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

To: Eric L who wrote (79299)	7/28/2008 10:53:36 PM
From: quartersawyer	Read Replies (1) \| Respond to of 197214

CS is estimating an upfront payment from Nokia of $430 million and they are assuming the same 2% royalty rate applies retroactively. The "upfront payment" stuff is confusing CS. Specifically, the CS report states: " Assuming the same royalty rate [2%] applies retroactively, this would suggest that Qualcomm will receive an upfront payment of about $430mn from Nokia. " From numbers presented in Section III here (and elsewhere), it's reasonable to estimate that Nokia sold 85 million WCDMA handsets in the retroactive period. $430 million represents 2% royalties on those handsets @ $250. Message 24551247 CS's $430 million does not qualify under Keitel's "very substantial upfront payment, much more than was owed for the past" There's really nothing to support the $430 million (or the 2%).