Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: slacker711 who wrote (81095)	10/16/2008 9:18:34 AM
From: slacker711	1 Recommendation Respond to of 197271

FWIW, a first stab at the numbers indicates a royalty rate below 2%. There are a number of variables but my WAG would be around 1.6% plus or minus .2 percent. Winning chipset business from Nokia would be nice but having Samsung or LG grab share would be even better. Slacker

To: slacker711 who wrote (81095)	10/16/2008 9:18:56 AM
From: phatbstrd	Read Replies (1) \| Respond to of 197271

Slacker, If I understand Q and Nokia correctly, none of it is for "back royalties"...it is all a lump sum licensing fee that is being amortized from April 2007 to the end of 2022. I didn't catch that... are you saying that Q is foregoing all of the back royalties? p

To: slacker711 who wrote (81095)	10/16/2008 9:26:49 AM
From: rkral	2 Recommendations Read Replies (1) \| Respond to of 197271

Read this portion of Nokia's Q3 announcement again ... slowly and carefully. "As previously communicated, the financial terms also included a lump-sum cash payment. The payment amounts to EUR 1.7 billion and is payable by Nokia to Qualcomm during the fourth quarter 2008. The lump-sum payment made to Qualcomm will be expensed quarterly over the term of the agreement." I think the distinction between "payment" and "lump-sum payment" is purposeful. Of course, this says nothing about what Qualcomm will do.