Qualcomm Inc (QCOM)

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Qualcomm-Nokia License Talks May Lead To Public Battle Courtesy of gutboy09 from Yahoo Qcom Board:

http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=4686818&tid=qcom&sid=468....

Qualcomm-Nokia License Talks May Lead To Public Battle
06.15.05, 10:43 AM ET


Bear Stearns expects Qualcomm (nasdaq: QCOM - news - people ) to report fiscal third-quarter earnings per share at the high end of its original guidance range of 24 cents to 26 cents. Bear Stearns also said initial guidance for fiscal second-quarter CDMA handset sales (which affect third-quarter profit and loss) of 40 million to 42 million "was too low based on global CDMA/WCDMA handset trends." However Qualcomm's third-quarter CDMA handset sales are tracking up about 4% to 5% quarter over quarter; Bear Stearns had been estimating 11% quarter-over-quarter growth. The firm said that the fiscal fourth-quarter consensus estimate for earnings of 31 cents per share on revenue of $1.521 billion "could be slightly aggressive," citing its own estimate for earnings of 28 cents per share on revenue of $1.447 billion. Bear Stearns said, "Based on anticipated delays with Cingular's 3G rollout and China 3G license issuance, we lowered our WCDMA net add estimate for 2006 significantly, offset by a less-pronounced decline in handset average selling prices (we expected the U.S. to drive down average selling prices sharply)." The firm's fiscal 2006 earnings estimate for Qualcomm remains at $1.46 per share, but has "little room for upside." Bear Stearns said, "We believe Qualcomm's licensing agreement with Nokia (nyse: NOK - news - people ) is set to be renewed in late-2006/early-2007--while discussions are likely taking place, we believe this could be a very public battle. We will not attempt to predict outcomes, but this could create near-term headline risk for Qualcomm."