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No ML report has been issued since 2/15/23
they mentioned 600ml in reoccuring rev, is that fy2023 or 24, hoping for the 800mil range---so we are selling PE wise x out the catch ups--at a pretty low 20's?----for this growth we should get a 30x or more --if our Ai, iOt gets traction , the herd should run on it and so 100x PE
Maybe we can add to the short pain by putting our shares up for sale at $100, good until cancelled.
If they keep it up I might even throw them a couple shares.
Yes, faster and faster. I am certainly enjoying this race right now.
Looks like weve got the shorts on the run
Bank of America should reconsider their coverage for IDCC. Maybe they should just drop coverage or upgrade to a strong buy with a target price that would make Mickey Britt proud! JMHO
Prior to yesterday's earnings release I was still pondering the real intentions of the stock buy back. First, I thought it was in preparation for a company buyout, then after almost 30 years in this stock, it probably would have happened by now so its not likely to happen in the future. Second thought was to take the company private but with the high institutional ownership, I do not think this is a likely scenario. Third and foremost is the company is planning to buy down the outstanding shares to a desired amount, then stop the buy back, and then focus more on dividend payout to shareholders making this stock more attractive as a dividend stock. This third scenario seems to be more supported by orientbull's post about his takeaways from yesterday's earnings call.
3) commitment to accelerate buyback and dividends due to licensing momentum
Orientbull post
4 days ago....im sure there were many folks who were lamenting not having sold some or all into the tender offer....and that idc would return to its malaise in the clutches of the shorts......here is your opportunity!!!
Ooh..ooh
..he must feel so hurt...let's all take a knee to acknowledge his pain....and then do the twist ..and it goes like this....and around around we go again...up and down we go again!!!
teecee56, yes the B of A analyst did ask a few questions. He was almost crying that you did not tell me. They said we released the information. But you did not tell me....
Vegas....and so here we are...let the fun begin!!!!
So am I to think...folks is getting the point...after they talked it over??
couple of points from the call this morning:
1) high court hearing this week regarding interest, cost and permission to appeal. Waiting for decision to take the next step.
2) fast track oppo in UK court and the court is currently focusing on payment amounts.
3) commitment to accelerate buyback and dividends due to licensing momentum
4) the new board member with his previous experience at Tivo and Experi, if elected, will help penetration to the video area.
5) Cash balance $950 as of March31. Expect additional 1.4 billion cash receipts under the current agreements.
6) expect strong 2Q quarter. will continue to purchase shares with remaining 177m
They didn’t do this before
They
Have always been super conservative
And only recognized when contract signed cash in bank
wow....just tuned in....did the b of a analyst say something on the call?....all i know is....idc has had many opportunities to "jump the gun" on earnings in the past....and theyve never taken the bait....im pretty confident that if they reported it....its a done deal...it makes no sense to go out on the limb....they have accountants and lawyers that have to sign off on this kind of stuff...their behavior with the tender offer....probably could have predicted something like this.....full steam ahead!!!!
yep, accounting smoke and mirrors
They can recognize revenue if certain conditions are met. It takes delivery of the product ( in this case companies using the patents). Collection must be reasonably assured. The revenue can reasonably be measured ( I believe they stated at least for Samsung they were using a conservative number. I assume they believe Lenovo will pay at least the judgment amount.
I think it more accurately shows the revenue matching to periods than getting lump sums for past sales and recognizing it then (which in those cases, it was when it was reasonably assured).
accounting smoke and mirrors
How did they book revenue without finality for those two cases?
The BOA "Analyst / Short" should short his own employer!
Tomcat
From the conference call
1. they won't take calls from shareholders
2. They are not yet receiving any cash from Lenova and Samsung
Bank of America analyst is crying....
scooby5, the first 12,000 shares the ask did not fall below $70.5. It was the market maker filling in. He probably is looking to pick up some cheaper shares. If the company continues to buy back $25M of shares on the open market per month he is going to need them.
How can we possibly be trading in the $67.00 range?
probably in the deferred revenue , or backlog since we are collecting royalties---no products
IDCC still has $40M to recognize from the Lenovo decision, More if the appeal is successful, They bought about 340,000 shares in April and have about $175M + left in the buyback. Lookout shorts. They made about $13 M in interest.
