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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 164.53-0.4%Jan 14 3:59 PM EST
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To: Peter J Hudson who wrote (21982)4/29/2002 8:18:16 PM
From: David E. Taylor   of 197214
 
Peter:

I wondered about revenue recognition, and whether "chipsets shipped in the Q" = "chipset revenue in the Q". Best I can do is from the most recent 10K:

Prior to the adoption of SAB 101, the Company recorded revenue from hardware product sales at the time of shipment, or when title and risk of loss passed to the customer, if later. After adoption of SAB 101, revenue and expense from certain hardware product sales contracted with a continuing service obligation that is essential to the functionality of the hardware are recognized ratably over the shorter of the estimated life of the hardware product or the expected service period. Revenue from hardware product sales without such a continuing service obligation is recorded when risk of loss and title pass to the customer.

So I take that to mean that most, if not all, of the chipset revenue for the Q is derived from product shipped during the Q. Note it's not "when we get paid", but when "risk of loss and title pass to the customer", which generally is when stuff is shipped out. I'm not sure what (if any) chipsets are shipped with a "continuing service obligation", and I suspect this statement probably relates more to OmniTracks and other QWS hardware.

But even if a small portion of the chipset revenue spills over Q/Q, I've analyzed the data over a long enough period that the effect should wash out.

David T.
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