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

To: cfoe who wrote (79311)	9/1/2000 1:48:11 PM
From: David E. Taylor	Read Replies (2) \| Respond to of 152472

cfoe: Nope it's not that: We choose to treat the intrinsic value of these stock options as unpaid compensation expenses and show them as a liability to the company. So that affects the balance sheet not the earnings. They get to their 146 "P/E" by doing the following: Rather than using QUALCOMM's reported earnings per share [EPS], we have chosen to use adjusted after-tax operating profits per share [ATOP] to represent the company's profitability. It is our opinion that using ATOP creates a much more accurate depiction of The Company's bottom line performance. They then use $68.875 for the share price (when they did the analysis) and an "EPS" (= "ATOP") of $0.47 to arrive at a "P/E" (= "P/ATOP") of 146. How did they get from the consensus EPS of $1.03 for FY 2000 (or even 1999's actual EPS of $0.60) to their "ATOP" of $0.47? They don't say, but maybe the analyst community should be informed they have their collective heads up their rear ends and don't know how to properly arrive at an EPS number. David T.