Board goes quiet on a 3.58 profit qtr
note the balance sheet 378mil in revenue current and long term differed revenue ,
InterDigital Announces Financial Results for First Quarter 2023
Company Release - 5/4/2023
Samsung arbitration agreement and Lenovo judgment drive total revenue to over $200 million; record return of capital to shareholders
WILMINGTON, Del., May 04, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced results for the quarter ended March 31, 2023.
"In the first quarter, we continued to make strong progress in executing against our long-term goals,” commented Liren Chen, President and CEO, InterDigital. “The recent Lenovo judgment, along with our Samsung arbitration agreement and the 2022 Apple renewal, drove exceptional financial results in first quarter 2023 and provide a strong recurring revenue base well into the future."
First Quarter 2023 Financial Highlights, as compared to First Quarter 2022:
GAAP
Total revenue was $202.4 million and increased 100%. The increase was driven by the recent Lenovo judgment.
Recurring revenue was $101.6 million and increased 2%.
Operating expenses were $83.1 million and increased 17%. The increase was driven by $8.2 million of one-time items.
Net income1 was $105.3 million and increased 485%.
Diluted earnings per share was $3.58 and increased 517%.
The company completed its modified Dutch auction tender offer in which it repurchased 2.7 million shares, for an aggregate cost of $199.9 million, excluding fees, expenses and excise tax. The company repurchased $24.7 million, or 0.3 million shares, during the period April 1, 2023 through April 30, 2023.
Non-GAAP
Adjusted EBITDA2 was $154.8 million and increased 179%.
Adjusted EBITDA margin2 was 76% up from 55%.
Non-GAAP net income3 was $123.6 million and increased 301%.
Non-GAAP diluted earnings per share3 was $4.21 and increased 325%.
Near Term Outlook
The table below presents guidance of the Company's expectations for second quarter 2023. The revenue range covers both existing licenses and license agreements that we currently expect to be executed in second quarter 2023.
Q2 2023
Revenue $100M - $104M
Operating expenses $78M - $81M
Net income 1 $16.4M - $19.1M
Adjusted EBITDA 2 $50.2M- $52.9M
Diluted earnings per share $0.60 - $0.70
Non-GAAP diluted earnings per share 3 $1.19 - $1.29
Weighted-average diluted shares (a) 27.3M
(a) Based on share repurchases through April 30, 2023, excluding any additional repurchases that may occur during the remainder of second quarter 2023.
Conference Call Information
InterDigital will host a conference call on Thursday, May 4, 2023 at 10:00 a.m. ET to discuss its first quarter 2023 financial performance and other company matters.
For a live Internet webcast of the conference call, visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference call, visit www.interdigital.com and click on the “Dial In Registration” link on the Investors page. Registration is necessary to obtain a dial in phone number and PIN to join.
An Internet replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year.
Questions Abound On EU Plan For New Essential Patent Rules
By Ryan Davis · (May 1, 2023, 10:35 PM EDT)
The European Union's call to create a new body to set royalty rates for standard-essential patents before lawsuits could be filed has drawn a skeptical response, with experts questioning how the plan would work and whether it would achieve its goal of streamlining disputes.
The European Commission released its proposal on Thursday, saying the move is aimed at bringing more transparency and predictability to a complex area of the law that has led to heated disputes and litigation.
When patents must be used in a product in order for it to operate on industry standards like Wi-Fi and 5G, the patent owner pledges to license them on terms that are fair, reasonable and nondiscriminatory, or FRAND. However, what constitutes such a rate often spurs legal clashes, and the EU proposal could reshape them in unpredictable ways.
Tom Cotter, a professor at University of Minnesota Law School, said that since rates are now set through litigation in courts around the world, which can lead to inconsistent results and forum shopping, "there is certainly is a lot of discussion around the world about the need to come up with a better, more efficient system for determining FRAND royalties."
"There's a lot to be applauded in trying to do that," he said. "But I'm not sure that this particular proposal is going to go forward as is because of the many objections that people have raised to it."
The European Commission called for a new "competence center" to be established within the European Union Intellectual Property Office, or EUIPO, which would create a central registry of standard-essential patents in force in the EU and conduct checks of whether the patents are in fact essential.
