Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 180.88

+2.0%

Oct 31 3:59 PM EST

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To: DWB who wrote (27754)	4/20/1999 11:49:00 PM
From: John Biddle	Read Replies (3) of 152472

I'd like to correct what I believe are a couple of mistakes which are getting a lot of air time on this thread. First, a book to bill ratio of 1.7 is a one time number representing the current number of orders divided by the current number of orders being filled. Though this number is terrific, it does NOT represent a 70% growth rate in ASIC sale. It CERTAINLY does not represent a 70% quarterly growth rate. Second, I believe the Q does not get royalties on its ASICs, it gets revenue. These are sales. It also make a good sized profit on these chips, but it's not royalty money. Where Q makes ASIC royalties would be on ASIC sales by the (I believe 4) companies licensed to sell CDMA ASICs. QCOM gets royalties on all CDMA handset and infrastructure equipment sold by licensees. Count these company's phones and base stations to back into a royalty number, not the Q's. Congratulation to all of us, and a grateful thanks to Gregg whose insight helped most of us (certainly me) see more clearly that the Q in 98 was as close to found money as one is ever going to find. John

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