Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
"The A860 has two slots, a RUIM card slot and a SIM card slot." -- from the article
What a waste, but then I guess expecting the GSM and CDMA standards worlds to get together is expecting too much.
Ron
stricklybiz, re "I have thought of manufacturers using Q chipsets as also paying royalties. Is that the case or do they pay only for the chips?"
Users of Q chipsets also pay royalties.
Anecdotal evidence ...
1) If they weren't, QTL royalty revenues wouldn't be running 4% to 4.5% of the product of announced handset sales and handset ASPs, and
2) Texas Instruments wouldn't have made their 2003 counter suit.
>>"We brought this action because we have received reports that QUALCOMM is offering handset royalty discounts to handset manufacturers only if they purchase CDMA chipsets from QUALCOMM," TI Senior Vice President and General Counsel Joseph Hubach said in a statement. "We are asking the Delaware court to enforce the terms of the agreement."<<
http://www.internetnews.com/wireless/article.php/3082111
I don't have a comprehensive answer to your question #1.
Ron
Qualcomm, like most technology companies, is waiting until option expensing becomes mandatory. Indeed, Qualcomm, Cisco, and Genentech made a last-minute (Sept '04) appeal to the FASB to consider an alternative valuation method.
Ron
SB, I saw that post, but stating an intention to buyback shares is not the same as doing so.
Besides, QCOM's most recent 2-year stock repurchase program expired Feb 9, 2005. (See top of page 13 of 1Q05 10-Q) http://www.sec.gov/Archives/edgar/data/804328/000095013705000531/a04746e10vq.htm
AFAIK another repurchase program has not been announced.
Ron
Eric, re "Is QUALCOMM retiring the shares after buyback ..."
Yes, and there is no treasury stock either.
Ron
Ricardo, re " I noticed the other day that Qualcomm went back in the market buying back shares ..."
What is your source for that?
Ron
JimmyD, saw an old Aug '04 post of yours where you indicated use of Twiggs Money Flow (on TGAL, I think). Where ... or in what software package ... do you use TMF?
TIA, Ron
slacker, about the declining implied royalty rate
I think the rapid change in technology mix may be part of the cause ... at least for the last 2 or 3 quarters.
The WCDMA royalty share has increased: from 10% to 12%, 12%, 25%, 26%, and 32% -- with the last being reported in Q105 for Sep quarter shipments. Slide 12 of http://www.qualcomm.com/ir/PDF/q105web011905final1.pdf
What would happen to overall royalty rates if a significant portion of WCDMA sales were by a cross-licensee(s) -- with below average rates? Pretty much what we are seeing I think, if the cross-license(s) had much lower sales of CDMA2000 1x only during prior periods.
I don't know enough about market shares here, but Ericsson, Siemens, and Nokia are possibilities IMO.
Ron
slacker711, re "I think I completely screwed up the numbers in that table."
FWIW I think your numbers are OK. You'll get slightly different implied-royalty-rates if you use handset shipment and ASP numbers from slide 11 of QCOM's F05Q1 earnings call. http://www.qualcomm.com/ir/PDF/q105web011905final1.pdf
Also, there's enough data to add F05Q1. Using numbers from slide 11, it appears the implied royalty rate slid from 4.50% to 4.36% to 4.17% to 4.12% over the last 3 quarters. Other numbers (before and including the 4.50%) match yours.
Ron
P.S. Tried to send this via PM, but my freebie membership won't let me. Not trying to steal your thunder, just lending support.
OT ... stricklybiz, re "Right now it's 1647 Eastern."
Eastern Brazil? I'm in eastern U.S. and it's just now 15:47 here.
Ron
stricklybiz, re "As to "point their handset toward the music source" the writer cannot possibly mean the radio station's transmission tower."
Correct. An additional clue lies in a sentence you didn't cite -- "The Fraunhofer Institute for Digital Media Technology developed the music recognition technology."
The listener points the handset towards the speaker of a radio, or stereo, or MP3 player, etc. The music is 'recognized' resulting in an identification that facilitates ordering an electronic copy of the song.
While feasible from a technology viewpoint ... successful commercialization is in my 'IBIWISI' category.
Ron
P.S. 'IBIWISI' <=> I'll believe it when I see it
re "The Finnish company unveiled three new models yesterday: two 3G "smart phones," the 6680 and 6681; and the 6101 folding camera phone, which can be heavily customized." -- from the article
The Nokia 6681 is not a 3G phone, as it doesn't support WCDMA. From the Nokia PR ...
"A variant of the 3G-optimized Nokia 6680 imaging smartphone, also introduced today, the Nokia 6681 is targeted at users in both GSM and EDGE (Enhanced Data Rate for GSM Evolution) markets."
http://press.nokia.com/PR/200502/980505_5.html
"WCDMA" is not even mentioned (in the PR).
Ron
Data_Rox, here's another story about the Nortel-Qualcomm HDSPA trials. It says the trials took place in France on commercial network equipment. I mistook the earlier article to mean on a commercial network. So the Isle of Man tests are yet to occur ... I think.
