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: DWB who wrote (27754)	4/20/1999 11:09:00 PM
From: Clarksterh	Read Replies (2) \| Respond to of 152472

Re - Book to Bill of 1:1.7 I'll go out on a limb and say that this BtB is probably not repeatable, or if it is repeated is not compounded. 700% annual growth is not a reasonable expectation IMO. I suspect that this number is inflated somewhat by the product cycle. For instance, it may be that everyone puts in a lot of orders when a new version of the ASIC's become available. Or alternatively it could be that companies must order 9 months ahead of time and if the annual growth rate is 100% per year they expect to need about 70% more parts for the quarter 9 months from now. FWIW Clark

To: DWB who wrote (27754)	4/20/1999 11:49:00 PM
From: John Biddle	Read Replies (3) \| Respond to of 152472

I'd like to correct what I believe are a couple of mistakes which are getting a lot of air time on this thread. First, a book to bill ratio of 1.7 is a one time number representing the current number of orders divided by the current number of orders being filled. Though this number is terrific, it does NOT represent a 70% growth rate in ASIC sale. It CERTAINLY does not represent a 70% quarterly growth rate. Second, I believe the Q does not get royalties on its ASICs, it gets revenue. These are sales. It also make a good sized profit on these chips, but it's not royalty money. Where Q makes ASIC royalties would be on ASIC sales by the (I believe 4) companies licensed to sell CDMA ASICs. QCOM gets royalties on all CDMA handset and infrastructure equipment sold by licensees. Count these company's phones and base stations to back into a royalty number, not the Q's. Congratulation to all of us, and a grateful thanks to Gregg whose insight helped most of us (certainly me) see more clearly that the Q in 98 was as close to found money as one is ever going to find. John