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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 (91043)	4/22/2010 5:03:15 PM
From: waitwatchwander	Read Replies (1) \| Respond to of 196546

I remember seeing that $8M contra revenue note but didn't quite grasp its importance. Last quarter they had $10M in QSI revenues. If all the new subs are free and the networks are charging us $5 per sub and we are making $5 per sub, that gives us 2 million paying subs and 1.6 million trial months subs. If half the trial subs stick it out we'd be at 3M subs, a fifth of the way towards some form of break even. With a good chunk of this quarter's expenses being one-time promotional costs such as that of producing and airing the superbowl ads, breakeven costs could be reduced into the 15 million subs range. I guess that's a start, at least as good as it gets todate. It will now be interesting to follow QSI revs and see if some real sub numbers come out of the woodwork at some point in the future.