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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 (59028)	1/25/2007 10:53:07 AM
From: A.J. Mullen	Read Replies (1) \| Respond to of 197624

Jim, "....3. ERIC- lower rate.................... 65 ....4. Other mix- lower rate............ 16" I thought there were no lower rates? "..+ In NO CASE were existing royalty rates lowered!!!" Edit> Ah! I see from your PM I thought it just a one-liner and went to this board - Ericy was given a sweeter a deal as part of the infrasructure deal, and this has passed to Sony Ericson. Thanks for making that clear. Ashley

To: Jim Mullens who wrote (59028)	1/25/2007 4:18:04 PM
From: waitwatchwander	Read Replies (1) \| Respond to of 197624

There were also some market development costs within QTL "adjustments". Additions to the category from December were in the range of $60M (ie Rev $2.08B to $2.02B). I thought those covered "extras" for Pantech, Market Development and the mysterious purchase of pass-through rights. But I could be wrong.

To: Jim Mullens who wrote (59028)	1/25/2007 7:55:31 PM
From: slacker711	Read Replies (1) \| Respond to of 197624

QTL revenue reported................$600M ...Shortfall...................................196M ....Detail>>>.... ....1. Pantec..................................14 ....2. QCT adj................................. 8 ....3. ERIC- lower rate.................... 65 ....4. Other mix- lower rate............ 16 ....5. 3rd Party rights acquired?? .......assuming a royalty give back...93M I'm having trouble understanding where you came up with your numbers. The royalty rate in the last four quarters before this one was 4.6%, 4.5%, 4.45%, and 4.15% respectively. I think 4.5% is a reasonable baseline number. I used a 3.9% royalty rate for QCT. That is about the average adjustment that Qualcomm gave out for the historical numbers that are on their website. Using that I get.... QTL Reported Revenue $600m QTL Revenue based on 4.5% rate $718.2m QTL Shortfall $118.2m QCT lost royalties $48m So we have $70.2 million in unexplained royalty loss. Keitel again mentioned the "market development funds" as well as Pantech, the pass-through rights and Sony Ericsson gaining share. Unfortunately, I dont think we are going to be able to split up the source of the royalty loss with any preciseness. We might need another quarter of data. One thing is for sure, the drop is more than a little disturbing. We have lost $300 million due to legal fees and if you add in the annualized $280 million from this lower royalty rate, you are talking about an unbelievable amount of lost earnings. Slacker