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

To: Jeff Vayda who wrote (71436)	11/21/2007 11:11:22 AM
From: JGoren	Read Replies (1) \| Respond to of 196568

Argus issued report on Qcom's analyst meeting. Maintains Buy rating; maintains its earlier estimates. Confirms company forecasts conservative. Says Broadcomm won't settle until Nokia-Qcom arbitration and Nokia settles, believing it would be foolish for Boredcomm to settle at higher rate than Nokia.

To: Jeff Vayda who wrote (71436)	11/22/2007 11:36:54 AM
From: Eric L	Respond to of 196568

Nokia: Contingent Liabilities v. Current Liabilities (Provisions) Hi Jeff, << ... have you looked into the large increase in Nokia's set aside reported on the thread recently? I imagine there are any number of valid reasons, just seems to be a large and sudden ramp. >> Are you talking about the increase in "contingent liabilities" commented here a few weeks back? Regarding Nokia's contingent liabilities, I noticed on page 15 of it's press release dated 10/18/07, the amount of contingent liabilities on behalf of group company was increased from Euro Million 407 at 9/30/06 to Euro million 2,540 at 9/30/07. This was an increase of over 2.1 Billion Euro. I am wandering whether this amount included all liabilities under the licensing agreement with Qualcomm? Message 24060850 Nokia is acquiring Navteq for €5.4 billion in Q1 2008 subject to customary closing conditions, regulatory approvals, and Navteq shareholders’ approval. Nokia plans to make the acquisition with a combination of cash (about 50%) and financing. Ergo, it would seem, we see a substantial increase in their 'contingent liabilities' QoQ and YoY. The more appropriate line item to look at for increases in accrual for potential IPR infringement settlement is 'Current Liabilities: Provisions' which although not broken down or annotated in a quarterly filing consists of provisions for warranties (the largest chunk), IPR infringements, tax, and other. In the unaudited Q3 statement 'Provisions' increased by €1,415 million from €2,386 million at FY/CY 2006 end to €3,801 million at end of Q3'07. Some portion of that increase is likely to be the accrual for potential royalties owed QUALCOMM that Rick Simonson (Nokia CFO) has referred to in past earnings calls. At year end 2006 the provision for potential IPR infringement was €284 million out of total provisions of €2,386. This years 20-F filing (due February or March) will break down 'Provisions' by warranties, IPR, tax, and other. << NOK's strong run over the past three years has caught the Q for the five year period. Any plans to fight the tape and add to your Q position or are you running with status quo? >> I added a tad when they came within 10% of their 52-week low in August. S'nuff. Happy Thanksgiving, - Eric -