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To: Clarksterh who wrote (21678)	1/20/1999 12:40:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

Yes it is the results that matter. The results are 30% improvement in the bottom line year over year, 47% improvement in operating profits, 2% improvement in gross margins. This is without infrastructure participating. I see excellent prospects for continuing improvement in Infra, asics, handsets, royalties and WBS. Any deal on a joint venture which appears very probable could be a big windfall.

To: Clarksterh who wrote (21678)	1/20/1999 11:02:00 PM
From: Asterisk	Respond to of 152472

Didn't they change the way that they accounted for royalties also?

To: Clarksterh who wrote (21678)	1/20/1999 11:20:00 PM
From: SKIP PAUL	Read Replies (1) \| Respond to of 152472

It just occurred to me that 20% licence growth might be better than 90% Revenue growth because licence revenue goes straight to the bottomline. At 8% percent margins one would have to generate $12.5 in revenue for each $ in pretax profits. Whereas every dollar in license is equal to a $1 in pretax profits. Also, the price to sales ratio looks even lower than it appears. $44 million of royalties convert into $550 million in revenue to make them comparable to other companies.