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

To: slacker711 who wrote (29931)	5/13/1999 10:22:00 AM
From: bananawind	Respond to of 152472

Slacker, Qualcomm earns royalties mainly on handsets and infrastructure equipment sold by licensees. Also a small amount on the few ASIC's that are manufactured by others. Q estimates current quarter royalties based on Q's ASIC sales to others in the prior quarter. Think of it this way. If you want to guess at what your royalty earned in the current quarter is, a good way is to assume that every ASIC you sold to others last quarter got put in a phone or base station and sold to a carrier in the current quarter. They have to use estimates because they don't actually get the cash from licensees until sometime later after all the beans have been counted. Regards, Jim