Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SKIP PAUL who wrote (21740)	1/21/1999 1:25:00 AM
From: Clarksterh	Read Replies (1) \| Respond to of 152472

Skip - It just occurred to me that 20% licence growth might be better than 90% Revenue growth because licence revenue goes straight to the bottomline. Actually, another way of stating my major point is that among all of the areas where Qualcomm makes money, only the handset revenues and contract services grew sequentially last quarter - ASIC's and royalties were flat and infrastructure was down. (Note that I don't know anything about Omnitracks or e-mail, and also note that Gregg is right that they hinted in the CC at the fact that they were probably being conservative on royalties this quarter.) I really do believe that in general that it is unlikely that ASP is likely to continually decline faster than unit growth, but it is something that needs explaining so that the analysts feel comfortable with growth predictions for royalties and ASIC revenues. Clark PS Given that their GM is 28%, and the revenues therein are 20x larger than royalties, I'd rather have a 5% growth in revenues minus royalties since it results in greater gross profit than 20% growth in royalties alone. Of course this isn't perfect since some of the op exp are really associated with product lines, but ... .