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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (10089)	4/21/1998 5:38:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 152472

Ibexx, Is this the same thing as deferred revenues/income? I think in QCOM case the revenues are current. The new way to account for royalties is closer to reality than actual receipts from prior quarters, but the large one time adjustment resulting from accounting change should probably have been reported separate from regular income. But then, what do I know. I am not an accountant. Joe

To: Ibexx who wrote (10089)	4/21/1998 5:43:00 PM
From: dougjn	Read Replies (3) \| Respond to of 152472

Probably something like that. At a guess, they take a reserve for returns on royalties based on customer handset and infrastructure sales. They decided to reduce the percentage reserves based on now better established performance history. (And the need for the earnings obtained by reversing the accrued liability.) Doug

To: Ibexx who wrote (10089)	4/21/1998 8:14:00 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 152472

Ibexx, Ibex the goat, Maurice the sheep, qdog the pooch, we have ourselves an animal farm here. I don't think QCOM is following MSFT's accounting strategies. If they were juggling the books to just meet expectations, that is a completely different story. They met estimates so if they use MSFT's technique, they would have "saved" the $.11 for next qtr instead of taking it this qtr. I am hoping that QCOM feels strong enough about next qtr to book these earnings now. Ramsey