SAN DIEGO -- June 28, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that, based on recent feedback from South Korean customers and operators, the Company may experience modestly lower order levels for its chipsets in the fourth quarter of fiscal 2000 due to an anticipated decrease in domestic South Korean phone sales related to the elimination of phone subsidies.
The Company will continue to work closely with its customers in South Korea to monitor the situation and evaluate potential offsetting factors, such as the introduction of carrier marketing programs in South Korea, increased export activity to other worldwide markets and the rapid deployment of Code Division Multiple Access (CDMA) 1x networks. TwoKorean operators plan to commercially launch the world's first third-generation networks in the fourth calendar quarter of 2000.
Qualcomm does not expect these developments in South Korea to affect pro forma earnings in the third quarter of fiscal 2000. Third quarter earnings will be announced on July 19, 2000 at approximately 1:30 p.m. Pacific Standard Time. The Company expects to have and provide additional information on its expectations for the fourth quarter of fiscal 2000 at that time.
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 business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2000 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 fluctuations in the South Korean phone market and its potential impact on the Company's CDMA chip business, timely product development, 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 26, 1999, and most recent Form 10-Q.