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Technology Stocks : PALM - The rebirth of Palm Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Tom R. Clarksburg who wrote (3658)	2/5/2001 9:26:12 AM
From: David E. Taylor	Read Replies (1) \| Respond to of 6784

Tom: My DD on Palm, Handspring and PDA's generally is way behind real time, been busy with family and other stuff, so I've yet to listen to either the Palm or Handspring CC's for the most recent Q's My $$/unit figure for licensing revenues was arrived at last fall by dividing Palm's licensing revenues by Handspring's unit sales for the prior Q, when Handspring's unit sales were easier to estimate because they only had two basic models on sale and their average ASP was around $150 (ARP about $220). So it's useful to know that licensing royalties are based on % of revenues and not units sold - first because that makes the financial modeling easier, and second because it means that Palm's licensing revenues/unit will increase as their licensees' average ASP's/ARP's increase, as they have for Handspring and are for Sony. On a % basis, the top end Handspring unit should bring in double the licensing fees/unit as their low end model, since the ARP/ASP's are about double. I need to do some work on Palm's last Q2 earnings to see if that holds up. I wonder if that will be the same for cell phones though? A question that remains to be answered once those licensing revenues begin to flow, which won't be until Palm's Q4 or later. Thanks for the info. David T.