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

To: David E. Taylor who wrote (79280)	7/28/2008 10:21:15 AM
From: Jim Mullens	Read Replies (1) \| Respond to of 197214

David, re NOK Settlement / QTL tax rate, and “ I think Slacker's 38% tax rate for royalty payments is more appropriate than the 19% I originally used, and that boosts the upfront payment I estimated to the $2 to $3.5 billion range.” Credit Suisse just came out with their post NOK settlement report. Very impressive analysis IMO, after partial read / first glance. They raised their guidance from $60 (issued last week) to $70, suggesting the Q’s new guidance / assumptions are conservative. CS “thinks” Q’s FY ’09 EPS impact from NOK is closer to $0.35 than $0.24. Reflecting Slacker’s keen observation, CS is using a 35% tax rate for the QTL impact / 2% NOK royalty rate. With a 19% composite tax, The QCT tax rate must be quite low with QTL at 35%.

To: David E. Taylor who wrote (79280)	7/28/2008 10:40:56 AM
From: scratchmyback	Read Replies (4) \| Respond to of 197214

<<I think Slacker's 38% tax rate for royalty payments is more appropriate than the 19% I originally used, and that boosts the upfront payment I estimated to the $2 to $3.5 billion range.>> If Nokia is going to pay a one-time payment of $2 to $3.5 billion, we will know it by October 16, when Nokia releases its third quarter results. I don't want to speculate on the way Qualcomm handles the up-front payment, but I don't see any other alternative for Nokia than to book it as a one time item for the third quarter. And then we'll know.

To: David E. Taylor who wrote (79280)	7/28/2008 12:07:25 PM
From: genedabber	Read Replies (2) \| Respond to of 197214

The Q4 EPS boost of 0.07 to 0.13 is not large enough to reflect 6 Quarter Royalty payments! Keitel must have been talking only about the increase "in the Q4 revenue" and not including how the "back pay" would be accounted for! Gene

To: David E. Taylor who wrote (79280)	7/28/2008 7:28:27 PM
From: Raglanroadie	Respond to of 197214

Since there was no litigation and resolution of the claims made I wonder what NOK's view of Q's booking past royalty's at the previous rate would be? It seems like they would insist that this not happen since it could be construed that this acknowledges Q's claim of automatic extension. On the other hand if Q's does not book any royalty's then that would seem to support NOK's claim. So what do you do? Also, would NOK try and forecast the value of the dollar and attempt to pay a portion with currently strong Euro's? If the dollar goes from 1.55 to 1.25 then that thirty cents represents a 19.35 percent move which depending upon the going rate ( 2% to 3% ) then NOK would be saving between .387 and .581 of a percentage point. This was done on the fly so please forgive any errors I made.