The proposal also calls for the center to operate a system to set a global FRAND rate for the patents when the parties cannot agree, with such a determination becoming a requirement before litigation could be filed in the EU. The commission said the nonbinding rate would be set within nine months, and would "limit the duration of otherwise protracted licensing negotiations."
The many questions spurred by the idea of creating an entirely new framework for standard-essential patents disputes have focused on the role of the EUIPO, whether the new body could meet the task being set out for it, and what would happen once a rate was set.
The EUIPO currently only registers trademarks and designs and has no involvement in patents, so its central position in the process is puzzling to many observers.
Marianne Schaffner of Reed Smith LLP's Paris office said that she found the proposal "quite concerning" since the key role is given to "an office which has no competence in patent law."
Moreover, she said that requiring patent owners to register their patents with the new body, and get determinations on whether they are essential and what a FRAND rate would be before litigation could begin, "adds so much complexity, and it slows down so much the possibility of having a decision from a court, that it's not business-minded to me."
While the proposal envisions the new body coming up with a FRAND determination within nine months, "I think that's very ambitious," said Andrew Sharples of the law firm EIP's London office. "To do a meaningful analysis in that time is going to be difficult, I think."
When the new body does set a FRAND rate, the fact that it would not be binding raises questions about what the parties are supposed to do with that information, attorneys said.
The commission "appears to have realized that the nonbinding nature just facilitates more delay," Sharples said. As a result, he noted that the proposal includes language stating that if one party commits to abide by the determination, it can terminate the process and file suit, putting pressure on the other side.
"They're trying to put in place incentives for parties to actually abide by their ruling, but query whether people will," he said, especially since there's no way of knowing at this stage what kind of rates the new body will set.
The EU aim for the proposal appears to be to "reduce litigation by giving the parties some idea of what a FRAND rate would be," said Amol Parikh of McDermott Will & Emery LLP. "But it's a nonbinding rate, so I'm curious to see if the courts will go through a similar analysis and come up with a similar rate."
In addition, Parikh noted that much about the proposed new process remains unclear, including who would be hired by the EUIPO to make the determinations, what experience they will have and what types of decisions they might make.
"Those are the types of questions that stakeholders are going to have to determine whether the regulations are workable in practice," he said.
Brian Pomper, executive director of the Innovation Alliance, whose members include owners of standard-essential patents like Qualcomm and InterDigital, said that a new body to determine licensing rates is "really going to hurt the technology developers."
When companies create inventions that are essential to industry standards, then are told, "'you're not going to be able to license this on the open market, you are going to have to take the price that we are going to be willing to allow you to charge,' that's a not a recipe for technological success," said Pomper, a partner at Akin Gump Strauss Hauer & Feld LLP.
He said the proposal appears driven by the concerns of companies like automakers that implement standards in their products and want to pay lower prices to license patents. "I can tell you ... it's not the patent creators and innovator companies that are going to the EU and saying, 'You need to set up a system to set prices in our marketplace,'" Pomper said.
In contrast, the proposal was welcomed by Alex Moss, executive director of the Public Interest Patent Law Institute, a group that says it's dedicated to ensuring that the patent system promotes access to technology for the public's benefit.
The proposed new system would provide more transparency about standard-essential licensing information, which is now largely confidential and can't be accessed by anyone other than patent owners except through litigation, she said.
"So right now, they have an enormous information advantage and that's really how this changes the game," Moss said. "The value of your patent shouldn't reflect an information asymmetry."
In addition, she noted that standard-essential patent litigation is extremely expensive, so the possibility that the new body could reduce disputes would free up money to use for salaries or research and development, to the benefit of both sides.
Others said if the system were to be adopted, it's not clear how it could impact the behavior of patent owners and potential licensees who implement standards in their products.
"It might not have the desired effect. It might simply result in either implementers or owners going to other countries to try to get determinations," rather than dealing with the framework in the EU, said Cotter of the University of Minnesota Law School.
Likewise, Reed Smith's Schaffner described the proposal as "a gift that the EU commission is making to the U.K." Since the courts in that country have said they can make FRAND determinations without all the steps being contemplated in Europe, the U.K. would likely become a more appealing litigation venue if the policy took effect, she said.
For now, it's far from certain that the European Commission's proposal will become a reality. It must be approved by the EU countries and the European Parliament to take effect and will likely face fierce lobbying. "If this is ever implemented, I imagine it's going to look much different than the proposal," said Parikh of McDermott.
