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

To: slacker711 who wrote (56590)	11/2/2006 9:25:37 PM
From: slacker711	Read Replies (2) \| Respond to of 197507

I thought this exchange on royalty rates was pretty interesting. By my calculations, if the royalty percentage had stayed the same as last quarter, QTL would have $48 million more in revenues (~2 cents in profits). I wonder what sort of programs they spent that money on....and why would it be contra revenue instead of a normal expense? Is this some sort of royalty kickback to Reliance? Sort of suspicious that it shows up in the quarter following their complaints.... seekingalpha.com Tim Long - Banc of America Bill, if I could just ask you a question on the September quarter QTL line. I was a little surprised to see it up only 3% sequentially. If you could just explain if there was anything funny in the quarter there? Because if you look back at the June numbers, you had a pretty good spike in ASP, up 4% or 5%, and unit shipments looked like they were up about 6%. So I am just curious as to why the royalty line with the quarter lag, it seems like the license revenues were about stable, why we didn't see a bigger sequential jump in that line? Has there been any change in overall rate or anything else in the quarter? Bill Keitel Tim, no change in rates for licensees. Those rates stay constant. So again, it comes back to a different mix of infrastructural royalties versus test equipment royalties versus phone royalties. And then there are small amounts of special credits that sometime folded into the QTL segment. I think we had a modest amount of those in the September quarter. Tim Long - Banc of America Okay. Well, Bill, should I think of it as the prior quarter was helped out on the high side or the June quarter or the September quarter was hurt on the low side? Which was a more normal number would you say? Bill Keitel Tim, I will go into a little more specifics for 2007. I think that is the key is 2007, and we will go into a bit more specifics in London. Steve Altman Let me just clarify. When we talk about credits or so forth, what we're really talking about is time to time with special programs with carriers, we will provide incentives to carriers to sell more product or focus more on certain applications and so forth. Those types of expenses get allocated to QTL in terms of growing the overall CDMA business. So that impacts the amount.

To: slacker711 who wrote (56590)	11/2/2006 9:42:37 PM
From: carranza2	Read Replies (2) \| Respond to of 197507

Thanks, slacker, from those of us who were unable to listen. The high points, from my viewpoint: we discovered that Broadcom had engaged in a successful multi-year effort to improperly acquire thousands of pages of our confidential business and technical information, including source code related to our WCDMA chip development. Sleazy bastards. Although we regularly meet with Nokia to discuss the terms of such an extension, given, among other things, Nokia's recent public statements and the little progress we have made to date, our negotiating team is not optimistic that we will conclude the extension by April 2007. Looks like we're going to the mattresses. I don't understand it. Well, I do. Nokia feels rich enough and strong enough to thumb its nose at Q. Jacobs seems to delight in needling Nokia with his statements about how Q's licensing program leads to lower handset prices. He really rubbed it in with this point, which must have made Finnish blood boil: Thank you. We are also heartened by the price competition that is happening, and in particular this Huawei phone that I talked about earlier is coming in at a significantly lower price that allows WCDMA phones to enter a different tier in the pricing. So we hope to see that as a significant driver of volume as well. He's of course refering to VOD and its branded WCDMA phone from Huawei.