Qualcomm (QCOM) also detracted from performance during the quarter, particularly after the company disclosed that one of its suppliers of silicon wafers, specifically at the 28 nanometer process node, was struggling to keep up with demand and would serve to limit revenue growth for the fiscal year ending September 2012. Qualcomm mentioned that it has committed additional expenses towards supply procurement and expects the supply shortage to ease by the December quarter. With one of the largest net cash balances in Corporate America and ample free cash flow generation, the company has enough resource to aggressively address this problem. We added to the Qualcomm position during the quarter, as the stock was trading at the lower-end of its historical valuation range.
From Tony Guerrerio's second quarter letter.
From Tony Guerrerio's second quarter letter.