"There's a lot of uncertainty and at least from many quarters, I think, some degree of unhappiness with the current proposals," Cotter said. "So that makes me at least somewhat skeptical that it is going to be adopted in its present format."
The site Fintel has institutional ownership at 28.8M shares aggregate total at 106%.
vegas....i hear you....they are playing russian roulette....but so far it hasnt hurt them on the new shares shorted into tender....they had 4myn short...now 3myn...thats still a lot for 27myn outstanding
Teecee56, A short has to buy the shares ultimately from a long. At that moment the long determines the price. Until then a short can pay the rental fees but unless it is a long that sells it just continues as a new short. When you have 27M shares and the threat of $200M Dutch Auction or buyback it takes a miracle for a short not to get trapped.
it would for your shares....the main impediment is that institutions own the vast majority of the shares....and lending is a source of incremental return for them...so they do it freely
Does placing a "Good 'Til Cancelled" way out of the money Sell order cut down on shares available to the shorts?
i agree...they are susceptible to squeezes on unexpected good news....but right now ...they are laying on the stock like a seal on the rocks.....and they usually win on low volume slogs....i understand it ....and accept it....ive been here a long time...and have seen a lot.....
teecee56, those short shares are not free. Those 3 M shares become painful and subject to margin calls when the stock goes up. We get news next week and then again 4 weeks later.
vegas....there are also almost 3myn shares that are being provided by the shorts...which the institutions freely lend them shares to do so....i know its not part of the float...but they are there.....and the shorts always have outsized short term influence when they are active
Market goes up IDCC goes down. Seems we are in the shorts view.
Fish21049, I appreciate when Simply Stupid writes an article like that to encourage people to short it. Let's see IDCC has about $40 cash per share and will earn about $8 per share this year (adding $5 Lenovo and $3 estimates) so it makes sense to me that it is only worth the low $50's......
According to the key statistics on Yahoo finance the institutions plus insiders own over 97% of outstanding shares. I wish it is true but I have not been able to find the new 13D and 13F 's yet as the will start flowing in next week.
I wish mgmt would wake up to what's happening to the stock price. Just saying after the dutch auction...what's next? Guess we will see when 1st quarter is reported next month.
Did I miss something? I was taking a nap.
Paullee those not “Woke” are sleep and don’t have a clue.
InterDigital appoints Skip Maloney as Chief People Officer
Source: GlobeNewswire Inc.
InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced that Skip Maloney has been appointed as the company’s new Chief People Officer, reporting to Liren Chen, President and Chief Executive Officer of InterDigital.
Skip has over 25 years of industry experience and joins InterDigital from Aspen Technology, a Nasdaq-listed provider of asset optimization software, where he served as the Chief Human Resource Officer since 2018.
“Our people are our most important asset, and I am excited by the role that Skip will play in enabling the further growth and development of our workforce,” commented Liren Chen, President and Chief Executive Officer of InterDigital. “Skip has a long history as a leader in HR, particularly with innovation-led companies, and his track record is an excellent fit for us in our ongoing evolution.”
“InterDigital is at the leading edge of innovation, and I am excited to work with some of the brightest engineers and leaders of our industry as they drive change within the wireless, video and AI ecosystems,” Skip added. "I'm looking forward to help further the mission of InterDigital and support its transformation in this ever-changing environment."
Prior to Aspen Technology, Skip was the Chief Human Resources Officer at Netscout Systems where he designed and led HR strategy for a 3,000-plus employee global organization with offices in over 40 countries. Before that he held senior roles at Lake Region Medical, Brooks Automation and Mercury Computer Systems. A native of Boston, Skip is a certified professional executive coach.
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital Contact:
Richard Lloyd
Email: media@interdigital.com
+1 (202) 349-1716
InterDigital, Inc.'s (NASDAQ:IDCC) Intrinsic Value Is Potentially 25% Below Its Share Price
https://finance.yahoo.com/news/interdigital-inc-nasdaq-idcc-intrinsic-122147185.html
Thursday, April 20, 2023
InterDigital v. OPPO patent infringement lawsuits stayed in Mannheim (formally) and Munich (de facto) after Federal Patent Court rendered negative preliminary opinions
After a UK FRAND determination that InterDigital said it would appeal, the research and licensing firm has now also suffered a few setbacks against OPPO in Germany. In late December 2021, InterDigital announced standard-essential patent (SEP) enforcement against actions OPPO in Germany, the UK, and India.
