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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: puzzlecraft who wrote (7718)	2/24/2001 11:24:03 AM
From: cfoe	Read Replies (2) \| Respond to of 196822

I am about thirty posts behind so I do not know if anyone else caught this in the first paragraph of yesterday afternoon's press release from QCOM (thanks puzzlecraft). Message 15402235 In addition, actual royalty reports received from the Company's licensees for the first quarter of fiscal 2001 were exceptionally strong. "Exceptionally strong" says to me they are guiding higher for the quarter. The question of how QCOM records its royalties came up when Khan and I were working ont he earnings model. I remember that in any given quarter, the royalty revenue is made up of estimates for the current quarter and adjustments to the estimate for the prior quarter. This comment in the release tells me that the adjustment in Q2 for Q1 actual royalties will be strongly positive. Otherwise, why would they mention it? Also, if they saw a shortfall coming somewhere else, I am certain they would hold back this positive to offset the negative. JMHO.