The stock price of Qualcomm Inc.
dropped about 15% today after the company reported that its second-quarter
earnings will fall below first-quarter levels due to canceled orders from
South Korea.
According to a Reuters report, Qualcomm, developer of digital wireless
communications devices as well as the Eudora e-mail product, announced late
Thursday that it would cut 700 temporary jobs, due to the fact that two
Korean manufacturers cancelled orders for its Application Specific
Integrated Circuits.
In addition, Qualcomm reported that sales of its Q phone will be lower in
the second quarter due to the Korean cancellation. The Q phone is a
portable device that offers telephone, pager, and voice mail services.
Qualcomm did not report on how much it expected the second-quarter results
to fall below the first-quarter earnings.
The stock opened today at 46 7/16, after closing yesterday at 56 1/4, a
change of -8 5/8 (or -15.33%). Late this afternoon the stock rose slightly
to 47 5/8.