Saturday, May 20, 2006

The punch line for King Qualcomm?

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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