Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 180.90

+2.1%

Oct 31 9:30 AM EST

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To: 100cfm who wrote (145232)	10/1/2006 1:49:23 PM
From: limtex	of 152472

100 - My point precisely put. Jim postualtes a 20% increase in 06 for 07. Note thats not fiscal 07. Two things:- 1.The numbers don't make sense to me. They are in a sense upside down. The increase in units is over 30%. A large slice of these should giver rise to royalties. Roylaties shouldn't have a great costs of sales and therefore a majority of royalty income should drop straight into eps (minus taxes). Even the chipsales should be at the stage of being marginal income and fall also straight into earnings. The point being that there should be leverage in the increased unit sales that translates into increased income the gross profit on which should drop straight into eps. Even allowing for reduced ASPs this should still provide a heafty increase in eps. 2. Jims figure of 20% increase in eps could easily with some ASP reductions and increased costs result in a lower than 20% increase, maybe even an increase in eps in single figures. What P/E does that command? Something its seems to me is very wrong with these numbers. Best, L

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