Gavin’s post doesn’t discuss any details of any accounting practices. Rather he focuses on the fact that Qualcomm didn’t disclose until late 2010 events that would seem to have been material, including a company whistleblower having approached Qualcomm’s audit committee of its board of directors, and the SEC in September of that year having initiated a formal probe into the matter raised.
Gavin’s position is that the delay in the disclosure of the several incidents from 2009 to 2010 represents a breach of trust on the part of Qualcomm management:
The bottom line is this. Qualcomm is a public company that has disclosed a material risk factor investors cannot analyze. To our view, that means management trust has been compromised as they could give investors what�s needed to analyze this exposure, but chose not to. Investors will have to decide on their own if that is the kind of risk that lets them sleep at night.
Qualcomm shares today are up 31 cents, or half a percent, at $55.58.Much of what Gavin discusses is interesting but beyond the scope of my knowledge of the matter. I have a request in to Qualcomm for any clarification or comment on the matters Gavin raises.
