Printer Friendly

QUALCOMM REPORTS 40 PERCENT REVENUE INCREASE AND A PROFIT FOR SECOND QUARTER, FISCAL 1993

 SAN DIEGO, April 19 /PRNewswire/ -- QUALCOMM Inc. (NASDAQ-NMS: QCOM) today reported revenues for the second quarter ended March 28, 1993, of $36.8 million, an increase of $10.5 million, or 40 percent from the same quarter last year. For the first six months of fiscal 1993, revenues were $66.8 million, an increase of 30 percent over the first half of fiscal 1992.
 The growth in revenue is primarily because of an increase of 34 percent in OmniTRACS(R) unit sales from 3,837 units in the second quarter of fiscal 1992 to 5,155 units in the second quarter of fiscal 1993, and increased contract services for government and commercial customers. The company has shipped more than 43,000 OmniTRACS terminals since its introduction in late 1988 and just recently signed a contract with J.B. Hunt Transport Services Inc., the nation's largest publicly held truckload and dry van carrier. Message revenues from the growing base of OmniTRACS units also increased significantly. Additional revenues were recognized from previously announced contracts for Personal Communications Service (PCS) equipment using QUALCOMM's Code Division Multiple Access (CDMA) technology, technical support for PCS and cellular field tests, and efforts on the production subcontract to supply Data Link Subsystems to the Department of Defense.
 Net earnings for the second quarter of fiscal 1993 were $0.4 million, or $.02 per share, compared to a loss of $1.2 million, or $.06 per share, in the second quarter of fiscal 1992. The $1.6 million improvement in earnings was primarily because of the growth in OmniTRACS units, message revenues, CDMA revenues and international license fees. The additional license fees resulted from the signing of a multimillion-dollar agreement with Autotrac Comercio e Telecomunicacoes Ltda for Autotrac to be the exclusive operator and distributor of the OmniTRACS system in Brazil.
 CDMA license and development fees remained level during the second quarter as compared to the second quarter of last year. However, the Korean Ministry of Communications recently announced that it has selected CDMA as the Korean national cellular standard, and in March, the company announced that four major Korean cellular manufacturers, Goldstar, Hyundai, Maxon and Samsung, signed agreements with QUALCOMM to develop CDMA equipment for Korea and other markets. Under these agreements, preliminary fees of about $5.0 million will be paid to QUALCOMM. A portion of these fees were recognized in the second quarter, and the majority of these fees are expected to be recognized in the third quarter.
 "We are committed to maintain a leadership position in developing and deploying digital wireless products to meet the needs of the telecommunications industry," commented Harvey P. White, president QUALCOMM. "The rapidly increasing market penetration of the OmniTRACS system domestically and around the world demonstrates the strength of this business. The substantial progress that we have made to commercialize CDMA, such as the adoption of CDMA as the Korean national standard, will add to the international prominence already enjoyed by QUALCOMM in wireless satellite services."
 Bell Atlantic recently became the third cellular carrier to announce its selection of CDMA technology for its national digital cellular strategy. Initial deployment is scheduled in the carrier's Northeast market in early 1994. "U.S. West, PacTel and Bell Atlantic have all announced major orders for CDMA equipment," observed Irwin M. Jacobs, QUALCOMM chairman and chief executive officer. "This is another important step in the commercialization of CDMA by U.S. cellular carriers who have recognized the advantages of CDMA technology and selected it for their customeres." QUALCOMM will receive royalties on the CDMA equipment manufactured by the companies selected by Bell Atlantic, U.S. West and PacTel.
 In February 1993, GTE, U.S. West and PacTel hosted an international forum attended by several hundred industry personnel where they reported on the status of CDMA tests. At the forum, GTE reported positive results regarding its CDMA field trial in Tampa, Fla., PacTel and U.S. West outlined their plans for deploying CDMA, and Ameritech reported that in its recently completed side-by-side comparison of CDMA and TDMA mobile phones, the small number of customers sampled preferred CDMA voice quality over TDMA and analog in those tests. NYNEX Mobile also purchased equipment from QUALCOMM and is conducting CDMA digital cellular tests for in-building applications in its headquarters in Orangeburg, N.Y.
 Industry standardization of CDMA technology is in its final stages. The technical specifications have been completed, and on March 15, 1993, the Telecommunications Industry Association (TIA) sent ballots to its members for a vote to approve the standard. The ballots have been returned, and the TIA is now evaluating the responses.
 InterDigital Parents Corp. has made a claim to the TIA that the proposed CDMA Standard infringes a claim in one of its patents and that it will not license its patent on a reasonable and non- discriminatory basis. In addition, the company learned on April 16 that InterDigital has filed a lawsuit against the company and one of its licensees claiming that CDMA handsets manufactured by QUALCOMM and its licensee infringe InterDigital's patent. The company believes that the infringement claims made by InterDigital have no merit. The company will vigorously defend the lawsuit.
 In the second quarter, the company also completed the purchase of its new corporate center in San Diego for approximately $22 million and expects to consolidate the majority of its more than 900 employees in the new location beginning in mid-1993.
 QUALCOMM develops, manufactures, markets, licenses and operates advanced communications systems and products based on digital wireless technology. QUALCOMM's principal product is the OmniTRACS system, 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 and Europe. 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 Six months ended
 March 28, March 29, March 28, March 29,
 1993 1992 1993 1992
 Revenues:
 Communications
 systems $27,086 $21,661 $52,023 $40,873
 License and
 development fees 1,686 1,113 2,673 4,174
 Contract services 8,035 3,519 12,129 6,353
 Total revenues 36,807 26,293 66,825 51,400
 Operating expenses:
 Communications
 systems 18,029 15,158 34,939 28,675
 Contract services 6,072 2,408 8,939 4,824
 Research and
 development 5,956 4,984 12,662 10,730
 Selling and
 marketing 3,517 2,871 6,540 5,211
 General and
 administrative 2,890 2,384 5,173 4,274
 Total operating
 expenses 36,464 27,805 68,253 53,714
 Operating income
 (loss) 343 (1,512) (1,428) (2,314)
 Interest income 608 672 1,157 763
 Interest expense (443) (402) (767) (1,233)
 Income (loss) before
 income tax expense
 and equity in losses
 of joint ventures 508 (1,242) (1,038) (2,784)
 Income tax expense (71) (1) (93) (124)
 Income (loss) before
 equity in losses of
 joint ventures 437 (1,243) (1,131) (2,908)
 Equity in losses of
 joint ventures (50) --- (99) ---
 Net income (loss) 387 (1,243) (1,230) (2,908)
 Net earnings (loss)
 per common share:
 Primary $0.02 ($0.06) ($0.06) ($0.16)
 Fully diluted $0.02 ($0.06) ($0.06) ($0.16)
 Shares used in per
 share calculation:
 Primary 23,769 20,351 21,222 18,418
 Fully diluted 24,031 20,351 21,222 18,418
 -0- 4/19/93
 /CONTACT: Adelia A. Coffman 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

