2,875,000 shares of common stock at $55.00 per share. The net cash proceeds of $151.0 million have increased the company's cash balances to approximately $200 million. As a result, interest income is expected to be substantially higher in future quarters.
 Net income for the third quarter of fiscal 1993 was $6.1 million, or $.25 per share, compared to a loss of $.6 million, or $.03 per share, in the third quarter of fiscal 1992. The increase in earnings of $6.7 million is primarily due to the growth in OmniTRACS units, message revenues, and CDMA and OmniTRACS license fees.
 In March 1993, four major Korean cellular manufacturers, Goldstar, Hyundai, Maxon and Samsung, signed support agreements with QUALCOMM to develop CDMA phones and infrastructure equipment. These companies paid an aggregate of $5.4 million under the agreements, of which $600,000 was recognized in the second quarter and the balance was recognized in the third quarter. Each of the companies has a right to obtain a license from the company to manufacture CDMA equipment. The amount of future CDMA fees will likely depend on the timing and extent to which the company's CDMA technology is commercially implemented.
 Subsequent to the close of the third quarter, the Telecommunications Industry Association (TIA) announced that it has approved and will issue immediately a North American interim standard (IS-95) for cellular telecommunications based on QUALCOMM's CDMA technology. This is the culmination of approximately one year of effort by the TIA 45.5 committee members.
 In May 1993, U S West signed a letter of intent regarding a multiyear, strategic relationship under which QUALCOMM will manufacture and sell a minimum of 36,000 CDMA digital cellular phones to U S West. This marks the first major agreement to purchase QUALCOMM-manufactured, dual-mode CDMA/analog handsets by a cellular carrier.
 "This relationship with U S West expands our role in CDMA beyond technology development," said Irwin Jacobs, QUALCOMM chairman and chief executive officer. "QUALCOMM is the first to introduce CDMA phones and is now working on second generation phones. We aim to capitalize on our technology and manufacturing capabilities to help meet the anticipated market demands for CDMA." QUALCOMM unveiled the CD-7000, the cellular industry's first dual-mode CDMA/analog portable phone, in March 1993.
 In June 1993, two important trials were announced for Personal Communications Services using the company's CDMA technology. Time Warner announced that it will operate and test a CDMA wireless PCS system in Orlando, Fla., as part of a network that will offer subscribers a wide range of interactive entertainment, information and telecommunications services. The Time Warner trial is the first integration of CDMA wireless technology into a cable television network. The tests will also demonstrate seamless hand-offs across all environments, including the home, the car and the office.
 MCI and American Personal Communications (APC) have begun testing QUALCOMM's CDMA technology in Dallas and Washington, D.C., in the first- ever demonstration of full interoperability between PCS systems and nationwide "seamless roaming" for PCS subscribers. Interoperability enables PCS subscribers to use a phone in any local operating area to call another subscriber in a different area. Seamless roaming enables PCS subscribers to make and receive calls automatically from any location without the manual registration requirements of today's cellular services.
 "CDMA's advantages can be applied in cellular, PCS and other wireless environments," noted Harvey White, QUALCOMM president. "Just as CDMA has been selected by a number of U.S. cellular carriers and the Republic of Korea for the implementation of digital wireless technology in cellular applications, we see our selection in these trials as confirmation of CDMA's utility in PCS applications."
 QUALCOMM develops, manufactures, markets, licenses and operates advanced communications systems and products based on digital wireless technology. QUALCOMM's OmniTRACS system is a satellite-based, two-way mobile communications and tracking system that provides data transmission and position reporting services for transportation companies and other mobile users in North America, Europe and Japan. QUALCOMM is developing, manufacturing and licensing Code Division Multiple Access (CDMA) technology for use in digital wireless telephone systems and products. The company also provides secure communications equipment and a range of VLSI devices for use in commercial and government applications. In addition, the company has formed a joint venture, Globalstar with Loral Corp., to launch and operate a system of low earth orbit (LEO) satellites for worldwide communications.
 QUALCOMM INC.
 Condensed Statement of Operations
 (In thousands, except per share data)
 (Unaudited)
 Three months ended Nine months ended
 June 27, June 28, June 27, June 28,
 1993 1992 1993 1992
 Revenues:
 Communications systems $33,687 $21,332 $85,710 $62,205
 License and development
 fees 6,226 2,971 8,899 7,145
 Contract services 9,224 2,785 21,353 9,138
 Total revenues 49,137 27,088 115,962 78,488
 Operating expenses:
 Communications systems 20,375 14,268 55,314 42,943
 Contract services 7,852 934 16,791 5,758
 Research and development 6,101 7,807 18,763 18,537
 Selling and marketing 4,705 2,244 11,245 7,455
 General and administrative 3,036 2,476 8,208 6,750
 Total operating expenses 42,069 27,729 110,321 81,443
 Operating income (loss) 7,068 (641) 5,641 (2,955)
 Interest income 579 574 1,736 1,337
 Interest expense (594) (462) (1,362) (1,695)
 Income (loss)
 before income tax
 expense and equity in
 losses of joint ventures 7,053 (529) 6,015 (3,313)
 Income tax expense (946) (78) (1,039) (202)
 Income (loss) before
 equity in losses of
 joint ventures 6,107 (607) 9?76 (3,515)
 Equity in losses of
 joint ventures (49) --- (148) ---
 Net income (loss) $6,058 ($607) $4,828 ($3,515)
 Net earnings (loss)
 per common share: $0.25 ($0.03) $0.20 ($0.18)
 Shares used in per
 share calculation 24,348 21,134 24,078 19,716
 -0- 7/19/93 R
 /CONTACT: Richard F. Grannis of QUALCOMM, 619-597-5146; or Clarence Swearngan Jr. of McQuerter Group 619-450-0030, for QUALCOMM/
 (QCOM)


CO: QUALCOMM Inc. ST: California IN: TLS SU: ERN

LM-JL -- SD001 -- 6819 07/20/93 12:33 EDT
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