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

To: hueyone who wrote (120820)	6/22/2002 12:36:12 AM
From: slacker711	Respond to of 152472

In that time I have noticed a number of posters lauding QCOM for their reporting. I assume there are some changes in their reporting policies. Can you please elaborate on these changes? Qualcomm changed their reporting format back in November. This was right around the time that attention had become focused on Enron's accounting practices. I think this is a change for the better but if you are looking to avoid pro-forma results all together, you are going to be dissapointed. What Qualcomm has done is split out ALL of their investments/vendor financing into a separate division called QSI (Qualcomm Strategic Initiatives). This division includes the investments in carriers (Vesper, KTF, Inquam) and their interest bearing loans (Pegaso). The results from QSI are not included in the pro-forma results. I know that you have objections to pro-forma results....but at least for me, it was the lack of consistency that really hurt Q's credability. As PCSTEL has pointed out, Qualcomm wrote off GSTRF and excluded it from pro-forma while recognising investment income in Leap. This also allowed them to guide to a certain amount of investment income (say $10 million) and then sell a bunch of stock at the end of the quarter and recognise $20 million.....allowing them to make their overall guidance. The above move, combined with their change in recognition of licensing fees (they now amortise them) makes Q's income much less subject to manipulation. They have also given a breakdown of the amounts of all of their loans and investments within QSI. All in all....the result is a much more transparent process. I no longer have to look through footnotes to determine exactly how the core business is operating. Some useful links.... qualcomm.com qualcomm.com Slacker