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To: Apollo who wrote (25350)	5/25/2000 11:37:00 AM
From: gdichaz	Read Replies (1) \| Respond to of 54805

stan: Mike is the expert on this of course, but the advantage of using ASICs is that it is more of a forward looking indicator, but the disadvantage is that there is no direct connection between ASICs and royalties. Royalties loom large and will loom larger as time goes on in estimating future performance. Perhaps there is a way to derive a proxy for royalties other than the growth of overall CDMA (and HDR), but I for one don't know of one. Best. Cha2

To: Apollo who wrote (25350)	5/25/2000 6:18:00 PM
From: Mike Buckley	Respond to of 54805

Stan, In the past, we have used growth in worldwide CDMA subscribership as a surrogate for predicting revenue growth for Qcom. To be clear, I've been using subscriber growth only as a surrogate for historical growth, not estimated growth. I'm not an analyst so I don't attempt to predict future growth. Alternatively, because "old" subscribers are already accounted for, yet may be purchasing new CDMA equipment (upgrades), would it be better to count growth in ASICs from qtr to qtr as a better surrogate for future revenue growth? Again, I think that would be a better indicator of historical growth than future growth. Even so, I don't know anywhere that we have access to all ASICs data. And if we did, we'd want to know which ones generate product profit and which ones generate royalties because of the different revenue streams. I don't know where we can get that information. Hope you do! --Mike Buckley