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

To: DWB who wrote (27742)	4/20/1999 10:17:00 PM
From: LindyBill	Respond to of 152472

how come QCOM sold their infrastructure division at a profit, Ya gatta false premise, Dan. They sold it at a loss and wrote it off. (Thank God they got rid of that Turkey!)

To: DWB who wrote (27742)	4/20/1999 10:19:00 PM
From: marginmike	Respond to of 152472

Hey ive got a MBA in the school of hard knock's. However let me take a stab. First off the deal hasnt official closed yet so they cant take the profit yet, that will come next quarter. They really didnt sell the infastrucure division outright, they sold some employees a building and some Research and development. Their existing contracts with Nortel, their HDR products, and their GSTRF Infa remain. Therfore Q is writing down all the human costs(options,compensation) and reavaluation costs of their departing assets. I am sure there are a few other costs tossed in there too.

To: DWB who wrote (27742)	4/21/1999 2:16:00 AM
From: JGoren	Read Replies (1) \| Respond to of 152472

I confess I do have a degree from Wharton (Bachelor of Science in Economics) but I will make it simple. The infra division was not sold at a profit. Whatever is being written off (which probably includes some equipment as well as the things previously mentioned by other posters) the investment in the infra business was greater than the money that will be received. The question I have is, Is Qcom leasing any production equipment to Ericy along with the buildings. If production equipment is being leased, then it will continue to be depreciated and Ericy's lease payments will be greater than for a shell building. If equipment is being leased, then the real price for the infra division is actually higher. Why is Qcom continuing to own the buildings? Do they consider them a good investment? Will Ericy move at some point, so Qcom can occupy the space near present facilities?