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

To: John Biddle who wrote (31355)	1/17/2003 6:58:58 PM
From: cfoe	Read Replies (3) \| Respond to of 197214

Hidden Red Flags I did a quick calculation of comparative DSO's as of 9/30/02 vs. 9/30/01 and did find something interesting. First, the only way to do an "apples-to-apples" comparison between the two years is to include QSI for fiscal 2002, since QSI it is not broken out from fiscal 2001. This is an important point as is shown in the following numbers. DSO - Accounts Receivables 64 70 DSO - Finance Receivables 47 1 DSO - All Receivables 111 72 Yes, DSOs did jump dramatically from 2001 to 2002. However it is not from QCOM's core business for which DSOs declined by almost 10%. It is due to the Financing Receivables related to QSI. This was probably due in part of Vesper and also Pegaso. The latter was substantially reduced after the end of the fiscal year when Telefonica made payments due from its Pegaso purchase. So I would say that the numbers as presented in the article are at the very least misleading in not making this distinction clear.