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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 (68099)	8/21/2007 8:13:47 PM
From: sag	Read Replies (1) \| Respond to of 197452

Q would need to be spending $190 million a quarter to reduce the rate from 5% to 4%. So who said 5%? In QCOM's latest Form 10-Q The increase in QTL’s earnings before taxes for the third quarter of fiscal 2007 as compared to the third quarter of fiscal 2006 was primarily attributable to the increase in revenues, partially offset by an increase in legal expenses, which resulted in a corresponding decline in operating margin percentage.

To: slacker711 who wrote (68099)	8/21/2007 8:43:38 PM
From: Art Bechhoefer	Respond to of 197452

Slacker--a minor point is that royalties reported in the third quarter would actually be mainly for royalties owed for sales occuring in the second quarter but not reported until the third quarter. This notion comes from statements in the QCOM financial reports and conference calls. The most accurate calculation of royalties related to shipments that produced those royalties would appear to use third quarter royalties as a percent of second quarter handsets shipped. Since the third quarter handset shipments were greater than those in the second quarter, the true royalty rate would likely be higher than 3.5 percent. Trying to determine the actual royalty rate without knowing what's in the licensing agreements is like trying to hit a moving target from a moving position. Art