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

To: slacker711 who wrote (81201)	10/20/2008 11:58:23 AM
From: ggamer	Respond to of 197798

Ericsson Shares Rise on Revenue Jump 10/20/08 - 10:32 AM EDT , ERIC Joseph Woelfel Updated from 2:23 a.m. EDT Shares of Ericsson rose sharply after the Stockholm-based telecom-gear company recorded an unexpected 13% jump in third-quarter revenue, boosting fellow network equipment makers. Ericsson said net income fell to 2.8 billion Swedish kronor ($378 million) from 4 billion kronor a year earlier, a decline of 28%. Sales in the quarter were 49.2 billion kronor, a rise from year-earlier sales of 43.5 billion kronor. Analysts surveyed by Thomson Financial were looking for net income of 2.47 billion kronor on sales of 46.06 billion kronor. Gross margin increased to 37% from 35.6% a year ago, and was flat sequentially, which Ericsson said was mainly due to a better business mix outside Western Europe and improved margins in its professional services division. Operating margin fell to 11.5% from 12.9%, although was higher when excluding its Sony Ericsson handset joint venture with Sony (SNE Quote - Cramer on SNE - Stock Picks). For 2009, Ericsson said it finds it "prudent" to plan for a flattish development in the global mobile infrastructure market and good growth in the professional services market. Still, shares jumped 16.3% to $8.07 in early trading. "We have a positive longer-term view for our industry, however, as we look into 2009, we continue to plan for a flattish market, and we have measures in place also for tougher conditions," said Ericsson chief Carl-Henric Svanberg. "Our business in the quarter has not been impacted by the financial turmoil. ... In the present financial turmoil, it is however hard to predict how operators will act and to what extent consumer telecom spending will be affected."

To: slacker711 who wrote (81201)	10/20/2008 12:06:16 PM
From: Rich Bloem	2 Recommendations Read Replies (3) \| Respond to of 197798

Slacker, I don't think there is any doubt that the rate is substantially lower than previous. My guess is 40-50% lower. However, there is serious doubt as the whether this agreement provides lesser or greater value to Q. The other additives are substantial. For instance the 2.5 billion is really more like 4.8 billion on a DCF basis. The transferred patents are an unknown, but obviously Q thinks they are important and will either provide value. The ownership of essential GSM patents are not in doubt. One of the thinks that I see of great value is that NOK will now be paying royalties on GSM phones. We don't know what that rate is and it could be argued that it is zero. But, according to the press releases, NOK's agreement now covers GSM. ESPOO AND SAN DIEGO - July 23, 2008 - Nokia (NYSE: NOK) and Qualcomm (Nasdaq: QCOM) today announced that they have entered into a new agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission. Under the terms of the new 15-year agreement, Nokia has been granted a license under all Qualcomm's patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets. The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.