SAN DIEGO -- September 30, 1999 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that due to the decision by Leap Wireless International (Nasdaq: LWIN) to withdraw support for Metrosvyaz of Russia, the Company is evaluating whether there is permanent impairment to Qualcomm's assets of approximately $50 million (net book value) related to this venture. This determination may result in a one-time write down in the fourth fiscal quarter of 1999. Based on current performance in each of its business units, the Company continues to expect that fourth fiscal quarter earnings, excluding non-recurring charges, will meet or exceed analyst consensus estimates of $.88 per share.
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. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Headquartered in San Diego, Calif., Qualcomm is included in theS&PIndex and is a 1999 FORTUNE 500® company traded on the Nasdaq 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 risk that unexpected developments will cause fourth quarter earnings to end up below analyst consensus estimates, continued strong demand for CDMA phones and chipsets and growth in CDMA subscribers and systems, the ability of the Company's licensees to sell CDMA products, the Company's ability to successfully manufacture and ship significant quantities of CDMA phones and or other equipment on a timely and profitable basis, and those related to changes 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 26, 1999, and most recent Form 10-Q.
Qualcomm and OmniTRACS are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.
September 30, 1999September 30, 1999Qualcomm To Evaluate Russian InvestmentQualcomm To Evaluate Russian Investment