Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 172.72

-4.4%

Nov 4 3:59 PM EST

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To: DaveMG who wrote (27821)	4/21/1999 9:59:00 AM
From: John Biddle	Read Replies (1) of 152472

My original: 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 Your comment: While this may be technically correct, T.Thornly stated explicitly that royalties track ASIC sales pretty closely, and that Q in fact estimates royalties based on ASIC demand. My new response: Your approach works well as a shortcut only if you assume hat a very large percentage of CDMA phones contain Qualcomm ASICs. While this is close to true today, it is not likely to stay this true going forward. While I agree that we're just making estimates here, and that this nit I'm picking is relatively small now, I'd suggest that the elimination of known inaccuracies will help, though it will add complexity.

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