21 Quotes by Michael Ching

Management did outline several actions that they plan to take that should help return the company to more profitability. This will include several hundred million dollars in charges in the December quarter.

I wasn't even informed that it was up today.

We continue to believe that Cisco will be among the first companies to emerge once the end markets recover.

We continue to believe that aggregate service provider spending in the U.S. will actually grow about 10 percent in 2001, and that our companies will report an average revenue increase of 25 percent next year. Despite this, the average price-earnings multiple of our group is now approaching levels last seen in 1997-98.

The recent stock price fluctuations remind us of the old days (pre-1999) when Qualcomm's earnings outlook was cloudy and the stock traded more on speculation than fact.

The size of this charge reflects both much weaker demand forecasted over the next 12 months as well as the costs for certain commitments that Cisco felt obliged to fulfill.

Our concern on Qualcomm relates to the outlook for the handset and CDMA business. As we have indicated previously, we remain concerned that the company may take down forecasts for future earnings because we think the company's CDMA forecasts are too aggressive.

Specifically, the company suffers from a bloated inventory of older model phones, which is slowing the transition to newer, higher-margin products.

In the near-term, Qualcomm's earnings outlook has been diminished due to recent events in China and Korea. For the June quarter, we are currently forecasting 16 percent pro forma revenue growth to $750 million and 26 percent pro forma EPS growth to 27 cents. Based on the company's press release, our EPS estimate looks to be too high.