With analysts demanding Qualcomm should back off from law suits, what’s the deal now for royalty incarnate King Qualcomm? Though Qualcomm can ill-afford filing law suits and antagonising current high net worth clients, the fact is that Qualcomm earned an unbelievable 34% of its revenues from royalty (fiscal year ending Sep 2005); and 41% of its royalty revenues from Wideband CDMA. What’s more hitting is that against equipment (and service) sales of $3.7 billion, Qualcomm incurred expenses of $3.2 billion. And against royalty revenues of $1.9 billion? Not a pence. The punch line for King Qualcomm? Kill them all baby, don’t let them be. Make them show you the money.
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