>>>
Nortel, Qualcomm Stage First HSDPA Demo
http://www.telecomweb.com/news/1107547465.htm
Nortel and Qualcomm completed what they describe as the first test of High Speed Downlink Packet Access (HSDPA) technology using currently available commercial equipment. They reportedly achieved DSL-like bandwidths while riding in a moving car and downloading such things as large music files and e-mail with big attachments.
The demonstration ride will be followed later this year by a series of HSDPA trials, Nortel says, leading up to full deployment. Nortel, in partnership with mmO2, already announced plans to set up a Pan-European HSDPA network.
The demonstration, done in France, used a Nortel UMTS base transceiver station designed to be software-upgradeable to HSDPA along with a handset powered by Qualcomm’s MSM6275 mobile station modem chipset. The two companies say that, during the test, they were able to download a 5-megabyte music file in fewer than 30 seconds, and one e-mail with a 3-megabyte attachment in 20 seconds – a throughput of just less than 1 Mb/s.
<<<
Ron
CORRECTION: I incorrectly posted "Nortel's HSDPA trials ..." as "Lucent's HSDPA trials ..."
PUNKIN611, re "as I said one day does not a trend make"
Does one truism a pundit make?
Ron
PUNKIN, re " I've increased my short position today."
You're averaging up after an almost 20% drop? Aren't you afraid that you've already missed most of this cycle's decline?
Ron
Data Rox - If -- *IF* -- Lucent's HSDPA trials were on a commercial network owned by mmO2, it probably was on the Isle of Man.
Excerpt from ...
mmO2 TO DEPLOY EUROPE'S FIRST SUPER-FAST 3G NETWORK
Released: 5 December 2004
http://www.mmo2.com/media/pr_041205.asp
"Two weeks ago, mmO2 joined forces with Nortel Networks to conduct a live high-speed internet call powered by HSDPA in preparation to incorporating the technology within the 3G networks of mmO2's mobile businesses in the UK, Germany and Ireland, which have all been designed from the outset around this functionality. This programme will begin from mid 2005 and draw on the key learnings of the HSDPA-enabled network on the Isle of Man."
Ron
"CHATEAUFORT, France--(BUSINESS WIRE)--Jan. 26, 2005--Nortel (NYSE:NT - News; TSX:NT - News) and QUALCOMM Incorporated (Nasdaq:QCOM - News) have completed the industry's first end-to-end calls using WCDMA's emerging broadband technology -- High Speed Downlink Packet Access (HSDPA) -- on a commercial network and handset equipment. The calls demonstrate the capability to commercially deliver a new era of 'supercharged' mobile services."
stricklybiz, the only carrier mentioned in the article is mmO2. Can we assume an mmO2 network was used? Is mmO2 even a cellphone service provider in Chateaufort, France?
TIA, Ron
stricklybiz, re "I wonder if that might be the case with Sulpizio."
Memory is the second thing to go ... but I can't remember the first. )
http://www.investorshub.com/boards/read_msg.asp?message_id=5192075
Ron
OT ... olddog967, the Krispy Kreme compensations really are hourly rates, not just reported as such.
"On January 18, 2005, the Company retained Kroll Zolfo Cooper LLC ("KZC") to provide interim management services. The Company has agreed to compensate KZC at its standard hourly rates and to reimburse KZC for its reasonable out-of-pocket expenses. The current hourly rates of Stephen F. Cooper and Steven G. Panagos, who are described in Item 5.02 below, are $760 and $695, respectively."
http://www.sec.gov/Archives/edgar/data/1100270/000095016205000106/krispy8k-012405.txt
Ron
olddog967, re "The $1.60 probably just due to rounding."
That's exactly the case. The payroll department assigns an hourly rate even for salaried personnel. It is used for preparing budgets and reporting expenses for things like holidays and vacations. (At least it was when I had budget responsibilities at my workplace.)
I was the one who originally expressed doubt that George Mann had an employment offer letter. My apologies to Mr. Mann.
Ron
stricklybiz, re "See, according to our reading of Qualcomm's employment offer, it's an hourly job. As the company puts it in Sulpizio's offer letter, a key term of the job is "a starting salary at an hourly pay rate of $230.77."
Wow. A company president as an hourly wage slave. What a concept! -- by George Mann in his article
You can bet Rich Sulpizio is a salaried employee ... and not an employee being paid an hourly wage. The SEC 8-K filing says ...
"The Agreement provides for a starting salary, which is subject to the final approval of the Company’s Compensation Committee, calculated at an hourly rate of $230.77, which is equivalent to $480,001.60 on an annual basis. "
http://www.sec.gov/Archives/edgar/data/804328/000095013705000520/a04786e8vk.htm
Did George Mann really have access to a job offer letter? I have my doubts, and think there is a high probability he paraphrased the 8-K.
Ron
IronAir, re "T-Mobile Germany New GSM Gear (huh ?!?!?) . . . . bizarre. "
There is twice as much FDD spectrum for GSM as for WCDMA ... 2x35 MHz at 900 MHz and 2x75 MHz at 1800 MHz for GSM ... compared to 2x60 MHz for WCDMA.
