Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (41517)	9/16/1999 11:00:00 PM
From: The Reaper	Respond to of 152472

GAWD- A glaring error on my part! I'm going to blame it on the late hour of the post. Let's do it again. Pro forma 3rd qtr. revenues $966 mill. Gross Margin 3rd qtr. 42% Net income $154 mill. Shares out. 180 mill. EPS .86 handsets account for 40% of revenue. royalties are going to be about $110 mill. this qtr. Assumptions we must make: Assume 20% gross margins for handsets. Assume we can take 40% off R&D, G&A, and Selling expenses due to the discontinuance of handsets. Assume flat sales of ASIC business (not true we know) 3rd Qtr. would have looked like this..... Revenue $580 mill. Gross margin 56.7% Gross profit $328 mill. R&D -56 mill. G&A -30 mill. Selling -32 mill. Operating income $210 mill. For 4th Qtr. Add extra royalty income over 3rd $ 17 mill. UNCLE SAM (35%) -80 mill. Net Income 147 mill. Add 1% on $1 billion (tax exempt) 10 mill. EQUALS................................. $157 mill. or 157/180 shares = .87/share What's the conclusion now? GEEZ! This number is the consensus estimate. Coincidence? If the margin assumption on the handsets is close to reality, then the amount that Q! beats estimates is going to correlate with the growth of ASIC's business. Right? kirby P.S. ain't this fun?