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This archive includes EXCELLENT reports on the June 1, 2006 Annual Shareholders Meeting

Especially the comprehensive reports by dboone, XDX and KAJO7710 below

Posted by: Gamco
In reply to: None
Date:6/4/2006 8:56:21 PM
Post # 157175

IDCC Annual Stockholders Meeting

Great reviews from many of the others that attended! Thank you. I enjoyed meeting other stockholders and enjoyed renewing the friendships from previous meetings. This Internet community has brought together an amazing amount of talent, education, expertise and flare to discuss this unique Interdigital investment.

What I did not hear addressed during the formal meeting was anything involving “acquisitions”. There was nothing stated about “targeted companies” or “patent portfolios”. Recent conference calls indicated these were possibilities.

Concerning Mr. Merritt’s statement about the “$1.50 per unit” and “actually getting just north of that now”: [From my hearing] he did NOT say AVERAGE of “$1.50 per unit”. He said, “Our current EXPERIENCE is $1.50 per unit, we are actually getting just north of that now.” Parse this statement as you will, but to me, he is communicating that IDCC currently received in cash an amount in excess of $1.50 per unit after any quantity discounts that may be available. This was NOT being presented as some type of goal. He went on to project that over time this per unit amount was expected to decline. I assume this would be the cumulative effect of declining prices for user equipment together with OEM beginning to qualify for quantity discounts that do not apply at current levels of production.

Concerning Mr. Campagna: Everyone is entitled to their own opinions, but for me, the hand the Interdigital was dealt could only become a winning hand by playing out the game in a non-traditional fashion. In my opinion, few managers could have taken this company to where we are today. JMHO

My confidence level in IDCC’s ability to become successful in achieving their new mantra of “receiving royalty on all 3G devices” has been confirmed by my attending this years meeting.

I have attended the past three ASM and each year I have gone the evening prior to the meeting to be with some loyal IDCC investors at an informal gathering. Be aware, IDCC has a very interesting group of shareholders and I always enjoy getting to know them and share views on IDCC.

And just for fun, you may like to know that Osoesq sings some traditional Irish songs very well! LOL

Gamco

Posted by: revlis
In reply to: lastchoice who wrote msg# 157121
Date:6/4/2006 9:48:51 AM
Post # 157124

the last time IDCC closed higher was Mar 27, 2000 at 30.12

Posted by: TFWG
In reply to: None
Date:6/3/2006 3:28:47 PM
Post # 157086

IDCC has a min. value of $195 or $313...take your pick!

By: tfwg in IDCC | Recommend this post (0)
Sat, 03 Jun 06 3:25 PM
Boardmark this board | InterDigital Communications Msg. 12422 of 12422

Let's make the ultra concervative assumption that all of IDCC's revenue in 2010 is based on IP only, or approximately $850M.

Now let's also assume operating expenses are $50M HIGHER than today per year.

And let's also assume 54M remains the shares outstanding.

$850M less $200M ='s $650M, tax effected by by 35% or $227.5M and your earnings after taxes are $422.5M. Divide that by 54M and EPS equals $7.82 per share. Put a P/E ratio of 25 on that and IDCC is worth $195 per share [or $313 if you use 40]!

Now if you add in revenue from ASICs, Modems, and other and one might think this company is WORTH MORE THAN $35, or even $60 per share. Now I ask everyone: Who really wants to sell this company for $35 or $60?

Hmmmmmmmm???????????

MO, Bob

Posted by: sjratty
In reply to: None
Date:6/3/2006 1:14:11 PM
Post # 157075

First Albany Estimate Change

somehow this was missed yesterday (this news is dated June 2)

First Albany Capital raised its estimates on InterDigital Communications Corp. to reflect new guidance and the impact of InterDigital adding Panasonic as a paying 3G licensee. For 2006, it raised its estimates to $477.7 million from $212.7 million. EPS estimates increase to $3.90 from $3.78. First Albany rates InterDigital at strong buy.

Posted by: dndodd
In reply to: sinnet14 who wrote msg# 156998
Date:6/2/2006 4:00:49 PM
Post # 156999

$29.25 is a new 52-week high.

New closing high too.

Posted by: spencer
In reply to: nieves who wrote msg# 156985
Date: 6/2/2006 3:32:16 PM
Post # 156986

The company is expected to sign several $100 million-plus deals during the rest of the current year, Hilliard Lyons adds.

SEVERAL? Samsung would be one. Wonder who else he is thinking of?

Posted by: nieves
In reply to: None
Date:6/2/2006 3:28:59 PM
Post # 156985

InterDigital Communications downgraded to "long term buy"

Friday, June 02, 2006 11:12:58 AM ET
Hilliard Lyons

NEW YORK, June 2 (newratings.com) - Analysts at Hilliard Lyons downgrade InterDigital Communications Corp (IDCC.NAS) to "long term buy." The target price is set to $34-$39.

In a research note dated June 1 and published this morning, the analysts mention that the company's share price has appreciated 55% year-to-date, as compared to a 1% decline in the NASDAQ Composite. InterDigital Communications has settled its dispute with Nokia, recognized revenues from Panasonic and licensed several deals with LG Electronics so far in the quarter, the analysts say. The company is expected to sign several $100 million-plus deals during the rest of the current year, Hilliard Lyons adds.

Recommend this article to a friend
http://www.newratings.com/analyst_news/article_1289475.html

Don't miss the following posts reporting on the June 1st Annual Shareholders Meeting

by dboone, XDX and the 3 part one by KAJO below! (WL ed)

Posted by: dboone
In reply to: mschere who wrote msg# 156989
Date:6/2/2006 4:21:48 PM
Post # 157001

Greetings to all: I am just back to ATL from KOP and yesterday's ASM. I continue to be impressed with our investment. I know many have posted regarding the meeting, here are my observations.

1. The meeting seemed more reserved than last year. I think there are two reasons. One, the animus with the shareholders (including myself) was not present. I think the objective, positive accomplishments of the past year made us all feel better. The change in management was a welcome change which has served us well in the first year. Secondly, from public and private discussions, I sense that management is holding their cards close to the vest. It is my impression that last year they were open in discussing where they wanted to go. This year, I think they are in the middle of discussions with a number of our potential customers and they are therefor properly concerned with disclosures. Last year, nothing concrete to worry about. This year??? I think they must be progressing nicely or they wouldn't worry.

2. WM acts as a very secure and confident CEO. I think he feels confident in his company motto that they are looking to be paid on every 3g terminal unit. In post mtg discussions with BM, I confirmed that this includes MOT, that the verdict of the 90's has no effect on 3g, and that they are focused on "all 6 of the majors". HC is HC, what more can you say. My impression is that HC is all about HC and WM is all about IDCC and his team. Thank goodness for WM.

3. Per unit royalties for 3g should reasonably be north of 1%. There was some confusion after the meeting about what was said. I heard two distinct comments: we are receiving more than $1.50 per unit on 3g, which is in the 1% license fee area; Our 3g contributions are of greater value, indicating that we should reasonably receive 1.5 to 2% royalty on 3g products. Is that what the other attendees heard? Present 3g units average $200. They will naturally come down in price.

4. Our 2010 revenue projections are reasonably in the 800-850 million area. It could be higher. From the discussions, I don't think management would make these statements/projections if they didn't think they could solidly deliver.

5. Post mtg I asked JP about the continuing question some have regarding LG. As I understand it, LG is paid on 3g to a threshold level. Below the level, we get the disclosed amount no matter what. Above the threshold, we will receive additional revenue. The LG agreement is a five year deal. After 5 years, they will require an additional license. I gathered that we are very likely to receive additional revenue after the 5 year period. I also sense that exceeding the unit threshold during the 5 years could happen. How likely? I don't know. Go LG!

6. I discussed the poision pill. It expires at the end of this year, 2006. Management will review the propriety of another such protective measure. My sense: we will have another poision pill. We don't "need" a partner, we are not hurting in any way, and I don't get the feeling that management will do anything to compromise our ability to receive full share value as our 3g market and revenue continue to grow. BM told me that he wants to maximize shareholder value, and I believe him.

7. NOK: the resolution of the 3g up to the payment date is a good thing. 1st, the 3g numbers are small. 2nd, no license agreement means no arbitration and the milk toast result. With no license agreement, and infringer is liable for much greater damage.

8. Panasonic: Great for us. The admission of infringement is important to their payment of fees, but of greater import to others in licensing discussions and, perhaps more importantly, as proof of infringement later in litigation, if that becomes necessary.

9. 802 products will pay us revenue independent of the 3g units used in the revenue projection graph. The size of the 802 market is uncertain, but they seem excited about the convergence of 802 and cellular. As 802 is incorporated into cellphones, the value of our inventions increases which should help raise our royalty percentage. As 802 independently expands, we will have a separate "product" line. Last year, BM told me that he was very excited about the 802 market and it's overall effect on wireless. This year, he gave me the same impression, although more closely guarded.

10. Employee Stock Options: The overhang of employee stock options has a defined end. The options are no longer used and their value spans into the 30's. Perhaps 7 million in the money, but any dilution is more than offset by our 300 million buy-back.

11. On the issue of the buy-back. During the meeting RF was asked where we stood. He reiterated the 20 million comment from the last conference call. RF says they won't tell us where they are until earnings anouncement durning the next conference call. My thought is this makes sense, especially if they are taking advantage of dips and if they are concerned about deals in the works.

I thought it was a solid, no surprises meeting. Quieter than the last. More stayed. I think this is an indication of the confidence they have in our future.

I hope this was helpful and not too repetative of others. Best to all, D

Posted by: xdx
In reply to: None
Date:6/1/2006 6:36:01 PM
Post # 156861

Report from Annual Meeting

I was at 2006 annual stockholders’ meeting in KOP and these are my notes taken during the meeting as well as some comments from discussions held with (CEO) Bill Merritt and (COB) Harry Campagna immediately following the formal meeting:

During formal meeting

Sherwin Seligsohn, founder of IDCC was introduced by Harry

94% of eligible shares voted.

Following Harry’s introduction, Bill Merritt was introduced. He stated he was pleased with the first six months and will strive to improve the next six. He then went into his presentation, much of which he took from our annual report-

He referenced 4 main areas of focus (Categories):
1 – Finance
2 – Business Strategy
3 – Operations
4 _ Corporate governance

Interdigital will now shift focus onto the product side. We have provided key contributions to standards, and Bill highlighted:
- Our leadership in the 802 development (DR, note, no follow up #s)
- TDMA and CDMA
- Participating in LTE (beyond 3G) again DR, note the reference to LTE

We invented much in wireless technology; have contributed to the standards; and have licensed our patents on reasonable terms, and NOW we are going to shift focus on selling our technology through product solutions. We are driven to complete the dual modem (2g/3g) ASIC for license and sale by the end of the year. We are one of the few companies able to demonstrate HSUPA technology.

Bill then went on to discuss our future revenue (he displayed that infamous chart with the possibilities of $.50, 1.00, 1.50, and $2 per unit. He focused upon the year 2010, where he foresaw us having 60% of the total 3G sales worldwide covered at $1.50 per unit and generating annual revenue for us at $800,000,000, most of which will then be falling to the bottom line.

Regarding China, Bill emphasized we have been very active in China for the past 5 years, building relationships; that we hope to rollout TDSCDMA this year in meaningful volume and that we will deal both directly with China and with those providers from outside China selling their product to the Chinese.

During the question and answer period John VG tried to establish the anticipated % of royalty we hoped to receive in 3G. He successfully got Bill to state 2G was targeted between 1 and 2 % and that we have achieved that level in many cases. He further stated that we are hoping to have the 3G rate a “little higher” than 2G.

Following the formal meeting, I approached Bill regarding the potentially of a buyout by either Cisco or IBM/Microsoft partnership, all of which have enough cash to do it. When I mentioned that today’s US Today published a list of Companies with big cash pileups, which included Microsoft/IBM and Cisco, it also showed Motorola with $14.6 billion, and a potential suitor in my mind. He did appear to me to have been surprised by that Motorola information having been published. I also asked about the course of action the Board intended to take regarding the end of year expiration on the Poison Pill. He stated that will be reviewed for reinstatement by the end of the year.

I then cornered Happy Harry C and zeroed him in on commenting about the upcoming Poison Pill expiration. He also stated they would review this before expiration so as to have a smooth transition for the next period.

I was very pleased with everyone’s input and the way they delivered. It revalidated my confidence in my investment.

Posted by: lastchoice

In reply to: KAJO7710 who wrote msg# 156834
Date: 6/1/2006 6:37:58 PM
Post # 156862

UB - on SAMSUNG. If they want to compete against Motorola, IDCC could help them quicker and better than they could do it inhouse.

ohh ahh

Billion--with a 'B'

Posted by: Data_Rox
In reply to: KAJO7710 who wrote msg# 156834
Date:6/1/2006 6:15:49 PM
Posts # 156854, 156899,

excellent - thanks for the report KAJ07710 - a buck and a half a phone for 3G is a great target.