Therefore, I'm sure it's in the European carriers' best interests to modernize their GSM equipment and keep it operating efficiently and reliably.
Ron
re "Analysts polled by Thomson First Call, on average, expect the company to earn 26 cents a share in the latest quarter.
Anybody please: Is EPS expectation of analysts based on GAAP (including QSI) or pro-forma (excluding QSI)? And is the number "Basic EPS" or "Diluted EPS"?
Yes, I know the max difference is only about a penny or two per share ... but that's about the magnitude of the guidance change too.
TIA, Ron
Jim, re <<Qualcomm WCDMA chipset partners now 3 of top 5 -
Samsung................ 22,981........ 13.8%
Siemens................. 12,758.......... 7.6%
LG........................... 11,142.......... 6.7%
SubTot.........................................28.1%
Others..........................................10.6% (1/2 of others at 21.2%)
Total.............................................39.2%>>
I doubt if Qualcomm will make a "3 of top 5" claim based on quarterly data. I suspect they'll wait for that to be true on a 12-month basis ... maybe even a calendar year basis.
Also what is your point with the share calculation above?
Ron
A post-prolific group here )
"Bookmarked" this board a few days ago ... but just don't have enough time for 100+ posts in a day. I'll come back and have another look in a month or so.
Ron
Just testing to see if board still accepts new posts.
The board listing shows last post as #12138, but when viewing it ... it's #12138 of 12140. Weird. Is this somehow normal when posts are deleted?
Ron
re "I do not see Sony Ericsson..is that an omission?"
Since both Sony and Ericsson are licensed (to manufacture subscriber equipment) ... their joint venture is licensed IMO.
Ron
re "One of the key features in the digital baseband will be particularly useful for the TD-SCDMA version ..."
The baseband device must be using Qualcomm IPR ... but Analog Devices Inc. is not listed as a licensee. Being it's a new device .. and a TD-SCDMA device .. that's not too surprising. http://www.qualcomm.com/technology/licensing.html
What *is* surprising is that Telefonaktiebolaget LM Ericsson is not listed as an ASIC licensee. They've been shipping the EMP U100 device for WCDMA for some time AFAIK. Can anyone shed any light on this?
TIA, Ron
Anyone, re "It also says that severe interference between existing CDMA base stations and users of 3G systems will reduce service quality and performance of 3G systems. "
The U.S.A. has cdmaOne, cdma2000, TDMA, GSM, and WCDMA all operating in the PCS band (1900 MHz) ... without any interference problems (apparently). Does anyone have any idea why this India situation is different? Is it just politics?
TIA, Ron
Rich, re "Cash flow remains strong at $770M and DSO were 43 days down from 61 days reflecting the bi-annual payment of royalties by Korean vendors. " -- from Lehman report -- http://www.siliconinvestor.com/readmsg.aspx?msgid=20731524
Qualcomm is likely also getting handset reports on a quarterly basis. IOW it is doubtful that Qualcomm will be reporting 6-months worth of Korean handset shipments every other quarter.
Ron
P.S. The "likely" and "doubful" being to me, of course.
pajaso, the thread of communication is broken when you click "Post New Message". Use of "Public Reply" is preferred by most IMO.
Ron
JeffreyHF, re "Looks like Reuters has shorted us $5.6 bil."
IMO Reuters' writers and DB's analyst Brian Modoff are familiar with accounting terminology. If either had meant cash *and marketable securities* ... they would have said so.
Ron
The Dr. Irwin Jacobs interview is archived on Bloomberg TV ... http://nyvidsrch.bloomberg.com/vss-bin/vss_SR/smedia_v2/search?query=jacobs&search_mode=videos&a...
Ron
Morgan Stanley downgrade to Underweight from Equalweight ... and $30 target ... issued this AM.
Ron
Ricardo, re "Capish?"
Is that shorthand for capital ishpenditure? )
Ron
Ricardo, re "Therefore the question is not what the price will be in one and two years, but how many times does it split. "
Price targets do not usually include the possibility of splits AFAIK. Do Merrill-Lynch, or Smith-Barney, or Goldman-Sachs do so? I think not.
Ron
budro, try the simplest of links to let it go to the current default page ... http://siliconinvestor.com/
Ron
sfx2000, re "The Treo 600 CDMA is probably MSM6050 ..."
Others agree ...
"Performance Specifications
Technology - 800/1900 MHz digital CDMA (no analog)
Processor - Qualcomm MSM 6050" http://www.baka.ca/buynow/activate/?SID=ay33v06fdoz82m17pnsu68b85mnsx64u78jr63&PID=TREO-600&....
"The EM3400 platform is the first module available to the OEM marketplace based on QUALCOMM’s advanced Zero-IF based technology known as radioOneTM and the MSM6050 baseband processor."
http://www.treocentral.com/content/Stories/247-1.htm
Ron
slacker, re "I am sure I am going to regret posting this...."
But in case you aren't, I am. ) Ron