Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 175.25

+0.6%

Dec 19 9:30 AM EST

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To: 100cfm who wrote (47369)	11/3/1999 12:02:00 AM
From: John Biddle	Read Replies (1) of 152472

5% doesn't make sense. royalty earnings before taxes was 404m on aprox 40m chipsets sold. thats more like 10%. Royalties are not paid on Q ASICs, they are paid on the use of Q patents in products going to end users. For example, cellphones, base stations, etc. In CDMA phones, there is a small royalty if a Q ASIC is used and a larger one if someone else's ASIC is used instead. There are also license fees in the number from the deals with enough companies to bring the number of current licensees to more than 75. Wasn't long ago (1 or 2 quarters) it was only 50.

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