R

******Read this 3 part KAJO post below reporting on June 1 annual shareholders meeting! *******

Posted by: KAJO7710
In reply to: None
Date:6/1/2006 3:26:53 PM
Posts # 156796, 156813, 156834, 157094 (combined below)

ASM - KOP - I

Just returned from the ASM of IDCC which was generally upbeat. My report will paraphrase what I can remember from my notes.

The meeting room this year was smaller with only a total of 140 seats. Approximately 120 stockholders were present (minus 8 board members and 10 management team).

While we were waiting for the meeting to begin, there was a screen projecting important points about IDCC.

* 2006 will be the year that IDCC hits its stride with the development of the integrated dual-mode 2G/3G ASIC-HSUPA technology.

* IDCC will derive revenue from every 3G unit sold. A few other comments-not meaningful.

Harry Campagna called the meeting to order at 11:00 a.m. HC introduced 10 from the management team and 8 board members. Janet Pointe was the only one to receive applause when introduced.

At this point, the corporate secretary read the stockholders proposals and reported that management's position prevailed by a majority and actual tallies would be available at the end of the meeting.

Corp buyer was asked to read his proposal. The corporate secretary read the boards response and basically said that declassification is not in the interest of shareholders. 80% of outstanding voting shares must approve any change (in a direct conversation with HC after the meeting, he stated that even if 80% or greater voting shares approved a change, the board is under no obligation to make that change. Regardless of the AISI position on director election, they are not responsible for running IDCC. Corporations do not have time to read every stock perspectus. Therefore, AISI? stepped into the void to provide this service and corporation and others use it as they see fit. Our board is responsible for making certain that shareholder value is enhanced not AISI?).

HC then gave a few introductory comments. It is tough to operate a high tech company where new technologies are coming on line everyday. IDCC is doing a great job of staying ahead of that curve. We are making very good progress in improving our firms business strategy and strategic planning.

MORE COMING!!

Posted by: KAJO7710
In reply to: None
Date:6/1/2006 3:54:17 PM
Post #of 156899

ASM - KOP II

Presentation by Uncle Billy (left below). (CEO William "Bill" Merritt - WL ed)

UB reviewed the information that he talked about in his 1st quarter conference call. The biggest driver for IDCC's revenue will be 3G, made up of patent technology licenses or some combination thereof (ASIC). Our mantra is to collect on every 3G unit. In the business area, we have separated the engineering and product programs to get more focus. Because of the continued repeating of our mantra, Wall Street is finally getting the message of where we are and where we want to go.

There are 4 steps to executing that strategy:

* create revelant technology - we were earlier in this space than other contributors and, therefore, have a deeper patent pool. We were the 1st to build a base station.
* embed technology in the standards. IDCC's biggest sale is at this level. We compete against our peers, such as Motorola etc. and our solutions are better than our peers who we competed against to be accepted in those standards. These standards are legally binding and once our patents are accepted in these standards, nobody can build around them.
* product solutions - can be used to compliment licensing or be stand alone products for sale with such partnerships as Phillips/Infinien/General Dynamics.
* major cash flow - we are using this cash flow to keep our 150 engineers inventing new tech and staying ahead of the curve. If you look at the revenue bar, you can see the trend and our recent 200 million buyback shows you the confidence management has in the future value of our stock.

He then showed a slide of the major licensees of IDCC and pointed out that we have 12 companies contributing more than 1 million in revenue to the top line.

He then talked about the resolution of the Nokia and Panasonic issues. He said Panasonic was very important because the issue was whether or not they infringed our patents. Now that we have shown them that they have and they admitted it, they are in the corral and must pay.

He then stated that in the past 9 months we have received 600 million + in licensing revenue with solid and growing profits in 3G. We are still very early in the 3G market and we have 35 to 45% of the WCDMA and CDMA 2000 market in this space. We are one of only a very few companies who have demonstrated HSUPA capability. We expect to have a 2G/3G solution for licensing and sale by the end of 2006. We expect 1 billion phones to ship by 2008. 60% of that market is expected to be 3G by 2010.

IDCC's essential position will drive penetration in that market and IDCC's products will drive higher value in that market of 800 million by 2010. We are assuming average revenue of $1.50 per unit. We are actually getting just north of that right now. That concludes his presentation.

MORE COMING!!

Posted by: KAJO7710
Post #of 156899

ASM - KOP III

Questions and Answers!

Q. What can you tell about our involvement in China?
A. UB - we have been active in China for the last 5 years in the Tech TDD and building relationships which as you know is very important in that country. We expect TSCDMA to be approved this year. We are in a position to go back because we expect the timing will be more fruitful. We expect to be involved in direct patent licensing and expect to collect on whatever Infineon sells in that market.

Q. Can you tell what effect the Qualcom/Nokia litigation will have on IDCC?
A. UB - we don't think there will be a direct impact. It does put the issue of patent dispute more into the public arena. A possible prolonged dispute may help us but it is too early to tell. However, it is fun to watch others go toe to toe with Nokia instead of IDCC. (HC said he wouldn't have been as diplomatic)

HC - stated that he heard that the president of Q has said that Nokia has more to lose in this dispute than Q. Q has 2.8 billion in sales at risk - Nokia has 12.8 billion at risk. (corrected WL ed)

Q. When can we expect revenue recognition from Infinien/Phillips?
A. Mark Lemmo - we see design wins coming in for them and would expect some revenues maybe by the tail end of this year or the beginning of next year.

Q. What can you tell us about the Motorola purchase of TTPCom and its impact on IDCC? Also, what can you tell us about SAMSUNG?
A. UB - we are scratching our head on this one because we are not sure but because PPCOM is in competition with IDCC, taking them out of the market would help us.
Mark Lemmo - we are still evaluating.
UB - same answer. Whether the price of the protocol stack may go up or down is pure speculation as a result of the Motorola purchase.
UB - on SAMSUNG. If they want to compete against Motorola, IDCC could help them quicker and better than they could do it inhouse.

At this time HC introduced Mr. SELIGSOHN, , founder of IDCC.

Q. While I understand the stock option plan, I would prefer more be given to key employees than to the Board and top management. What can you tell us about this?
A. HC - going forward we are moving away from giving options. In the past, 60% went to regular employees. When the company had no cash, we had to use options just to keep people working. In our long term compensation plan, we have used less options than other high tech companies. On Long Island, there was a new start up company that was stealing our engineers with a promise of stock options that would make them rich when the IPO went public.
We had to counter that. fortunately that company went under.
Human Resources- Gary - We stopped using stock options for executives 5 years ago and 3 years ago for employees.
HC- we use an out side advisor and the compensation committee met 8 times in the past year and and not infrequently by teephone conference call.

Q. Late shareholder asked a repeat question. He made the statement that he just spoke to his broker (who he did not name)
who stated that institutions are becoming more interested in IDCC because it is executing.
Q. Do we have any problem with back dating options and do we plan an audit?
A. Larry Sher,attny- No audit needed because options were priced on the day they were awarded.

Q. We talk about 1% for 2G. Can you give us a feel for 3G?
A. UB- Right now we average just north of $1.50 with a fair participation by the market. In 2G, we were getting between 1 to 2% per phone. This is difficult to predict because our revenue is based on the percentage of the cost of the phone. In our projection, we are using an assumption of 1% on an estimated
$200 per phone in 2010. For 3G, we are trying to push it a little higher then the $1.50 per phone.

Q. Can you update us on the buyback? When will EPS reflect the buyback? Why does it take IDCC so long to report earnings?
A. RF- we will provide a buyback update with the next quarterly earnings report. Difficult to judge because $7 million in option money impacts future EPS. Reporting earnings converged around 8k/10q? we are working on getting them separted and expect our timing to improve.

That concludes reporting on the formal meeting. I do have some additional comments about conversations with Harry C. & Brian Kiernan after the meeting. I 'll try to get to them as soon as I can but not sure when.

Posted by: KAJO7710
In reply to: None
Date:6/3/2006 4:34:20 PM
Post # 157093

ASM - KOP IV AND FINAL

Conversations with Brian Kiernan and Harry Campagna after the meeting   ! (Kiernan)

BK - In a conversation about 802 products and whether they were a part of the 1.2 billion chart, he stated that there are 2 products. One of the products merges into the IP for the terminal and will help drive licensing. The 802.11 product is a stand alone and will provide separate revenue but is a very small percentage at this point in time of the chart (200 million ?). The real monster of the market is the 3G cell phone market which is probably one of the largest, if not the largest, out there

.

HG - I asked would we have trouble collecting on IP in China? He replied, that is a difficult question. There was recently a headline about a 6 billion sale in China by a US manufacturer. I have a very large rolladex and got busy and found out that this company had to provide 6 times as much machinery as warrented in the deal to get the business so essentially it became a lost leader for them - not a profit.

Poison Pill - the poison pill was established sometime in 1999 in the 250 dollar range as a result of quite a few things happening back at that time. It is under review right now and the board will take a look at it in light of our current strengths and our future potential in the market. I asked the same question that I asked of him last year - whether it would be easy for a potential suitor to get around it. He again stated that I can show the research that I have on my desk and it will not be a picnic for anybody to try and do so and very likely not to succeed.

On a Buyout - we would certainly evaluate a buyout if it was one for fair value. After all, I am the fifth largest stockholder in this company counting all institutions, mutual funds etc. It would be to my great advantage to entertain such a buyout but, I repeat, no one will ever succeed in a buyout if it is not one of fair value for all shareholders. Ain't gonna happen!!

I was interested in finding out more about the man who took his dry cleaning dispute to the Supreme Court of the United States. This is what he told me. He had a patent on a unique color that was providing a very nice living to him for 30 years. This color was good for years and would not fade. One or more thieves (a la Nokia) came in with knockoffs that were of inferior quality that lasted 6 months and undercut him in price. He said, it wasn't right and I was not going to accept anything but full restitution. And, as you know, he went to the Supreme Court and won his suit.

It was no different when ERICY took advantage of IDCC over a decade ago. Our board did not want to fight saying that we were too small to take them on. Those people had our shareholders money and it belongs to us! We are not running a charitable institution here. HC also said, it is the right thing to do (at last years ASM you may recall that HC told me that ERICY hated his guts for his aggressive posture). He said that we would not be standing here today if we did not take that course of action!

My Measure of The Man -

I know there are many that are critical of HC, for whatever reason. But, I believe that he deserves the lion's share of credit for providing the foundation for where we are today. He provided his personal money to keep a bankrupt IDCC afloat. His leadership in leading the fights against Motorola (although flawed), ERICY, and Nokia have provided the cash and respect for our IPR which is now the success upon which you and I are building our dreams. Yes, this company is personal to HC. If I did what he did, I think it would be personal to me too. That aside, my wife and I can sleep well at night knowing that there is a moat around the IDCC castle with a ferocious junkyard bulldog on the drawbridge. With UB executing, you can count on HC covering his back. I believe this team will get us to the Princeton 50 and the Houston 100 very soon.

I am appreciative of all your kind remarks about my reporting but, believe me, your contributions are of more substantive value and have kept me long and strong in this stock. In the end, it is about teamwork. Each member provides the expertise that is his/her strength. I was a walk-on on Joe Paterno's team in 1960 (unsuccessfully I might add) and one of the things that he always preached was "give me a team of lesser talented players who play to the optimum as a team and I will beat a team that has superior talent that does not play well as a team". I think we have the kind of team that plays very well together.

Signing off for now!

Posted by: washmaster
In reply to: sinnet14 who wrote msg# 156781
Date:6/1/2006 2:52:30 PM
Post # 156785

Sinnet14: (RE: $1.5 billion WL ed) That was what was indicated on the slide (at today's ASM meeting - WL ed) - licensing revenue since inception.

Good Positive (ASM) meeting. Someone asked Harry afterwards about how many 3G essential patents IDCC had - that question went pretty much unanswered. After more prodding, Harry pulled out his money clip and smiled!

IDCC management seemed to reflect a very positive focused agenda. I think everyone seems to have tremendous confidence in BM. Harry had his 'happy tie' on and that pretty much was the way the meeting went.

Trey

Posted by: olddog967
In reply to: olddog967 who wrote msg# 156771
Date:6/1/2006 2:11:48 PM
Post # 156774

I wonder if this is what Harry (Campagna at today's ASM meeing - WL ed) was referring to in regard to Motorola and TTPcom. That take over is at real nice premium.

Motorola to buy U.K.'s TTPCom for $192 million

Handset-making giant seeks to secure AJAR operating system

Last Update: 5:40 AM ET Jun 1, 2006

LONDON (MarketWatch) -- Motorola Inc. said Thursday it has agreed to buy TTP Communications, a U.K.-based mobile application and semiconductor developer, for 103 million pounds ($192 million) in cash.

Under the terms of the deal, a wholly owned subsidiary of Motorola (MOT :

21.34, +0.25, +1.2% ) will acquire TTPCom for 0.45 pounds a share. The British company's directors said they intend to unanimously recommend the offer to shareholders.

The 45 pence-per-share offer represents a premium of around 246% to the closing price of 13 pence per TTP share on Wednesday.

TTPCom (UK:TTC: news, chart, profile) shares more than tripled to 0.43 pounds a share in London morning trading. Also see London Markets.

"It's a fairly nice premium. The discussions had been held on and off for a while and it was important to achieve a reasonable price because a lot of the top engineers receive equities. Getting a fair price was crucial to retaining that talent," said Dan Ridsdale, an analyst with Bridgewell Securities.

"A counterbid is unlikely at this level," he added.

Ridsdale said Motorola was mainly interested in TTPCom's AJAR mobile-operating system, which it was going to license. AJAR is being used in low- to-high-end phones and supports second-generation to third-generation handsets.

"For the amount of royalties they (Motorola) were going to pay, they probably figured they might as well buy the company," said Ridsdale.

He added that TTPCom also has some interesting silicon designs that may give Motorola more flexibility when selecting its chip manufacturer.

TTPCom, based in Cambridge, U.K., is focused on the three core areas of mobile-phone technology -- applications, protocols and silicon. Founded in 1988, it has approximately 575 employees. Motorola said TTPCom will remain headquartered in Cambridge under the direction of Rob Shaddock, who is chief technology officer of Motorola's mobile-devices group. See more technology coverage.

Alongside confirmation of mobile-phone giant Motorola's firm offer, TTP said it swung to a pre-tax loss from continuing operations of 27 million pounds for the year ended 31 March. The company posted a profit of 4 million pounds the year before. Sales from continuing operations fell to 37.2 million pounds from 58.1 million pounds.

"The disappointing financial performance resulted from a decline in 2G revenues coinciding with a delay in the growth of 3G and a substantial investment program to produce the exciting new product AJAR," the group in a statement.

Aude Lagorce is a reporter for MarketWatch in London.

RE:

"MOT and TTPcom "scratching our heads over this one"- Harry at ASM

 **************************end of shareholder meeting reports ***********************************

Posted by: lastchoice
In reply to: None
Date:5/31/2006 8:49:55 AM
Post # 156560

does anybody remember framework? (does anybody remember laughter?) when Ericsson and Sony-Ericsson signed, there was talk of a framework, (and a company of intergrity). i always operated under the assumption that s/e would not license 3g until nok paid for 2g. that was my framework.

idcc has put nok to bed on 2g...

samsung and s/e would sure blow the 50% number through the roof!

Billion--with a 'B'

Posted by: Danny Detail
In reply to: dmiller who wrote msg# 156484
Date:5/30/2006 5:15:40 PM
Post # 156494

dmiller .. Funny, I was thinking that this bad market might be just what the doctor ordered for IDCC. When the market gets bad, institutions have to mine extra hard to dig up stocks that have upside coupled with low downside even in bad markets. If they find them they improve their short run performance relative to their competitors and add a "gem" to their portfolios that could significantly outperform when the market turns around. We've all wondered why IDCC doesn't appear to be on the WS radar screen given the recent positive events. It would be ironic if it took a bad market to accomplish it.

Regards,
Danny

Posted by: lastchoice
In reply to: None
Date:5/30/2006 8:50:43 AM
Post # 156393

InterDigital Issues Revenue Guidance for Second Quarter 2006; Solid Recurring Royalties

and Recognition of Nokia Revenue Benefit Quarter

KING OF PRUSSIA, Pa.--(Business Wire)--May 30, 2006--

InterDigital Communications Corporation (Nasdaq:IDCC) today announced that it expects total second quarter 2006 revenue to
be in the range of approximately $291 million to $293 million. Expected revenues for second quarter 2006 include the following
approximate amounts:

-- $228 million associated with the resolution of a dispute with Nokia related to a prior patent license agreement,

-- $50 million to $51 million of recurring patent license royalty revenue from its base of existing licensees,

-- $12 million of patent license royalty revenue related to resolution of a licensing matter with Panasonic, and

-- $1 million to $2 million of revenue related to technology solution agreements.

Additionally, InterDigital expects to recognize the balance of the revenue related to Nokia's $253 million

payment this year, recording $12.5 million per quarter in each of third and fourth quarter 2006. Panasonic is obligated to provide InterDigital a royalty report for first quarter 2006 sales. As InterDigital has not yet received the report, the second quarter 2006 forecast does not include per unit royalties from Panasonic.

Richard Fagan, InterDigital's Chief Financial Officer, noted, "We continue to benefit from solid contributions from our existing base of patent licensees and we remain optimistic about our prospects for growth as we continue to capitalize on opportunities in the growing 3G market. While the recognition of a large portion of the payment from Nokia in the second quarter will create an unusual quarter, the payment provides further validation as to our ability to generate value from our intellectual contributions to the wireless industry."

About InterDigital

InterDigital Communications Corporation designs, develops and provides advanced wireless technologies and products that drive voice and data communications. InterDigital is a leading contributor to the global wireless standards and holds a strong portfolio of patented technologies which it licenses to manufacturers of 2G, 2.5G, 3G and 802 products worldwide. Additionally, the company offers baseband product solutions and protocol software for 3G multimode terminals and converged devices, delivering time-to-market, performance and cost benefits. The company's financial strength and solid revenue base contribute to the continued investment in innovation and development that will shape the next generation of wireless technology. For more

Posted by: Data_Rox
In reply to: JimLur who wrote msg# 155991
Date:5/24/2006 9:32:02 AM
Post # 155996

RE: Frank Marsala (First Albany analyst) brief updates for 4 companies, including InterDigital. Available at: http://wirelessledger.com/25121.pdf   -WL ed.)

thanks Jim

InterDigital (IDCC-$25.33-Strong Buy)
Market Cap: $1.4 billion
Price target: $35.00

Investment Thesis. InterDigital, in our view, represents an excellent opportunity for investors who want to play the intellectual property space. With the Nokia overhang removed, the company is, we believe, well positioned to add new licensees for its 3G patents and will see an additional boost from new customers for its technology solutions offerings. InterDigital holds key patents for 2G/2.5G/3G technologies, has a number of key licensees that have agreed to pay royalties, has a healthy balance sheet ($3.50/share of cash at the end of the March quarter that was enhanced by Nokia's payment of about $240 million, or an incremental $4 of cash per share), has announced a shareholder-friendly buyback in the amount of $200 million, and has an executive team that has executed very well over the past year. We look for the company to come to a settlement with Samsung in the near future, which we estimate to be about $115 million (about $2 of cash per share), and believe InterDigital will be successful in signing up new 3G licensees over the next few quarters.

The company has not yet provided revenue guidance for 2Q:06. It will do so after it receives and reviews applicable royalty reports andfinalizes the accounting associated with the $253-million payment from Nokia and anticipated revenue from work associated withtechnology solution agreements. Our 2Q:06 revenue estimate is $51.9 million (up 35% from the year-ago period) and our EPS estimate is $0.22. For the full-year 2006, our revenue estimate is $212.7 million and our fully diluted EPS estimate is $3.78, which includes the income from the Nokia settlement in the fourth quarter. Excluding the Nokia payment, our full-year, fully diluted 2006 EPS estimate would be $0.94. For 2007, our revenue estimate is $215.6 million and our EPS estimate is $0.93.

Valuation. Using a share price net of cash, IDCC is currently trading at 23.3x normalized estimated 2006 EPS. Our year-end $35 price target is based on our DCF model, which assumes a 3.5% terminal growth rate and a 10% discount rate. In our DCF model we do not assume any new 3G licensees until 2007, and assume that IDCC will capture 35% of the remaining 3G market opportunity from 2007 to 2010 at $1 per handset. Nokia and Samsung are included in our DCF at $253 million and $115 million, respectively. Our DCF model does not include any incremental revenues from the company's technology partners, Infineon (IFX-$11.21-Not Rated) and Philips (PHG-$31.41-Not Rated), nor does it assume any revenues from Matsushita (MC-$21.77-Not Rated) (Panasonic).

Posted by: mschere
In reply to: None
Date:5/23/2006 11:09:12 AM
Post # 155926

Qualcomm Named Best Play For WCDMA Growth

Maya Roney, 05.23.06, 10:45 AM ET

Qualcomm may be the best play in a decelerating wireless infrastructure market in which WCDMA is the only growth area, according to a recent Merrill Lynch report.

"As traditional vendors like Ericsson and new vendors like Lucent battle for market share in equipment, we view Qualcomm as providing broader-based exposure to the growth trends," wrote analyst Tal Liani, maintaining a "buy" rating and $60 price target on Qualcomm.

According to data from Dell (nasdaq: DELL - news - people )’Oro Group, wireless equipment companies saw broad-based deceleration the first quarter of 2006, with sales down 15% quarter-on-quarter and 7% year-over-year to $9 billion. Pricing also remained weak, with voice channel average selling prices down 3% quarter-on-quarter and 19% year-over-year.

"We flag these results as a warning sign for vendors like Lucent, Nortel and partly Tellabs who derive [more than] 35% of sales and 80% of profits from the wireless market," Liani said.

However, spending on WCDMA (wideband code division multiple access, a third-generation cellular network) gear was up 7% year-over-year in the first quarter of 2006, according Dell’Oro.

Liani believes the next generation of 3G networks, whether WCDMA or CDMA 1x, will all use Qualcomm's technology, which multiplies Qualcomm's addressable market for royalties and chip sales.

If Qualcomm is able to charge its maximum 4.3% royalty rate, the analyst derives an earnings-per-share estimate of $2.39 for fiscal 2008.

"We note that growth investors will continue to invest in the company on a mid-cycle basis, as earnings-per-share growth is expected to be substantial over the next few years," Liani added.

mschere

Posted by: rmarchma
In reply to: None
Date:5/22/2006 7:31:42 AM
Post # 155838 AND # 155878

IDCC quarterly revenues for latest five quarters as follows:

2005 First Quarter:
Total Quarterly Revenues = $35.5m

General Dynamics $4.7m

Recurring Royalty = $30.8m

NEC (32%) $11.4m ($3.3m fixed 2G per quarter and $8.1m 3G)

Sharp (27%) $9.6m

Sony Ericy (12%) $4.3m

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Others Recurring Royalty $2.9m

Total 2005 first quarter = $35.5m

2005 Second Quarter:
Total Quarterly Revenues = $38.6m

General Dynamics $5.5m

Recurring Royalty = $33.1m

NEC (36%) $13.9m ($3.3m fixed 2G per quarter and $10.6m 3G)

Sharp (20%) $7.7m

Sony Ericy (estimated) $3.1m (10% of total revenues for first six months less first quarter)

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Late royalty report from 1st qtr $1.1m

Others Recurring Royalty $4.7m

Total 2005 second quarter = $38.6m

2005 Third Quarter:
Total Quarterly Revenues = $48.5m

Past years true-up on new licensees $10.2m (Kyocera = $10m for one prior year)

Product and Technology $4.5m (Gen’l Dynamics $3.5m; Phillips $1m)

Recurring Royalty = $33.8m

NEC (24%) $11.6m ($3.3m fixed 2G per quarter and $8.3m 3G)

Sharp (19%) $9.2m

Sony Ericy $4.2m

Kyocera CDMA2000 fixed recurring $2.5m

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Others Recurring Royalty $3.7m

Total 2005 third quarter = $48.5m

2005 Fourth Quarter:
Total Quarterly Revenues = $40.5m

Product and Technology $4.3m (Gen’l Dynamics $2.5m; Phillips $1.8m)

Recurring Royalty = $36.2m

NEC (28%) $11.3m ($3.3m fixed 2G per quarter and $8.0m 3G)

Sharp (25%) $10.1m

Sony Ericy (10%) $4.0m

Kyocera CDMA2000 fixed recurring $2.5m

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Others Recurring Royalty $5.7m

Total 2005 fourth quarter = $40.5m

2006 First Quarter:

Total Quarterly Revenues = $51.6m

Product and technology fees $2.0m (primarily Phillips estimated at $1.5m)

Recurring Royalty = $49.6m

NEC (22%) $11.3m ($2.2m fixed 2G ended in Feb ‘06 and $9.1m ongoing 3G)

LG fixed recurring (22%) $11.3m (for 2.4 months in first quarter, full quarter = $14.3m per quarter)

Sharp (18%) $9.3m

Sony Ericy $3.9m (estimated based on 2005 average)

Ericy fixed recurring $1.5m per quarter

Kyocera fixed CDMA2000 recurring $2.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Lucent CDMA2000 fixed $.7m per quarter (only includes licensed Tantivy patents)

Others Recurring Royalty $8.0m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, Quanta, Arima, etc)

Total 2006 first quarter = $51.6m

IDCC did very well in the first quarter with the LG license to more than compensate for the declining quarterly revenues from both the NEC 2G royalties and General Dynamics. The LG license generated $11.3m in its first partial quarter. The ongoing LG fixed royalty will be $14.3m per quarter. The $3.3m fixed quarterly 2G royalty from NEC ended in February, but the NEC 3G royalty revenues continue. The majority of the General Dynamics revenues were earned in 2005. The last $300,000 of product deliverables for General Dynamics was completed in the first quarter. The only thing that continues with General Dynamics is a $2m maintenance contract for 3 years, or $167,000 per quarter.

Notice the significant increase in “other” licensee revenues provided by a hodgepodge of different licensees, especially over the latest two quarters. This is especially meaningful since IDCC lost almost another $1m per quarter from other 2G licensees per the third quarter 10Q as follows: “In addition, by December 31, 2005, we will have completed amortization of deferred revenue from other 2G agreements, which collectively contributed $2.5m or 2% of our revenues in the first nine months of 2005.” I think that Arima Communications, who was signed at the end of the third quarter of 2005, might be providing a good bit of this latest quarterly increase in "other" licensee revenues.

I will try to provide some additional thoughts on IDCC’s “other” licensees a little later.

The following carrythrough post by rmarchma is from his subsequent post # 155878, May 22, 2006.

   I think that HTC is a significant part of other licensee revenues. HTC licensed with IDCC in December of 2003. They have grown by leaps and bounds since licensing, as an IDCC license appears to bring good fortunes upon its licensees LOL. During HTC’s fourth quarter, which would be included in IDCC's subsequent first quarter revenues, total HTC quarterly revenues were equivalent to $862m US dollars. HTC makes smartphones and PDA phones, which are both royalty-bearing, and regular PDAs which are not royalty-bearing to IDCC.

When HTC first licensed with IDCC, less than half its revenues came from phone-enabled devices. Now I would guess that a major percentage of its revenues involve phone-enabled devices, but I don’t know how much. I believe that a recent prepaid advance of $15m received in the first quarter came from HTC. If the prepaid is for 1 year, then the indicated quarterly revenues are $3.75m. If the prepayment is for 2 years, then the indicated prepayment is almost $2m per quarter. An excerpt from a previous post today on this issue as follows:    ..."in addition, the company has received a $15m royalty prepayment in the first quarter of 2006 from an existing Taiwanese-based licensee which had exhausted its previous prepayment".

I speculate that this second $15m to $16m prepayment received in the first quarter is from either RIMM or Arima Communications. There was no indication on the second prepayment that it was also due to exhausting a previous prepayment, but only that it was from an existing licensee.

As to your question about the length of time that these prepayments cover, we really don't know for sure. I would guess between 1 to 2 years. However, I know that Sharp made a prepaid advance one time that was estimated to last for only 10 months at the time of the advance. We do know that Sony Ericy has made two prepaid advances estimated to last 2 years for each of the prepayments.

RIMM is another licensee that could be providing a significant part of the other licensee quarterly revenues. RIMM’s fourth quarter revenues amounted to $560m of which 70% or $392m pertains to handheld devices. RIMM sold 1.1m of these Blackberry devices in the fourth quarter, for an indicated average retail selling price of $350 per device. A 1% royalty would amount to almost $4 per unit, but I would think that there might be some maximum royalty cap per unit on these expensive devices.

Sanyo has a fixed royalty on CDMA2000 handsets of $1.1m per quarter, but a per unit royalty on GSM and WCDMA handsets. When Sanyo updated its license in 2004, $5m of the advance was allocated as a prepayment credit against the GSM and WCDMA future handset sales. I don’t know how large Sanyo’s market share is for these handsets, but they are selling dual-mode 2G/3G handsets to Vodaphone Live and Orange in Europe.

Sierra Wireless and Option are recent licensees, who are also doing well and growing. However, I don’t think they provide significant revenues to IDCC yet. Sierra’s fourth quarter revenues were $37m for wireless cards, and Option’s first quarter revenues were $58.3m Euros. Option does expect its second quarter revenues to increase to $82m Euros, primarily due to modules and data cards incorporating HSDPA technology. Option 3G HSDPA Data Card

Danger is another recent licensee, who makes the popular Hiptop devices. I think that they are a private company, and thus no public info is available for them. I don’t think that they would generate significant revenues to IDCC though.

Quanta Computer licensed with IDCC late in the third quarter of 2005, along with Arima. Quanta is the world’s largest notebook computer maker, who has fairly recently entered into PDA phones. They had an order with Europe’s O2 for these devices, and there is speculation that they might receive some rather large orders from HP and Acer for PDA phones in 2006.

If I had to just make a guess and pull numbers out of the air, I would estimate the following breakout for “other” licensee revenues for the first quarter as follows:

HTC = $2.0m
Arima = $1.8m
RIMM = $1.5m
Toshiba =$1.2m
Sanyo per unit royalties = $.5m
All others = $1.0

Total Other = $8.0m

Posted by: my3sons87 In reply to: None Date:5/22/2006 2:27:28 PM Post # 155871 Correction with the present 200 million authorized for repurchase of shares they could buy as many as 8 million shares in the $25/share range. Add that to the previous 5 million purchased and they could have repurchased as much as 13 million shares. Is this bullish or what?

Posted by: my3sons87
In reply to: None
Date:5/22/2006 2:23:58 PM
Post # 155868

The boys will have bought back 7 million shares since 2003 including the 0present 2 million authorized. See press release following.

InterDigital Completes Two Million Share Repurchase; Five Million Shares Repurchased within a Two Year Period

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--April 21, 2005--InterDigital Communications Corporation (Nasdaq:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced that it has completed the repurchase of two million shares of Common Stock. In October 2004, InterDigital's Board of Directors authorized the repurchase of one million shares and, in March 2005, expanded the authorization to a total of two million shares.

Since the beginning of 2003, InterDigital has repurchased 5 million shares, investing approximately $86 million. "Our pattern of share repurchases in recent years reflects our strong commitment to invest in the value of the Company for the benefit of our shareholders and our confidence in the value we are creating for the future," said Harry G. Campagna, Chairman of the Board of

D

Posted by: Data_Rox
In reply to: None
Date:5/17/2006 11:41:00 AM
Post # 155608

ot: fwiw....I might be a little early but I've got some lines in the water here....IMO the company won't go into the ASM on a long downturn.

best of luck to all

R

Posted by: jtaylor
In reply to: nicmar who wrote msg# 155557
Date: 5/17/2006 8:57:00 AM
Post # 155579

A Samsung 3G PLA, by itself, could give IDC over $114 million of earnings for the next 5 years. This would be the case if the Samsung 3G deal is comparable to the LG 3G license, because Samsung’s market share is about twice that of LG and the revenue from the LG deal is $57 million per year.

IMO, the Samsung 3G license should have a greater effect on share price than that of the LG 3G license because the LG 3G license merely caused the EPS to become more reasonable: 2005 earnings were $.20/share at a end year share price of about $19 or an EPS of about 95. 2006 earnings are estimated to be about $1.19/share and current EPS is 21.5.

Thus, the impact of a Samsung 3G license (if comparable to the LG 3G licenses) could be increased earnings of $114 or about $2/share. To keep the EPS at around 21.5 (today’s number) would require a price increase of 43, or a share price of 69. If the price only increased to 40, this would give an EPS of 12.5. This would be way too low an EPS for a company with IDS’s potential.

Posted by: loophole73
In reply to: lastchoice who wrote msg# 155566
Date: 5/17/2006 7:46:57 AM
Post # 155568

Last

Who can forget guidance? The shareholders and the street have been begging for it for years. When and if IDCC can provide reasonable and accurate guidance, the share price will take off until it surpasses the level attainable as a result of the multiples afforded the company on a forward looking basis. The share price will drift back from that level until additional events are announced and hopefully accompanied with guidance which will cause further spikes to occur until a new level is surpassed. Publicly announced guidance is the most important feature that IDCC can deliver in order to enhance shareholder value. Back room prsentations will not accomplish near the results that solid guidance PR's and 8k's full of financial goodies will produce.

MO

Posted by: lastchoice
In reply to: linedrivehitter who wrote msg# 155559
Date: 5/17/2006 7:31:22 AM
Post # 155566

good news is not a series of discrete events, imo. they are a gathering storm, building critical mass. even a 2g samsung award will build on prior successes. any top-six 3g will permanently blow through 30. especially, once the mass brings in more WS coverage--maybe a top-six wall street firm? don't forget guidance--it really shouldn't be news, but i think it will slap a few observers in the face--there's still more value locked into the already public news.

Posted by: nicmar
In reply to: linedrivehitter who wrote msg# 155476
Date:5/16/2006 11:44:57 AM
Post # 155479

linedrive. Know exactly what you mean, but I don't think the street yet has confidence that we're going to get most of the majors signed without prolonged suits. If we get a good one later on this year, then I think they will feel idcc will have the ability to sign the rest.

Maybe we'll slide back a few dollars all the time, but I expect the 30's with one and the 40's or more with the next 3g. Merritt says we'll get them. However. .. I don't think a 2g agreement only with samsung will do much at all. Course, I could be wrong on all my thinking. So far, I have been. .. mo. .. .. nic

Posted by: mschere
In reply to: Corp_Buyer who wrote msg# 155509
Date: 5/16/2006 1:51:38 PM
Post # 155512

Thank you for a well thought out Analysis..IMO:Nokia's infringement of IDCC's IP is current, while Nokia's infringement of Q's IP is almost 11 Month's out..IDCC is seeking 1% vs. Q's 4 1/2% for essentially the same Franchise.A Nokia/IDCC 3G license provides Nokia with a valuable TDD bargaining chip for a future settlement with Q..

Posted by: Corp_Buyer
In reply to: Corp_Buyer who wrote msg# 155463
Date:5/16/2006 1:39:03 PM
Post # 155526

In the mind of Nok ...

We can now infer that Nok and IDCC are in serious 3G negotiations:
* Already mutually agreed to some issues (terminate Nok's 3G license)
* Nok has not immediately filed to reactivate their DE action against IDCC's 3G patents (of course, to do so would spoil any 3G negotiations)
* IDCC has not immediately filed a 3G infringement action against Nok (of course, to do so would spoil any 3G negotiations)

Also, the fundamentals favor a 3G settlement, i.e. a negotiated license, between Nok and IDCC:
* The recent Supreme Court decision (although in favor of eBay on the vacation part of the decision) firmly reinforced the IPR rights of non-manufacturers to obtain injunctions
* New top management at Nok is now calling the shots
* A $1/4 billion judgment (IDCC arb. award confirmation) is a wake up call, no matter how you look at it
* The Nok vs. Qcom dispute is a huge and very threatening issue for Nok
* And, most importantly, NOK is indeed infringing IDCC's 3G patents

Regarding, the last point above, which is a compelling point to me, I read Nok's DE 3G complaint essentially as an admission of infringement, if read logically:
* In particular, e.g. Count III and Count V reveal Nok's purported workaround in the form of a single step, rather than a series of steps, for the second power ramp up to the required power level.
* Logically, in the case where only one step is needed in the second ramp, then Nok has admitted infringement of the basic patented technology, IMO
* In other words, all Nok has really accomplished in their purported work around by using a single power step, rather than a series of steps (in the second ramp up), is to add a feature to IDCC's basic technology, whereby extra unneeded steps may be bypassed.
* Also, I note that Nok did not even purport workarounds for all of IDCC's key 3G patents. Rather, Nok is relying on winning its invalidity arguments against many of IDCC's key 3G patents.

Accordingly, if Nok is indeed infringing IDCC's 3G patents, as seems to be the case, then Nok's UK action and its DE action against IDCC's 3G actions is truly just what we thought it was, i.e. negotiating leverage.

And, IDCC's 3G IPR seems to have been greatly validated by:
* Nec
* LG
* Sam's desire and request for a 3G license
* Implication that Matsushita is infringing (recent 10k)

Therefore, given all of the above, it seems that the fundamentals are in place for a negotiated 3G license between Nok and IDCC (as well as between Nok and Qcom). At least, it seems Nok will either strive very hard to relicense with both Qcom and IDCC, rather than go to the legal mat with both firms. And going to the mat with both firms after having poisoned the licensing negotiations, especially with the recent Supreme Court decision confirming that pure licensors may indeed obtain injunctions, must be an unacceptable path for Nok.

MO,
Corp_Buyer

Posted by: MMC89
In reply to: None
Date:5/16/2006 2:31:06 PM
Post # 155523

Zacks Analyst Blog Highlights: InterDigital Communications, Nokia Corp., Kyocera Wireless and iPass, Inc.

6:00 AM EDT May 15, 2006

Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: InterDigital Communications (Nasdaq:IDCC), Nokia Corp. (NYSE:NOK), Kyocera Wireless Corp. (NYSE:KYO) and iPass, Inc. (Nasdaq:IPAS).

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2673

Here are highlights from Friday's Analyst Blog:

InterDigital Upgraded

InterDigital Communications (Nasdaq:IDCC), a leading wireless technology and licensing company, announced highly impressive first quarter earnings results (ended March) with a record high quarterly revenue. This was primarily driven by increased recurring royalties, both from existing licenses as well as from the new agreements signed by the company in the last nine months. On April 27, the company settled its 2G royalty litigation with Nokia Corp. (NYSE:NOK), per which Nokia will pay $253 million to IDCC during 2006. Recent deals with LG Electronics and other manufacturers provide improved revenue visibility in future. We are upgrading shares to a Buy Rating based on our valuation projections.

To maintain its technology leadership, IDCC spends a significant portion of its annual revenue on research and development activities as it works closely with various manufacturers and international standard-setting bodies in the wireless industry. In 2004, IDCC filed a total of 858 patent applications and royalties received from its use are usually passed through the income statement without product costs (no Cost of Goods Sold), in effect benefiting the bottom-line without margin.

Most of the company's patent-licensing agreements are multi-year deals with recurring revenue based on the number of units sold. Two recently concluded deals, namely a $285 million license pact with LG Electronics and a $50 million agreement with Kyocera Wireless Corp. (NYSE:KYO), have already started expanding the company's top line. As it signs agreements with additional wireless industry players, profit margins will continue to expand, and cash flow should improve dramatically. IDCC already has a solid balance sheet, with $197 million of cash and only $4.5 million of debt as of March 31, 2006. This should give the company the flexibility to defend its intellectual property rights, invest in new technology solutions and continue to buy back shares. Free cash flow during the first quarter was $78.82 million.

Posted by: pianoman1953
In reply to: spencer who wrote msg# 155485
Date:5/16/2006 12:48:29 PM
Post # 155503

Spence, IMO, it's no longer "show me the money". Now, it's "show me the RECURRING money".

Posted by: loophole73
In reply to: Ellix who wrote msg# 155480
Date: 5/16/2006 12:10:51 PM
Post # 155490

Ellix

I posted that IDCC will only receive big multiples when they can demonstrate a sustained pattern of rising recurring revenue. The street is going to make IDCC prove their forward looking claims. This has been obvious for quite some time and griping about it now may make you feel good, but it is not going to help the share price. The option sellers are steadily at work and making money. 3g license agreements announcements will generate a rise in the share price, but IDCC is still under the burden of guiding the street as to the financial impact the announcements will have on the company. Since the signing of LG and the settlement with Nok, this is a very simple investment from here. Future license signings and GUIDANCE will will be the driving force for the return on this investment. New patents are nice and present earnings are good, but the ability to objectively and accurately project revenue 3 to 4 years out are the missing ingredients in the rocket fuel.

MO

loop

Posted by: Ellix
In reply to: loophole73 who wrote msg# 155470
Date:5/16/2006 11:52:49 AM
Post # 155480

Dorsey-Miller is a technical service and doesn't get involved in the fundamentals? Yeah, and so was Ford Research who did not even figure in the LG signings. There, the price dropped 10%!!! And here, there was absolutely no support for the price.

In fact, what is happening is that the shorts determine what news is good or bad. They discount the good news and sell hard on any bad, indifferent, or misleading information. We're getting no respect and the company just seems to give no real sustaining support either.

Posted by: Gamco
In reply to: None
Date:5/16/2006 4:54:08 PM
Post # 155538

[IDCC] Interdigital Communications R ($26.390): IDCC is a member of the Favored Telephone sector. This particular group also still has its sector bullish percent in X's, with decent field position. So when trying to find new long ideas, this is the kind of sector to look to for such plays. IDCC is a 5 for 5'er, so not only is the overall trend positive, but so is the relative strength. In fact, IDCC just gave a relative strength buy signal in March, and a Peer RS buy signal in late January. IDCC has been working up out of a huge base, and recently moved to new rally highs when it broke a double top at 28. With the latest pullback in the market, we have seen IDCC edge back towrad the middle of the ten week trading band, which resides around 25; below that, support lies at 22. The upside target is 45.50, and the weekly momentum recently turned back to positive after having been negative for 8 weeks. In all IDCC sets up as a good play on the long side (we would scale in here and on an further pullback -- 24-26 range). We would then use 21 as the initial hedge point, and the worst case stop point would be a violation of the uptrend line at 19

source: Dorsey-Miller (technical analysis of IDCC stock price projections based on chart - WL ed))

Posted by: gman1962
In reply to: dmiller who wrote msg# 155456
Date: 5/16/2006 10:38:20 AM
Post # 155461

p&f guy (point and figure charts)

http://stockcharts.com/def/servlet/SC.pnf?c=IDCC,P&listNum=

gman

Posted by: chartex
In reply to: None
Date:5/16/2006 10:22:24 AM
Post # 155453

Just called by my broker and was told that Dorsey-Wright has comeout with strong rec. on IDCC with a high end target of $45.50.

Posted by: lotoworld
In reply to: j70k who wrote msg# 155344
Date: 5/15/2006 12:32:28 PM
Post # 155345

j70k: Brilliant thinking,,,,,,,,,,,,,,, if I might say so myself as I had the same discussion last week with my broker,(Minus the Q buying us out). He has clients holding about 370K shares of IDCC as it's been his baby for over a decade. He thought my point,(Your point), was very feasable.

Posted by: j70k
In reply to: None
Date:5/15/2006 12:27:07 PM
Post # 155344

Question: Since there seems to be a consensus view worldwide amongst the oems that qcom does not deserve the same royalty rates for 3g that it was able to demand for 2g, could there be a major shift in strategy that could greatly benefit IDCC? Rather than negotiate first with qcom, why not use IDCC as a company that licenses on fair and reasonable terms and use our rate as a bellweather when pushing qcom to reduce royalty demands.If qcom doesn't like it, then maybe they need to buy out IDCC to offer a portfolio that deserves the rates they want.

Posted by: loophole73
In reply to: loophole73 who wrote msg# 154910
Date:5/10/2006 2:23:10 PM
Post # 154912

Good presentation

Short, concise and full of very positive information. It is hard to ask a question after that type of rendition. I expect a few light bulbs to go off around the street this year. The only thing that could spook them is that it is finally looking too good to be true. IDCC is in extremely good shape.

MO

loop

Posted by: idcc2006
In reply to: None
Date:5/10/2006 11:53:01 AM
Post # 154893

8K is slides of today's presentation. (at Piper Jaffray in NY- WL ed)

http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001157523%2D06%2D004971%2Etxt&FilePath...

Posted by: lastchoice
In reply to: None
Date:5/9/2006 10:21:16 AM
Post # 154758

CBS market watch--IDCC

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B2935EF31%2D1A59%2D4526%2D884A%2DC2E9DC78E62...

Billion--with a 'B'

Posted by: TFWG
In reply to: ubx who wrote msg# 154705
Date:5/9/2006 8:51:44 AM
Post #of 154740

I will never understand these predictions. What facts are used in the calculations? What is the basis for these targets? Are these targets based on personal goals instead of real financial analysis?

"I wouldn't be surprised at a $45-$50 take out offer emerging once Samsung is done"

Posted by: ellismd
In reply to: ubx who wrote msg# 154705
Date: 5/8/2006 10:31:41 PM
Post # 154708

Not that I am looking for a buyout, but strategically it makes a lot of since for the reasons you mention as well as a few more. Additionally I think it would be a good transition point for a potential suitor. A lot of money in the bank, + small float, and right on the cusp of signing more big 3g

licenses. Once IDCC gets a few more 3G licenses under their belt the price will have to double and could get out of hand for a buyer. There will be a small window of opportunity and than puff it will be gone. That's my story and I am sticking to it! The ASM in June will be one to rememer IMHO.

Posted by: ubx
In reply to: captainslog who wrote msg# 154699
Date:5/8/2006 9:34:23 PM
Post # 154705

Well now that Nokia 2G is settled and we have money in the bank and Samsung is about to settle or receive a ruling, I think IDCC is looking like a juicey takeover target in the eyes of QCOM. Buying IDCC would really bolster their position in the Nokia negotiations (and prevent the possibility of IDCC settling for 0.5-1.0% when QCOM is after 5%)and give them a big portfolio to go after the Chinese with -- TDCDMA. I wouldn't be surprised at a $45-$50 take out offer emerging once Samsung is done. It would be chump change for QCOM and put a floor under their negotiations with the big fish.

Posted by: jtaylor
In reply to: hrbart who wrote msg# 154698
Date: 5/8/2006 10:39:52 PM
Post # 154711

Hrbrt, A PLA with Samsung should be worth twice that of LG because Samsung has twice the market share of LG. So, the PLA with Samsung should be worth 114 million in annual revenues and an estimated 105 million in profits, div by 50 million shares = $2 of increased earnings per share. At a PE ratio of 25, this yields a price increase of 50 for the PLA with Samsung alone. Today’s IDC PE ratio is about 27.

Posted by: biggeneg
In reply to: handovercash who wrote msg# 154694
Date:5/8/2006 7:44:44 PM
Post # 154697

I don,t really think the samsung money is figured in.
I think the price will go at least $2 when we settle with samsung.

MO
Gene

Posted by: captainslog
In reply to: loophole73 who wrote msg# 154508
Date: 5/8/2006 8:13:41 PM
Post # 154699

Loop,

I, too, believe WM to be key to our current and future success.

His key public attribute is shooting straight from the hip and following through with his word.

No empty poetic promises from him like 'engine and transmission', 'filling in the blanks', and so forth.

He's made one statement that I'm aware of that never came true and that is the quarter he predicted having two licensees in the bag. One came through, the other didn't, but shortly after, we initiated our first law suit in many, many years.

Other than that one incident, what he's said has come true.

The future potential value of this company has never really been priced into the stock. While we've enjoyed a stock price based on future earning, it's been heavily hedged with shorting.

If we are to ever enjoy the potential of having 70% to 100% of the handset manufacturers paying royalty before the actual signing of each and every licensee, it'll have to be on the word, the perception, and the ability to have confidence in this management to obtain the goals they've set out.

To my knowledge, no management team has ever stated flatly that they will achieve 100% of the handset manufacturers to pay royalty. This goal gives shareholders, wall street, and IDCC's board itself something to measure and gauge the success of IDCC management. With every successive license signing with us, it also gets us closer to the time when the stock price will reflect a value far beyond a hedged reality.

To date, WM's word has been solid and I believe the inflection point isn't too far in the distance. Today we have about 35% of the market paying IDCC to sell 3G handsets. The inflection point is somewhere after we have 60% of the market, two, maybe three more top six handset manufacturers, or the signing of a NOK 3G agreement.

Posted by: j70k
In reply to: None
Date:5/6/2006 1:54:59 PM
Post # 154509

In assessing the first 4 months of 06, I am very impressed with not only management's ability to get the job done, but also the unpredictabilty of when these major deals were finalized and announced. Timing this stock just became a lot more difficult and with so much out there that could come at any time, a clear message was sent to those that have manipulated this stock in the past. I also like the fact that WM is confident enough to throw out figures like 700 million in revenues that is "not a pipe dream" because it clearly states our potential while the Company continues to buy back its own stock. IF we are to see someone who is interested in adding our portfolio to plug the holes in theirs or feels that they need what we have in order to deal with China, I would expect that this interest would show up fairly soon(sometime between now and next April). This very real possibility also looms over those that feel they can time this stock as they have in the past. Great position to be in for

LONGS. jmho

Posted by: loophole73
In reply to: Danny Detail who wrote msg# 154506
Date:5/6/2006 1:22:46 PM
Post # 154508

DannyD

I agree. Further, even I am at my highest confidence level over my 20+ plus years associated with this stock. I made a post on

Atomic Bob's as follows:

I must admit that I was skeptical concerning the abilities of WM when he first took over the lead pilot's seat on this rocket. I have seen a lot of guys manage to replace their superiors over the years by failing to produce on their assignments. I have been following this company for a long time and the licensing division has been crucial for its survival since its inception. WM was the man in charge of the licensing division during HG's term as the lead pilot. The lack of licensing success placed IDCC in a very bad position at or near the time that the Ericy litigation was heading for trial. Sharp had declined to renew its license and they were extremely crucial for the company's cash flow. IDCC settled with Ericy based on an alleged mandate and I have always believed that the reason was based primarily on saving the Sharp relationship. I believe that the loss of Sharp would have left NEC with a very hard choice as to complying with its obligations. After all, nobody wants to know that he is the only paying customer at Fifi's House of Fun. It could give a guy a complex. At any rate, the lack of production by the licensing division appeared to be holding IDCC down as it began a 3 year war with Nok and Samsung over 2g dollars. We were able to reinstate Sharp and maintain NEC, but the monies received from them was primarily being used to pay legal fees and pay key personnel. Although their success produced more and more revenue, we were unable to produce any significant EPS. When the BOD canned the top 3 executives and replaced them with WM and a new licensing chief, I concluded that young WM managed to move into the lead pilot position without really earning his wings. I figured that he got there because he looked better and communicated faster than his predecessor. After studying him for the past year, my doubts about his abilities have been erased.

I now firmly believe that WM (l) will continue to get better and better as he moves forward. I believe he is more than convinced that his goals can be attained. I also believe that he has the traits necessary to command respect within this industry. He prepares well and presents well. He also leaves me with the impression that you know you had better not cross him or you will find yourself outside of the loop quickly. I believe that the employees under him know that he expects and demands way above average performance. I also believe that he will ask the next question to one presenting an idea which is a trait that our company leaders have lacked over the last 20 years. I am more confident with WM at the helm than any of our past lead pilots. This guy is self driven, has the ego to walk the walk, and will not quit until he has achieved it all.

MO

loop

Posted by: Danny Detail
In reply to: rmarchma who wrote msg# 154390
Date:5/6/2006 12:31:58 PM
Post # 154506

Ronny .. When the most respected CPA on this board selects as his "favorite part" of a CC one which focuses on management's "vision", the clarity of same, the alignment of the company thereto and the confidence that the vision will be realized, it is high praise indeed for the accomplishments of the new management team in a relatively short period of time.

Regards,

Danny

Posted by: spencer
In reply to: None
Date:5/5/2006 4:02:28 PM
Post # 154444

This is the highest close in over 6 years. (we closed at 30.12 on 03/27/00)

Posted by: olddog967
In reply to: badgerkid who wrote msg# 154393
Date:5/5/2006 2:34:40 PM
Post # 154413

badgerkid: The buyback time restriction that you mention is not an SEC limitation, but apparently is often a company imposed rule.

To address potential insider trading, many companies inform their brokers that they may be required to suspend on short notice purchases authorized as part of an ongoing repurchase program. In fact, many companies apply the same "blackout period"—forbidding all trades—to corporate repurchases as they do for insider stock purchases by individuals. For example, a company may decide not to trade during a period that extends from 10 days before through two days after any earnings release.

http://www.aicpa.org/PUBS/jofa/may1999/mccarthy.htm

RE:
dmiller, regarding the limitations on buybacks, from various reads and sources, I had imformation that suggested the 48 hours after and the 2 weeks before earnings lock-out.

Posted by: badgerkid
In reply to: dmiller who wrote msg# 154350
Date: 5/5/2006 12:21:46 PM
Post # 154393

dmiller, regarding the limitations on buybacks, from various reads and sources, I had imformation that suggested the 48 hours after and the 2 weeks before earnings lock-out. By getting Nokia wedged in there, they should be able to fire with both barrels come Monday morning on their buy back with the usual restrictions of course.

IMHO of course.

Posted by: Bill Dalglish
In reply to: JimLur who wrote msg# 154342
Date:5/5/2006 9:51:20 AM
Post #of 154346

Jim: IDCC must wait before buying shares again??

Jim or anyone:

By regulation, does the Company have to wait a number of days after their quarterly earnings report is made public (eg yesterday) before starting again to buy back that remaining $180 million in shares?

Thanks!

Bill

Posted by: rmarchma
In reply to: JimLur who wrote msg# 154332
Date:5/5/2006 12:13:55 PM
Post # 154390

My favorite part of yesterday's CC as follows:

...."That ($700 Million in annual revenues by 2010) is not a pipe dream. It is one we truly believe we can achieve. We have a clear vision. We have a company aligned to that vision. We have the cash to drive it and we have the will to do it. Indeed as you heard today, our confidence in the company is so strong that we have in place a buyback program for nearly 15% of the company's stock."

I love the way UB talks. Just hope he keeps on walking the walk by continuing to deliver on the talk.

Posted by: mschere
In reply to: None
Date:5/5/2006 10:06:33 AM
Post # 154358

IMO:When the Statistics utilized by Wall Street is updated ..IDCC's Trailing EPS should rise from the current 96 cents to $1.21..and at the shares are currently selling a multiple of 24X.

mschere

Posted by: Uptick Tim
In reply to: Data_Rox who wrote msg# 154336
Date:5/5/2006 9:25:50 AM
Post # 154337

I do just love this ------ (from IDCC 04/04/06 Conference Call - WL ed.):

Using that example, if by 2010, we can derive revenue from 75% of the 3G terminal units sold, at average
royalty rates that based on our experience are achievable, our annual revenue could approach
$700 million. Achieving this level of revenue combined with the significant inherent operating
leverage in our business model could generate substantial earnings and cash flow.

That is not a pipe dream. It is one we truly believe we can achieve. We have a clear vision. We
have a company aligned to that vision. We have the cash to drive it and we have the will to do it.

Posted by: JimLur
In reply to: hrbart who wrote msg# 154304
Date: 5/4/2006 9:00:08 PM
Post # 154307

The only difference is the old "baby Q" now has about 600 million in cash.

InterDigital = CASH COW 

Posted by: captainslog
In reply to: None
Date:5/4/2006 3:12:16 PM
Post # 154250

Finally - some sanity in the stock price.

What investors are thinking about is always a mystery to me. But why in the world would it be a surprise to anyone when IDCC breaks out will be one of the great mysteries of the 21st century.

Anyone whose follows this company and its stock price know that IDCC is usually very unpredictable.

But what seems so obvious to anyone who risked a position anytime before the ERICY, NOK, LU, LG, SANYO, NEC, SHARP or one of a dozen other resolutions is that IDCC's value is totally unrecognized. With each new resolution and the changes in the company's management, it seems completely insane that IDCC's future value isn't aleady recognized in the stock price.

From my perspective, and I've been quite critical of the company in the past, is that the future is here now, and people are starting to get it.

Whereas before you'd have a quarterly report like this one and a new license was not announced, you'd see the stock go down even though the numbers looked decent.

Today, you have a captain at the helm with a very steady hand.

There is a sense of confidence that the company is projecting. The message says that we are persistent, steady, assertive, and we will get fair value for YOUR investment.

WM's word has gained value for the company's stock price. Today's stock action is a very good indication of it, in my eyes. What he says, you can count on.

If there are two likely licenses to sign before the next quarter, it's likely that it'll happen.

If it'll take a while for a new license to be signed, it will take a while (relatively speaking, it won't be before the next quarter.

We no longer have these cleverly disguised poetic statements that anyone hungry enough will read into, but where the company really doesn't have to delivery on. Engine and Transmission, Filling in the Blanks and so on. Back then, the word of the executives actually undermined the stock stock price.

Now, we have a very steady hand of someone who doesn't embellish or wax poetic.

Here, I can only add that if you aren't in IDCC, you have no idea what you are missing. Because the future value of this stock price is very, very close to being priced into today's price.

While I can only say, or perhaps embellish, that I've seen too much of this company in the past 5 years or so to hype things up. I'm expressing an opinion that seems like fact to me.

Barring another 911 or a major recession, to me the timeframe is so short that when the stock move, it won't be much of surprise to me.

I expect a major move in the stock price soon.

Posted by: mschere
In reply to: None
Date:5/4/2006 2:31:58 PM
Post # 154241

InterDigital Gains on 1Q Profit

By Susan Rush
May 4, 2006
NEWS@2 DIRECT

InterDigital gave the Street something to smile about, turning a year-ago loss into a profit. The company's shares were up 9 percent at one point on news of the first quarter financial results.

The wireless technology developer reported net income of $12.9 million, or 23 cents per share. In the same quarter a year ago, the company posted a net loss of $882,000, or 2 cents per share.

Revenue soared to $51.6 million, which represents a 45-percent increase over the $35.5 million reported a year ago. Operating expenses decreased $32.8 million, a 10 percent year-over-year drop.

InterDigital attributes the favorable quarter results to lower patent litigation and arbitration expenses.

The company recently won a settlement with Nokia, which included Nokia paying $253 million to settle a legal tussle.

Looking ahead, InterDigital expects operating expenses to increase by at least 8% during the second quarter, excluding patent and litigation costs. "We will provide guidance on second quarter 2006 revenue after we receive and review applicable royalty reports, conclude our analysis related to the final accounting associated with the $253 million payment from Nokia and update our forecasts on anticipated revenue from work associated with technology solution agreements," says company CFO Rick

Fagan.

InterDigital shares were up $2.35 cents to $27.50 as of 11 a.m. EST.

mschere

Posted by: rooster
In reply to: None
Date:5/4/2006 1:50:26 PM
Post # 154224

sorry if this was posted before;

marketgainer.com: Market Gainer issues coverage on InterDigital Communications Corporation

May 04, 2006 (M2 PRESSWIRE via COMTEX News Network) --

Market Gainer is quickly emerging as the one stop shop for international small-cap investors looking to stay a step ahead of the markets. InterDigital Communications Corporation (NASDAQ:IDCC), has gotten the attention of our research team this morning. Our goal is to create a community of international investors who consistently and effectively capitalize on the enormous gains that the small-cap Canadian and American exchanges offer.

InterDigital Communications Corporation (NASDAQ:IDCC), announced revenues of $51.6 million and net income of $12.9 million, or $0.23 per share (diluted), for its first quarter ended March 31, 2006. The company also noted that it ended the quarter with a cash and short-term investment position of approximately $197 million. This position was further strengthened in second quarter 2006 by the receipt of approximately $240 million, net of related source withholding taxes, associated with the recently announced resolution of the 2G royalty dispute with Nokia Corporation (Nokia).

In addition, the company announced that its Board of Directors had approved the expansion of its current share repurchase program by $100 million to $200 million. Shares may be repurchased, from time-to-time, through open market purchases, pre-arranged trading plans or privately negotiated transactions. The amount and timing of purchases will be based on a variety of factors, including potential share repurchase price, cash requirements, acquisition opportunities, strategic investments and other market and economic factors. Under the original $100 million share repurchase program authorized in March 2006, repurchases commenced in April 2006 and, to date, the company has repurchased 856,000 shares for $20 million.

William J. Merritt, President and Chief Executive Officer, stated, "The company achieved outstanding results in first quarter 2006. We exceeded $50 million in quarterly revenue for the first time in our history, with contributions coming from both new licensees as well as growing royalties from our base of existing licensees. We also delivered strong profitability and substantial free cash flow(1). Further, in the first four months of 2006, we concluded agreements with a combined value in excess of $500 million with LG Electronics Inc. (LG) and Nokia. Lastly, our technology programs continue to move forward at an excellent pace, with the substantial completion of our W-CDMA Release 4 offering, significant progress on the productization of our market leading HSDPA technology, and similar progress with our work on HSUPA - the next generation of 3G technology."

First Quarter Summary The company's net income increased to $12.9 million, or $0.23 per share (diluted), in first quarter 2006 from a loss of $0.9 million, or $0.02 per share, in first quarter 2005. In addition, during first quarter 2006 the company generated approximately $79 million of free cash flow(1) due largely to the receipt of royalty payments from LG under its recently executed license agreement, and two other patent existing licensees.

Revenues in first quarter 2006 increased 45% to $51.6 million from $35.5 million in the first quarter 2005. This increase was driven by higher recurring royalties, related to both new agreements signed in the last nine months notably LG and Kyocera Wireless Corporation and increased contributions from other existing licensees. First quarter 2006 recurring royalties increased to $49.6 million from $30.8 million in first quarter 2005. First quarter 2006 technology solution revenue was $2.0 million compared to $4.7 million in first quarter 2005. Licensees that accounted for 10% or more of first quarter 2006 revenue were NEC Corporation of Japan (22%), LG (22%) and Sharp Corporation of Japan (18%).

First quarter 2006 operating expenses of $32.8 million decreased 9% compared to first quarter 2005. This decrease primarily resulted from lower costs in two areas. Patent litigation and arbitration costs for first quarter 2006, which totaled approximately $3.8 million, declined $2.5 million due to a decrease in activity levels in first quarter 2006. In addition, the company's long-term compensation program costs decreased $2.2 million, reflecting the absence of overlapping cycles in 2006.

Net interest and investment income of $1.5 million in first quarter 2006 increased $0.7 million or 91% from first quarter 2005 due to both higher rates of return and higher investment balances in first quarter 2006.

The company's first quarter 2006 tax expense consisted largely of a non-cash provision for federal income taxes. First quarter 2005 tax expense consisted mainly of non-cash charges related to non-U.S. withholding taxes.

Following this announcement, shares of InterDigital Communications Corp. were on the rise this morning. Share price is up 10% on more than their average volume.

M.G will continue doing research on InterDigital Communications Corporation (NASDAQ:IDCC), both short term and long term, and invite any shareholders to our site, where you can partake in communicating with other investors on the company.

Posted by: chartex
In reply to: jtaylor who wrote msg# 154191
Date:5/4/2006 12:12:21 PM
Post # 154194

It is my understanding that Bill Merritt stated that by 2010 if IDCC had their tech, in just 75% of all 3G phones (He had stated previously their goal is to have their tech in all 3G
phones) their revenue would be $700 million/yr.

Posted by: orientbull
In reply to: None
Date:5/4/2006 12:46:03 PM
Post # 154205

MO, UB is screaming to the investment community..We have confidence in our company and are spending $200 millions in buyback..Anyone buying at this price should be well rewarded..Where can you find a stock that is so undervalued..

Posted by: Corp_Buyer
In reply to: None
Date:5/4/2006 11:30:20 AM
Post # 154147

CC- BM exuding great confidence and optimism: $700M revenues "not a pipe dream" (in 2010 per "example in investor presentation"), targetting "every" 3G device, "confidence in the organization", etc.

MO,
Corp_Buyer

Posted by: JimLur
In reply to: mschere who wrote msg# 154095
Date:5/4/2006 10:44:23 AM
Post # 154110

The repurchased shares are also valuable if the company makes an acquisition. The 4 million or so shares they bought around $17 now give them an extra 40 million in purchasing power. Not to bad.

Posted by: MTJBKH
In reply to: None
Date:5/4/2006 10:42:09 AM
Post # 154109

Article on today's debate...

Introduction

I feel that this article provides the most valuable information currently available for your search of: dividend buyback and stock options. I hope you enjoy reading it as much as I enjoy providing it for you...

Buyback Versus Dividend
Hari Wibowo

There are two ways company can give out its profit to shareholders. One is to give out dividends. The other is to buy back its own stocks. Which one is more appropriate? This article will explore the topic further.

The American tax law give a slight edge to stock buybacks. It is taxed once before the company decide to use its profit for stock buyback. (Every profit in a corporation is normally taxed). Dividend payment meanwhile is taxed twice. Once when the corporation reports a profit. Twice, when the shareholders receive it as an income. Most recently, investors receiving dividend income are taxed at rate of 15%.

So, does stock buy back is always advantageous to dividend payment? No, not really. It really depends on what price the company buys its own stock. If a company buys back its stock when the stock price is relatively overvalued, then it is better to distribute it as dividends. Shareholders can then appropriately invest it in undervalued investments.

So, at what point will dividend make much more sense? This all goes back to the fair value of the common stock itself. In a 4.5% interest rate environment, stock trading at a fair value is yielding 7.5% ( a Price Earning Ratio of 13.3 ). This assumes a 0% growth in earning. Therefore, it is desirable for companies to buy back its stock at a P/E of 13.3 or less.

But, wait. Since, dividend is taxed at a 15% rate, company that buys back its own stock at fair value will still saves shareholders 15%. Therefore, buyback still reward shareholder even when the common stock is 15 % overvalued. Based on this, company should continue buying back its stock only when the stock is trading at a P/E of (115% x 13.3) = 15.3. For a 0 % growth, it makes no sense for management to insist on buying back its stock that is trading at a P/E higher than 15.3.

One recent example is Intel Corporation (INTC) which initiates a $ 25 Billion intelligent stock buyback on Thursday Nov 10th 2005. At current price of $ 26.16 and $ 2.24 positive net cash on the balance sheet, Intel is buying back its stock at a forward P/E of 16.72. While this is a high P/E to buyback stock for a company that is not growing, Intel is not a 0% growth stock. Analysts generally expect Intel to grow its earning by 15.5% for the next five years.

Posted by: MTJBKH
In reply to: Corp_Buyer who wrote msg# 154098
Date:5/4/2006 10:39:11 AM
Post # 154103

As long as the buyback reduces the shares outstanding and doesn't merely offset dilution due to option grants etc., it's clearly good for shareholders that remain. Fewer shares outstanding means higher EPS. Buyback shows that management feels shares are undervalued. I'm guessing average cost of buybacks life to date is around 18 bucks per share. Much better for existing shareholders that those shares were bought back than an equivalent dollar amount of cash dividend. Of course, if the stock craters to 10, a cash dividend would have been better.

Posted by: Corp_Buyer
In reply to: mschere who wrote msg# 154095
Date:5/4/2006 10:33:16 AM
Post 154101

"buyback...is equivalent to a dividend" - Hardly, since dividends reward investors for holding, buyback reward folks for exiting. Dividends are aligned with RSUs, which management gets, that convey value even if the stock does not appreciate. Dividends are a long term value driver, the other a short term price support. Dividends return more interest income to the company. No, not "equivalent" at all.

MO,

Corp_Buyer

Posted by: mschere
In reply to: Corp_Buyer who wrote msg# 154090
Date:5/4/2006 10:26:15 AM
Post # 154095

IMO:A $200 Million buy back by a $1.5 Billion Market cap.. Co, is equivalent to nearly a 14% dividend..If one has 200,000 shares..they could sell 28,000 shares and still maintain the same equity percentage ownership that they originally had in the Company...

RE:
BTW, I would much prefer a dividend, perhaps $1 per share per year ($0.25 per share per quarter) instead of the buybacks.

MO,
Corp_Buyer

Posted by: rmarchma
In reply to: None
Date:5/4/2006 9:21:37 AM
Post # 154060

Excellent first quarter results. Cash of $8 per share, after the Nokia royalties, and virtually no debt. CASH is still the King. IDCC is finally starting to decrease its operating expenses while it is increasing its revenues. Great combination as to the earnings impact. Also the stock buybacks are reducing the outstanding shares, which is also helping EPS.

The operating expenses were significantly less than what I thought they would be. Casey Ryan accurately projected them, but he would have been significantly wrong had not the legal expense gone down by over $4m from the previous fourth quarter, and $2.5m over the comparable 1st first quarter of last year. Based on IDCC's uncharacteristic guidance, which specifically excluded legal costs, I thought there was a possibility that legal expenses might have increased during the 1st quarter, rather than significantly decreased. We already knew that the LTCP expense would decrease.

I can't wait for the CC!

Posted by: captainslog
In reply to: None
Date:5/2/2006 1:59:01 PM
Post # 153801

Seen it coming. Those just new to this board and this investment are in a very, very lucky position. Like those who invested on Motley Fool's stock of the month advice, they will not need to hang in there for years and years waiting for eventual potential of this stock to find its value.

It's taken IDCC a long time. Some would say and they'd be right, too long, but the long time coming is coming to an end.

Those with really clear vision have seen IDCC coming for years and years. It's been an obvious investment, and in other investing environments, an LG win would have sent this stock well over the 30 mark and it would have stayed there. A NOK 2G win would have kept this stock solidly in the 40s or maybe the run up to its inevitable potential would have begun.

Today, those who haven't seen the train coming for years and years have had an extended grace period to get into IDCC before the certain run up beyond $100 occurs.

I think most people who are sitting on the sideline will be surprised when one day they wake up and there will be a lump in their throat becasue the stock will have been halted on an ERICY, SAM, NOK 3G license announcement, and the next opportunity to get in will be north of $40, and the panic buying will start. Where it ends up no one knows.

For those who've been in the stock for many years, it will be a very welcome ride to watch. A snese of relief will overcome them. A tiredness will be replaced with justification.

For those who get in now, it will be a ride that will almost feel unjustified because it will have been so easy.

Here's some free advice for anyone thinking about getting into this stock, heed the call. IDCC's future has never been so certain. The risk is so much less than it was even 5 months ago.

It's like this. IDCC is riding its bottom price range right now. No one knows how long it will stay at the bottom. But everyone who's been long, knows this is the bottom. Just like before the Interent bust, everyone knew that the market was too high for too long, but no one could know when it would fall. One day they wake up, unprepared, and the market is down 20%. A head fake? Hang on and it will go up, just like its done so many times before, and the next day in the morning it does bounce before it takes another fall. By then it's too late.

It'll be the same for IDCC, except one day, it'll go up. Some will wait and there will be a down morning, but the entry point will be beyond any comfortable, or affordable entry point becasue for so long, anyone could have gotten into IDCC in the low to mid-twenties.

The major gains for individual stocks that have a hefty price appreciation over a one year period, occur over 10 individual trading days.

My sincere advice. Don't miss out. Get in now. If you wait for the first two days of the ten days, your price point will be in the 40's.

Captain

Editor's note:

Go to IHub post 153564 and follow the Danny Detail/The Count IHub thread for more interesting posts in their dialogue following posts below.

Posted by: Danny Detail
In reply to: Danny Detail who wrote msg# 153069
Date:5/1/2006 9:53:39 AM
Post # 153564

Count .. My apologies for dwelling on the negative, but it just seems that everyone is popping the champagne and I don't see the same good news, so maybe someone can address my concerns above and let us curmudgeons get hyped up too.

Apparently this was not a sincere request to have someone address your concerns so that you could "get hyped up too." Or at the very least you were not interested in anything I might have to say on the matter. No problem there, you are not the only one on this board who feels that way. But I did try to sincerely answer your question with my opinion and this is what I was referring to in terms of changing WS's perception which I believe is more important in the short run for the stock price than the actual numbers:

From Casey Ryan:

We also believe that this significant agreement with Nokia for 2 and 2.5G suggests that major handset vendors are likely to sign 3G license deals with InterDigital. LG has already signed a major 3G licensingdeal with InterDigital. We believe that Sony-Ericsson, Nokia, and Samsung are now more likely to sign 3G deals during 2006.

From Frank Marsala .. our most conservative analyst

We recently hosted a series of investor meetings with InterDigital management. InterDigital has executed very well since new management was appointed in May 2005, and we believe the company
gained credibility for its 3G patent licensing program by signing up licensees such as LG.

We are reiterating our Strong Buy rating, based on our belief that the company should be able to meet its objectives of:: 1) growing 3G patent licensing revenues, 2) signing up additional customers for its technology solutions (its ASIC and protocol stack offerings), and 3) signing additional deals that leverage the synergy between patents and technology solutions.

Regards,

Danny

Posted by: bulldzr
In reply to: The Count who wrote msg# 153491
Date: 4/30/2006 9:01:03 PM
Post # 153501

The Count, great post, as always from you. You are correct of course, all of us should be open to questions. I certainly am, I just prefer not to share my personal debate and doubts day by day on this board. And if I am gonna insult someone, I may regret it but I would rather it be another friend/poster here than a continual public attack of management culminating in a harshly worded and inaccurate and uninformed letter to Janet Point. Continual whining and sending accusatory letters to the Company is the right of every shareholder... I guess.

Again, you made a great post. But you also included innuendo like the "invisible" $100M that we "gave away" to NOK for 3G. As an accountant, CPA, maybe you should dig a little deeper before you accept this as fact. Hell, maybe it's $200M or $300M. And you also assume that the $253M was a given, we were gonna get it anyway... just around the corner. I guess you know for a fact what the Courts were gonna decide totally in our favor, and do it long before next year sometime maybe.

As CPA's, would you or Chris have recommended that IDCC just go ahead and book this $253M a month ago? Since it was 'guaranteed" maybe the company could go ahead and spend it. Who invented the words "Pro-Forma" earnings? It damn sure wasn't a salesman... I have a hunch it was an accounting or finance person. Maybe we could go ahead and spend the other $100M that Data claims (and you believe evidently) we had coming before the settlement. Let's see... 253M + 100M of blue sky... that makes over $350M we could have pro-forma'd. What was Merritt thinking?

I know this is ludicrous, and I am sure you nor Chris would never recommend such... but what was the alternative? Do you really know? It is a fact that we do not know all of the challenges that Merritt is confronted with.

I'm not defending Danny Detail; I haven't even read his post, and it appears you have pretty well gutted it anyway. I'm just saying that there may be some credence to the idea that as important as CPA's are in maintaining a strong and growing business; and acknowledging that consultation and input from the accounting and finance people is critical; in the real world it may be better if marketing and business focus "big picture" type decisions are best left to others.

Later and Best, bulldzr

Posted by: The Count
In reply to: Danny Detail who wrote msg# 153069
Date:4/30/2006 7:36:23 PM
Post # 153491

Please help this poor sick investor understand

I apparently am suffering from a new (to me) malady, CPA syndrome. I've always known CPAs are dull and boring - everyone who knows me will attest to that. I didn't realize that we are, as a group, woefully ignorant of business and should refrain from raising concerns about our investment. Unfortunately I am so far in the grip of this disease that I can't stop myself. Logical questions have to be addressed. I have to look at facts and draw conclusions from them. What I see is IDCC UNlicensing a 3G license, getting rid of the trigger that was the only way we were able to get the scofflaw company Nokia to pay 2G royalties. We also gave away all royalties on 3G to date, which could be as much as $100 million. That’s almost $2 on each of my shares. What did we get? They paid what they owed us per the arbitration agreement and what we were in the process of collecting through the courts. So what is Danny Detail’s (Brad's) response to those substantive issues?

For me it is all about changing WS's perception. On WS perception IS reality more often than not. WM has been a true change agent regarding perception since the day he took over. In spite of all of the clearly correct board attorney opinions here it is difficult to change WS's deeply ingrained perception of NOK as a winner and IDCC as a loser. Not sure even this will do it, but IMO it is a very significant step in that direction .. perhaps of watershed magnitude for the stock price, analyst coverage, and institutional acceptance/ownership even though those on this board who follow the company 24/7 may feel that it falls well short of a watershed event for the future 3G business of the company. I submit to you that if NOK had not filed for arbitration after ERICY settled, then that would have been a watershed event for WS. No reason it can't be one a couple years removed, particularly if SAM falls in line.

It is also funny how a rapidly rising stock price can bring business success all on its own, which results in further price improvement which leads to more business success, etc. Happens more often than you may realize.

First, perception. In the end, Wall Street perceives financial results. You can put on all the dog and pony shows you want, but long term it comes down to the bottom line. If you don’t have visibility on ongoing revenue streams the stock price will not reach the levels it can. While a buffoon can prevent a company from getting value from Wall Street, no management can create LONG TERM value unless it gives its myopic accountants some results that they can use to produce strong financial statements. I think Mr. Merritt is a huge improvement, his presentations are very good, the LG license is a great accomplishment. If he gets 3G licensed then I will agree that this was a good move. But right now I don't see it helping.