KJ-LS -- SD001 -- 7152 04/19/93 08:11 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 19, 1993
Words:1337
Previous Article:WATSCO'S FIRST QUARTER NET UP 250 PERCENT CONVERTIBLE SUBORDINATED DEBENTURES TO BE REDEEMED
Next Article:BMC WEST REPORTS RECORD FIRST QUARTER
Topics:


Related Articles
QUALCOMM REPORTS 41 PERCENT REVENUE INCREASE FOR FIRST QUARTER, FISCAL 1992
QUALCOMM REPORTS 20 PERCENT REVENUE INCREASE FOR FIRST QUARTER, FISCAL 1993
CALIFORNIA AMPLIFIER REPORTS SECOND-QUARTER AND SIX-MONTH RESULTS
QUALCOMM REPORTS SECOND QUARTER RESULTS
QUALCOMM Reports Strong Third Quarter Results
QUALCOMM Reports Record First Quarter Results
Telular Reports Strong Growth in 2nd Quarter
QUALCOMM Reports First Quarter Results - Revenues $941 Million, $.65 EPS -.
QUALCOMM Reports Second Fiscal Quarter Earnings; $.82 Operating EPS, Excluding Non-Recurring Charges.
QUALCOMM Reports Third Fiscal Quarter Revenues of $1 Billion; - Operating Earnings Per Share of $.75, Excluding Non-Recurring Charges -.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters