Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
CNBC just featured QUALCOMM and almost precented an UNBIASED decent report about its increase in earnings. They still played albeit very quietly the funeral chant ("QAULCOMM, QUALCOMM, QUALCOMM, etc.). However, they showed a picture of IRWIN and Fader said that he was a very able engineer who knew what he was doing. He did say they raised their earnings albeit very slightly but that they had already raised these earning once before. He said the increase was due to royalties to the company and their cell phones (implying that Qualcomm made cell phones). He also called it Qualcommunism.
Qualcomm raises third-quarter targets-REUTER's
Wednesday May 12, 7:45 am ET
http://biz.yahoo.com/rc/040512/tech_qualcomm_outlook_1.html
NEW YORK, May 12 (Reuters) - Wireless technology company Qualcomm Inc. (NasdaqNM:QCOM - News) said Wednesday it raised its third-quarter targets due to greater-than-expected licensing royalties and stronger-than-expected demand for its advanced cell phone chips.
The San Diego, California, company forecast third-quarter profit would be 51 to 53 cents per share, excluding its investment arm, up 55 to 61 percent from a year earlier. Its earlier forecast had been 48 to 50 cents a share.
It expects revenue to rise 44 to 46 percent over a year earlier, excluding the results of its investment arm. Its earlier projection had been for an increase of 41 to 44 percent
QUALCOMM Announces New Messaging Capability Based on Its CMX Multimedia Solution
Wednesday May 12, 7:30 am ET
- Unique CMix Platform Empowers Wireless Users to Create Personalized Greetings -
http://biz.yahoo.com/prnews/040512/law014_1.html
SAN DIEGO, May 12 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the introduction of CMix(TM), a new handset messaging technology based on the Company's market-proven Compact Media Extensions(TM) (CMX(TM)) multimedia software. CMix, a unique messaging program based on the CMX 3GPP2 standardized solution, equips wireless subscribers with the ability to simply and artfully create their own unique greetings to send from one wireless phone to another. Following in the footsteps of multimedia messaging -- a key driver for 3G -- CMix helps foster the growth of mobile messaging, spurring the evolution from today's text-based service to the multimedia applications environment.
ADVERTISEMENT
Today, the CMX solution provides content providers with the ability to create a variety of content-inclusive MIDI-based music, text, graphics, animation, speech and sound effects, and combines them in a time-synchronized manner that can then be multiplexed in a file format small enough for playback on wireless handsets. The CMix technology -- based on the same fundamental principles as CMX -- offers wireless subscribers the ability to select from a library of preset applications available on the handset; add a personalized picture from their camera directory; create their own text or voice message; then combine these elements to send out their own unique greeting encased in the CMX standardized format and delivered via traditional messaging services.
eMbience, a leading developer and publisher of wireless software, will be one of the first developers to use CMix in its development of applications using QUALCOMM's BREW(TM) solution.
"Picture mail is already a very popular feature for wireless subscribers today. CMix provides an effective technology to take the personalization of multimedia applications to the next level," said Luis Pineda, vice president of marketing and product management for QUALCOMM CDMA Technologies. "Offering the ability to take a picture, then add MIDI-based music, record a personalized message either verbally or textually, and have it all play back concurrently in one single message adds a new element of communications for consumers and additional revenue opportunities for operators."
"We have been working closely with QUALCOMM in extending the functionality of CMix and will offer a BREW-based application that fully optimizes and enhances the basic functionality of this platform," said Dr. Nimish Shrivastava, president of eMbience. "Our goal is to enable consumers to download both retail and custom-made images and animation to their handsets, and further personalize their mobile greetings and ringers."
QUALCOMM's CMX solution, fully integrated with the Company's Mobile Station Modem(TM) (MSM(TM)) chipsets, enables wireless devices to project voice, music, text, graphics and animation simultaneously with capability for 72-polyphony, 128-instrument music. The CMX solution is part of QUALCOMM's Launchpad(TM) suite of technologies, which encompasses advanced multimedia, connectivity, position location, user interface and removable storage capabilities.
QUALCOMM's chipsets include access to QUALCOMM's BREW solution. The BREW system enables the development and monetization of advanced applications and content, allowing operators and OEMs to differentiate their products and services and increase revenues. QUALCOMM's chipsets are also compatible with the Java runtime environment; J2ME(TM) can be built entirely on the chipset as an extension to the BREW solution.
eMbience Inc. was founded with a vision to be a leading global wireless entertainment and information application developer and publisher. eMbience builds and publishes innovative productivity tools, information and entertainment applications and games for mobile phones. eMbience developers are experts at the newest wireless software technologies, including QUALCOMM's BREW, J2ME, Symbian and WAP. From partner products such as Modtones and Accuweather, to its own diverse portfolio of applications including Masttones, Wine Cell'r, Drinknation and Traffic Map, eMbience's software design is recognized and respected throughout the wireless industry. Visit eMbience at http://www.embience.com.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The NASDAQ Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. CMix, Launchpad, CMX, Compact Media Extensions, Mobile Station Modem, MSM and BREW are trademarks of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
For further information, please contact Jennifer Bernas, QUALCOMM CDMA Technologies, +1-858-845-7571, qct_publicrelations@qualcomm.com, or Emily Gin, Corporate Public Relations, +1-858-651-4084, publicrelations@qualcomm.com, or Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, all of QUALCOMM Incorporated.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
QUALCOMM Launches radioOne ZIF Dedicated High-Band Solution for CDMA2000
Wednesday May 12, 7:31 am ET
- Cost-Optimized RFR6135 Receiver Supports KPCS, PCS and IMT Bands -
http://biz.yahoo.com/prnews/040512/law048_1.html
SAN DIEGO, May 12 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a fully integrated radioOne(TM) Zero Intermediate Frequency (ZIF) solution for CDMA2000® 1X and 1xEV-DO in the Korean PCS (1800 MHz), PCS (1900 MHz) and IMT (2100 MHz) frequency bands. QUALCOMM's latest radioOne chip, the RFR6135(TM) receive RF chip, works with QUALCOMM's RFT6100(TM) transmit chip to provide a dedicated RF solution that allows wireless manufacturers to optimize their handset designs to address high-band market requirements. This cost-competitive solution increases design options for wireless manufacturers by providing maximum flexibility in component selection and inventory management.
The initial product offering will include the MSM6500(TM) Mobile Station Modem(TM) (MSM(TM)) chipset and system software, the RFR6135 and the RFT6100 RF devices and QUALCOMM's powerOne(TM) PM6650(TM) power management device chipset. The complete MSM6500 system solution will provide dedicated high-band capability including mode support for CDMA2000 and QUALCOMM's gpsOne(TM) solution, the world's most broadly deployed assisted-GPS handset technology. QUALCOMM's newest radioOne device, the RFR6135 chip, is a cost-effective RF receive solution that integrates a GPS receiver, low-noise amplifiers (LNA), and a voltage controlled oscillator (VCO) and phase locked loop (PLL) for further space-saving advantages and simplification of the radio design. The RFR6135 and RFT6100 RF devices provide a dedicated high-band, dual mode solution that reduces board area by optimizing package size. The RFR6135 chip is offered in a 7mm x 7mm, 48-pin Quad Flat No-Lead (48QFN) package. Samples of the RFR6135 are expected to ship in the second calendar quarter of 2004.
QUALCOMM's radioOne ZIF architecture eliminates the need for intermediate frequency components. With radioOne technology, QUALCOMM's MSM chipsets require less printed-circuit-board area than previous generations and reduce time-to-market development and bill-of-materials (BOM) costs.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. RFR6135, RFT6100, Mobile Station Modem, MSM, MSM6500, gpsOne, powerOne, PM6650 and radioOne are trademarks of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
For further information, please contact: Jennifer Bernas, QUALCOMM CDMA Technologies, +1-858-845-7571, qct_publicrelations@qualcomm.com, or Emily Gin, Corporate Public Relations, +1-858-651-4084, publicrelations@qualcomm.com, or Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, all of QUALCOMM Incorporated.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
QUALCOMM Increases Financial Guidance for Third Fiscal Quarter Ending June 27, 2004 and Fiscal Year 2004
Wednesday May 12, 7:31 am ET
http://biz.yahoo.com/prnews/040512/law068_1.html
SAN DIEGO, May 12 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News) today updated its financial guidance for the third fiscal quarter ending June 27, 2004 and the fiscal year ending September 26, 2004.
The following statements are forward-looking and actual results may differ materially. Please see description of certain risk factors in this release and QUALCOMM's reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
Third Quarter Fiscal 2004
Based on the current business outlook, we now anticipate third fiscal quarter revenues excluding the QUALCOMM Strategic Initiatives (QSI) segment to increase approximately 44-46 percent year-over-year compared to our prior guidance of 41-44 percent. We now anticipate third fiscal quarter 2004 earnings per share excluding the QSI segment to be $0.51-$0.53, an increase of 55-61 percent year-over-year, compared to our prior guidance of $0.48-$0.50. These estimates are based on the shipment of approximately 34-35 million Mobile Station Modem(TM) (MSM(TM)) phone chips during the quarter. Our prior guidance was based on the shipment of approximately 33-35 million MSM phone chips during the quarter. The improved outlook is due to greater than expected WCDMA royalties, faster migration to 6000 series MSMs and stronger orders for CSM products.
We now expect total QUALCOMM third fiscal quarter revenues to increase approximately 44-46 percent year-over-year. We expect total QUALCOMM earnings per share to be approximately $0.49-$0.51, an increase of 113-122 percent year-over-year, compared to our prior guidance of $0.46-$0.48. Total earnings per share include an estimated $0.02 loss per share attributed to the QSI segment.
Fiscal 2004
Based on the current business outlook, we are increasing our guidance for fiscal 2004. We now anticipate fiscal year 2004 revenues excluding the QSI segment will increase by approximately 28-30 percent year-over-year compared to our prior guidance of 26-29 percent increase year-over-year. We now anticipate fiscal 2004 earnings per share excluding the QSI segment to be in the range of $2.00-$2.05, an increase of 41-44 percent year-over-year, compared to our prior estimate of $1.93-$1.98. We expect to ship approximately 32-36 million MSM phone chips in the fourth fiscal quarter ended September 26, 2004. We estimate that average selling prices of CDMA phones for fiscal 2004, upon which royalties are calculated, to increase to approximately $195, compared to our prior estimate of $194. We reiterate our estimate for the CDMA phone market to be approximately 152-160 million units in calendar 2004.
Based on the current business outlook, we anticipate that total QUALCOMM revenues will grow by approximately 28-30 percent year-over-year and total QUALCOMM earnings per share to be in the range of $1.93-$1.98 for fiscal 2004, an increase of 91-96 percent year-over-year, compared to our prior guidance of $1.86-$1.91. Total earnings per share include an estimated $0.07 loss per share attributed to the QSI segment for fiscal 2004.
Due to their nature, certain income and expense items such as investment gains and losses, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
Calendar 2005
We estimate the calendar 2005 CDMA phone market to be in the range of 195-215 million units, compared to our calendar 2004 estimate of 152-160 million units, a year-over-year growth of 31 percent based upon the midpoint of our estimates. Using the midpoint of 205 million, we expect approximately 160 million CDMA2000® and 45 million WCDMA unit shipments in calendar 2005, 15 percent and 165 percent growth respectively over our midpoint estimates for 2004.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
The Company presents financial information excluding the QUALCOMM Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including QUALCOMM CDMA Technologies (QCT), QUALCOMM Technology Licensing (QTL) and QUALCOMM Wireless & Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating performance of the Company because it excludes the effect of fluctuations in the value of investments that are unrelated to the Company's operational performance. The financial information excluding QSI should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Reconciliations between total QUALCOMM results and results excluding QSI are presented on the Company's Web site at www.qualcomm.com.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology, including CDMA2000 1X, CDMA2000 1xEV-DO and WCDMA, both domestically and internationally; our dependence on major customers and licensees, fluctuations in the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the Company has or may pursue; dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation as well as other risks detailed from time-to-time in the Company's SEC reports.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. CSM, Mobile Station Modem and MSM are trademarks of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
QUALCOMM Contacts:
Emily Gin, Corporate Public Relations
Phone: 1-858-651-4084
E-mail: publicrelations@qualcomm.com
or
Bill Davidson, Investor Relations
Phone: 1-858-658-4813
E-mail: ir@qualcomm.com
QUALCOMM to Host Fourth Annual BREW(TM) Developers Conference, June 7-9 in San Diego
Tuesday May 11, 7:31 am ET
- Register Now for Industry's Premier Conference Drawing Wireless Operators, Publishers, Developers and Device Manufacturers -
http://biz.yahoo.com/prnews/040511/latu058_1.html
SAN DIEGO, May 11 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced its line-up of keynote speakers and business and technical track presenters from around the globe for its BREW 2004 Developers Conference, to be held on June 7-9 at the Sheraton San Diego Hotel and Marina in San Diego. Expecting an estimated 1,400 attendees, the conference offers attendees valuable insight on the current and future state of the wireless data industry and provides attendees the opportunity to collaborate and form strategic relationships with leading players in the mobile marketplace. Conference attendees will also benefit from valuable technical and business tracks and workshops presented by leading experts and analysts from throughout the wireless industry.
"We are thrilled to host this premier developer's conference for all parties that have been key to making the BREW solution an international success during the last year," said Peggy Johnson, president of QUALCOMM Internet Services. "The BREW community is clearly at the forefront of mobile application development and innovation and BREW 2004 provides publishers and developers with the technical and business information they need to continue to play a critical role in driving the success of wireless data moving forward. With the BREW solution's truly global presence, attendees will have a tremendous opportunity to hear from, and network with, leading wireless companies from around the world."
The conference will include more than 30 business and technical sessions and workshops providing attendees the latest development tools and networking opportunities. The conference will kick off on Tuesday, June 8, with a welcome address from Peggy Johnson, followed by a keynote address from Dr. Paul E. Jacobs, president of QUALCOMM Wireless & Internet Group. Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies, will give a keynote address on Wednesday, June 9.
Executives from leading wireless operators, including China Unicom, Hutch, KDDI, KTF, Midwest Wireless, Verizon Wireless, Verizon Wireless International, VIVO and U.S. Cellular, will provide valuable insight on the BREW marketplace and discuss how developers can be successful in the global wireless data market.
The third annual BREW Developer Awards ceremony will be held on Wednesday morning following Dr. Jha's keynote. The BREW Developer Awards will honor the best applications in six categories: Best Productivity/M-commerce Application, Best Entertainment Application, Best Game Application, Best Location-Based Service Application, Best Communications Application and Best Information Application.
Conference attendees will have the opportunity to experience the latest BREW-enabled applications and services demonstrated by more than 20 publishers, developers, handset manufacturers and operators in this year's BREW 2004 Partner Pavilion. This year's conference will hold its BREWFest, an exclusive celebration for conference attendees, on Tuesday night, featuring a live performance by the iconic pop group, the B-52s.
For more information on the BREW 2004 Developers Conference, please visit: www.brew2004.com. Those interested in attending should register and reserve hotel accommodations by visiting http://brew.qualcomm.com/brew/brew_2004/register/.
QUALCOMM's BREW system provides products and services that connect the mobile marketplace value chain, which includes application developers, publishers, content providers, device manufacturers, operators and consumers.
Publishers and developers worldwide are generating revenue from BREW-based applications and content, and 26 manufacturers have offered more than 135 BREW-enabled device models to consumers. BREW is successfully enabling the commercial wireless data services of many very successful operators, including Verizon Wireless, ALLTEL, Cellular One, MetroPCS, Midwest Wireless and U.S. Cellular in the United States, China Unicom, KDDI in Japan, KTF in South Korea, Hutch in Thailand, Telstra in Australia, VIVO in Brazil, BellSouth Chile, BellSouth Colombia, BellSouth Ecuador, BellSouth Guatemala, BellSouth Nicaragua, BellSouth Panama, BellSouth Peru, Telefonica Moviles in Peru, Movicom in Argentina, Telcel and Movilnet in Venezuela, Verizon Dominican Republic, Verizon Wireless Puerto Rico, Pelephone in Israel and Zapp Mobile in Romania.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. BREW is a trademark of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
For further information, please contact: Michele Bakic, QUALCOMM Internet Services, +1-858-651-4017, mbakic@qualcomm.com, or Emily Gin, Corporate Public Relations, +1-858-651-4084, publicrelations@qualcomm.com, or Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, all of QUALCOMM.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
China snubs US with 3G phone 'wonderchip'
http://www.theregister.co.uk/2004/05/11/china_3g/
By Andrew Orlowski in San Francisco
Published Tuesday 11th May 2004 08:17 GMT
When China signed an agreement with the US Trade Department to drop two important home-grown wireless technologies last month, cynics wondered how long the agreement would last.
Now we have an answer: about two weeks. The PRC had bowed to intense lobbying pressure and agreed not to develop its WAPI 802.11 encryption, and a 3G technology called TD-SCDMA: a rival to the CDMA 2000 systems developed by Qualcomm and W-CDMA, which forms the basis of all European and most of Asia's 3G networks.
A statement issued by the US Department of Commerce said that China had agreed to "support technology neutrality with respect to the adoption of 3G," implying that China's mobile networks would be free to choose between W-CDMA and CDMA 2000 and that TD-SCDMA which costs them less, had been kicked into the long grass.
But last week the Xinhuanet news agency proudly heralded the arrival of a new processor for mobile phones from Spreadtrum, which claims to be a "breakthrough" single processor integrating analog baseband and power management as well as radio onto the silicon. The chip has the backing of the Chinese IT and science ministries.
"The development of the new chip will help push forward the industrialization of the TD-SCDMA, an original communications standard of China for third-generation mobile telecommunication, in the country," we learn from Jiang Shoulei, head of the Shanghai Integrated Circuit Industry Association. The report points out that China spent $10bn to import phone chips last year.
US manufacturers have complained for years about Chinese protectionism, but "protectionism" is something that only other countries do, never one's own. The US Commerce Department was protecting its own manufacturers from home-grown Chinese technologies which, it could be argued, were cheaper and more attractive, and benefited the national interest: $10bn spent internally, rather than in Stockholm or San Diego represents a significant boost to the Chinese economy.
Ironically, Spreadtrum's breakthrough should benefit both. The fabless design company was started by Chinese entrepreneurs in 2001 with headquarters in Sunnyvale, California: its second product, a TD-SCDMA chipset is due to appear in phones by the end of the year
China Unicom subscribers top 100m
www.chinaview.cn 2004-05-11 09:10:08
http://news.xinhuanet.com/english/2004-05/11/content_1462087.htm
BEIJING, May 11, (Xinhuanet) -- Mobile subscribers with China United Telecommunications Corp (China Unicom) exceeded the 100-million mark by Wednesday, said the company, stressing it would now focus more on servicing current subscribers instead of solely pursuing an increase in users.
"It (the acquisition of 100 million subscribers) is much more a new start for us rather than simply a breakthrough," said Wang Jianzhou, chairman and president of China Unicom, the second-largest mobile operator in China.
The company said yesterday its GSM (global system for mobile communications) users reached 77.47 million, while the number of CDMA (code division multiple access) subscribers stood at 22.56 million by May 5.
The numbers will make China Unicom the second-largest CDMA operator and the third-largest GSM operator in the world.
GSM and CDMA are two different standards of mobile communication standards, but the former was mainly initiated by European companies, while the latter is popular in the United States and South Korea.
CDMA 1X, a standard of the 2.5-generation mobile communications, also boasts a fast Internet connection speed.
However, Shang Bing, vice-president of China Unicom, admitted that the growth of new subscribers slowed down a little over last year.
The company added an average of about 1 million new subscribers on its CDMA network every month in 2003, but the monthly average in the past four months was less than 900,000.
Wang Zhanqiang, an analyst with Guotai Jun'an Securities, believes that was mainly due to fewer subsidies given to subscribers, which reduced the company's financial burdens and was actually positive for China Unicom.
Shang also pointed out that the increase in new subscribers will cease to be the only priority for his company and China Unicom will focus on both tapping the potential of existing users and developing new users.
He said China Unicom will launch its GSM1X service in July, which allows GSM and CDMA1X users to alternate between the two systems.
China Unicom has decided to order GSM1X mobile phones from South Korean firms Samsung and LG, as well as the US company Motorola, to supply the market.
Shang believes there will be high demand for the service as many GSM subscribers also want to enjoy a fast Internet connection and a rich variety of applications, and CDMA users can also avoid the interconnection problem when roaming in some GSM-dominated markets.
He said the price of GSM1X phones will be about the same as GSM phones on the market, so price won't be an obstacle for the promotion of the service.
"It is a good move for China Unicom. It will improve the lower coverage of CDMA network and attract GSM users to the CDMA network," said Wang Zhanqiang.
Lu Guoying, a senior telecom analyst with the domestic market research house CCID Consulting, also said the launch of GSM1X will help China Unicom finally unite the GSM and CDMA networks and save on the cost of maintaining two separate networks.
The other major project for China Unicom will be to finish the construction of the third phase of its CDMA network in June or July, according to Wang Jianzhou.
By then, its CDMA1X network will have a capacity of 70 million lines and cover all cities and 97 per cent of towns in China. Enditem
(China Daily)
China to release GSM, CDMA compatible cellular handsets
www.chinaview.cn 2004-05-10 16:48:10
http://news.xinhuanet.com/english/2004-05/10/content_1461191.htm
BEIJING, May 10 (Xinhuanet) -- China United Telecom (China Unicom), the world's third biggest mobile telecommunications carrier, said Monday it plans to release mobile phone handsets in mid-July this year with dual-band technology that shares data and voice service between GSM and CDMA users.
An official with China Unicom explained that users of the new handsets carrying both GSM and CDMA SIM cards will be able to switch between GSM and CDMA networks, and enjoy roaming service incountries where only one of the networks is available.
The technology built by the company has passed primary tests.
The official said the introduction of the new handset will alsohelp attract new mobile phone subscribers as Unicom's GSM and CDMAnetworks cover almost the whole Chinese mainland. Its mobile telecommunications users exceeded 100 million by May 5.
Wang Jianzhou, board chairman and president of China Unicom, displayed three handsets compatible with GSM and CDMA networks in March at an annual business meeting. The handsets were manufactured by Samsung, LG and Motorola.
The company is working to set the price of the new mobile phonehandset at that of a CDMA mobile phone handset of same category.
The state-owned company was set up a decade ago by China to break the monopoly of the state-owned China Mobile over the country's mobile telecommunications market. Enditem
Thanks Data Rox.
Research and Markets: Mobile Market Status Report 2004
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040506005...
DUBLIN, Ireland--(BUSINESS WIRE)--May 6, 2004--Research and Markets (http://www.researchandmarkets.com) has announced the addition of Mobile Market Status Report 2004 (Updated 3rd Edition) to their offering.
This report provides insight into the challenges and opportunities facing today's mobile market. This edition provides readers with a complete and detailed overview of today's mobile market, a clear insight into the way it will develop tomorrow as well as discussing the key issues facing all players on the mobile value chain, especially operators and vendors.
Also included is an in-depth summary of the global mobile market, covering issues from messaging to wireless LAN, this forms a perfect overview for new starters, or for those interested in learning more about developing areas
Each of the 14 interviews in this report gives a candid and independent viewpoint, supporting all reasoning with accurate data and the behind the scenes insight from each editor's personal contacts.
This report will enable you to:
-- Understand all the complex factors that influence the future of the mobile market
-- Evaluate the state of play in the Latin American and Asian markets
-- Discover the major challenges facing key players on the value chain
-- Investigate the technical challenges facing next generation networks
-- Uncover what the future of the mobile market holds for you
Report Contents:
-- Gavin Patterson, sees more consolidation, more cost cutting but gradual glimmers of growth in the mobile market and looks at the prospects for the CDMA camp to overtake the GSM community in the 3G environment.
-- Jessica Sandin argues mobile operators still don't understand content and services, and also discusses the fortunes of SMS, MMS and Mobile IM.
-- Steve Mayall considers the future development of the global messaging market, with interoperability and transcoding issues still dogging the MMS environment.
-- Shani Raja explains how segmentation of will represent a key area of conflict between operators and vendors in the mobile multi-media age.
-- Mike Roberts believes that the industry's biggest challenge is making Bluetooth technology user-friendly, while at the same time developing and promoting compelling applications that will attract customers.
-- Mike Roberts says the first Wi-Fi enabled mobile phones are to hit the market this year, with the key usage models being integrated fixed-mobile services, particularly for enterprises.
-- Kris Szaniawski investigates revenue assurance, churn and CRM.
-- Nicole McCormick explains how 2004 could witness an upturn in M&A activity in the region, driven in part by SingTel, Asia's most aggressive equity investor.
-- Nicole McCormick sees Asia taking shape as a leading force in new mobile services.
-- Paul Lambert believes Russia will continue to dominate subscriber growth in Central and Eastern Europe during 2004.
-- Tawanda Chichota discusses how liberalisation of African and possibly Middle Eastern markets is likely to open up new opportunities for investors.
-- Most enterprises are only just beginning to wake up to wireless technologies and most of these are still deploying solutions reactively, without a clear strategy in mind.
-- Leslie Hillman sees Latin America as a strikingly resilient market for mobile services
-- Michael Carroll argues that operators are still a long way from dictating handset design and specifications
For more information visit http://www.researchandmarkets.com/reports/c1753
Contacts
Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax: +353 1 4100 980
GSM outpacing CDMA in US
by Ben Charny
http://networks.silicon.com/mobile/talkback.htm?PROCESS=show&ID=20023473&AT=10006367-3902466...
Name: Raymond
Country: Austin
Occupation: Engineer
Comments: I work in the wireless industry and what I see is:
1) GSM growing all around the world, EVEN in the US (Cingular, AT&T, T-Mobile, etc) and in Latin American and Caribean countries where CDMA or TDMA arrived first.
2) GSM 3G (aka W-CDMA or UMTS in Europe) is already being deployed in several countries (UK, Italy, Spain, etc.). It has a similar radio interface to CDMA, but the network structure and services are more related to GSM.
The reasons for GSM success are mainly economical: GSM was the first standardised digital cell phone system (early 1990s) and has now plenty of equipment and handset providers. Economies of scale have made its cost go down in the recent years, so it has become a standard de facto worldwide (almost 1.1 BILLION subscribers)
Rocket Media Server (RMS) Delivers Rich Media Content to BREW(TM)-Enabled Mobile Handsets
Tuesday May 4, 9:15 am ET
- Rocket Mobile Provides Turnkey Media Management System to Content Providers -
http://biz.yahoo.com/prnews/040504/latu006_1.html
LOS GATOS, Calif., May 4 /PRNewswire-FirstCall/ -- Rocket Mobile®, a leading provider of wireless software solutions and technologies, today announced the launch of the Rocket Media Server (RMS) content delivery solution for mobile handsets enabled by QUALCOMM's BREW solution. The Rocket Media Server provides content providers with a turnkey solution for managing ringtones, wallpapers, and streaming audio and video services.
The RMS provides real-time transcoding and image-scaling services to ensure the delivery of properly formatted content. The RMS is equipped with intelligent server-side caching technology to enhance the performance of the content delivery process by reusing formatted content on subsequent requests. The RMS also features management and reporting tools for tracking content access requests, and provides Digital Rights Management support for managing the distribution and use of copyrighted content.
"The Rocket Media Server, coupled with our RocketBrowser(TM) product, allows content providers to easily and quickly package their libraries of content into compelling BREW applications," said Wayne Yurtin, president and chief executive officer, Rocket Mobile. "With Rocket Mobile's content delivery solution, content providers will not need to set up and manage their own content servers and build from a scratch a BREW client application to participate in the growing virtual market provided by QUALCOMM's BREW solution."
"The Rocket Media Server is an exciting innovation that will allow content providers easier access to the rapidly growing mobile entertainment market," said Gina Lombardi, senior vice president of marketing and product management for QUALCOMM Internet Services. "Rocket Mobile continues to open up new opportunities to a wide range of content providers, from large to small, by providing additional resources and content, enabling companies to tailor their content for wireless devices. These content services leverage QUALCOMM's BREW solution for content pricing and settlement services."
The Rocket Media Server has been designed to work seamlessly with RocketBrowser, a BREW-based browser for accessing mobile media content. Content providers with no BREW expertise can now leverage this end-to-end turnkey solution to enable their wireless strategy for BREW operators.
QUALCOMM's BREW system provides products and services that connect the mobile marketplace value chain, which includes application developers, publishers, content providers, device manufacturers, operators and consumers. Publishers and developers worldwide are generating revenue from BREW-based applications and content, and 26 manufacturers have offered more than 135 BREW-enabled device models to consumers. Many very successful operators have deployed commercial BREW-based wireless data services, including Verizon Wireless, ALLTEL, Cellular One, MetroPCS, Midwest Wireless and U.S. Cellular in the United States, China Unicom, KDDI in Japan, KTF in South Korea, Hutchison Wireless CAT in Thailand, Telstra in Australia, VIVO in Brazil, BellSouth Chile, BellSouth Colombia, BellSouth Ecuador, Bell South Guatemala, BellSouth Nicaragua, BellSouth Panama, BellSouth Peru, Telefonica Moviles in Peru, Movicom in Argentina, Movilnet and Telcel in Venezuela, Verizon Dominican Republic, Verizon Wireless Puerto Rico and Pelephone in Israel.
About Rocket Mobile®
A privately held Silicon Valley-based firm, Rocket Mobile, Inc. designs, develops, licenses, and markets applications and technologies for mobile handsets. In addition to technology and product development, the company develops custom software solutions for industry leading firms via their Professional Services organization. Rocket Mobile's technologies include RocketMMS(TM), a multimedia messaging service client, RocketBrowser(TM), a mobile phone web browsing technology, and RocketFramework(TM), a development foundation for building BREW applications. Rocket Mobile is a QUALCOMM Elite® BREW Developer with U.S. headquarters in Los Gatos, California. For additional information on Rocket Mobile, visit: http://www.RocketMobile.com.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. BREW is a trademark of QUALCOMM Incorporated. Rocket Mobile is a registered trademark of Rocket Mobile, Inc. RocketMMS, RocketBrowser, RocketJournal, and RocketFramework are trademarks of Rocket Mobile, Inc. All other trademarks are the property of their respective owners.
For further information please contact: Young Yoon, Director of Product Management of Rocket Mobile, Inc., +1-408-395-5575, ext. 105, young@rocketmobile.com.
U.S. Cellular Awards Lucent Technologies $150 Million Contract to Continue Upgrade of Wireless Network in Chicago
http://www.tmcnet.com/usubmit/2004/May/1038162.htm
Murray Hill, N.J. and Chicago, May 4 /PRNewswire-FirstCall/ -- U.S. Cellular has selected Lucent Technologies to provide equipment, software and professional services that will enable U.S. Cellular to continue offering its customers high-speed data services and improve the quality of its voice services on its CDMA2000(R) 1xRTT wireless network in the Chicago market. The multi-year agreement is valued at up to $150 million.
The Lucent-supplied infrastructure will help U.S. Cellular increase network capacity, as well as create a platform from which it can deliver a variety of high-speed mobile data services, such as Internet access, access to corporate Intranets and files, and instant messaging at speeds of up to 153 kilobits per second.
U.S. Cellular's network currently supports CDMA 1xRTT voice and data offerings. When the new equipment from Lucent is deployed, U.S. Cellular will have the opportunity and flexibility to offer next-generation mobile high-speed data and Voice over IP services, including 1xEV-DO capabilities. Lucent's base station equipment can be easily enhanced to support CDMA2000 1xEV-DO services.
"Our customers are looking for networks that provide fast and easy access to the same applications they use at home or in the office while away from their desk and out on the road," said Michael Irizzary, executive vice president and chief technology officer for U.S. Cellular. "As we work to transform our network to support next-generation services, Lucent's CDMA expertise will help us quickly offer these services, with quality, on a reliable network."
Lucent will upgrade existing Lucent base stations with CDMA2000 1X channel cards and software, as well as provide new Flexent(R) Modular Cell base stations. In addition to the infrastructure equipment, Lucent Worldwide Services will provide engineering, installation and other professional services to U.S. Cellular as it continues to deploy advanced technology across its wireless network.
"U.S. Cellular is a company keenly focused on providing its customers with the best wireless experience possible," said Steve Marino, vice president, Mobility Strategic Accounts for Lucent Technologies. "Lucent is excited to work with U.S. Cellular as it continues to build a network that will be the platform to offer a whole host of new, high-speed mobile data services."
In December 2002, Lucent and U.S. Cellular announced an agreement for equipment to support U.S. Cellular's conversion to CDMA 1xRTT technology. That upgrade began in October 2002 and is scheduled for completion in 2004.
About Lucent Technologies
Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent's customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com/.
About U.S. Cellular
U.S. Cellular Corporation , the nation's eighth largest wireless service carrier, provides wireless service to more than 4.5 million customers in 147 markets throughout 28 states. The 20-year-old, Chicago-based company operates on a customer satisfaction strategy, meeting customers' needs by providing a comprehensive range of wireless products and services, superior customer support, a high quality network and targeted community outreach activities. U.S. Cellular is listed and traded as USM on the American Stock Exchange.
CDMA2000 is a trademark of the Telecommunications Industry Association.
Lucent Technologies
CONTACT: Dina Fede of Lucent Technologies, +1-908-582-0366
Nokia Launches Two Phones for Asian Market
Wed Apr 28, 2004 06:30 AM ET
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=4968554§ion=news
HELSINKI (Reuters) - The world's largest mobile telephone maker, Nokia (NOK1V.HE: Quote, Profile, Research) , launched on Wednesday two phones aimed at the booming Asia-Pacific markets and said it would set up a research and development facility in India.
Asian countries such as India and China offer huge potential to global cellphone majors because mobile ownership in those markets is much lower than many western nations.
Growing disposable incomes and expanding economies in Asia are fueling demand for mobility in the fast-growing region, home to more than half the world's population.
The 3125 and 2112 phones, using the CDMA technical standard, are aimed at the cheaper end of the market. Both would appear in shops in the third quarter, Nokia Oyj said in a statement released in Helsinki.
"Nokia views Asia-Pacific as a growing and important region for CDMA and is committed to expanding our portfolio of products to cater to ... this region," the statement said.
In another statement released in New Delhi, Nokia -- which competes with Motorola (MOT.N: Quote, Profile, Research) , Samsung Electronics (005930.KS: Quote, Profile, Research) and LG Electronics (066570.KS: Quote, Profile, Research) -- said it would establish an R&D facility for CDMA technology in Bombay.
The unit, expected to be fully functional by June, will cater to local demands and the needs of other CDMA service providers in the Asia-Pacific region.
"The creation of a new CDMA R&D facility in India is a part of the continuous expansion of Nokia's global efforts to grow and invest in the CDMA business in the region," Soren Peterson, senior vice president of Nokia's CDMA business unit, said.
Although no industry figures are available, analysts say Nokia is the biggest player in India's flourishing wireless industry, the fastest growing major mobile market in the world.
But South Korean phone firms have stolen a march on the Finnish giant in the CDMA segment by directly tying up with services providers, because such phones are not widely available in shops.
India's Reliance Infocomm and the Tata group are the main providers of CDMA-based mobile services in India, which has more than 7.2 million CDMA customers.
The country has more than 34 million mobile subscribers and is expected to have more than 100 million by 2005 thanks to some of the lowest charges in the world. (Additional reporting by Shailendra Bhatnagar in New Delhi)
© Reuters 2004. All Rights Reserved.
picoChip demos HSDPA-ready picocell ref design
By John Walko
CommsDesign.com
Apr 28, 2004
http://www.commsdesign.com/news/tech_beat/showArticle.jhtml?articleID=19201902
Bath, England — picoChip has unveiled and demonstrated a complete HSDPA-ready 3G picocell basestation at The Commodity Basestation conference that started here Wednesday (April 28th). The design, includes radio, flexible baseband, control and backhaul capabilities.
"We have been working with a couple of major, international operators on this, which is the first such design specifically targeting really high data rate, short range links for lots of users and to meet the needs of 3G hotspots in crowded areas like airports and railway stations as well as for corporate in-building users", Rupert Baines, vice president of marketing at picoChip told CommsDesign.com.
Baines said the reference design would allow manufacturers to quickly develop and release fully 3GPP-compliant systems, reducing development cost and time-to-market.
He said some operators are pushing hard to have cost effective picocells and HSDPA. "The wideband CDMA reference design is ready, but it is hard and difficult stuff. The test equipment and interoperability have still to be completed, and it will clearly take time to deploy, but one carrier, Japanese group NTT DoCoMo, has stated it plans to offer HSDPA next year. Others will follow starting from 2006".
picoChip has been using test equipment from UbiNetics, a key partner with DoCoMo in pushing HSDPA, though Baines would not say whether the Japanese carrier is one of those the company has been working with. He also said a main priority must be to push ahead with handsets capable of the high speed data rates HSDPA offer " a theoretical maximum of 14Mbit/s " as well as devising the necessary compliance test suites.
At the Conference, picoChip also demonstrated its picocell basestation technology, with calls made to commercial handsets, primarily a Nokia 6650.
Though not an engineering build, the set up was fully interoperable with standard phones and demonstrating complete end-to-end network compatibility at up to 384kbit/s, increasing to significantly higher data rates with the HSDPA software update.
"Carriers are very much demanding these products from existing suppliers but interestingly we are seeing new players crossing over from WiFi to develop 3G access points. There is a real need for speedy entry to market and product differentiation," Baines said at the Conference.
"Our picocell design fits this industry shift perfectly: it is a complete 'ready-to-roll kit-of-parts' at a sensible cost and HSDPA ready too; if you want it, it's all there - on the other hand customize it as you will," he continued
Baines said traditional manufacturers would deploy the reference design to gain time to market advantage — he suggested they could save 12 months in development time — while new entrants can use the design to quickly develop a carrier-class product.
He said picoChip is talking with several access point equipment makers about custom designs. "Cisco, Trapeze Networks, Nortel and Aruba are all thinking " why should we not be providing this for hotspot coverage."
Nokia opens R&D center in Mumbai
To provide software support and technical expertise in CDMA technology and create new platforms for technology transfer.
Wednesday, April 28, 2004
http://www.ciol.com/content/news/2004/104042804.asp
MUMBAI: Global mobile handset major, Nokia has opened a new CDMA R&D facility in Mumbai. Primarily focused on providing software support and technical expertise in CDMA technology, the new facility will leverage Nokia's existing global CDMA competences to build a team of local talent specializing on the CDMA protocol.
In addition to catering to the unique market and operator-specific needs in India and other key CDMA markets in Asia Pacific, the facility will also expand Nokia's global research network and create new platforms for technology transfer and local talent development. Located in Navi Mumbai, the R&D facility is expected to be fully operational in June this year.
"Nokia views Asia Pacific as an important region for Nokia's CDMA operations. The creation of a new CDMA R&D facility in India is part of the continuous expansion of Nokia's global efforts to grow and invest in the CDMA business in this region. We are also constantly looking at opportunities to expand our R&D activities to include markets outside the US. The establishment of such a facility in India testifies to our long-term commitment to this region," said Nokia mobile phones CDMA business unit Senior VP and GM Soren Petersen.
Globally, Nokia has R&D centers in 11 countries. Research and Development is paramount in realizing Nokia's vision of 'Life Goes Mobile' and retaining its leadership role in mobile communications. In 2003, nearly 20,000 employees - almost 40 percent of Nokia's total personnel - worked in the area of R&D.
TeleCommunication Systems Selected by RadioMovel, an Affiliate of Inquam, for European AGPS Precise Location Solution
LONDON--(BUSINESS WIRE)--April 28, 2004--
Xypoint Location Platform to be Deployed with Inquam Affiliate Across Europe
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040428005...
TeleCommunication Systems (TCS) (NASDAQ:TSYS), a global leader in wireless data technology, has signed an agreement with mobile network operator RadioMovel to supply its first Code Division Multiple Access (CDMA) Assisted Global Positioning System (AGPS) precise location solution throughout Europe. Initially to be deployed with the Inquam affiliate RadioMovel in Portugal, TCS' solution will allow Inquam to offer a variety of Location-Based Services (LBS) to its growing subscriber base.
TCS will supply its Xypoint(R) Location Platform (XLP) for CDMA networks, which includes Mobile Positioning Center (MPC) and Position Determining Entity (PDE) functionality for a full precise AGPS solution. The MPC processes location requests from handset-based or network-based applications and is assisted by the PDE that executes APGS algorithms in concert with mobile devices to calculate a precise location fix. This function enables the deployment of network-based enterprise applications such as fleet tracking as well as handset-based business applications.
John Clark, Senior Vice President and Managing Director Europe, said, "This is a landmark deal that cements TCS' position in the European Location-Based Services market. Operators are increasingly looking to location to deliver significant revenue from applications and services. Location Based Services are killer applications and, as such, depend heavily on the most precise location technology."
Paul Calcott, Vice President of Operations for Inquam said, "TCS' expertise and proven experience in the location market was a deciding factor in securing the deal. TCS is our partner of choice in delivering a secure, scalable, precise location platform. Inquam's customer base, which includes fleets, commercial enterprises and dispatch operations is perfectly suited to best advantage the latest and most dependable location services. Now our customers will be able to take full advantage of TCS' proven location applications and services offerings."
ABOUT TELECOMMUNICATION SYSTEMS, INC.
TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS) is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS' wireless data offerings include location-based Enhanced 9-1-1 services, and messaging and location service infrastructure for wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. For more information visit www.telecomsys.com.
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated.
The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) reach and sustain profitability as anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand its products and services, (iii) conduct its business in foreign countries, (iv) adapt and integrate new technologies into its products, (v) expand its business offerings in the new wireless data industry, (vi) develop software without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy.
Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.
Contacts
TeleCommunication Systems, Inc.
Media Contact:
Rita Thompson, 410-295-1865
thompsonr@telecomsys.com
Reuters
UPDATE - Japan's KDDI posts record earnings, strong outlook
Wednesday April 28, 6:07 am ET
By Yukari Iwatani Kane
http://biz.yahoo.com/rc/040428/telecoms_japan_kddi_3.html
(Adds more details, company and analysts comments, byline)
TOKYO, April 28 (Reuters) - KDDI Corp (Tokyo:9433.T - News), Japan's second-largest telecoms operator, doubled its net profit to a record high last year and forecast further growth on the back of strong demand for its mobile phones and high-speed 3G service.
"I think we've achieved a good balance between handset selection, pricing and contents in our mobile consumer business," KDDI President Tadashi Onodera told a news conference on Wednesday.
"Going forward, we hope to strengthen our corporate mobile business as well as our landline broadband business." KDDI said it expected to earn a consolidated net profit of 190 billion yen ($1.74 billion) on revenue of 2.98 trillion yen for the current business year ending in March 2005. That was higher than analysts' average forecast of 176.0 billion yen on revenue of 2.95 trillion yen, according to Reuters Research.
Onodera said he expected its main mobile business, "au", to continue to be competitive as it pushes its ultra high-speed wireless service, "WIN", which it introduced last November.
He said WIN customers on average spent twice as much on data as the rest of its customers because the majority of them subscribed to its 4,200 yen a month fixed rate plan.
KDDI: THE STAR IN TELECOMS
"There's a possiblity that investors will chase KDDI after its bullish outlook," said Hiroshi Fujimoto, a fund manager at Okasan Capital Management Co Ltd. "KDDI is a domestic stock, so investors who are avoiding tech stocks due to the volatility in the currency market and on Wall Street might prefer them."
KDDI is considered a star performer in a sector characterised by fierce competition for mobile services, heavy costs to promote third-generation phone networks and a looming price war in data services.
Its shares have risen about 87 percent since April 2003, outperforming the Tokyo stock market's communications sub-index (^ICOMS.T - News), which has risen about 38 percent.
NTT DoCoMo Inc (Tokyo:9437.T - News), Japan's dominant wireless operator, is expected to report on May 7 that it almost tripled its earnings after heavy overseas losses a year earlier, but its operating profit is expected to increase by just three percent.
Some analysts expect DoCoMo to forecast its first-ever decline in operating profit in the current business year, as the cost of phone subsidies for its 3G service weighs on results.
Vodafone Holdings KK (Tokyo:9434.T - News), the number-three operator, owned by Britain's Vodafone Group Plc (London:VOD.L - News), releases its full-year report on May 25.
KDDI's consolidated net profit for the year to March 31 rose to a record 117.02 billion yen, in line with its forecast, from 57.4 billion yen a year ago.
Its revenue rose just 2.2 percent to 2.85 trillion yen, hurt by a sales decline in all of its units other than "au". Its operating profit doubled to 292.1 billion yen.
Au's net profit jumped more than fivefold to 130 billion yen, but its strong performance was offset by a 28.8 billion yen loss in its broadband unit, whose voice revenue is declining as customers make more calls on mobile and Internet phones.
The broadband unit was also hurt by a 78 billion yen one-time loss to write off its microwave equipment assets.
Au's exceptionally strong growth has been driven by its aggressive discounts, attractive phones and innovative services such as ring tones with vocal music.
Au was the first operator to introduce a fixed rate plan for data for its WIN service last November, forcing DoCoMo to start a similar plan from June. Au on Tuesday dropped its rates for data on its previous-generation 3G service, CDMA 2000 1X, to which the bulk of its customers subscribe.
Au finished the year with nearly 17 million mobile customers, higher than the 16.8 million it expected and 20 percent more than a year ago. It forecast a rise to 19.15 million by March 2005.
Nearly 80 percent, or 13.2 million, of its subscribers were on its 3G services, far more than the three million for rival DoCoMo's service.
"We'll continue to be very competitive with DoCoMo's 3G 'FOMA' service with a good selection of phones, attractive services and appropriate pricing," said Onodera. "I don't see our customers moving to FOMA just yet, and we're likely to gain some DoCoMo customers who are thinking about upgrading to 3G."
Shares in KDDI closed down 0.46 percent at 651,000 yen ahead of the results.
Kyocera 03/04 net profit up on components demand
Tuesday April 27, 3:05 am ET
http://biz.yahoo.com/rc/040427/tech_japan_kyocera_1.html
TOKYO, April 27 (Reuters) - Japan's Kyocera Corp (Tokyo:6971.T - News) said on Tuesday it posted higher net profit for 2003/04, buoyed by strong demand for electronic parts, and forecast a further rise in the current year to next March.
Group net profit at Kyocera, the world's largest maker of the ceramic casings that house microchips, totalled 68.09 billion yen ($626.7 million) in the year to March 31, compared with 41.17 billion yen a year earlier.
Sales grew 6.6 percent to 1.14 trillion yen.
Besides brisk sales of high-tech components such as capacitors, Kyocera's results were boosted by a turnaround at Kyocera Wireless Corp (KWC), the U.S. cellphone unit bought from Qualcomm Inc (NasdaqNM:QCOM - News) in 2000.
Capacitors are a key part used in mobile phones and other electronics products to regulate the flow of electricity. A typical cellphone contains about 200 capacitors, each as small as a grain of sand.
For the year to next March, Kyocera expects net profit to rise 25 percent to 85 billion yen, helped by a further recovery at KWC and healthy demand for components used in digital electronics products.
That would beat the market consensus of a 70.3 billion yen profit, according to a poll of 19 analysts by Reuters Research.
Prior to the announcement, shares in Kyocera closed trade down 1.3 percent at 9,430 yen, underperforming the Nikkei average (^N225 - News), which fell 0.98 percent.
Samsung and JP Mobile Release Advanced Solution for Secure Mobile E-Mail; Push E-Mail / Calendar support For Microsoft Windows Mobile-based Smartphones
http://www.tmcnet.com/usubmit/2004/Apr/1035476.htm
DALLAS --(Business Wire)-- April 27, 2004 -- JP Mobile(R), a leading provider of enterprise mobility software, today announced that JP Mobile's SureWave(R) Enterprise Server (SureWave) is the first solution in North America to support push-based e-mail access to Novell GroupWise(R) on the Samsung SCH-i600 Smartphone. The i600 is powered by the Microsoft(R) Windows Mobile(TM) operating system and offered in the U.S. by Verizon Wireless. With SureWave, business customers can securely access corporate data and also automatically receive new e-mail messages and calendar items on their i600 with no user intervention.
advertisement
JP Mobile has qualified the Samsung i600 for full integration with SureWave, which leverages native Microsoft Windows Mobile applications and ensures that customers don't have to learn new applications to take advantage of the new technology. They also can access their Microsoft Exchange, Lotus Domino or Novell GroupWise(R) corporate e-mail server.
"Corporations view remote access to their data as a key driver to deploying mobile solutions," said Jason Gordon, product manager in the Mobile and Embedded Devices Division at Microsoft Corp. "With industry partners like JP Mobile and Samsung bringing strong functionality like SureWave to Windows Mobile-based Smartphones such as the Samsung i600, we expect the mobile computing market to continue to grow."
According to a new study from the Yankee Group, Verizon Wireless is the leading carrier for corporations and the only carrier in the U.S. to deploy the i600 for its CDMA network.
"We are pleased to add the Samsung i600 Smartphone to our list of supported devices, as it has been particularly popular in the enterprise and professional segments," said Ananth Rao, executive vice president of JP Mobile. "We believe this is due to the innovation in the Microsoft Mobile operating system and the outstanding design and packaging developed by Samsung. SureWave has been focused on enterprise environments from day one, and now with the help of our alliances, we can continue to provide best-in-class and flexible solutions tailored to the enterprise marketplace," he added.
"Samsung believes the addition of the i600 to the list of JP Mobile-approved devices will continue to drive the momentum of i600 sales into the enterprise," said Peter Skarzynski, senior vice president of Samsung's wireless terminals division. "Combining SureWave with the i600 fits in with our strategy to ensure the availability of enterprise-grade solutions around our Windows Mobile product line."
"Over the past year, enterprise customers have increasingly demanded open platforms and full flexibility to support the complete range of devices currently in the marketplace. They are telling us 'we must support smart phones like the Samsung i600, but our employees have highly personal preferences about handheld units, so we need to support all devices,'" JP Mobile's Rao added. "Today's reality is this: it's not enough to just facilitate wireless email and PIM. Enterprises require secure mobile synchronization with corporate applications and this solution was developed with that in mind. The Samsung i600 along with SureWave Enterprise Server provides this flexibility."
The mobility infrastructure provided by SureWave uses standard Java Enterprise Edition (J2EE) technology and is SyncML-based. Sitting behind the corporate firewall, user data is completely secure at all times and is never exposed to an outside party. In addition, SureWave provides IT management with secure Web-based access for administration, allowing the primary administrator to reduce administrative effort by adding multiple secondary administrative accounts so help desk personnel can access SureWave as well as add, delete or monitor users. Hardware and software inventory also is provided to assist with asset tracking.
About JP Mobile
Since 1995, JP Mobile(R) (www.jpmobile.com) has been providing enterprise mobility solutions for Fortune 1000 companies in a variety of industries. With JP Mobile's SureWave(R) product, mobile workers can securely access Microsoft Exchange, Lotus Domino, Novell GroupWise and a growing list of enterprise line-of-business applications from all types of mobile devices. SureWave supports Palm, Microsoft Windows Mobile, RIM and Symbian devices, as well as the millions of wireless application protocol (WAP)-based mobile phones in use today. With years of experience in mobile computing, JP Mobile helps companies simplify remote data access and mobile device management with a single platform from behind the corporate firewall.
SureWave, JP Mobile and the JP Mobile logo are registered trademarks of JP Mobile, Inc. All other product and company names mentioned herein may be trademarks of their respective holders.
JP Mobile is a member of the Microsoft Mobility Partner Advisory Council (MPAC), a unique partner program developed by Microsoft Corp. to serve as a focused feedback mechanism for Microsoft Windows Mobile platform development, and provide leading companies with the tools and resources they need to bring the most innovative and successful mobility solutions to market.
About Samsung Telecommunications America
Samsung Telecommunications America, a Dallas-based subsidiary of Samsung Electronics Company, Ltd., researches, markets and develops wireless handsets and telecommunications products throughout North America. For more information, see STA's website at www.samsungusa.com/wireless.
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunications, flat panel display and digital convergence technology. Samsung Electronics employs approximately 75,000 people in 89 offices across 47 countries. The company is the world's largest producer of CDMA mobile phones, memory chips, TFT-LCDs, monitors and VCRs. Samsung Electronics consists of six main business units: Corporate Technology Operations, Digital Media Business, Telecommunication Network Business, Digital Appliance Business, Semiconductor Business, and LCD Business. For more information, please visit http://www.samsung.com.
TRAI Quality of Service Survey
CYBERMEDIA NEWS
Tuesday, April 27, 2004
http://www.voicendata.com/content/vndtoday/104042706.asp
TRAI released the results of its survey on the quality of service provided by the telecom service providers. The study identifies five factors that measured customer satisfaction with cellular operator's service in India-fault cleared in 24 hours, accumulated down time of community isolation, call drop rate, percentage connections with good voice quality, and billing complaints.
Following are some its results.
1.Quality of Basic Services
a. Both the objective audit and subjective survey suggest that the basic services being provided are not up to the desired standards. There is an urgent need for improvement of quality of services among basic service providers.. The situation is quite bad in respect of following parameters:
i. Provision of New connections within 7 days
ii. No. of faults per 100 Subscribers per month
iii. Time taken to repair the faults
iv. Time taken to shift connection
v. Closures
b. It is also observed that quality of services of basic operators is at somewhat acceptable levels in metros and A circles. However, it is very poor in the B and C circles.
c. Similarly, quality of basic services in the East and North zones lags behind West and South zones by a fair margin
2.Quality of GSM Services
a. On the whole, it has been observed that cellular operators are providing much better quality of service than their basic service counterparts. Fierce competition in the cellular market has forced operators to constantly keep improving their networks resulting in acceptable levels of service. Nevertheless, the areas where there is scope for improvement are as follows:
i. Billing complaint incidence
ii. Call Success Rate
iii. Accumulated downtime of community isolation
Compared to the service in Metros, A and B circles, the quality of mobile service in C circles is relatively poor. It seems that not enough investment is being made by operators to improve their services in the C circles.
b. It has been observed that quality of cellular service needs significant improvement in the eastern region.
3. Quality of CDMA Services
The key concern areas for CDMA operators are billing complaint incidence, billing complaint resolution and fault incidence, in that order. The performance of the CDMA operators on the remaining parameters is good.
Based on this survey report and also the quarterly Performance Monitoring Report submitted by the service providers, the Authority has initiated an exercise to modify the QOS parameters wherever the prescribed benchmarks seems unrealistic.
BenQ leads Taiwan vendors in 1Q global handset shipments
http://www.digitimes.com/NewsShow/Article.asp?datePublish=2004/04/27&pages=A6&seq=36
Max Wang, Taipei; Jessie Shen, DigiTimes.com [Tuesday 27 April 2004]
An increase in orders from Motorola for the C200 handset has helped BenQ meet its 1Q forecast of handset shipments, according to sources at Taiwan handset makers. BenQ shipped 1.5 million handsets in March, pushing its first quarter’s shipments to 4-4.1 million units worldwide, the sources said.
Strong demand for the C200 handset worldwide will help the company ship more than four million units this quarter, the sources estimated. The company would not comment on the matter directly, but hinted that there was a chance of rising shipments on quarter.
In addition to the C200, the company also manufactures Motorola’s V291 handset, for which shipments are currently remaining flat at about 200,000 units monthly, the sources said.
BenQ’s own-brand handset sales have also reached 70,000 units monthly in Taiwan, according to an April 23 article. Shipments of own-brand handsets are likely to gradually raise BenQ’s full-year revenues, the sources added.
Currently the company is marketing handsets under a dual BenQ-CECT (Chinese Electronics Corporation Telecom) brand in China, with monthly shipment of 50,000 units, according to the sources. BenQ aims to reach shipments of 150,000 units per month of the BenQ-CECT branded handsets in China by year-end. BenQ’s joint venture with CECT, a large China-based GSM/CDMA handset manufacturer, was set up in early March.
Despite the quartz crystal component shortage that has effected handset shipments since the fourth quarter of last year, BenQ is confident that the tight supply will be solved this quarter and shipments will be able to meet original time tables, the company indicated.
Myanmar to add 10,000 more mobile phone lines
www.chinaview.cn 2004-04-27 11:04:03
http://news.xinhuanet.com/english/2004-04/27/content_1442409.htm
YANGON, April 27 (Xinhuanet) -- Myanmar will add 10,000 more mobile phone lines under a latest infrastructural project to improve the country's telecommunications industry, the Myanmar Times reported in this week's issue.
Quoting the state-run Myanma Posts and Telecommunications (MPT),the report said the project will also cover Mogok and Mongshu in southern Shan state and Pharkant in northern Kachin state.
Meanwhile, a new digital advanced mobile phone system network, which is under installation and will be completed by June, will also allow access between Yangon and Mandalay, the two major cities of Myanmar, the report added.
As part of its bid to develop the mobile phone industry, Myanmar is planning to increase such phone density, anticipating to reach a saturation point within two years.
While the government-run MPT still remains as the only mobile phone service provider in Myanmar, experts urged liberalization ofthe industry by allowing some more private operators into the phone market to better the development of the sector, according tothe report.
Meanwhile, a Chinese company is reportedly prepared to fund Myanmar's mobile phone infrastructural projects as it did to Laos.
According to official statistics, out of Myanmar's mobile phonesystems, there were 8,500 lines of cellular system, 2,700 Digital European Cordless Telecommunication (DECT) system, 18,250 fixed lines and 11,800 mobile lines of CDMA system and 21,900 lines of GSM system totalling 63,150 as of the end of 2003.
The cellular system was introduced in 1993, while the DECT and CDMA systems were launched in 1997 and the GSM system in 2002. Enditem
Samsung to unveil 25 new mobile phones
http://www.agencyfaqs.com/interactive/ht_new_media/ice_news/568.html
• 2004-04-26 • In a new trend that is an offshoot of the success of CDMA mobile phones, handset manufacturers are looking forward to service providers for a boost in their sales. In a strategic move the lead handset maker Samsung has tied up with Airtel for grouping its handsets with Airtel services in all its circles. Samsung is planning similar tie-ups with service providers Idea and Hexacomm. Kunal Ahooja, vice president, telecom, Samsung India, says, “Samsung has entered into operator alliances with Airtel in all circles for its two models, and with Idea Cellular for select circles on all models.”
The south Korean company currently has 11 models in the country but the company plans to launch another 25 new phones. Ahooja says, “The highlight of the range being introduced is the SGH-X600, a bar mobile phone with a rotating camera and integrated flash. This is the only phone with multi-language display and input in Hindi, Tamil and Marathi. The other models being introduced include SGH-S500, SGH-X100 and SGH-X430.” He further added that the company expected 50 per cent of mobile phone sales to come from the colour/camera phone segment by the middle of the year.
KDDI's Weapon Against DoCoMo
High-speed customers in Japan's wireless wars are flocking to the giant's smaller rival. KDDI's Hideao Okinaka explains why
http://www.businessweek.com/technology/content/apr2004/tc20040427_6175_tc058.htm
Japanese cellular operator KDDI has long operated in the shadow of its bigger, more glamorous rival, NTT DoCoMo (DCM ). While DoCoMo garnered praise for winning customers to its groundbreaking i-mode service and for launching one of the first third-generation (3G) networks, KDDI struggled.
Advertisement
KDDI's cellular network -- the result of a merger of several smaller operators -- had 16.4 million customers at the end of March, less than half what DoCoMo has. But some 13 million of KDDI's customers have signed up for its high-speed service, called au, which uses CDMA 1X, the standard promoted by San Diego-based Qualcomm (QCOM ). That's far more than the 3 million that DoCoMo has for its 3G service, dubbed FOMA, which operates on the rival W-CDMA standard.
In the second part of Online Asia's look at the Japanese cellular market (see BW Online, 4/19/04, "DoCoMo's 'New Business Model'"), I recently talked to Hideao Okinaka, the vice-president and general manager of KDDI's au business sector. I asked him about what it's like to be David to DoCoMo's Goliath. Edited excerpts of our conversation follow:
Q: You've done much better than DoCoMo in getting new customers.
A: We launched in April, 2002, and we had 7 million subscribers by March, 2003, and 13 million by March, 2004. And we're still gaining new customers. In calendar year 2003, we added 2.5 million new subscribers. We [were No. 1 in getting new subscribers]. It was the first time ever that DoCoMo wasn't.
B>Q: How do you account for KDDI's success, given how difficult a time DoCoMo had when it launched FOMA?
A: After we launched, we didn't want to sell new handsets based on the old technology. Every single device on our shelves in our shops is 3G. The customer can't find any 2G [second-generation] devices. We centralized the product to 3G, but DoCoMo continued to sell 2G and 3G handsets.
[Because of] the technical maturity of 1X compared to W-CDMA, we were able to launch 1X devices with the same dimensions and same battery life. So, from the customer perspective, there was no degradation. And because CDMA 1X is fully compatible with 2G, a 1X device can communicate with both networks [so we have total coverage].
Q: And how has DoCoMo done?
A: FOMA had smaller coverage. The phones had bigger dimensions and shorter battery life. For DoCoMo, it's something like our situation in 1999-2000. We decided to move to CDMA, which we launched in 1998. For three years, we struggled with getting a good market perception among new customers. After three years, we recovered. The situation DoCoMo is now faced with is something similar. They are on the way to migrate from the old network to an entirely new one.
Q: You shook up the market last fall when you announced your plan to charge a flat monthly rate for au subscribers. Why did KDDI make such a big change?
A: Fiscal year 2004 [ending in March, 2005] is the year for real competition between DoCoMo and us. Both of us are trying to have the advantage. The [cellular] market is going to saturate. There's 62.5% penetration now. We have maybe [15 percentage points] left to grow...we should hurry up to get numbers.
Q: In November, you launched WIN. How is it different? A: It's the next step from 1X in the CDMA world. It's based on CDMA 1X EVDO -- "evolution data only." CDMA 1X is designed for voice, and you can piggyback data on top of that. EVDO is designed purely for data.
Q: But the response hasn't been so good.
A: It has been a little bit less than what we expected. Our target was 450,000 WIN subscribers by the end of March. We couldn't reach that number, but we're more than halfway there. We had only two handsets, one each from Hitachi (HIT ) and Kyocera (KYO ). We just launched a third from Hitachi. Also, the concept of WIN isn't fully understood by the average customer. The flat rate isn't fully understood, either. So it will take some time. But even so, we gained 220,000-400,000 new customers in four months.
Q: In Europe and other parts of the world like Hong Kong, 3G operators have struggled. What's one of the big differences between the Japanese and European markets?
A: It's a matter of market acceptance of mobile multimedia services. In Japan, multimedia was so popular on the 2G network. So, from the customer's perspective, 3G means that multimedia capability is improved. But for Europeans, as well as people in Hong Kong and particularly in America, they're not yet used to using mobile multimedia. Operators see 3G as a means to launch multimedia services, so they're trying to do two jobs at the same time.
Q: So what do you see happening?
A: It should be a step-by-step process to get to good market acceptance for 3G. Once the operators succeed in educating customers, then they have a good opportunity to persuade them to switch to 3G.
Einhorn covers technology from Hong Kong for BusinessWeek. Follow his weekly Online Asia column, only on BusinessWeek Online
Edited by Patricia O'Connell
CDMA Wireless Subscriber Base Grows at 745%
27th April , 2004
http://www.3g.co.uk/PR/April2004/6980.htm
US : The CDMA Development Group (CDG) announced that CDMA is rapidly expanding and capturing significant market share in India, one of the fastest growing wireless markets in the world. With the widespread deployment of CDMA2000® in 2003, the CDMA base grew by 745 percent, reaching nearly 9.3 million users in March 2004.
There are seven CDMA carriers operating in India today including BSNL, HFCL Infotel, MTNL, Reliance, Shyam Telelink, and Tata Teleservices. Reliance is the largest operator in India, capturing 20 percent market share in nine months after introducing CDMA2000 services in May 2003.
“India represents a tremendous opportunity for the wireless industry, and CDMA2000 is well positioned to become the dominant technology,” said Perry LaForge, executive director of the CDG. “CDMA2000’s spectral efficiency allows operators to offer affordable services to existing markets and expand coverage to new areas. The high-speed capabilities of CDMA2000 offer a cost-effective solution for providing data services, including broadband access to the Internet.”
In less than five years, India has surpassed more than 33 million mobile users. With teledensity of only 7 percent, many analysts view India as one of the world’s most lucrative markets with tremendous growth potential. Financial analyst firm Lehman Brothers recently reported that India’s wireless market is expected to grow to 50 million by 2004 and 100 million by August 2006.
CDMA was introduced in India as a limited mobility solution and reached nearly 1.1 million users by the end of 2002. With the deployment of CDMA2000 and market liberalization in 2003, CDMA technology’s adoption rate surged and the subscriber base grew by over eight million for the year, nearly five million in the second half. More importantly, the introduction of CDMA services has created competition, lowered tariffs and offered many citizens access to communication services for the first time.
CDMA will continue to expand and bring new services to the region. Reliance introduced very successful pre-paid services in February of this year and Tata is expanding its CDMA network by adding capacity in the existing markets and expanding to 11 new markets by 3Q 2004. Lehman Brothers expects that CDMA will continue to expand the market share with 33 percent of net mobile subscriber additions this year.
Mobile Carriers Avoid European 3G
http://times.hankooki.com/lpage/tech/200404/kt2004042718024011800.htm
By Kim Tae-gyu
Staff Reporter
Korea's mobile operators are making no secret of their reluctance to invest in the struggling third-generation technology of wideband-code division multiple access (W-CDMA) due to technical glitches.
Industry leader SK Telecom and runner up KTF on Tuesday said they tentatively earmarked 250 billion won in W-CDMA investment but only spent a negligible amount in the first quarter.
'The actual investment in the W-CDMA will be possible at the latter part of this year after the service becomes commercially viable by solving technical problems,' an SK Telecom spokesman said.
The commercial W-CDMA service was launched late last year in Seoul and the surrounding Kyonggi Province, but it has attracted little attention due to its bulky handsets and technical limitation.
Samsung Electronics and LG Electronics rolled out W-CDMA models but their sizes were around 1.5 times bigger than other sleek phones, as they need two chips _ one for the W-CDMA network and the other for calling and receiving signals from other networks.
The European 3G platform must also solve the so-called 'handover' hitch, or occurrence of signals disconnecting when handset owners move from the W-CDMA network to other networks.
As a result, SK Telecom and KTF each signed up 500 and 784 customers for their W-CDMA services up to now and the buyers are mostly those who work for related businesses.
The government is moving fast to make the sluggish telephony business take off and allowed subsidy of up to 40 percent earlier this month.
It also expects the W-CDMA will make noise this September when the slim dual-band-dual-mode phone, or one-chip W-CDMA phone, will be introduced.
However, carriers are more cautious in projection and experts question how they will spend the promised money.
QUALCOMM Congratulates Movilnet on Launch of BREW(TM)-Based Services in Venezuela
Monday April 26, 7:30 am ET
- Movilnet to Offer Subscribers Full-Featured BREW-Enabled Handsets From Kyocera and Motorola -
http://biz.yahoo.com/prnews/040426/lam047_1.html
SAN DIEGO, April 26 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, congratulates Venezuelan operator Movilnet on the successful launch of wireless data services based on QUALCOMM's BREW solution. Movilnet is a Cantv company and provider of products and services for voice, data, Internet access, cellular telephony and telephone directories. Movilnet's new BREW-based "3rd Generation Services" allow the company's 2.8 million wireless subscribers to browse and download a variety of applications -- such as e-mail, entertainment, communication services, games and ringtones -- on their wireless devices using the operator's third- generation (3G) CDMA2000® 1X network.
ADVERTISEMENT
"The flexibility afforded by QUALCOMM's BREW system is ideal for offering value-added services to our customers in a quick and cost-effective manner," said Jose Maria De Viana, president of Movilnet. "The launch of our 3rd Generation Services demonstrates our commitment to bringing the industry's best 3G wireless applications to our subscribers. With these exciting new products and services, such as real-time Internet Web cam and video services, we anticipate these services will be met with great enthusiasm from users throughout Venezuela."
Since the BREW system allows content developers to build applications in a variety of languages, including Spanish, Movilnet can offer products and services specifically designed for the Venezuelan market. "3rd Generation Services" subscribers can initially select from four different BREW-enabled handsets, Kyocera Slider, 3245 and 3225, and Motorola T-730 color phones, immediately available by Movilnet.
"As one of the first operators in South America to deploy a CDMA2000 1X network, and by bringing BREW-based services to Venezuela, Movilnet has set the bar for advanced 3G services in the region," said Marcelo Valdez, regional director of Americas, QUALCOMM Internet Services. "QUALCOMM is thrilled that Movilnet chose the BREW system to power 3rd Generation Services. We look forward to working closely with the Movilnet team and we are pleased with the new opportunities it creates for the growing community of global developers."
