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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 177.78

-2.2%

Jan 9 9:30 AM EST

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To: David E. Taylor who wrote (81128)	10/16/2008 3:40:12 PM
From: q1000	1 Recommendation Read Replies (1) of 197157

Nokia appears to have included the 1.7 Euros payment to Qualcomm, or at least the future part of it, in its third quarter financials. In the complete pdf press release, the 9/30 balance sheet shows “Other intangible assets” of 4117 Euros, a noncurrent asset. This figure is up from the 6/30 figure of 2220 Euros and represents an increase of 1897 Euros. It is more difficult to find the payable to Q in the liabilities section. I assume it is part of the “Short-term borrowing” of 4050 Euros which is an increase of 2984 from the 6/30 figure of 1066. nokia.com I am not sure whether it has been covered on this board yet but I wonder whether some of us have assumed too quickly that the settlement agreement called for Nokia to pay 1.7 billion in Euros. Nokia’s press release language is at best ambiguous: “The payment amounts to EUR 1.7 billion and is payable by Nokia to Qualcomm during the fourth quarter 2008.” My concern now is that the payment is to be made in dollars but that Nokia did not hedge its dollar exposure, suffering a currency loss during the quarter, so that the original dollar figure now “amounts” to 1.7 billion Euros. That would mean that the payment to QCOM in dollars would be less than the $2.3 billion we have been using. Somebody needs to check my math but I believe the dollar is up 15.96% against the Euro since 7/24 (.7361/.8358) which I think means that the payment in dollars might have been about $2 billion. This assumes that NOK was completely unhedged. If they hedged part of it, then the dollar figure would be between $2 and $2.3 billion—still a nice bundle for the shareholders! oanda.com

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