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Qualcomm warns on orders
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June 28, 2000: 10:04 a.m. ET
Mobile phone chip maker warns of lower South Korean orders
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NEW YORK (CNNfn) - Qualcomm Inc. warned Wednesday that orders may slow down in South Korea, a key market for the dominant provider of the chips used in mobile phones in North America and other parts of the world.
San Diego, Calif.-based Qualcomm said based on recent feedback from South Korean customers and operators, it 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" because of an end to government phone subsidies.
Qualcomm stock rose one to 64-11/16 after falling as low as 59-3/8 earlier in the session.
Qualcomm (QCOM: Research, Estimates) stock fell sharply on June 14 and 15, losing about 20 points in two sessions, after analysts warned about lower chipset sales in South Korea. So the impact of Qualcomm's announcement Wednesday may already be priced into the stock.
In its statement, issued before the market opened, Qualcomm said it does not expect developments in South Korea to affect earnings in the third quarter of fiscal 2000. The company is to announce results on July 19. 
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