QUALCOMM's BREW system provides products and services that connect the mobile marketplace value chain, which includes application developers, publishers, content providers, device manufacturers, operators and consumers.
Publishers and developers worldwide are generating revenue from BREW-based applications and content, and 26 manufacturers have offered more than 135 BREW-enabled device models to consumers. Movilnet Venezuela joins many very successful operators that have deployed commercial BREW-based wireless data services, including Verizon Wireless, ALLTEL, Cellular One, MetroPCS, Midwest Wireless and U.S. Cellular in the United States; China Unicom, KDDI in Japan, KTF in South Korea, Hutchison Wireless CAT in Thailand, Telstra in Australia, VIVO in Brazil, BellSouth International, Telefonica Moviles in Peru, Movicom in Argentina, Verizon in the Dominican Republic, Verizon Wireless Puerto Rico and Pelephone in Israel.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties including the extent and speed to which the BREW solution is adopted and deployed, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. BREW is a trademark of QUALCOMM Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA). All other trademarks are the property of their respective owners.
For further information please contact: Michele Bakic, QUALCOMM Internet Services, +1-858-651-4017, mbakic@qualcomm.com, or Emily Gin, Corporate Public Relations, +1-858-651-4084, publicrelations@qualcomm.com, or, Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, all QUALCOMM Incorporated.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Chinese CDMA phone to be based on Microsoft OS
By Tony Hallett, Special to CNETAsia
Monday, April 26 2004 10:48 AM
http://asia.cnet.com/newstech/personaltech/0,39001147,39177067,00.htm
Microsoft has won an important place for its Windows Mobile operating system inside CDMA handsets to be rolled out by a subsidiary of China Unicom.
China Unicom NewSpace, part of the country's second-largest operator, after GSM-based China Mobile, will launch the CU928 multimedia phone on its U-Web CDMA 1x-based service.
The device is a mix of a PDA and cellular handset, using dual chips and the Pocket PC Phone edition of the OS. An Intel PAX265 400MHz processor looks after the PDA part while a Qualcomm MM5500 takes care of the communications.
Microsoft will appreciate a big win in China and on the CDMA standard. It has so far signed up a number of licensees for its Windows Mobile OS but received criticism for the number of products actually available.
A Microsoft spokesman earlier this year told silicon.com: "There is no point in just having a huge number of licensees. It is important to us that they are successful."
Nevertheless, the company appears focused on partners such as HTC - the maker of O2's xda - Motorola and Samsung.
Meanwhile competitors are targeting both China and the CDMA platform, which isn't currently found in Western Europe.
Symbian in February inked an agreement with South Korea's LG Electronics, which is the world's fifth-largest handset maker and major CDMA player.
Meanwhile PalmSource, owner of the rival Palm OS increasingly found in smart phones, opened a facility in China at the end of 2002.
And Chinese developers and politicians have themselves expressed a desire to use the open Linux OS as a mobile platform, though this has yet to make much headway.
The Microsoft-China Unicom deal is the fruit of a partnership entered into just over a year ago.
Asian Stocks Rise, Led by Nissan, Taiwan Semiconductor, Benq
http://quote.bloomberg.com/apps/news?pid=10000087&sid=a6AycMLoi5rs&refer=top_world_news
April 22 (Bloomberg) -- Asian stocks rose, paced by Nissan Motor Co. and Taiwan Semiconductor Manufacturing Co., as higher earnings at U.S. companies such as Ford Motor Co. and Qualcomm Inc. boosted optimism about the pace of growth in the world's biggest economy.
The Morgan Stanley Capital International Asia-Pacific Index added 0.4 percent to 95.43 as of 12:47 p.m. in Tokyo. Japan's Nikkei 225 Stock Average climbed 0.5 percent. Benchmark indexes rose in all markets that were open, except for those in Australia, New Zealand, Indonesia, Hong Kong and China.
Earnings in the U.S. ``are suggesting that the economy is on a path to a stronger recovery, which will provide good business opportunities for exporters,'' said Yoji Takeda, who helps manage $250 million as head of Japanese equities at RBC Investment Management (Asia) Ltd. in Hong Kong.
Better-than-expected earnings in New York helped lift U.S. stocks. About 74 percent of the 189 companies in the Standard & Poor's 500 that have reported first-quarter results have exceeded analysts' expectations, according to Thomson Financial.
The MSCI Asia Pacific has dropped 3.5 percent since this year's peak on April 7 amid concern that interest rates in the U.S. would rise sooner than anticipated by some investors.
Chinese companies have been among those that fell the most concern the country would take measures to slow its economic expansion. The International Monetary Fund yesterday called on China to take further steps to prevent its economy from overheating.
Hong Kong's Hang Seng China Enterprises Index, which tracks 37 mainland companies, or H shares, added 0.4 percent, ending a six-day, 13 percent slump. The Hang Seng Index shed 0.2 percent.
Auto Stocks
``People were getting carried away,'' said Alex Wong, a director at Rexcapital Asset Management Ltd. ``Long-term economic growth is still intact'' and will support stocks. His Rexcapital Asian Pacific Fund rose 86 percent in the year TO March 31, according to Bloomberg data, more than the 65 percent advance by the MSCI Asia-Pacific Index.
Nissan, Japan's third-largest automaker, climbed 2.6 percent to 1,264 yen. Toyota Motor Corp., which derives 80 percent of its operating profit from North America, added 3 percent to 4,120 yen.
In Hong Kong, Denway Motors Ltd., which makes passenger cars in China with Honda Motor Co., advanced 4.6 percent to HK$7.95.
Ford, the second-largest U.S. carmaker, climbed 10 percent after saying profit excluding some items was 96 cents a share in the first quarter, more than double the 44 cents analysts expected, according to Thomson.
Qualcomm, the world's second-largest maker of microchips that power mobile telephones, said second-quarter profit surged on rising demand for phones using its technology.
Semiconductors
Taiwan Semiconductor Manufacturing, the world's largest supplier of made-to-order chips, added 3.3 percent to NT$63.5. The company supplies Qualcomm with chips.
Benq Corp., Taiwan's largest mobile phone maker, jumped 5 percent to NT$53. Benq offers mobile phones based on Qualcomm's code division multiple access, or CDMA.
United Microelectronics Corp., the second largest made-to- order chips, jumped 4.6 percent to NT$34.10.
SK Networks Co., a South Korean trading company, surged by the 15 percent daily limit imposed by the Korea Stock Exchange for a third day, to 18,600 won. SK Networks said Tuesday that first-quarter profit rose almost fivefold.
LG Electronics Inc. added 3.2 percent 80,300 won after Samsung Securities Co. raised its share-price forecast for the nation's second-largest electronics maker, which yesterday reported first-quarter profit.
Hoya Corp., the world's largest supplier of glass plates used by chipmakers, climbed 6.6 percent to 11,800 yen after the company said fourth-quarter profit surged two-fifths and CLSA Asia-Pacific Markets raised the stock to ``buy.''
To contact the reporter on this story:
Neha Kumar in Tokyo at nkumar2@bloomberg.net.
To contact the editor for this story:
Teo Chian Wei at cwteo@bloomberg.net
Last Updated: April 21, 2004 23:47 EDT
Reliance, Tata Indicom lower entry bar
Joydeep Ray in Ahmedabad / April 22, 2004 13:05 IST
http://inhome.rediff.com/money/2004/apr/22telecom.htm
Reliance Infocomm and Tata Teleservices Ltd on Wednesday decided to slash the entry cost for new subscribers in Gujarat.
Reliance has announced that a new entry level Reliance India Mobile pre-paid package is introduced with a lower entry cost of Rs 2,999 including the price of a multimedia-enabled handset.
Tatas announced that a new aspiring Tata Indicom subscriber now can get a new connection of CDMA mobile with colour Nokia handsets with an upfront payment of only Rs 999.
"Reliance Infocomm has now made data-enabled handsets more affordable for its RIM prepaid customers by introducing an attractive entry pricing of Rs 2,999 for Nokia 2280 handsets, Rs 3,499 for LG RD 2030 handsets and Rs 4,499 for Moonlight LG RD 2130 handsets.
All the three handsets will be pre-loaded with one recharge coupon worth Rs 324 with equivalent talktime of Rs 200 and 30 days of validity, said a Reliance source here on Wednesday.
Though Tata Teleservices officials earlier claimed that the company would be launching its prepaid services and messaging services including data-enabled services by last calendar year, no such plan has materialised so far.
Reliance Infocomm has already been offering messaging services, data services and also prepaid services for the CDMA mobile subscribers.
Earlier, Reliance launched its prepaid services, RIM Prepaid, at Rs 3,500 for a Motorola C 131 handset along with bundled prepaid vouchers worth Rs 3,240 which would be valid for six months and can be extended for another six months on request.
With the new scheme launched on Wednesday, Reliance has not only slashed the upfront fee for the RIM prepaid subscribers but also attempted to woo the CDMA prepaid segment with sophisticated data-enabled handsets with a lower price.
"The newly introduced LG RD 2230 handset is priced at Rs 3,499 which will also come pre-loaded with one recharge coupon worth Rs 324 equivalent to talk time of Rs 200 with a validity of 30 days. The feature-rich and elegant LG RD 2230 phone with its soft-edge stylish design, comes with Hindi user interface, internal antenna, phone book with storage up to 300 entries, polyphonic ring tones and R Connect option too," said a company release.
Tata Indicom, the brand name of Tata Teleservices, launched a new scheme in which subscribers will be able to posses a digital technology-based Kyocera Rave CDMA colour mobile handset by paying just Rs 499 as an upfront payment and remaining in 24 equated monthly instalments of Rs 299.
"The new handset comes with a unique flashlight and the features offered include calculator, built-in directory to store personal and business information and also user-friendly navigation keys. We will also offer Nokia 2280 handset with an upfront payment of Rs 999 and 27 EMIs of Rs 249 each. For subscribers in the lower-end, Tata Teleservices will offer Motorola C210 handset with connection at an upfront payment of Rs 499 and 27 EMIs of Rs 199 each," said a company source.
However, all these schemes launched by Indicom are only for its postpaid subscribers as Tata is yet to launch its prepaid services in the CMDA segment.
Tata Teleservices is currently operating in eight circles -- Delhi, Maharashtra, Gujarat, Mumbai, Karnataka, Andhra Pradesh, Tamil Nadu and Chennai -- and has a customer base of about 1.6 million
China agrees to take neutral position on 3G standards at China-U.S. JCCT
22.04.2004 10:55:00 GMT
http://www.interfax.com/com?item=Chin&pg=0&id=5715473&req=
Shanghai. (Interfax-China) - The recently completed China-U.S. Joint Commission on Commerce and Trade (JCCT) has had fruitful results on information industry issues. According to a trade facts document received by Interfax, released by the Office of the United States Trade Representative, China has agreed to support technology neutrality with respect to the upcoming adoption of third generation (3G) communication standards for the country.
Currently China is examining three potential 3G technologies -WCDMA, CDMA 2000 and TD-SCDMA, the latter being a home-grown Chinese technology.
At the JCCT, China agrees that Chinese telecom service providers will be allowed to make their own choices as to which standard they adopt, depending on their individual needs. In addition, Chinese regulators will not be involved in negotiating royalty payment terms with relevant intellectual property rights holders.
So far, China has not disclosed the details of these talks either through its government sources or local press.
China's Ministry of Information Industry is now holding the second phase field test on the three 3G standards, the WCDMA, the CDMA2000 and China's homegrown TD-SCDMA standard. All of China's 6 basic telecom operators have been required to participate in TD-SCDMA field tests. China Mobile, China Netcom, and China Railcom, however, will not participate in CDMA 2000 testing, while China Satellite Communications (ChinaSat) will not participate in WCDMA testing.
SECOND PHASE 3G TEST ARRANGEMENTS
3G standards
Mobile operators
Test locations
Start time
WCDMA
China Mobile, China Unicom, China Telecom, China Railcom, China Netcom
Beijing, Guangzhou, Shanghai
End of March
CDMA 2000
China Unicom, China Telecom and ChinaSat
Beijing, Guangzhou, Shanghai
End of April
TD-SCDMA
China Mobile, China Unicom, China Telecom, China Railcom, China Netcom, ChinaSat
Beijing, Shanghai, (Chongqing, Chengdu likely)
May
Source: Interfax database
Established in 1983, the China-U.S. JCCT is a government-to-government consultative mechanism that provides a forum to resolve trade concerns and promote bilateral commercial opportunities. Previously led by the U.S. Secretary of Commerce and the Chinese Commerce Minister, the status of the JCCT was elevated following the December 2003 meeting of President Bush and Chinese Premier Wen Jiabao to focus higher-level attention on outstanding trade disputes. This year's JCCT was chaired by Chinese Vice Premier Wu Yi and Commerce Secretary Don Evans and U.S. Trade Representative Robert Zoellick.
China backs off of WAPI proposal
By George Leopold and Patrick Mannion
EE Times
Apr 21, 2004
http://www.commsdesign.com/news/showArticle.jhtml?articleID=18902636
WASHINGTON — China agreed Wednesday (April 21) not to implement a proposed wireless encryption standard widely opposed by U.S. companies.
Chinese Vice Premier Wu Yi announced the decision to indefinitely delay implementation of the Wireless LAN Authentication and Privacy Infrastructure, or WAPI, standard following day-long talks with U.S. trade official here.
The standard was to have taken effect on June 1.
Industry groups that have been lobbying the Bush administration for months to block the Chinese deployment praised the decision.
"This is a very positive outcome for our trade relationship with China," said Information Technology Industry Council (ITI) President Rhett Dawson. "The decision by the Chinese to continue to develop the WAPI standard through the international standards process will benefit the Chinese and global industry and consumers everywhere."
U.S. industry executives are expected to travel to China next month to begin talks aimed at integrating WAPI into the international standards process. The talks will be sponsored by the Standardization Administration of China (SAC) and the IEEE.
Prior to today's decision, companies like Intel Corp. and Broadcom Corp. had said they would not develop WAPI-compliant gear.
In an interview, ITI Dawson added, "WAPI, as it exists now, will not be implemented." The SAC will work international standards bodies, likely the IEEE, to develop a new WAPI standard, he said, and they will no longer require outside companies to work with Chinese companies to acquire IP, thereby conforming to WTO regulations on national treatment.
The same approach will apply to 3G as China opens its market to competition so that W-CDMA, TD-SCDMA or other specs can compete on equal standing without government mandates.
"China has recognized its obligations to the WTO and working at joining the world community," said Dawson.
Also praising the move was the Semiconductor Industry Association. SIA President George Scalise said in a statement, "China's decision to work through the established processes for development of international standards will benefit both Chinese and international suppliers of information technology products. The major beneficiaries will be the people of China, who will be assured of having access to the latest technology at competitive costs."
Qualcomm Ups Ante, Too - The STREET
http://www.thestreet.com/_yahoo/tech/scottmoritz/10155532.html
By Scott Moritz
TheStreet.com Senior Writer
4/21/2004 4:35 PM EDT
Click here for more stories by Scott Moritz
Looks like Qualcomm (QCOM:Nasdaq - commentary - research) is the latest wireless winner.
On a day that saw big-tech rival Motorola (MOT:NYSE - commentary - research) surge 18% on the heels of a blowout first quarter, Qualcomm posted its own strong numbers as the cell-phone industry continues to grow like gangbusters.
The company also boosted third-quarter guidance, marking the third time this year it has raised its earnings outlook for 2004. Qualcomm shares rose 4% in after-hours trading.
For its second quarter ended last month, Qualcomm earned $442 million, or 53 cents a share, on revenue of $1.2 billion. Those figures exclude the results of the company's strategic ventures unit, a bubble-era effort at early-stage tech financing that is being unwound. Including the ventures unit, latest-quarter income was $488 million, or 58 cents a share, up from the year-ago $103 million, or 13 cents a share.
Analysts surveyed by Thomson First Call had forecast fiscal second-quarter earnings of 48 cents a share on revenue of $1.19 billion.
"Our financial results reflect the strong acceptance and rapid global growth of 3G CDMA," said CEO Irwin Mark Jacobs. "Consumers and enterprises increasingly recognize the benefits of CDMA-based networks, with the number of subscribers now exceeding 200 million."
The numbers come two months after the San Diego tech titan last boosted its financial forecasts, citing strong demand for its code division multiple access, or CDMA, wireless standard. The industry outlook has gotten so strong that Qualcomm has raised its dividend twice in the span of nine months.
Qualcomm boosted its outlook for the current quarter ending in June. Excluding the venture unit, the company expects a 49-cent profit on sales of $1.3 billion. That's a 4% to 7% sequential sales increase. The Wall Street estimate for the third quarter called for earnings of 39 cents on revenue of $1 billion.
Qualcomm owns many patents on the CDMA standard. The company benefits from the sales of its phone chips, the licensing of its wireless tech patents and royalties from all CDMA phone sales.
On Wednesday, Qualcomm rose $1.54 to $65.97, putting the stock within 10% of a 52-week high. In after-market trading it rose $2.31 to $68.28.
