InterDigital Inc (IDCC)

[loophole73]

Ok, I have had a chance to sleep on the events of yesterday. The problem we experienced is the interpretation by the street of our company looking forward. Somehow we have been pegged as a cash rich company with static growth due to a shift in licensing terms from per unit to fixed royalty obligations. As a result of this reading by our few analysts and the street, we have been placed in an evaluation category that awards lower multiples than growth companies. The BOD and upper management should be meeting today to correct this erroneous interpretation and lay out our revenue streams going forward over the next five years. It seems silly to go to the effort to warn about forward looking statements and not provide a few. Therefore, I hope they put out a concise statement identifying our revenue streams expected which will demonstrate growth. Just off the top of my head, I would identify the following:

a. Fixed base revenue plus new licensees due to our success with the top 3 industry leaders.
b. Past infringement revenue (this has been recurring in 4 of the past 5 years and has been substantial and should be considered as a part of our revenue growth formula). We have several companies under pressure and the past infringement obligations are substantial.
c. IOT revenue for connectivity through Avanci which will be based on per unit sales allowing us to grow revenue as IOT explodes over the next 7 to 1 years (infrastructure).
d. IOT revenue for upper software platforms which should be based on per unit sales (terminals).
e. ROI from strategic relationships.
f. Any other revenue generating plans known at this time ie. servicing relationships etc.

We need to emphasize a swing back to the American inventor has been identified in recent decisions allowing for new leverage in settlement efforts. We need to conclude that we expect revenue growth to occur at average growth rate of X% over the next 5 to 7 years. We further believe that our cash position now and moving forward places us in a very real potential dividend growth opportunity for investors.

The future is extremely bright for IDCC and we should not be timid about the use of forward looking statements which I believe are easily attainable. We have not just reached consistency in revenue expectations. We have opened the door for new revenue from many sources over the next few years. WE ARE GROWTH and the street needs to understand our business model.

MO
loop