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

To: Jim Mullens who wrote (48375)	11/3/2005 8:51:52 AM
From: 100cfm	Respond to of 197208

Glad I'm not the only one. And I think Kietel said 22-27%! Coming from the level we are at now, it's a huge increase and each yr will be getting huger. Roughly figuring 1.3B R&D on 7B revenue is over 18%. Very high I think. I wouldn't care if it was 30% as long as we got the coressponding revenue increases. Hopefully the are being conservative on the high side for R&D and on the low side for sales. And yes they did say early on in 05 that it would be leveling off as they said in 04 for 05. I guess the fact that for two years it still hasn't leveled off even after they say it will is concerning.

To: Jim Mullens who wrote (48375)	11/3/2005 9:37:11 AM
From: DanD	Read Replies (1) \| Respond to of 197208

Jim et al, your discussions of R&D being high beg me to ask what is a reasonable R&D rate for a company that just posted a 34% profit margin? Defending those kinds of margins for the long term should be a high priority. Dan D.

To: Jim Mullens who wrote (48375)	11/3/2005 4:37:44 PM
From: engineer	Read Replies (2) \| Respond to of 197208

Jim, I would suggest that you review the history of the R&D and the timeline to when that produces results (revenue) and how big. In the past the large expenditures of R&D have had a lead time of about 4-6 years to major expansions in revenue. IMJ has done this for more than 20 years. At linkabit, he spent alot of money to develop HBO and the TDMA phone stuff. The payback was only shown when MaCOM lost faith and sold it. On the HBO stuff , they spent like $30-50M in R&D. Macom sold it to GI for $220M, and in the first 2 years of GI selling it, they made more than $280M in PROFIT. OMNITracs was something like $30M, returning (still) another $200M or so. CDMA was like $1B returning $2.2B year for the last 8 years. I have alot of faith that what they are spending now means that they earn alot more in 2009. If the "I want it NOW!!!!" crybabies do not understand this, then let them sell the stock. We all will benifit. And to all thos that backed up the truck, looks like your truck is about to break down from the weight of your decision. Good to see some good profit come from the BS lawsuit.