SAN DIEGO -- February 23, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM) today confirmed that demand for its Code Division Multiple Access (CDMA) integrated circuits in the second quarter of fiscal 2001 is consistent with its previous forecast of 16 million MSM™ units, an increase of one million units over the first quarter of fiscal 2001. The Company also expects MSM shipments to be higher than 16 million units in the third quarter of fiscal 2001. In addition, actual royalty reports received from the Company's licensees for the first quarter of fiscal 2001 were exceptionally strong.
Recent news reports have also incorrectly stated that all third-generation (3G) technology will be delayed for two or more years. One of the 3G CDMA technologies, called cdma2000 1x, is not expected to be delayed, is already commercially available in South Korea and will be deployed in Japan, North America and Latin America this year. The Company expects cdma2000 1x deployments to begin ramping up in the second half of calendar 2001 with significant growth in 2002 and beyond. The Company also recently announced a family of multi-mode integrated circuits and system software to enable the migration from GSM and TDMA networks to 3G CDMA.
Qualcomm currently has licensed its CDMA technology to approximately 100 companies, of which approximately 50 are licensed for Qualcomm's 3G CDMA patents. In all cases, the royalty rate to be paid by a licensee for 3G CDMA products is no less than the rate that company will pay for second-generation cdmaOne™ products.
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 CDMA integrated circuits and system software; technology licensing; Eudora® e-mail software for Windows® and Macintosh® computing platforms; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that 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 95 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. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with component shortages; risks associated with integrated circuit inventory and order levels; risks associated with the Company's ability to execute additional 3G licenses; risks associated with the ability to sustain or improve operational efficiency and profitability; risks relating to the continued operation of the Globalstar system; risks that the rate of growth in CDMA-based wireless data and Internet access or the CDMA subscriber population will decrease; risks associated with strategic investments, including fluctuations in value, acquisitions or divestitures the Company may pursue, including the pending distribution of Qualcomm Spinco, Inc. shares to Qualcomm shareholders; risks associated with the scale-up, acceptance and operations of CDMA systems, including cdma2000 1xEV technology; risks associated with the development, deployment and commercial acceptance of evolving CDMA technology standards; risks associated with developments in current or future litigation; risks associated with customer receivables and performance guarantees; risks associated with timing and receipt of license fees and royalties; and risks associated with international business activities, as well as the other risks detailed from time to time in the Company's SEC reports.