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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 68.34-0.5%Jan 23 5:20 PM ESTNews

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To: slacker711 who wrote (141183)1/3/2018 1:00:50 PM
From: Jim Mullens  Read Replies (1) of 141768
 
Slacker, re: BRCM v QCOM R&D- a deeper dive..........

“...These numbers must be non-GAAP because they dont match Broadcom's 10k....

.....Qualcomm's GAAP R&D as a percentage of revenues are higher than your post. ...”


Yes, my QCOM financial were pro forma (N-GAAP) and BRCM’s FY14/15 were GAAP numbers from Reuters and the FY16/17 from Credit Suisse exclude SBC (share-based compensation) and are therefore N-GAAP/ pro forma. The large differences make it necessary to explore this further, as shown below..

So, if we back out SBC from the higher GAAP figures we get basic R&D figures, not inflated by BRCM’s much higher percentagewise SBC.... double that of QCOM’s.

If I’m interpreting this correctly---- 24% of BRCM’s GAAP R&D is composed of share based compensation, not actual hands-on work.

In either case, QCOM out spends BRCM on R&D by about 5 percentage points.

.....GAAP- .....24.6% /19.9%-- ~24%
.....N-GAAP....20.8% / 15.0%-- ~39% (without inflated SBC)


QCOM- FY17 ($B)
...............GAAP.........SBC......Other...........Non-GAAP
................................................QSI, etc
...Rev.....$22.291....................$0.944..........$23.235.......
...R&D..... 5.485......(0.588)..... 0.054..............4.843
....% rev... 24.6%.............................................20.8%


BRCM- FY17 ($B)
...............GAAP........SBC.......Other...........Non-GAAP
...Rev.....$17.636.....................$0.029.........$17.665

...R&D..... 3.292......(0.636).....(0.006)...........2.650
....% rev .. 19.9%..............................................15.0%

R&D SBC (share-based compensation)
..............................QCOM.........BRCM
..BASIC R&D........$4.843........$2.650
..SBC.......................0.588..........0.636
..GAAP R&D.........$5.485.........$3.292
... % SBC/ Basic.......12.1%.........24.0%
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