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  "docSlug": "8db914091b66",
  "documentTitle": "Spreadtrum Communications (SPRD)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2011-06-28 00:00:00",
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  "notes": "This is a classic activist short-seller 'demand list' or 'questions for management' slide.",
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      "text": "Given that the turnover in the auditor, audit committee, and CFO position occurred while SPRD was in the midst of a stunning turnaround, did the resignations and removal have anything to do with discomfort about SPRD’s accounting?",
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      "kind": "disclaimer",
      "text": "Disclaimer: Use of Muddy Waters LLC's research is at your own risk. You should do your own research and due diligence before making any investment decision with respect to",
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      "text": "1. Per the interview with Mr. Wu, the board lost confidence in him. Why would the board have lost confidence in Mr. Wu when the sales pipeline was so promising? 2. Is it fair to assume that Mr. Wei voluntarily left his position as CFO? 3. If so, why would he have done so one month before completing the financing, and with such a promising sales pipeline? 4. By how much did SPRD's mainland China markets (by product type) grow in 2010? 5. What were 2010 sales of RF transceivers, baseband semiconductors, and any other products SPRD began selling in 2010? 6. If SPRD generated $75.3 million in pre-tax profit in 2010, why didn't it make any cash tax payments? 7. Given that the turnover in the auditor, audit committee, and CFO position occurred while SPRD was in the midst of a stunning turnaround, did the resignations and removal have anything to do with discomfort about SPRD's accounting? 8. If not, what were the reasons each resigned (or was removed in the case of Deloitte)? 9. As a general matter, can you explain why the size (in absolute value terms) of each of the operating cash flow accounts we highlighted is much larger than in the past? 10. What processes did the auditors undertake to confirm the sizes of each of these accounts? 11. Why have each of advances from customers and deferred cost become so significant? 12. Is SPRD acquiring MobilePeak in two stages because MobilePeak had an urgent need for liquidity? 13. Why is SPRD acquiring a company that evidently was unable to raise additional funds from its existing investors? 14. What assurance can you offer that the MobilePeak acquisition will be more successful than the Quorum Systems acquisition? 15. Should we expect that shareholder funds will be used to purchase shares that insiders are selling?",
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      "kind": "paragraph",
      "text": "We appreciate your answering our questions, and we believe that SPRD shareholders will also appreciate it. Please address your response to: info@muddywatersresearch.com. For your convenience, the following is a summary of the questions we have asked in this letter.",
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