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

QCOM 155.82

-1.3%

Jan 23 9:30 AM EST

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To: engineer who wrote (81192)	10/20/2008 9:50:09 AM
From: pyslent	2 Recommendations Read Replies (1) of 197351

If you know the number then perhaps you can make a stab at it, but you don't What we have is the guidance that Qualcomm provided as to the impact of Nokia for the next fiscal year. I won't look it up now, but I believe it was max 28 cents added to EPS due to a combination of 1) reduced legal expenses, 2) amortization of the upfront payment (now known to be about $2.5 billion), and 3) royalties. My estimate comes out to 1.6% for the new royalty rate, but you can do your own math. Seems to me that Qualcomm would have received about 39 cents in royalties alone under the old deal, although we really don't know the old rate (my guess was 3.5%). The 2.5B payment is for the past, as nobody does a pay ahead on anything. I am not sure I follow your logic on this Aren't ALL license fees considered "pay aheads?" At least that's how they are treated for accounting purposes.

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