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Technology Stocks : CDMA, Qualcomm, [Hong Kong, Korea, LA] THE MARKET TEST!
QCOM 174.76+0.3%3:59 PM EST

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To: Uncle Mikey who wrote (1354)12/29/1996 2:00:00 PM
From: chuckj   of 1819
 
Ed, Excellent observation. Qcom states signing for royalties as part of their revenue stream. But as royalties go, usually there is a lump sum payment up front, and quarterly or monthly payments as earnings based on the technology (that is purchased) develops for the buyer.

Usually the partial payments will not begin for several months or quarters after the purchase of technology, because the buyer has not integrated the technology in to their revenuable products.

I will end on a positive note: Although it is clear to a prudent investor that likely most or all of the royalty earnings in the past few quarters are "one time gains," however, because Qcom has not distinguished in their earning statement, which part of their Royalty earnings was a "one time gain," the naiive share holders will have a strong legal case, when the time comes, and could possibly collect a dime on the dollor invested.
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