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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 (57906)12/21/2006 8:15:44 PM
From: waitwatchwander  Read Replies (2) | Respond to of 197628
 
They have basically reduced their eps estimate by around 1 1/2 cents per share. If my math is right that translates into $25m in added expenses. I guess one also has to add to that figure amounts covering the added revenue from chipsets, higher ASP and handsets that don't make it to their new bottom line. That could be another $20m based on:

0.5M more handsets

0.5M X $210 (ASP) X .9 (Margin) = ~$3M in added royaty profit

2M chipsets

2M X $35 (ASP) X .25 (Margin) = $17M in additional chipset profit

Taking both amounts into account reduces eps by 2 1/2 cents. Make sense ????



To: slacker711 who wrote (57906)12/21/2006 9:19:52 PM
From: peterk  Read Replies (2) | Respond to of 197628
 
Since they are non-recurring items what does it matter. The Market reaction is dependant on perception not reality when it comes to the Q. The stock will probably go up on the perception that Q would have exceeded prior guidance if legal and Pantech issues did not exist. I like the action in the AH. Though Q closed at 37.50 it did reach a high of 38.88. The volume on the downside was extremely light.


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