REUTER'S SUMMARY OF EARNINGS
UPDATE - Qualcomm posts larger second-quarter profit
Wednesday April 21, 4:30 pm ET
http://biz.yahoo.com/rc/040421/tech_qualcomm_earns_2.html
(Adds details, analysts' estimates)
LOS ANGELES, April 21 (Reuters) - Wireless technology company Qualcomm Inc. (NasdaqNM:QCOM - News) on Wednesday reported a larger quarterly profit on growing strength in the global cellular market, and boosted its outlook for the fiscal year.
Qualcomm shares jumped in after-hours trade following the release of earnings.
San Diego-based Qualcomm reported a fiscal second-quarter net profit of $488 million, or 58 cents per share, compared to a year-earlier profit of $103 million, or 13 cents per share. Revenue rose to $1.2 billion from $1 billion a year earlier.
Excluding investment losses, Qualcomm's profit was $442 million, or 53 cents per share. Analysts surveyed by Reuters Research, a unit of Reuters Group Plc, expected earnings per share of 49 cents on revenue of $1.19 billion.
In late February Qualcomm raised its outlook for the quarter on strong global shipments of handsets based on its Code Division Multiple Access, or CDMA technology. It was expected to have a good quarter as other wireless companies also showed broad-based strength in their results.
Shares in Qualcomm jumped to $68.01 in after-hours trading on INET from a close of $65.84 on the Nasdaq.
QUALCOMM Announces Second Quarter Fiscal 2004 Results
Wednesday April 21, 4:17 pm ET
Revenues $1.2 Billion, EPS $0.58
Revenues $1.2 Billion, EPS $0.53 Excluding QSI Segment
SAN DIEGO, April 21 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News) today announced its second quarter fiscal 2004 results ended March 28, 2004. Revenues were $1.2 billion in the second quarter of fiscal 2004, up one percent sequentially and 20 percent year-over-year. The second quarter fiscal 2004 net income was $488 million and diluted earnings per share were $0.58, up 39 percent and 35 percent sequentially and 374 percent and 346 percent year-over-year, respectively.
ADVERTISEMENT
The second quarter fiscal 2004 net income excluding the QSI segment was $442 million, up six percent sequentially and 41 percent year-over-year. The second quarter fiscal 2004 diluted earnings per share excluding the QSI segment were $0.53, up four percent sequentially and 39 percent year-over-year. Detailed reconciliations between total QUALCOMM results and results excluding QSI are included at the end of this news release. Prior period reconciliations are presented on our Investor Relations web page at www.qualcomm.com.
In this quarter we disposed of all remaining operations and assets related to the Vesper Operating Companies and TowerCo. In accordance with Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," their results of operations and cash flows are presented as discontinued operations within the QSI segment. Our statements of operations and cash flows for prior periods have been adjusted to reflect this and are presented on our Investor Relations web page at www.qualcomm.com.
"Our financial results reflect the strong acceptance and rapid global growth of 3G CDMA," said Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM. "Consumers and enterprises increasingly recognize the benefits of CDMA-based networks, with the number of subscribers now exceeding 200 million. Early 3G CDMA entrants continue to perform well. KDDI, the first CDMA operator in Japan, announced its sixth consecutive month as the leading Japanese operator in net subscriber additions, and now has approximately 14 million subscribers on its 3G network. Better coverage and new handsets have accelerated WCDMA (UMTS)uptake and resulted in over 4 million cumulative subscribers in Japan and Europe at the end of the quarter. NTT DoCoMo, the largest Japanese operator, added approximately 724,000 subscribers to its 3G FOMA network in March 2004, for a total of over three million WCDMA subscribers. In South Korea, local number portability and compelling 1xEV-DO handsets contributed to the highest monthly net additions in two years and a 1xEV-DO base that now exceeds 6.4 million subscribers. The United States CDMA market continues to grow, benefiting from local number portability and the popularity of camera phones and color screens. Finally, we experienced continued growth in China and India and strong growth in Brazil, propelled by low-priced MSM6000-based entry level phones."
"This quarter, we matched the prior quarter's record high by shipping approximately 32 million MSM phone chips; however, worldwide demand for our chipsets exceeded our supply, particularly the MSM5100 and MSM5500. We anticipate supply to better align with demand over the course of the next two quarters.
"Research and development continued at high levels. Both the CDMA2000 1X Revision D and the 1xEV-DO Revision A standards were completed, each supporting peak data rates of 3.1 Mbps on the forward link and 1.8 Mbps on the reverse link. We publicly demonstrated CDMA2000 1xEV-DO Gold Multicast, allowing multimedia content to be sent simultaneously to many users; MediaFLO, an end-to-end product and service delivering multiple channels of video conveniently accessed by an on-screen channel guide; and Quality-of-Service features supporting greatly enhanced performance for Voice-over-Internet Protocol (VOIP), push-to-chat, and video telephony. We believe these and other projects will drive further expansion of 3G CDMA, subscriber migration from 2G systems, and higher revenues.
Revenues for the second quarter of fiscal 2004 grew $199 million compared to the second quarter of fiscal 2003, including a $130 million increase in QUALCOMM Technology Licensing (QTL) segment revenues and a $65 million increase in QUALCOMM CDMA Technologies (QCT) segment revenues. QTL revenues increased over the prior year due primarily to greater phone and infrastructure equipment sales by our licensees. In the second quarter of fiscal 2004, our licensees reported CDMA phone sales for the first quarter of fiscal 2004 of approximately 37 million units, compared to 27 million units in the second quarter of fiscal 2003. QCT sold approximately 32 million Mobile Station Modem (TM) (MSM(TM)) phone chips in the second quarter of fiscal 2004, compared to 28 million in the second quarter of fiscal 2003.
Research and development (R&D) expenses were $169 million in the second quarter of fiscal 2004, up 28 percent from the second quarter of fiscal 2003, largely attributable to increases in costs related to integrated circuit products and corporate initiatives to support multimedia applications, high-speed wireless Internet access and multimode, multiband, multinetwork products, including CDMA2000 1xEV-DO/1xEV-DV, GSM1x and WCDMA (UMTS).
Selling, general and administrative (SG&A) expenses were $138 million in the second quarter of fiscal 2004, up 14 percent from the second quarter of fiscal 2003, largely attributable to increases in employee related expenses for an expanding customer base.
Our annual effective income tax rate is estimated to be approximately 30 percent for fiscal 2004, for both total QUALCOMM and QUALCOMM excluding QSI. In the first fiscal quarter our estimated effective tax rates were 32 percent and 31 percent for total QUALCOMM and QUALCOMM excluding QSI, respectively. Due to the change in the estimated rate for fiscal 2004, in the second fiscal quarter our tax rates were 28 percent for total QUALCOMM and 29 percent for QUALCOMM excluding QSI. In fiscal 2003, our actual effective income tax rate was approximately 34 percent and 33 percent, for total QUALCOMM and QUALCOMM excluding QSI, respectively. The lower estimated annual effective tax rate as compared to our prior estimate for fiscal 2004 and the prior fiscal year is largely due to expected higher foreign earnings which are subject to a lower rate.
QUALCOMM Strategic Initiatives
The QUALCOMM Strategic Initiatives (QSI) segment includes our strategic investments and related income and expenses. During the first quarter of fiscal 2004, we sold the Vesper Operating Companies to Embratel, realizing a net loss of $52 million on the sale. In the second quarter of fiscal 2004, we sold our wholly-owned subsidiary, TowerCo, which owned and operated the Vesper communications towers, to Embratel, realizing a net gain of $40 million on the sale. Also in the second quarter of fiscal 2004, Anatel, the telecommunications regulatory agency in Brazil, approved the return of personal mobile service (SMP) licenses. The related SMP debt was extinguished, resulting in a net gain of $19 million. As a result of the disposition of all remaining operations and assets related to the Vesper Operating Companies and TowerCo, their results of operations and cash flows are presented as discontinued operations within the QSI segment.
In the second quarter of fiscal 2004, QSI's results consist primarily of $21 million in equity losses, partially offset by $4 million in other income resulting from the transfer of a portion of our FCC Auction Discount Voucher to a wireless operator.
Business Outlook
The following statements are forward-looking and actual results may differ materially. Please see Note Regarding Forward-Looking Statements in this release for a description of certain risk factors and QUALCOMM's annual and quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.
Third Quarter Fiscal 2004
Based on the current business outlook, we anticipate that revenues excluding the QSI segment in the third fiscal quarter will increase approximately 4-7 percent sequentially and 41-44 percent year-over-year. We anticipate that earnings per share excluding the QSI segment will be approximately $0.48-$0.50 in the third fiscal quarter, compared to $0.33 in the year ago quarter. This estimate assumes shipments of approximately 33-35 million MSM phone chips during the quarter.
Based on the current business outlook, we anticipate that total QUALCOMM revenues in the third quarter will increase approximately 4-7 percent sequentially and 41-44 percent year-over-year. We anticipate that total QUALCOMM earnings per share will be approximately $0.46-$0.48 in the third fiscal quarter, including an estimated $0.02 loss per share attributed to the QSI segment, compared to $0.09 per share in the year ago quarter. Due to their nature, certain income and expense items such as realized investment gains or losses, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
Fiscal 2004
Based on the current business outlook, we are increasing our guidance for fiscal 2004. We now anticipate that revenues excluding the QSI segment will grow by approximately 26-29 percent year-over-year and earnings per share excluding the QSI segment to be in the range of $1.93-$1.98 for fiscal 2004, compared to $1.42 last fiscal year. We estimate the CDMA phone market to be 152-160 million units in calendar 2004, and we estimate average selling prices of CDMA phones for fiscal 2004, upon which royalties are calculated, to remain constant year-over-year.
Based on the current business outlook, we anticipate that total QUALCOMM revenues will grow by approximately 26-29 percent year-over-year and total QUALCOMM earnings per share to be in the range of $1.86-$1.91 for fiscal 2004, compared to $1.01 last fiscal year, including an estimated $0.07 loss per share attributed to the QSI segment for fiscal 2004. Due to their nature, certain income and expense items such as realized investment gains or losses, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.
Cash and Marketable Securities
QUALCOMM's cash, cash equivalents and both current and noncurrent marketable securities totaled approximately $6.6 billion at the end of the second quarter of fiscal 2004, compared to $5.9 billion on December 28, 2003, and $4.4 billion on March 30, 2003. We paid $57 million in cash dividends, $0.07 per share, in the second quarter of fiscal 2004. On March 2, 2004, we announced a 43 percent increase in the company's quarterly dividend to $0.10 per share payable on June 25, 2004 to stockholders of record on May 28, 2004. In the second quarter of fiscal 2004, net cash transfers from QSI were $39 million. Detailed reconciliations between total QUALCOMM cash and cash flow, cash equivalents and marketable securities excluding the QSI segment are included in this news release.
Results of Business Segments
The following tables, which present segment information, have been adjusted to reflect the SnapTrack reorganization (Note 1) and discontinued operations (Note 3) (dollars in thousands, except per share data):
Second Quarter - Fiscal Year 2004
Segments QCT(1) * QTL QWI(1) * Reconciling
Items (2) *
Revenues 711,257 390,257 144,627 (30,522)
Change from prior quarter (5%) 10% 5% N/M
Change from prior year 10% 50% 14% N/M
Earnings (loss) from
continuing operations
before taxes 257,956 361,591 3,864 1,704
Change from prior quarter (1%) 11% (32%) N/M
Change from prior year 16% 53% (58%) N/M
Income from discontinued
operations, net of tax (3)
Net income
Change from prior quarter
Change from prior year
Diluted earnings per common
share (4)
Change from prior quarter
Change from prior year
Second Quarter - Fiscal Year 2004
Segments QUALCOMM QSI * Total
excluding QSI QUALCOMM *
Revenues 1,215,619 29 1,215,648
Change from prior quarter 1% (51%) 1%
Change from prior year 20% (92%) 20%
Earnings (loss) from
continuing operations
before taxes 625,115 (15,055) 610,060
Change from prior quarter 3% (330%) 1%
Change from prior year 36% 74% 52%
Income from discontinued
operations, net of tax (3) -- 47,148 47,148
Net income 442,419 46,018 488,437
Change from prior quarter 6% N/M 39%
Change from prior year 41% N/M 374%
Diluted earnings per
common share (4) 0.53 0.05 0.58
Change from prior quarter 4% N/M 35%
Change from prior year 39% N/M 346%
First Quarter - Fiscal Year 2004
Segments QCT(1) * QTL QWI(1) * Reconciling
Items (2) *
Revenues 748,378 353,421 138,308 (33,592)
Earnings (loss) from
continuing operations
before taxes 260,477 324,673 5,667 16,038
Loss from discontinued
operations, net of tax (3)
Net income (loss)
Diluted earnings per common
share (4)
First Quarter - Fiscal Year 2004
Segments QUALCOMM QSI * Total
excluding QSI QUALCOMM *
Revenues 1,206,515 59 1,206,574
Earnings (loss) from
continuing operations
before taxes 606,855 (3,499) 603,356
Loss from discontinued
operations, net of tax (3) -- (58,236) (58,236)
Net income (loss) 418,729 (66,436) 352,293
Diluted earnings per common
share (4) 0.51 (0.08) 0.43
Second Quarter - Fiscal Year 2003
Segments QCT(1) * QTL QWI(1) * Reconciling
Items (2) *
Revenues 646,513 260,110 127,356 (17,201)
Earnings (loss) from
continuing operations
before taxes 221,696 236,192 9,194 (6,431)
Loss from discontinued
operations, net of tax (3)
Net income (loss)
Diluted earnings per common
share (4)
Second Quarter - Fiscal Year 2003
Segments QUALCOMM QSI * Total
excluding QSI QUALCOMM *
Revenues 1,016,778 351 1,017,129
Earnings (loss) from
continuing operations
before taxes 460,651 (58,645) 402,006
Loss from discontinued
operations, net of tax (3) -- (154,661) (154,661)
Net income (loss) 313,858 (210,842) 103,016
Diluted earnings per common
share (4) 0.38 (0.26) 0.13
Six Months - Fiscal Year 2004
Segments QCT(1) * QTL QWI(1) * Reconciling
Items (2) *
Revenues 1,459,635 743,678 282,935 (64,114)
Change from prior year 8% 44% 16% N/M
Earnings (loss) from
continuing operations
before taxes 518,433 686,264 9,531 17,742
Change from prior year 2% 47% (32%) N/M
Loss from discontinued
operations, net of tax (3)
Net income (loss)
Diluted earnings per common
share (4)
Change from prior year
Six Months - Fiscal Year 2004
Segments QUALCOMM QSI * Total
excluding QSI QUALCOMM *
Revenues 2,422,134 88 2,422,222
Change from prior year 16% (86%) 16%
Earnings (loss) from
continuing operations
before taxes 1,231,970 (18,554) 1,213,416
Change from prior year 25% 88% 47%
Loss from discontinued
operations, net of tax (3) -- (11,088) (11,088)
Net income (loss) 861,148 (20,418) 840,730
Diluted earnings per
common share (4) 1.04 (0.02) 1.01
Change from prior year 28% 95% 140%
Six Months - Fiscal Year 2003
Segments QCT(1) * QTL QWI(1) * Reconciling
Items (2) *
Revenues 1,350,913 515,533 243,856 (25,560)
Earnings (loss) from
continuing operations
before taxes 507,829 465,601 14,104 (4,583)
Loss from discontinued
operations, net of tax (3)
Net income (loss)
Diluted earnings per
common share (4)
Six Months - Fiscal Year 2003
Segments QUALCOMM QSI * Total
excluding QSI QUALCOMM *
Revenues 2,084,742 649 2,085,391
Earnings (loss) from
continuing operations
before taxes 982,951 (156,518) 826,433
Loss from discontinued
operations, net of tax (3) -- (189,646) (189,646)
Net income (loss) 658,576 (314,226) 344,350
Diluted earnings per
common share (4) 0.81 (0.38) 0.42
(1) During the second quarter of fiscal 2004, the Company reorganized
its wholly-owned subsidiary, SnapTrack, Inc. (SnapTrack), a
developer of wireless position location technology. The Company
previously presented all of the revenues and operating results of
SnapTrack in the QCT segment. As a result of the reorganization of
SnapTrack, revenues and operating results related to SnapTrack's
server software business (software for location-based services and
applications) became part of the QIS division in the QWI segment.
Revenues and operating results related to SnapTrack's client
business (the gpsOne technology that is embedded with the integrated
circuit products) remain with the QCT segment. Prior period segment
information has been adjusted to conform to the new segment
presentation.
(2) Reconciling items related to revenues consist primarily of other
non-reportable segment revenues less intersegment eliminations.
Reconciling items related to earnings before taxes consist primarily
of corporate expenses, charges that are not allocated to the
segments for management reporting purposes, unallocated net
investment income, non-reportable segment results, interest expense
and the elimination of intercompany profit.
(3) During fiscal 2004, the Company sold its consolidated subsidiaries,
the Vesper Operating Companies and TowerCo, and returned personal
mobile service (SMP) licenses to Anatel, the telecommunications
regulatory agency in Brazil. The results of operations of the
Vesper Operating Companies and TowerCo, including gains and losses
realized on the sales transactions and the SMP licenses, are
presented as discontinued operations. The Company's statements of
operations and cash flows for all prior periods have been adjusted
to present the discontinued operations.
(4) The sum of the earnings per share amounts may not equal total
earnings per share due to rounding.
* As adjusted.
