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To: JustLearning who wrote (48751)	11/9/2001 12:23:10 PM
From: slacker711	Respond to of 54805

I wonder if they will re-publish QTL results for the last two years, assuming that this policy was in effect, so that comparison would be more meaningful. qualcomm.com Qualcommm unbooked (is that a word?) about $40 million worth of revenue in FY '01 and about $50 million in FY '00. The changes in QTL are even more dramatic but QWS saw in increase in revenue to make up for some of the shortfall. As licensing slows (probably sometime in '03) Qualcomm is going to start seeing a benefit as the pro-rated licensing fees become more than the new licensing fees collected during the quarter. Slacker

To: JustLearning who wrote (48751)	11/9/2001 1:12:17 PM
From: Mike Buckley	Respond to of 54805

JL, I think Thornley wanted to wait as long as possible for visibility of growth in chip/royalty business, before implementing the changes. ... I interpret this to mean that Thornley is now confident that chip/royalty revenues are going to take off and make up for the lost revenue in licensing (due to the recognition being spread over 6 years). I don't know the details of SAB 101, but my impression is that it was required to implement it no later than now. Otherwise, why implement a change in accounting in the last quarter of the fiscal year? My point is that Qualcomm implemented it now because it's required to do so, not because of any particular new sense of confidence in chip/royalty revenues. --Mike Buckley