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To: Mike Buckley who wrote (38461)	1/26/2001 1:18:01 PM
From: Thomas Mercer-Hursh	Read Replies (1) \| Respond to of 54805

Ah, I see what you mean ... sort of. Yes, I agree that I prefer proceeds from investments to also show up below the line. Seems like one side of the transaction is to credit the investment asset account and debit the gain or loss on investments account, which is below the line, and the other half is to debit cash and credit the same gain or loss account. That account is then positive (credit) or negative depending on whether one got more cash than the booked value of the investment or less. Or, are you saying that they actually had two separate transactions, one in which they wrote down the value of the investment, which they put below the line, and then one in which they realized profit from sale which they booked as revenue? This seems strange since this later transaction would only be positive revenue if the sale realized more than the book value of the investment. Bottom line, all of this should be below the line.

To: Mike Buckley who wrote (38461)	1/26/2001 2:16:08 PM
From: Getch	Read Replies (2) \| Respond to of 54805

While I agree that including sale of securities in pro forma earnings does cloud the picture, how do feel about this issue in regards to Qualcomm in particular? In the CC Qualcomm stated that a significant portion of their business now is acting as an incubator to companies in the process of growing new CDMA products. As a cash hog business, they have chosen to raise shareholder value in this manner rather than the traditional dividend. Also, and my notes on this were not good, they stated that they are going to in the future have scheduled sales of securities in order to release the capitol to be invested again. One analyst questioned about this, with the kicker that he grows his capitol by NOT selling Q. I guess the point is that for Qualcomm in particular, the sale of securities is not a one-time event, and as revenues and royalties continue to grow, will become an even more important function of shareholder value.