N/M - Not Meaningful
Business Segment Highlights
QUALCOMM CDMA Technologies (QCT)
* Shipped approximately 32 million Mobile Station Modem(TM) (MSM(TM))
phone chips to customers worldwide during the second quarter of fiscal
2004, compared to approximately 32 million units in the first quarter
of fiscal 2004 and approximately 28 million units in the second
quarter of fiscal 2003. Nearly 100 percent of the approximately
32 million MSMs shipped in the March 2004 quarter were 3G CDMA2000(R)
1X, 1xEV-DO and WCDMA (UMTS).
* Shipped CSM(TM) infrastructure chips for 3G CDMA2000 1X and 1xEV-DO to
support approximately 5.7 million equivalent voice channels, compared
to approximately 4.6 million in the first quarter of fiscal 2004 and
approximately 1.5 million in the second quarter of fiscal 2003.
Equivalent voice channels are provided rather than actual chip
shipments because our CSM infrastructure chips currently support from
eight to 32 voice channels per chip.
* Several leading manufacturers of telecommunications equipment
including Hisense Group, Huawei Technologies, ZTE and Sierra Wireless,
announced the selection of QUALCOMM's MSM6250(TM) chipset and system
software for the design of multimode 3G WCDMA (UMTS) handsets and data
cards, joining LG Electronics, Inc., Sanyo Electric and Toshiba
Corporation who previously announced the selection of the MSM6250
chipset and software.
* Announced the MSM6225(TM) chipset and system software to support
data-centric and entry-level devices for the emerging WCDMA (UMTS)
market. Samples of the MSM6225 chipset are expected to ship in
mid-2004.
* Made several announcements supporting the integration of imaging
graphics, audio and video in QCT's single-chip solution with partners
including ATI to create a wireless 3D gaming platform, RealNetworks to
enable the delivery of RealAudio and RealVideo content, Beatnik to
support playback of synthetic music mobile application format content,
and Coding Technologies for the delivery of high-fidelity audio at
very low bit rates with integrated MPEG-4 AAC/aacPlus.
* Announced the integration of the H.264 video codec into our chipset
solutions.
* Announced plans to deliver QUALCOMM's first 90 nanometer (nm)
low-power MSM solution in 2004 using Taiwan Semiconductor
Manufacturing Company Ltd's 90nm low-power process technology.
QUALCOMM Technology Licensing (QTL)
* Reported that licensees around the world are participating in the
growing 3G CDMA market:
* Forty-six subscriber licensees reported sales of CDMA2000 1X
products and nine subscriber licensees reported sales of WCDMA
(UMTS) products during the first quarter of fiscal 2004.
* Fifteen infrastructure licensees reported sales of CDMA2000 1X
products and eight infrastructure licensees reported sales of
WCDMA (UMTS) products during the first quarter of fiscal 2004.
* WCDMA (UMTS) royalties contributed approximately 12 percent of
total royalties reported by licensees in the second quarter for
sales in the first quarter of fiscal 2004.
QUALCOMM Wireless & Internet Group (QWI)
QUALCOMM Internet Services (QIS)
* Worldwide BREW(TM)-based application downloads continue to grow,
reaching more than 100 million on a cumulative basis. Application
downloads have doubled in six months and operators, publishers,
developers and device manufacturers continue to realize growing
revenues for wireless applications and services.
* Announced the new QPoint(TM) solution, which leverages the power of
the BREW solution and gpsOne(TM) hybrid Assisted GPS wireless location
technology for mobile phones to provide the most complete
server/client compatible mass-market location-based services solution
available today. With the QPoint solution, QUALCOMM provides
operators with flexible delivery options for location services, either
through a hosted model or through channel partners.
* Tata Teleservices, India's leading telecom service, announced plans to
launch wireless applications and services based on the BREW system, as
well as to offer push-to-chat services via QUALCOMM's BREWChat(TM)
solution.
* Made the first public demonstration of the QChat push-to-chat(TM)
solution, which features a call set-up latency of less than one
second.
* Announced together with Iusacell, a provider of cellular telephony
products and services in Mexico, a definitive agreement for Iusacell
to deploy downloadable wireless applications and services based on the
BREW solution.
* Jointly announced with MSN the introduction of MSN Mobile services for
the BREW system that will enable consumers to access MSN Hotmail and
MSN Messenger services in a rich and familiar way via their BREW-
enabled handsets.
QUALCOMM Wireless Business Solutions(R) (QWBS)
* Shipped approximately 11,200 OmniTRACS(R) units and related products
in the second quarter of fiscal 2004, compared to approximately
10,900 in the first quarter of fiscal 2004 and 8,400 in the second
quarter of fiscal 2003. This brings the cumulative total number of
OmniTRACS and related product shipments to over 511,000 units shipped
worldwide.
* Announced that a fully automated driver productivity solution will be
available by June 2004. The first phase of QUALCOMM's driver
productivity solution provides fleets a stop management system with
technology to automatically detect arrival and departure events at all
significant stops a vehicle makes en route. The solution will also
fully integrate with the industry's transportation management systems.
* C.H. Robinson Worldwide Inc., one of North America's largest
third-party logistics companies, has selected QUALCOMM's OmniOne(R)
mobile communications system as its wireless workforce solution.
Conference Call
QUALCOMM's second quarter fiscal 2004 earnings conference call will be broadcast live on April 21, 2004 beginning at 2:30 p.m. Pacific Daylight Time on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on April 21, 2004 beginning at approximately 4:30 p.m. (PDT) through April 26, 2004 at 4:30 p.m. (PDT). To listen to the replay, U.S. callers may dial (800) 633-8284 and international callers may dial (402) 977-9140. U.S. and international callers should use reservation number 21187953. An audio replay of the conference call will be available on the Company's web site at www.qualcomm.com for two weeks following the live call.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Note Regarding Use of Non-GAAP Financial Measures
The Company presents financial information excluding the QUALCOMM Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including QUALCOMM CDMA Technologies (QCT), QUALCOMM Technology Licensing (QTL) and QUALCOMM Wireless & Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating and liquidity performance of the Company because it excludes the effect of fluctuations in value of investments that are unrelated to the Company's operational performance.
The Company presents cash flow information excluding QSI and including marketable securities. The Company's management uses this non-GAAP presentation to analyze increases and decreases in certain of its liquid assets, comprised of cash, cash equivalents and marketable securities. Management views certain marketable securities as liquid assets available to fund operations, which result from cash management strategies designed to increase yields. However, these instruments do not meet the definition of cash equivalents in accordance with Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows" and must be excluded from the GAAP statements of cash flows. Since the GAAP statements of cash flows reconcile the Company's beginning and ending cash and cash equivalents balances, the purchases and sales of marketable securities are presented as inflows and outflows. For internal analysis of the Company's cash position, management does not view these transactions as inflows and outflows from the business, but as cash management transactions. If required, such investments could be settled relatively quickly as additional cash resources are needed. The Company believes that this non-GAAP presentation is a helpful measure of the Company's liquidity. The financial information excluding QSI should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Reconciliations between total QUALCOMM results and results excluding QSI and between total QUALCOMM cash flow and cash, cash equivalents and marketable securities excluding the QSI segment are presented herein.
Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology, including CDMA2000 1X and WCDMA (UMTS), both domestically and internationally; our dependence on major customers and licensees; fluctuations in the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the we have or may pursue; dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation as well as other risks detailed from time-to-time in the Company's SEC reports.
QUALCOMM®, QCT®, Mobile Station Modem(TM), MSM(TM), CSM(TM), MSM5100(TM), MSM5500(TM), MSM6000(TM), MSM6200(TM), MSM6250(TM), MSM6225(TM), MSM6500(TM), MediaFLO(TM), BREW(TM), BREWChat(TM), QChat®, QPoint(TM), gpsOne(TM), QUALCOMM Wireless Business Solutions®, OmniTRACS®, OmniOne® and GlobalTRACS® are trademarks and/or service marks of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
For further information, please contact Bill Davidson, Vice President, Investor Relations of QUALCOMM, +1-858-658-4813, or fax, +1-858-651-9303, ir@qualcomm.com.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 28, 2004
Total
Excluding QSI QSI QUALCOMM
Revenues:
Equipment and
services $819,533 $29 $819,562
Licensing and royalty
fees 396,086 -- 396,086
1,215,619 29 1,215,648
Operating expenses:
Cost of equipment and
services revenues 335,135 -- 335,135
Research and
development 169,023 -- 169,023
Selling, general and
administrative 134,804 3,401 138,205
Amortization of other
acquisition-related
intangible assets 1,631 -- 1,631
Other (21) (4,895) (4,916)
Total operating expenses 640,572 (1,494) 639,078
Operating income 575,047 1,523 576,570
Interest expense (580) -- (580)
Investment income
(expense), net 50,648 (a) (16,578) (d) 34,070
Income (loss) from
continuing
operations before
income taxes 625,115 (15,055) 610,060
Income tax
(expense) benefit (182,696) (c) 13,925 (168,771) (c)
Income (loss) from
continuing operations 442,419 (1,130) 441,289
Income from discontinued
operations, net of
income taxes (b) -- 47,148 47,148
Net income $442,419 $46,018 $488,437
Diluted earnings (loss)
per common share from
continuing operations
(e) $0.53 $0.00 $0.53
Diluted earnings per
common share from
discontinued operations
(e) $-- $0.05 $0.05
Diluted earnings per
common share
(e) $0.53 $0.05 $0.58
Shares used in per share
calculations:
Diluted 835,571 835,571 835,571
(a) Includes $44 million in interest income related to cash, cash
equivalents and marketable securities, which are not part of the
Company's strategic investment portfolio.
(b The results of operations related to the Vesper Operating Companies,
TowerCo and the SMP licenses, including gains and losses realized on
sales transactions, are presented as discontinued operations.
(c) The fiscal year 2004 estimated effective tax rate for continuing
operations for both total QUALCOMM and QUALCOMM excluding QSI is
approximately 30%.
(d) Includes $21 million equity in losses of investees and $1 million in
other-than-temporary losses on marketable securities, partially offset
by $3 million in realized gains on investments and $2 million gain on
derivatives.
(e) The sum of the earnings per share amounts may not equal total earnings
per share due to rounding.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM
RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS
(In thousands, except per share data)
(Unaudited)
Six Months Ended March 28, 2004
Total
Excluding QSI QSI QUALCOMM
Revenues:
Equipment and
services $1,672,444 $88 $1,672,532
Licensing and
royalty fees 749,690 -- 749,690
2,422,134 88 2,422,222
Operating expenses:
Cost of equipment
and services revenues 704,865 -- 704,865
Research and
development 318,961 -- 318,961
Selling, general and
administrative 251,313 8,968 260,281
Amortization of other
acquisition-related
intangible assets 3,756 -- 3,756
Other (42) (10,551) (10,593)
Total operating
expenses 1,278,853 (1,583) 1,277,270
Operating income 1,143,281 1,671 1,144,952
Interest expense (904) -- (904)
Investment income
(expense), net 89,593 (a) (20,225)(d) 69,368
Income (loss) from
continuing operations
before income taxes 1,231,970 (18,554) 1,213,416
Income tax (expense)
benefit (370,822) (c) 9,224 (361,598) (c)
Income (loss) from
continuing operations 861,148 (9,330) 851,818
Loss from discontinued
operations, net of
income taxes (b) -- (11,088) (11,088)
Net income (loss) $861,148 $(20,418) $840,730
Diluted earnings
(loss) per common
share from continuing
operations (e) $1.04 $(0.01) $1.02
Diluted loss per
common share from
discontinued
operations (e) $-- $(0.01) $(0.01)
Diluted earnings (loss)
per common share (e) $1.04 $(0.02) $1.01
Shares used in per share
calculations:
Diluted 831,391 831,391 831,391
(a) Includes $79 million in interest income related to cash, cash
equivalents and marketable securities, which are not part of the
Company's strategic investment portfolio.
(b) The results of operations related to the Vesper Operating Companies,
TowerCo and the SMP licenses, including gains and losses realized on
sales transactions, are presented as discontinued operations.
(c) The fiscal year 2004 estimated effective tax rate for continuing
operations for both total QUALCOMM and QUALCOMM excluding QSI is
approximately 30%.
(d) Includes $36 million equity in losses of investees and $1 million in
other-than-temporary losses on marketable securities, partially offset
by $12 million in interest income, $4 million in realized gains on
investments and $1 million gain on derivatives.
(e) The sum of the earnings per share amounts may not equal total earnings
per share due to rounding.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH FLOWS FROM CASH
CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO TOTAL QUALCOMM
CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March 28, 2004
Excluding Total
QSI QSI QUALCOMM
Earnings before taxes,
depreciation, amortization
and other adjustments (1) $637,021 $7,269 $644,290
Working capital changes and
taxes paid (2) 131,796 949 132,745
Net cash provided by
operating activities 768,817 8,218 777,035
Capital expenditures (54,461) (7) (54,468)
Free cash flow (Net cash
provided by operating
activities less capital
expenditures) 714,356 8,211 722,567
Net additional share capital 99,890 -- 99,890
Proceeds from put options 5,103 -- 5,103
Dividends paid (56,519) -- (56,519)
Net collections of finance
receivables 729 -- 729
Other investments (3,489) (2,874) (6,363)
Other items (1,143) (10,940) (12,083)
Changes in fair value and
other changes to marketable
securities 3,515 28,052 31,567
Marketable securities pending
settlement payment (28,498) -- (28,498)
Net cash provided by
discontinued operations -- 38,915 38,915
Transfer from QSI (3) 54,628 (54,628) --
Transfer to QSI (4) (16,125) 16,125 --
Net increase in cash, cash
equivalents and marketable
securities (5) $772,447 $22,861 $795,308
(1) Reconciliation to GAAP:
Net income (loss)
from continuing
operations $442,419 $(1,130) $441,289
Non-cash adjustments (a) 219,254 11,521 230,775
Net realized gains on
marketable securities
and other investments (7,683) (3,122) (10,805)
Taxes refunded (16,969) -- (16,969)
Earnings (loss) before
taxes, depreciation,
amortization and other
adjustments $637,021 $7,269 $644,290
(2) Reconciliation to GAAP:
Increase (decrease) in
cash resulting from
changes in working
capital $114,827 $949 $115,776
Taxes refunded 16,969 -- 16,969
Working capital changes
and taxes paid $131,796 $949 $132,745
(3) Cash from loan payments
and sale of equity
securities.
(4) Funding for strategic
debt and equity
investments, operations
of Vesper and other
QSI operating expenses.
(5) Reconciliation to GAAP
cash flow statement:
Net increase (decrease)
in cash and cash
equivalents (GAAP) $150,820 $(229) $150,591
Plus: Net purchase
(proceeds) of
marketable
securities 646,610 (4,962) 641,648
Plus: Net increase
in fair value and
other changes to
marketable securities 3,515 28,052 31,567
Plus: Net increase
in marketable
securities pending
settlement receipt (28,498) -- (28,498)
Net increase in cash,
cash equivalents
and marketable
securities $772,447 $22,861 $795,308
(a) See detail following
the six month cash flow.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH FLOWS FROM CASH
CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO TOTAL QUALCOMM
CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended March 28, 2004
Excluding Total
QSI QSI QUALCOMM
Earnings before taxes,
depreciation, amortization
and other adjustments (1) $1,277,581 $15,944 $1,293,525
Working capital changes and
taxes paid (2) (51,618) 7,260 (44,358)
Net cash provided by
operating activities 1,225,963 23,204 1,249,167
Capital expenditures (117,545) (16) (117,561)
Free cash flow (Net cash
provided by operating
activities less
capital expenditures) 1,108,418 23,188 1,131,606
Net additional share capital 131,509 -- 131,509
Proceeds from put options 5,103 -- 5,103
Dividends paid (112,562) -- (112,562)
Net collections of finance
receivables 1,153 193,308 194,461
Other investments (16,058) (33,900) (49,958)
Other items (2,181) (27,547) (29,728)
Changes in fair value and
other changes to marketable
securities 12,321 26,131 38,452
Marketable securities pending
settlement payment (14,513) -- (14,513)
Net cash used by discontinued
operations -- (20,257) (20,257)
Transfer from QSI (3) 261,674 (261,674) --
Transfer to QSI (4) (109,954) 109,954 --
Net increase in cash, cash
equivalents and marketable
securities (5) $1,264,910 $9,203 $1,274,113
(1) Reconciliation to GAAP:
Net income (loss)
from continuing
operations $861,148 $(9,330) $851,818
Non-cash adjustments (b) 432,301 29,836 462,137
Net realized gains on
marketable securities
and other investments (11,007) (4,562) (15,569)
Taxes refunded (4,861) -- (4,861)
Earnings before taxes,
depreciation,
amortization and
other adjustments $1,277,581 $15,944 $1,293,525
(2) Reconciliation to GAAP:
(Decrease) increase
in cash resulting
from changes in
working capital $(56,479) $7,260 $(49,219)
Taxes refunded 4,861 -- 4,861
Working capital
changes and taxes
paid $(51,618) $7,260 $(44,358)
(3) Cash from loan payments
and sale of equity
securities.
(4) Funding for strategic
debt and equity
investments, operations
of Vesper and other
QSI operating expenses.
