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

To: waitwatchwander who wrote (91056)	4/22/2010 5:59:32 PM
From: slacker711	Respond to of 196553

Sorry, my last post was a bit unclear. The $8 million I was using was only an example. Here is the section from the 10Q on QSI. files.shareholder.com QSI Segment. QSI revenues for the second quarter of fiscal 2010 were $2 million, compared to $8 million for the second quarter of fiscal 2009. QSI revenues are attributable to our FLO TV subsidiary. The decrease in FLO TV revenues was primarily due to an increase in customerrelated incentives that were recorded as reductions to revenues. QSI’s loss before taxes for the second quarter of fiscal 2010 was $136 million, compared to $102 million for the second quarter of fiscal 2009. QSI loss before taxes increased by $34 million due to a $50 million increase in our FLO TV subsidiary’s loss before taxes, partially offset by a $16 million decrease in net investment losses (unrelated to FLO TV). I assume that they are amortizing the $199 price for the stand-alone device or the revenues should have gone up (device revenues would be higher than the free months). 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. I dont have any idea how they do the accounting for this. Would content costs come out of revenue or out of the cost side? Also, if I understand your numbers, I think you need to divide by the 3 months for the quarter to get the number of paying subscribers. I also doubt that they are making anywhere near $5 a month per sub...but that is just based on the fact that even a 3 year contract for FLO costs $9 a month. I would hope/assume that most of that price is for content since they are trying to gain traction with the service. Slacker