Qualcomm will have a year of experience under its belt when the next major Sarbanes-Oxley deadline arrives — barring any more extensions to key provisions of the law, that is. CFO Bill Keitel says the San Diego chipmaker was on track to comply with Section 404 of the legislation last fall. But as the date neared for companies of Qualcomm's size to begin attesting to the effectiveness of their internal controls, the Securities and Exchange Commission (SEG) announced an extension. "Imagine troops storming Omaha Beach, they're halfway up the beach when some general back in an office somewhere says'Oh, never mind. Come back to the ships,'" Keitel says."You don't stop, you keep going for sake of the people who worked so hard to get you there.'' So Qualcomirn forged ahead and today is among a handful of companies that have achieved early compliance with Section 404 of SOX — in Qualcomm's case, a full year before the close of its 2005 fiscal year in September. But it wasn't without pain. Qualcomm employees put in 67,000 man-hours to comply with Section 404, Keitel says. That meant the staff worked many late nights and many weekends for the better part of the year, he says. And the financial tally? Qualcomm spent more than $7 million, Keitel says.
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