(5) Reconciliation to GAAP
cash flow statement:
Net decrease in cash
and cash equivalents
(GAAP) $(90,094) $(8,482) $(98,576)
Plus: Net purchase
(proceeds) of
marketable
securities 1,357,196 (8,446) 1,348,750
Plus: Net increase
in fair value and
other changes to
marketable securities 12,321 26,131 38,452
Plus: Net increase
in marketable
securities pending
settlement receipt (14,513) -- (14,513)
Net increase in cash,
cash equivalents and
marketable
securities $1,264,910 $9,203 $1,274,113
(b) See detail on the
following page.
QUALCOMM Incorporated
SUPPLEMENTAL DETAIL TO THE
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES
(In thousands)
(Unaudited)
Three Months Ended March 28, 2004
Excluding Total
QSI QSI QUALCOMM
(a) Non-cash adjustments
are comprised of:
Depreciation and
amortization $38,287 $1,325 $39,612
Other-than-temporary
losses on marketable
securities and other
investments -- 820 820
Equity in losses of
investees 306 20,593 20,899
Non-cash income tax
expense (benefit) 171,573 (13,925) 157,648
Other non-cash charges
and (credits) 9,088 2,708 11,796
Total non-cash adjustments $219,254 $11,521 $230,775
Six Months Ended March 28, 2004
Excluding Total
QSI QSI QUALCOMM
(b) Non-cash adjustments are
comprised of:
Depreciation and
amortization $77,631 $2,527 $80,158
Other-than-temporary
losses on marketable
securities and other
investments -- 1,520 1,520
Equity in losses of
investees 592 36,377 36,969
Non-cash income tax
expense (benefit) 347,590 (9,223) 338,367
Other non-cash charges
and (credits) 6,488 (1,365) 5,123
Total non-cash adjustments $432,301 $29,836 $462,137
QUALCOMM Incorporated
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
ASSETS
QUALCOMM
Excluding
QSI QSI (a) QUALCOMM QUALCOMM
March 28, March 28, March 28, September 28,
2004 2004 2004 2003
Current assets:
Cash and cash
equivalents $1,946,518 $-- $1,946,518 $2,045,094
Marketable
securities 3,601,400 58,511 3,659,911 2,516,003
Accounts
receivable, net 596,708 76 596,784 483,793
Inventories, net 97,041 -- 97,041 110,351
Deferred tax
assets (a) 471,180 -- 471,180 611,536
Other current
assets 141,578 1,454 143,032 181,987
Total current
assets 6,854,425 60,041 6,914,466 5,948,764
Marketable
securities 914,328 125,107 1,039,435 810,654
Property, plant
and equipment, net 549,923 -- 549,923 622,265
Goodwill, net 355,622 -- 355,622 346,464
Deferred tax
assets (a) 360,141 -- 360,141 406,746
Other assets 177,918 251,989 429,907 687,543
Total assets $9,212,357 $437,137 $9,649,494 $8,822,436
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts
payable $212,736 $362 $213,098 $195,065
Payroll and other
benefits related
liabilities 138,938 506 139,444 141,000
Unearned revenue 172,032 5 172,037 174,271
Dividends payable 80,890 -- 80,890 --
Current portion of
long-term debt -- -- -- 102,625
Other current
liabilities 200,186 7,366 207,552 195,241
Total current
liabilities 804,782 8,239 813,021 808,202
Unearned revenue 200,784 -- 200,784 236,732
Long-term debt -- -- -- 123,302
Other liabilities 79,380 -- 79,380 55,628
Total
liabilities 1,084,946 8,239 1,093,185 1,223,864
Stockholders' equity:
Preferred stock,
$0.0001 par value -- -- -- --
Common stock,
$0.0001 par value 82 -- 82 81
Paid-in capital 6,557,273 -- 6,557,273 6,324,971
Retained earnings 1,944,567 -- 1,944,567 1,297,289
Accumulated other
comprehensive
(loss) income (27,175) 81,562 54,387 (23,769)
Total
stockholders'
equity 8,474,747 81,562 8,556,309 7,598,572
Total
liabilities
and
stockholders'
equity $9,559,693 $89,801 $9,649,494 $8,822,436
(a) Deferred tax assets and liabilities are not allocated to the
Company's segments. Net deferred tax assets and liabilities, if any,
of subsidiaries that are consolidated by QSI are reflected as QSI
assets and liabilities.
QUALCOMM Incorporated
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
March 28, March 30, March 28, March 30,
2004 2003 (a) 2004 2003 (a)
Revenues:
Equipment and
services $819,562 $763,568 $1,672,532 $1,592,124
Licensing and
royalty fees 396,086 253,561 749,690 493,267
1,215,648 1,017,129 2,422,222 2,085,391
Operating expenses:
Cost of equipment
and services
revenues 335,135 341,205 704,865 692,682
Research and
development 169,023 131,801 318,961 244,280
Selling, general
and administrative 138,205 121,323 260,281 238,345
Amortization of
acquisition-related
intangible assets 1,631 1,964 3,756 3,936
Other (4,916) -- (10,593) --
Total operating
expenses 639,078 596,293 1,277,270 1,179,243
Operating income 576,570 420,836 1,144,952 906,148
Interest expense (580) (383) (904) (1,731)
Investment income
(expense), net 34,070 (18,447) 69,368 (77,984)
Income from
continuing operations
before income taxes 610,060 402,006 1,213,416 826,433
Income tax expense (168,771) (144,329) (361,598) (292,437)
Income from
continuing
operations 441,289 257,677 851,818 533,996
Income (loss) from
discontinued
operations 47,148 (154,661) (11,088) (189,646)
Net income $488,437 $103,016 $840,730 $344,350
Basic earnings per
common share from
continuing operations $0.55 $0.33 $1.06 $0.68
Basic earnings (loss)
per common share from
discontinued operations 0.06 (0.20) (0.01) (0.24)
Basic earnings per
common share $0.61 $0.13 $1.05 $0.44
Diluted earnings per
common share from
continuing operations $0.53 $0.32 $1.02 $0.65
Diluted earnings (loss)
per common share
from discontinued
operations 0.05 (0.19) (0.01) (0.23)
Diluted earnings per
common share $0.58 $0.13 $1.01 $0.42
Shares used in per
share calculations:
Basic 806,283 789,026 803,324 786,153
Diluted 835,751 818,088 831,391 816,916
Dividends per share
paid $0.07 $-- $0.14 $--
Dividends per share
announced $0.10 $0.05 $0.24 $0.05
(a) As adjusted to present results related to Vesper, TowerCo and SMP
licenses as discontinued operations.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
Email this story - Set a News Alert
Sponsored Links
Security Pacific Financial
Mortgage - Rates start at 1.25%; close your loan faster and cheaper. Combine your home loan with other services and save up to an additional 30%.
www.securitypacificfinancial.com
GetAGreatMortgageRate - Home Mortgages
GetAGreatMortgageRate offers access to low rates on mortgages, refinance, home improvement and bill consolidation loans nationwide. Click here for personalized quotes from our partners.
www.getagreatmortgagerate.com
Refinance at Record Low Mortgage Rates
Major banks and lenders compete to refinance your mortgage and home equity loan. A simple online application results in multiple mortgage offers at Best Lenders. Refinance your mortgage now.
100bestlenders.com
(What's This?)
Related Quote
QCOM 65.84 +1.41 News
View Detailed Quote
Delayed 20 mins
Quote data provided by Reuters
Related News Stories
· Qualcomm profit rises - Reuters (4:21 pm)
· [external] Motorola, Tellabs lead gainers - at CBS MarketWatch (1:30 pm)
· Qualcomm upgraded by AmTech Research - Briefing.com (10:02 am)
· [external] SPECIAL REPORT -- WIRELESS WONDERS: Samsung Gets Wired On Wireless - at BusinessWeek Online (9:30 am)
More...
--------------------------------------------------------------------------------
· By industry: Computers, Telecom
Top Stories
· MGM in Talks with Sony, Others - Sources - Reuters (4:14 pm)
· Greenspan: Rates to Rise at Some Point - Reuters (4:04 pm)
· Fed Says U.S. Growth Widespread - Reuters (2:45 pm)
· Ford Profits More Than Double - Reuters (4:06 pm)
More...
--------------------------------------------------------------------------------
· Most-emailed articles
· Most-viewed articles
Inside Yahoo! Finance
Today's Markets
· Earnings Calendar
· Upgrades/Downgrades
· Most Actives
· Stock Screener
Like news? See job openings at Yahoo! Finance
--------------------------------------------------------------------------------
Copyright © 2004 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service - Copyright Policy - Ad Feedback
Copyright © 2004 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for
UPDATE - Motorola profit triples on strong handset sales
Tuesday April 20, 7:16 pm ET
By Ben Klayman
http://biz.yahoo.com/rc/040420/tech_motorola_earns_5.html
(Recasts first sentence, adds CEO, analysts comments, background)
CHICAGO, April 20 (Reuters) - Motorola Inc. (NYSE:MOT - News) on Tuesday said quarterly profit tripled as it stole market share in handsets from rivals, sending its shares up 25 percent as it blew past Wall Street's expectations.
ADVERTISEMENT
The world's second largest cell-phone maker also forecast second-quarter results that dwarfed analysts' estimates, and its results gave a broad boost to shares of wireless technology and equipment companies.
"That's the biggest blow-up on the upside I've seen from any large cap company," Bear Stearns analyst Wojtek Uzdelewicz said on the company's conference call. "We can all be skeptics, but you have to get credit for the numbers there."
Motorola, based in the Chicago suburb of Schaumburg, Illinois, reported a first-quarter net profit of $609 million, or 25 cents a share, compared with $169 million, or 7 cents a share, in the year-ago quarter.
Excluding one-time items, it earned about 18 cents a share, topping analysts' expectations for 7 cents, according to Reuters Research, a unit of Reuters Group Plc.
Sales in the quarter rose to $8.56 billion, far above the $6.76 billion analysts were expecting according to Reuters Research and the highest level in four years. Motorola's sales were 42 percent above last year.
"Motorola's results did not just surpass our estimates, consensus and management guidance, these (first-quarter) numbers were downright huge," Loop Capital analyst Ren Zamora said. "Honestly, we are scratching our heads about such a big beat."
Analysts said Motorola benefited at the expense of larger rival Nokia, which disappointed investors on Friday when it admitted that cheaper, funkier phones from rivals were eating into its market lead.
Motorola and its rivals have suffered a slowdown in demand for mobile telephones and wireless equipment over the past couple of years, but demand has picked up thanks to the popularity of phones with such features as color screens and integrated digital cameras.
Motorola's cell-phone unit saw sales surge 67 percent from last year to $4.1 billion, while earnings more than tripled due to the success of those new products. It shipped a record 25.3 million handsets in the quarter, up 51 percent from last year, and improved its market share, particularly in Europe.
The average selling prices of Motorola's cell phones rose a healthy 12 percent from the historically strong fourth quarter, and it expects sales in that unit to surge another 60 percent to 80 percent in the second quarter while operating margins rise.
The results show the diversified maker of electronics used to run everything from phones to cars to cable TVs has apparently corrected some of the problems that plagued it recently, analysts said. Last fall, it missed the critical holiday selling season with some wireless operators as parts shortages delayed deliveries of some camera phones.
Chairman and Chief Executive Edward Zander has emphasized improving the company's execution in that area, and said in February it was poised to gain global market share if it could speed delivery of its phones.
"We took an hour off and congratulated ourselves, but we've got a lot more work to do," Zander, who assumed leadership of Motorola in early January, said on the conference call with analysts on Tuesday.
Motorola also forecast second-quarter sales of $8.2 billion to $8.6 billion and earnings excluding the impact of the planned initial public offering of its semiconductor unit of 14 cents to 18 cents a share.
Analysts were expecting second-quarter sales of $6.92 billion and earnings before one-time items of 9 cents, according to Reuters Research.
Motorola shares surged to $20.25 in after-market trading on INET from the Tuesday closing price of $16.22 on the New York Stock Exchange (News - Websites) . The last time Motorola topped $20 was in February 2001.
Among the other wireless stocks rising on the news were Qualcomm Inc. (NasdaqNM:QCOM - News), RF Micro Devices Inc. (NasdaqNM:RFMD - News), Texas Instruments Inc. (NYSE:TXN - News), and Ericsson (NasdaqNM:ERICY - News). (Additional reporting by Ben Berkowitz in Los Angeles)
World Business Review and General Alexander Haig Interview Calypso Wireless
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040421005...
MIAMI LAKES, Fla.--(BUSINESS WIRE)--April 21, 2004--Calypso Wireless, Inc. (OTC:CLYW), announced today they were invited by award winning World Business Review hosted by General Alexander Haig, Former Secretary of State to President Ronald Reagan, to participate in a video series titled "Wi-Fi Solutions". Calypso Wireless addresses solutions in the wireless arena including seamless roaming between cellular and Wi-Fi networks. The 4.5 minute segment will be aired on cable and satellite TV during the next two weeks. The distribution report for viewing in your area has been posted on Calypso's web site.
World Business Review (http://www.wbrtv.com/) reaches an audience of over 194 million in North America on CNBC, Tech TV and The Bravo Network. It also reaches a potential 1.9 million in Hong Kong (ATV) and 1.8 million in Canada; On-Campus TV/Curricula at leading Universities as well as On-Demand Access to World Business Review by 75 million computer users. It also reaches thousands of business travelers to or from North America, South America, Asia Pacific and European flights on United Airlines In-Flight Programming.
Calypso's Patented ASNAP(TM) technology (US Patent no. 6,680,923 B1) enables cellular phones and other mobile devices to automatically detect an available wireless local area network and then seamlessly switch between the signals from a GSM/GPRS or CDMA cellular tower to a short range broadband network such as Wi-Fi. The wireless customer remains connected to the GSM/GPRS or CDMA network until his mobile phone automatically detects and switches to a Wi-Fi network. At that point, the phone seamlessly switches to that network and is now able to connect at a speed of up to 11,000 Kbps (11Mbps) enabling movie-quality, real-time video conferencing via Calypso's cellular / Wi-Fi phones, or any mobile device powered with Calypso's patented technology.
"We are in the process of contacting all major OEMs in the wireless industry to notify them of our patent that could have a significant and immediate impact on the development of the industry, as well as major implications on the way OEM's such as Nokia (NYSE:NOK), Ericsson (NASDAQ:ERICY) and Motorola (NYSE:MOT) do business," says David Davila, President & CEO of Calypso Wireless. Calypso is already in negotiations with a major OEM manufacturer to license its patented ASNAP(TM) technology. Due to the patent, even those OEM manufacturers that don't wish to license Calypso's technology at the time, but plan to create wireless devices that roam seamlessly between these networks, will have to obtain rights from Calypso Wireless.
Calypso Wireless Inc. is a publicly traded company. Its common stock trades under the ticker symbol CLYW. For more information about Calypso Wireless and its products and services, please visit the company's Web site at http://www.calypsowireless.com.
This release is intended as a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to (i) The ability to provide technology in the future, (ii) Unexpected changes in the technology market, (iii) The success of the Company's expansion and sales and marketing strategies (iv) Competition within the Data Synchronization market (v) The ability of the Company to continue to finance its long-term strategy and expansion (vi) The ability of the Company to motivate and retain the services of its key personnel and hire additional qualified personnel to meet evolving staffing needs.
Eastcom, Samsung cooperate to promote 3G development in China
The Eastern Communications Co. Ltd. based in the capital city of Hangzhou in east China's Zhejiang Province, revealed Tuesday that it had signed a joint venture agreement with Korean conglomerate Samsung Electronics, China Daily reported Wednesday.
http://english.peopledaily.com.cn/200404/21/eng20040421_141107.shtml
The Eastern Communications Co. Ltd. based in the capital city of Hangzhou in east China's Zhejiang Province, revealed Tuesday that it had signed a joint venture agreement with Korean conglomerate Samsung Electronics, China Daily reported Wednesday.
The Shanghai-listed firm's move is a bid to complete its strategic deployment for the launch of the third generation (3G) mobile communications in China, and the joint venture -- Hangzhou Samsung Eastcom Network Technology Co. Ltd., will be also be located in Hangzhou.
The two companies will invest 15 million US dollars in the venture, which has a registered capital of six million US dollars,with Samsung Electronics taking a 70 percent stake.
"This joint venture is a major step in our deployment in preparation for the launch of the 3G in China," Samsung Electronics China spokesman Li Wei was quoted by China Daily as saying.
Samsung has already developed 3G technologies based on the codedivision multiple access (CDMA) 2000 standard.
The joint venture with Eastcom will enable Samsung to gain a foothold in the European-initiated wideband CDMA (WCDMA) standard.It will be engaged in the research and development of WCDMA technologies and the localization of Samsung Electronics' technologies developed in South Korea.
An Eastcom spokesman said the joint venture may also produce WCDMA equipment at a later date.
Li said Samsung Electronics does not consider itself to be lagging behind its European competitors such as Ericsson, Nokia and Siemens regarding WCDMA in China.
"We are at the same starting point as the European companies and the only thing we need to do is to work closely with local partners to develop the market."
Besides the joint venture, Samsung Electronics also participated in the second phase of the MTNet trial, a 3G test organized by the Chinese Government, in cooperation with China Railcom.
Li said his company has also been in contact with other major players in the market, including China Mobile and China Telecom, to help introduce Samsung's experience in 3G applications.
He said Samsung Electronics will support all three 3G standardsin China, the other one being the Chinese-initiated time division synchronous CDMA.
Source: Xinhua