I found out at the time that one case had been filed in Mannheim, and two in Munich.
Like other plaintiffs in recent months (example, InterDigital faces the problem that ever more infringement actions in Germany get stayed or otherwise delayed by preliminary opinions of the Federal Patent Court. Those preliminary opinions used to take about two years to come down. But roughly a year ago, a provision of Germany's 2021 patent "reform" bill entered into force (for nullity actions filed from there on out) and now calls on the Federal Patent Court to hand down preliminary assessments within six months of a nullity complaint. The statute that was originally considered the most important one of the "reform" bill--the injunction statute--has proved just as useless as I predicted (there is not a single case in which a disproportionality defense even came close to preventing or otherwise affecting a patent injunction). And that one took effect more than 20 months ago.
The six-month target for the Federal Patent Court is, however, making a difference, even though it is not a hard requirement and the judges of the Federal Patent Court wouldn't have to express a strong opinion on the validity or invalidity of the challenged patent claims (they could just outline what issues appear likely to be outcome-determinative).
Plaintiffs now need a good strategy to amend the claims, though new claim language that has not been examined by a patent office meets a lot of skepticism in some German courts. Otherwise they need to be patient or, if they are not (and few licensors want to wait years to get paid), they must assert more patents against a given defendant than before.
Apart from the fact that the Federal Patent Court often deems patents--on a preliminary basis--invalid, it's generally neither enjoyable nor profitable to sue OPPO over patents. Nokia sued OPPO almost two frustrating years ago, and InterDigital's campaign started almost 16 months back and is not likely to yield results in Germany anytime soon.
A spokesman for the Mannheim Regional Court has confirmed to me that on March 10, 2023, the court's Seventh Civil Chamber stayed InterDigital v. OPPO case no. 7 O 46/22 over EP2485558 on a "method and apparatus for providing and utilizing a non-contention based channel in a wireless communication system." That same patent was actually deemed valid and essential to 4G by a UK judge in an InterDigital v. Lenovo case less than two years ago. But the Federal Patent Court of Germany handed down a preliminary opinion on February 2, 2023, in light of which the Mannheim Regional Court stayed the case.
I've also received information from a spokesman for the Munich I Regional Court concerning two cases pending before different civil chambers (judicial panels):
In case no. 21 O 17303/21 (21st Civil Chamber; Presiding Judge: Dr. Georg Werner) over EP2421318 on a "method and apparatus for transmitting scheduling information in a wireless communication system." That patent, too, fared well in the UK InterDigital v. Lenovo litigation. But instead of entering final judgment on March 1, 2023, the Munich court scheduled an additional trial day for October 18, 2023. According to the court, InterDigital had asked to reopen the proceedings.
On February 20, 2023, the Federal Patent Court issued a preliminary opinion in preparation of a September 14, 2023 nullity trial. The new trial date in the infringement case suggests that the outcome of the nullity trial (where a decision is typically announced, though the written judgment still takes several months to come down) will be considered. Should InterDigital be able to salvage the patent in one form or another, the trial will go ahead. Otherwise the case will presumably be stayed. The Federal Patent Court's preliminary opinion raises non-novelty issues for the challenged claims and declares some--but not all--auxiliary claims (amended claims) inadmissible.
On April 27, 2023 (i.e., in a week from today), the Munich I Regional Court will announce a decision in case no. 7 O 17302/21 (Seventh Civil Chamber; Presiding Judge: Dr. Oliver Schoen ("Schön" in German)) over EP2127420 on an "implicit drx cycle length adjustment control in lte_active mode." It is unclear whether next week's decision will be a final judgment or, practically, a stay. For the latter case, the court has already scheduled a new trial date: November 23, 2023.
The Federal Patent Court had rendered a preliminary opinion on that patent on March 27, 2023.
When InterDigital sued OPPO in December 2021, expectations were presumably higher than what has come out of those German cases so far. And even if InterDigital wins a German patent injunction against OPPO at some point, it may prove useless as the company stopped selling devices in Germany last summer so as not to be forced to take worldwide patent licenses that would adversely impact OPPO's competitiveness in some large but rather price-sensitive markets
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