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

To: DanD who wrote (48378)	11/3/2005 10:19:44 AM
From: Jim Mullens	Respond to of 197208

Dan, Re: FY06 Guidance WRT R&D, and “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.” Yes, don’t disagree. I was surprised at the ~ 25% increase, over last years similar increases, but don’t disagree that it is the correct strategic path with all the opportunities at hand. As you stated, the Q is fortunately able to support these high levels of R&D with their high margins, and by maintaining (increasing ?) their lead in 3G (4g?) with HSDPA, DorA/B, OFDM, FLO, Iridigm Displays, etc will hopefully secure / insure sustainable long term growth (20%+) for many years to come. It should be emphasized, that even with again a “surprisingly” large increase in R&D the Q is able to guide EPS up 22- 27% (meeting analyst expectations, and with under consensus WCDMA handset projections).