Second, how can a rising stock price bring a business success. Please enlighten me, because I cannot see how a rising stock price can help a company unless it is selling stock or borrowing with stock as collateral. Help teach this ignorant CPA so I can understand. If that were the case is seems that there are hundreds of bubble stocks that would still be around.

Brad, way back when you prepared what I thought was a brilliant document outlining steps IDCC could take to improve the company. I was impressed with your work and wish the company would have implemented at least some of them. However I find your thoughts on investing in IDCC to be rather pointless. The reason is that you start with a couple of basic premises that eliminate any rational analysis. If I understand you, you believe that Wall Street and institutional investors are far superior to any other group, including Jim’s IDCC board, when it comes to investing. So what ever they think is right and everyone else is naively fooling themselves. This band of obsessed investors with areas of expertise from legal, technical and even accounting focused on one investment have no chance to understand IDCC better than the pros who cover thousands of stocks. The second assumption is that since management has more knowledge of the company operations, we as ignorant shareholders cannot question anything they do because they know things we don’t, so whatever they do should be supported. You are like a religous fundamentalist. You start with the conclusion (whatever management does and institutions support is right) and decry as heresy anyone who questions them. You were a big supporter of HG and RT, until the BOD dumped them. Then you said they were not right for the job. You don’t think or analyze based on information, just what the all-knowing board says. You were stridently in favor of the additional options on the proxy because management supported them, ignoring the obvious fact that they were the primary beneficiaries. However when the even more omnipotent institutions voted them down, this too became the right thing. Whatever happens is good and positive in your view. I think blind acceptance leads to abuse and corruption.

Those of us with CPA syndrome aren’t loyal to a stock. Loyalty to any stock is a truly incomprehensible concept to me. I invest in a stock to make money. If it goes up, I made a good investment. If it goes down, I made a bad investment. The split second I don’t think IDCC risk/reward ratio justifies a higher price than it’s trading at, I’m selling. The stock is an inanimate object. The company regards investors as a necessary nuisance – they don’t give a damn whether or not I make money on the stock, nor should they. It just that there is no relationship that I can see that would merit any sort of loyalty. CPAs question authority and have a professional skepticism. Every day I decide if I want to invest in IDCC. To do that I need to analyze the current information. I read and ask questions on the board to get opinions from others. Those that state their premises and explain their thought process help me shape my opinion. Those that begin with the premise that anything that happens is good (or bad) and then points to anything that supports their side and ignores anything contradictory is useless.

While I may suffer from CPA syndrome, I don’t suffer from Ivory Tower Syndrome, where one speaks with great passion and confidence in their opinion, yet does not put their money where their mouth is. Kind of like a gambler bragging about all the picks he’s made, winning some incredible percentage of bets, then you ask him for his bookie’s number and he says he just bets on paper, no real money. To me, to have Wall Street Cred for your opinions you need to invest in what you promote. I, like Chris, have gone against any advice we would ever give our clients and put close to 100% of our investment into one investment, IDCC. We can’t afford to “trust” and “be loyal”. We have our futures tied up in this stock. You, on the other hand, believe so strongly in IDCC that you have what, 1% of you portfolio in it? If IDCCs technology became obsolete tomorrow your lifestyle would not change one bit now or in the future. I, however, would be looking at delaying retirement 10 years or more.

You can afford to trust, to give away excessive amounts of stock options and the like, because it is just an intellectual game for you. Like putting a $5 bet on the Super Bowl. Gives you a rooting interest and you can say you’ve got money on the line, but it really doesn’t matter. For this CPA it does matter, so I will continue to raise questions about the company and its management on this board. That’s what the board is for. The only reason I would stop is if Jim asked me to. I am loyal to Mr. Lurgio because he has given so much to me and all the investors that use this forum. He spends time and effort to enable us to have a place to exchange ideas about our investment. He does this for us. That earns my loyalty.

So those that want to belong to the see no evil, hear no evil, speak no evil rose colored glass wearing loyal longs, please feel free to ignore me. I am going to continue to question. I’m going to say the emperor has no clothes if that’s what I see. If you can show me where I’m wrong, thank you. If you just want to pontificate, ridicule or complain about my loyalties that’s your right, but it is pointless. I’m sorry Brad, but you touched a nerve. I tried to refrain from responding but I needed to get this off my chest.

Frank

Posted by: Jim_Charts
In reply to: nicmar who wrote msg# 153412
Date:4/29/2006 11:56:41 AM
Post # 153424

Well Nic I have to disagree in part. You mentioned piggy backing off the Mot decision. To some degree yes, but not to say Ericy. If you remember that one we settled 2 weeks before the trial for pennies on the dollar. And yes that set up Nokia. And if you believe what you read about Nokia, they were able to cut the reward in half with the use of the arb, then were wise enough to hold off IDCC in the courts till they got the deal they wanted, free 3g for the same time span. Nokia clearly won the battle. Don’t think there is any question on that, so did Ericy and clearly Mot.

RE: Hopefully, 3g will be different

Perhaps, we have done well in one area of the world concerning licenses. It’s the rest of the world that has been abusing IDCC. As an example of the three we have had legal battles with, Mot, Ericy and Nokia, I don’t see them doing a about face in their process of dealing with IDCC. In fact their tactics have worked out pretty good. Mot has never paid us, Ericy got the pennies on the dollar and will be paid up at the end of the year and Nokia, which got hosed by Ericy btw, is not going to be rushing in because LG signed. The track record is clear, there is no reason whatsoever to do so. None of the 3 are paying anything for 3G. No contract with Mot, ever, Ericy has had 3 ½ years to sign a 3g, no contract in place, and Nokia which we had a contract for 3g we just gave up for free. All 3 are clearly not afraid of the courts. Why sign?

Plenty of trading opportunities will be coming up and this stock reacts very well for the traders. As long as the longs hold there core positions as a counter balance to the short players this one should provide profits to the investor who can trade. As it has for the last 6 years.

Until IDCC gets their act together I will be focused on taking those profits for my time vs. wasting it.

All that being said I would be very happy if the company finally does get there act together.

IMO

Posted by: nabokov
In reply to: olddog967 who wrote msg# 153403
Date:4/29/2006 10:44:01 AM
Post # 153417

olddog, thanks to you and mschere for your calculations regarding available IDCC cash.

Having eliminated the 100 million programmed for the buyback you still calculated available cash at 331 million.

We should not count our eggs before they're hatched but Samsung owes us another 100 million, which may be closer to 110 million. In all probability we will receive that money.

100 million plus 331 million divided by the number of shares (55 million) is $7.83 cash a share--which means we are buying a share of IDCC stock now priced at $25.32 for $17.45. And this is not counting the $100 million which has been (or will be) used for repurchase of stock.

Anyway you look at it, IDCC is awash in cash, and the stock price is cheap.

Posted by: infinite_q
In reply to: mschere who wrote msg# 153299
Date:4/28/2006 7:25:13 PM
Post #of 153392

The great thing about the $375M cash is that we should now see some M&A action. Cash in the bank won't drive the share price, but an acquisition that adds immediate profits to the company's bottom line would. I'm very interested to see what kind of acquisitions we can make with that kind of cash.

i_q

Posted by: lastchoice
In reply to: optionchain who wrote msg# 153349
Date:4/28/2006 2:27:56 PM
Post # 153351

another 20% and i'll be able to relax for a while. 30 is a big psych. barrier for me.

1 billion handsets/year. zero cost of goods. no late deliveries. what a business plan.

"Billion--with a 'B'"

Posted by: Learning2vest
In reply to: None
Date:4/28/2006 2:11:34 PM
Post # 153347

This old "3G" investor caught a lot of flack in years past for saying that past due payments for 2G were not going to move the stock, not even BIG one time payments. Well, I rest my case.

IDCC's current trading confirms that the "market" is not impressed by how much CASH is in a firm's bank account. Nope, the current stock market places much more value on it's speculations of how much "future" revenue and earnings will be. What the stock market is telling us right now sounds something like this IMO: "2G collections are about the past, tell us about your future in 3G revenues and profits".

OK, that's cool. IDCC has another $1/4 bil in it's bank account(real money extracted from Jorma's hide!), just set another clear example for everybody that messing with KOP is NOT a good idea, and best of all IMO,... Nokia is left standing out there infringing all that good IDCC 3G IPR without a single bush left to hide behind.

Do not kid yourself. IMHO, the top brass at Nokia(and at the rest of the "top 5, 6, or whatever" unlicensed wireless firms), are going to be waking up in cold sweats from this day forward after nightmares about seeing their names appear in an IDCC infringement lawsuit at a "Hang 'em high, and Hang 'em soon" legal venue like Judge Ward's court in Marshall, Texas.

Tic, toc, IDCC just opened up a "free fire" zone on 3G infringers, and those good old boys in KOP have another $1/4 bil of Nokia's money to keep paying some "top gun" legal shooters to stay right up there on the firing line.

My fun right now is in guessing whether Motorola will let Samsung beat them to the posing opportunity for the next "We Partners!" photo op in KOP. "Utt Oh, Look out!", SONY/Ericsson really WANTED to be next, they just had a mechanical problem. Their corporate integrity went flat. LOL! Is this stuff fun or what?

Posted by: Ellix
In reply to: linedrivehitter who wrote msg# 153321
Date:4/28/2006 1:17:57 PM
Post #of 153333

Re: Why would somebody sell today?

Answer: to make short term profits. One would notice that these characters aren't really investors or those who really care about the essence of the news. They certainly didn't listen to the CC or UB or look into IHUB.

All they are interested about is whether today's stock price will go up or down a certain range. They have quick triggers to buy or sell based on whatever metrics they are relying on to confirm the fleeting trend. It is easy to figure out that a stock which goes up 20%+ in one day would normally give back some. These are daytraders, folks. Shortly, they would have taken their gains and moved on to a different frenzy in the stock pond. They would also naturally end up with a zero position in the stock; hopefully at that point not much damage would have been done (except to the egos of those who presumed that there should have been a gap up) and the fundamentals of the stock will again prevail. Just wait out the storm.

Posted by: mschere
In reply to: JimLur who wrote msg# 153293
Date:4/28/2006 11:35:45 AM
Post #of 153299

IDCC after accounting for the tax due on Nokia's $253 Million..is now sitting on $375 Million in cash..with a highly profitable Quarter to report..and some $7 Million less in legal Quarterly operating costs going forward..and with a Samsung 2G/3G negotiation being finalized..

mschere

Posted by: drrtl
In reply to: None
Date:4/28/2006 10:51:38 AM
Post # 153286

Casey Ryan has a $37 price target and Frank Marsala has a $35 target. DRRTL --my target is $56 dollars this year. Today is a Buying spree for those IDCC informed shareholders. The market never ceases to amaze me!!!

Posted by: captainslog
In reply to: None
Date:4/28/2006 9:57:42 AM
Post # 153251

Filling the gap, don't panic. anyone selling now is facing, without a doubt, a much higher price point from this day forward.

Today, in fact since LG signed, there isn't a better place to put your money this year.

This is the point. For anyone who has followed this stock and heard WM talk in the past, they know what this means.

Without some historical perspective, those who are just starting to look at this stock are looking at an investment opportunity that doesn't present itself very often . . . that is to get into a stock in the early stages of its steep price appreciation. While they may have already left 35% on the table had they timed an entry point correctly. That 35% is going to be a distant memory as the year progresses.

Posted by: Danny Detail
In reply to: None
Date:4/27/2006 6:10:52 PM
Post # 153070

To All .. Congratulations to everyone who had the courage of their convictions to hang in here while being able to accept that high risk-high reward investors never have and never will know much about what is transpiring at a company at any given point in time. High risk-high reward invariably means that the uncertainties are many. Once the uncertainties are resolved it is no longer high risk and the potential for high rewards is dramatically reduced.

Danny

Posted by: orientbull
In reply to: None
Date:4/27/2006 4:43:20 PM
Post # 153025

Let me count the points..Upgrades or new coverages should add another 2 to 3 points (to the current share price - WL ed.) ..Samsung another 4 to 5 points, Ericson at least 3 points and lu/Acatel another 3 points..each remaining licensee add at least 2 to 3 points..Wow, 50 is within reach by the point system.. Based on PE..we should be looking at $100..Wow..MO..

Posted by: mschere
In reply to: None
Date:4/27/2006 3:47:42 PM
Post # 152999

The stock price does not matter..What matters is that IDCC is currently selling at less than 9X its 2006 estimated earnings, and $7 in cash..and thus a Value play..

mschere

Posted by: orientbull
In reply to: None
Date:4/27/2006 2:53:45 PM
Post # 152964

couple more licenses, we'll be $50 or more...not today or tomorrow but within next several months..MO..

Posted by: orientbull
In reply to: None
Date:4/27/2006 2:48:55 PM
Post # 152956

More buyings will be from institutions who have chosen to wait until confirmation..Hold tight...Plus the stock has been wound tight for the last three months..big lift off..onto $50...MO..

END OF ARCHIVED POSTS: RISK and REWARD