Despite the 20% rise from the 52 week low of $53, the stock is still trading at a P/E of less than 19 and a forward P/E of 13. The recent results showed some decline in margins even on a sequential basis, but management has revised its guidance upwards. For Q3'12 the guidance was weaker than what the street wanted, and hence the stock fell from $66 to $61 in a couple of days on huge volumes. It has recovered a bit since then and seems to be stable. For the full year, the revenues are expected to grow by 26% - 31% to $24 to $25 billion and the GAAP diluted EPS is expected to rise by 8-10% to $3.78 - $3.93. Pressure on margins will continue, but the revenues will benefit from the strong growth in smartphone sales around the world. Despite the fall, the margins commanded are the better than the industry averages. Markets like China are likely to contribute maximum, and even Apple is planning to make it big there with its lower price product launch. For Qualcomm, the zero debt on books and huge amount of cash ($13.49 billion on March 31, 2013) indicates the strength of the balance sheet. Of course, things are not great in the patent infringement lawsuit filed by Parkervision, but one has to see how the story will develop over time. There are several such lawsuits pending / under trial and patent monetization is big business. Companies even change their business model to leverage the growth story to their advantage. Spherix IP (SPEX) (backed by Hudson Bay / Iroquois Capital Group), which was into development of drugs for diabetes, is now a full IP services company and owns telecom patents. Qualcomm itself gets a substantial portion of its revenues from licensing (nearly 35%).