Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 159.42

-1.2%

Jan 16 9:30 AM EST

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To: grinder965 who wrote (105904)	10/4/2001 10:47:58 AM
From: pcstel	Read Replies (3) of 152472

The report offers one criticism of QCOM which I thought did make sense, and which I haven't seen any discussion of on this board, LOL!! Then you haven't been reading my posts over the last six months!! I have discussed them and pointed out Qualcomm's forte at Financial Engineering! A couple of examples: Qualcomm's Globalstar Contract Services and manufacturing shipped 100,000 G* UT's during CY2000 (Even though there were only 20,000 subs across 3 phone manufactures). All of the revenues of such were INCLUDED to the Pro Forma under Vendor Financing Agreement. Then when they wrote down their G* investment (595 Million), which was mostly vendor financing they EXCLUDED it from the Pro Forma stating that "It was excluded because Globalstar is no longer considered pertinent to on going operations of the company. Then about 4 months later..Globalstar announced that they were going to pay Qualcomm about 30 million dollars out of the few dollars they had left.. And of course.. Sure enough.. Qualcomm INCLUDED the revenue from Globalstar into the Pro Forma. Same goes with LWIN equity... Every other tech company that I have seen EXCLUDES one-time sale of equity from the Pro Forma. But not Qualcomm.. Nope, they claim that they consider Investing as one of their business segments.. So they say that the gains on the sale of LWIN equity should be INCLUDED into the Pro Forma! Yet, they excluded the losses from investment of Globalstar because it was not an investment.. Just a business segment that was no longer relevant. Well, except until the got 30 million dollars form them..Then it was relevant again. In short.. Qualcomm's Pro Forma QOE stinks. Their GAAP earnings are non-existant.. Of course you won't find this discussed here because it is on the list of taboo things to talk about!! And if you do discuss it.. You will simply receive many PM's telling you that it has already been discussed before some time in the past and that further discussions about this subject are frowned upon! PCSTEL

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