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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: Sawtooth who wrote (2343)	10/14/1999 2:16:00 PM
From: slacker711	Read Replies (1) \| Respond to of 13582

An excerpt from an article on the Motley Fool.... In Q2, CDMA chipsets represented 19% of total sales, up from 1% in Q1, according to Warburg Dillon Read. Without a doubt, the growth prospects of the CDMA business and DSP's development program for emerging third generation (3G) wireless technologies are what attracted the chip giant to the company in the first place. fool.com An excerpt from the most recent SEC filing by DSP.... In connection with its license agreement for CDMA, the Company has agreed to pay royalties based on specified rates. The Company initiated payment of these royalties in 1998 upon commencement of sales of its CDMA products. Royalty expenses in the first six months of 1999 amounted to $947,000. biz.yahoo.com A little quick math.... 1Q Revs. 34.1m CDMA Rev. .34m 2Q Revs. 39.6m CDMA Rev. 7.52m So on a total of $7.86m in sales, DSP paid $947,000 to Qualcomm. This works out to a royalty rate of 12% on ASIC's. Not too shabby.... The only real variable in the above calculation is the accuracy of the Warburg Dillon Reed analyst. Slacker

To: Sawtooth who wrote (2343)	10/14/1999 2:50:00 PM
From: Peter J Hudson	Read Replies (1) \| Respond to of 13582

To All, The idea of AT&T switching from TDMA to CDMA makes no sense at all for 2G operations. T has billions of dollars invested in TDMA infrastructure and the advantages of CDMAone will never justify abandoning that sunk cost. T can continue to milk it's TDMA system and claim that they will use EDGE for 3G, but they don't have a huge investment in EDGE. If AT&T is going to move to a form of CDMA it will be for 3G. No matter what brand of 3G AT&T uses it will require a massive build out. Assuming that 3G CDMA systems will be superior to the alternatives, as we all believe, that would be the logical time for T to go CDMA.