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To: Eric L who wrote (28425)	7/20/2000 3:12:36 PM
From: Mike Buckley	Respond to of 54805

Eric, Is 67% CAGR sufficient to consider that a tornado remains in effect for CDMA? Not for me. For me, anything around 100% is questionable and anything well under it is clearly not what I'd call a tornado. I prefer 120% or more to be certain. An increasing rate is almost more important than the number, as the manual suggests though not in those words. That's because the tornado has more momentum, more lasting effect. As an example, if Q's tornado were increasing now there would be even more pressure on the companies to dispense with the FUD and sign up so they get a lead on their competitors. The fact that Q's rate of growth has been slowing says a lot more about the obstacles to product adoption than the size of the growing base in my opinion. Since you brought up the subject of the unanticipated temporary events, I will mention that I remain open minded that this tornado could indeed prove to be NOT by the book. It's certainly possible that the winds will slow a bit and later pick up big-time into full tornado speed. When and if that happens, it will probably be difficult to determine whether it's the original voice tornado or the voice/data tornado. That leads to my agreement with you that it is very, very difficult to measure the various kinds of tornados. And as to your point that eventually we will want to rely solely on the rate of revenue increases for Qualcomm, I won't be at all surprised if we are well past all the tornados before that can be effectively done. The company has never broken out the details sufficiently for us to track the progress in an itemized way. Even now the company is in two primary lines of business -- ASICS and software licensing (IPR). There will certainly be more changes in the basic business model as time marches on, making meaningful top-line comparisons difficult. And just about the time we feel comfortable analyzing a particular business model that's been in place for awhile, we'll get all out of kilter because something like digital cinemas will kick in to muddy up the mixture. THAT is what makes GREAT companies. I can live with those problems. --Mike Buckley