Qualcomm Inc (QCOM)

[khemara_qc]

Qualcomm Could Get A Jump On '4G' Wireless Tech
Ed Lin, 08.12.05, 11:43 AM ET

http://www.forbes.com/markets/2005/08/12/qualcomm-wireless-acquisition-0811markets03.html?partner=ya....

Piper Jaffray said Flarion "will prove a strong strategic fit for Qualcomm (nasdaq: QCOM - news - people )."

Qualcomm said Thursday that it agreed to acquire Flarion of Bedminster, N.J., for about $600 million, and could pay an additional $205 million in milestone payments in the next few years. Flarion develops orthogonal frequency division multiplex access, or OFDMA, technology and is the inventor of Flash-OFDM technology for mobile broadband Internet protocol services.

Piper Jaffray said, "Not only do we believe Flarion boosts Qualcomm's technology roadmap post-3G, but we also believe Flarion's OFDM capabilities will help Qualcomm's upcoming launch of MediaFLO."

The acquisition adds to Qualcomm's overall IP offerings, but the research firm also views it as a defensive move "in that it helps Qualcomm bolster its OFDMA technology that could become the leading '4G' technology."

Piper Jaffray said that based on its checks, Qualcomm's current fiscal fourth quarter "is tracking well versus our estimates," and maintained an "outperform" rating on the company.