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"Any way Q can book the losses for tax purposes until they are recovered?" I doubt it. What seems to happen is that Q is now reporting lower QTL revenues and royalties, producing less taxable revenue. At some later point, if Q can collect the revenues owed from either companies not licensed or companies that are licensed but still aren't paying, the additional revenues will simply add to total taxable income. The discrepancy between what Qualcomm estimates as "global" versus "reported" revenues accounts for the wider range of guidance for the coming quarter and fiscal year.
Qualcomm also said it faces a new probe by the European Commission about rebates and other financial incentives in the sale of its chips. Another preliminary investigation by the U.S. Federal Trade Commission concerns Qualcomm's licensing business, including a potential breach of licensing terms, the company said.
remember you have to factor that in with caps on the amount royalty is collected upon. So if the ASPs are actually above the cap, it does not affect their revenue at all. Once the ASPs ge below the cap, then it will scale with the ASP decline.
The point is made in the transcript that, as ASP declines, total sales dollars as base for royalties is projected to rise, due to unit volume growth.
Also, comment was made that larger drop in ASP is due to large scale of conversion of GSM and TD to LTE with resulting more low end LTE. They forecast rate of decline will slow in a few years as these conversions progress and more people then get upgrades.
Wed. Nov. 5th Qualcomm earnings release and conf. call ...........................
Qualcomm Fourth Quarter and Fiscal 2014 Earnings Release
* The fourth quarter and fiscal 2014 earnings release will be issued on Wednesday, November 5, 2014 at approximately 4:00 PM (New York time.)
Qualcomm Conference Call
* Wednesday, November 5, 2014 from 4:45 PM to 5:45 PM (New York time.) * To participate in the call, dial (866) 566-8589. International callers dial (706) 634-8091 * Please dial in ten minutes prior to the start time and use reservation number 20823606 * Live webcast available at qualcomm.com
Rebroadcast of Conference Call
* To hear the rebroadcast U.S. callers may dial (855) 859-2056 and international callers may dial (404) 537-3406. The rebroadcast will be available from November 5, 2014 beginning at approximately 8:45 PM through December 5, 2014 * Please use reservation number 20823606 * A replay of the webcast will also be made available at qualcomm.com shortly after the conclusion of the conference call.