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

To: quartersawyer who wrote (79306)	7/28/2008 8:04:37 PM
From: CrackheadBob	Read Replies (1) \| Respond to of 197275

What you are missing is that the contract is not in any way going to discern between the past royalties owed and a new licensing fee. There is just a single licensing fee that will get amortized however the bean counters are going to amortize it. When negotiated, the licensing fee included past amounts owed and a new fee for future payments. But those two things are just included in a single License Fee. If they actually broke out past payments due separately in the contract, I bet that would be a huge mess for the accountants because all of the past quarters would need to be restated. It is much easier all around to call it a new licensing fee and amortize it over 15 years. In order to catch up, they amortize since the beginning of the new contract (April 2007) to get everything current. If you want to know how big the fee is, pay attention to the Balance Sheet and the Cash Flow Statements.

To: quartersawyer who wrote (79306)	7/28/2008 8:18:35 PM
From: genedabber	Read Replies (1) \| Respond to of 197275

The most pressing question to me is that adding anything other than ongoing Royalties in the Q4 should result in more than "0.07 to 0.13 EPS. If the .07 to 0.13 EPS includes any appreciable ammortization of the lump sum payment (including back payments), then something doesn't add up. Otherwise, the value of the settlement doesn't equate to the hype that has occurred. Obviously the Qualcomm participants in the Conference Call had not thought it through, as they acknowledged. Gene