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Did anybody find out if the Japan patents were validated. Just came accross this press release and I'll assume that Panasonics rate will be equal to NEC and SHARP. Would be a nice surprize if we can start collecting on another 3G customer.
"/3/2001 9:39:00 AM - Matsushita Signs Worldwide 3G CDMA License With InterDigital
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--April 3, 2001--
Agreement Includes Initial Payment for Royalties on CDMA-Based
Products Sold Under Panasonic and Other Matsushita Brand Names
InterDigital Communications Corporation (Nasdaq: IDCC) today announced that its subsidiary, InterDigital Technology Corporation (ITC), has entered into a worldwide royalty-bearing CDMA patent license with Matsushita Communications Industrial Co., Ltd., of Japan.
The agreement covers wireless terminals, infrastructure products and test products compliant with CDMA-based standards sold by Matsushita under Panasonic and other brand names.
Under the agreement, ITC will receive an initial multi-million dollar payment for royalties Matsushita will be obligated to pay when it sells products utilizing CDMA inventions under patents issued to InterDigital.
After the initial royalty prepayment is exhausted through product sales, Matsushita will pay additional recurring royalties to InterDigital as it sells additional products using InterDigital's patents issued around the world.
Matsushita signed a worldwide royalty-bearing TDMA patent license with ITC in 1994 and is now licensed under both ITC's CDMA and TDMA patents for equipment compliant with the following TDMA and CDMA-based standards: IS- 54/136, PDC, PHS, GSM, EDGE, IS-95, W-CDMA, and CDMA-2000, and all other IMT-2000 standards.
"Our licensing agreement with Matsushita, a key supplier of telecommunications products worldwide, is an important step in the execution of our strategy to grow as a provider of innovative technologies and products for advanced wireless applications," said Howard Goldberg, President and Chief Executive Officer of InterDigital.
"This is a reflection of our growing position as a leading developer of 3G technology and the strength of our patent portfolio which includes many essential patents. We are using this position to work with our industry colleagues to encourage the proliferation of W-CDMA technologies. With this agreement, we are adding to our revenue base as the 3G market evolves and grows."
InterDigital will recognize royalty revenue associated with the royalty prepayment as Matsushita sells products in the future. The cash generated by the prepayment will be recorded on InterDigital's balance sheet in 2001.
InterDigital has licensed its CDMA inventions to several telecommunications companies, among them Siemens, AT&T, Nokia, and Qualcomm.
Matsushita Communications Industrial Co., Ltd. is one of the world's leading developers of telecommunications equipment, data processing and measurement equipment, professional audio/visual equipment and automotive electronics.
The company is a principal domestic subsidiary of Matsushita Electric Industrial Co., Ltd. (NYSE: MC), one of the foremost producers of electronic and electric products for consumer, business, and industrial use.
It markets products around the world under the "Panasonic," "National," "Technics," and "Quasar" trademarked brand names. For more information on Matsushita Electric and Panasonic, please visit the company's web site: www.panasonic.com.
InterDigital is creating innovative solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers. The Company has a strong portfolio of patented TDMA and CDMA inventions, which its license worldwide. For more information, please visit InterDigital's web site: www.interdigital.com.
This press release contains forward looking statements regarding, among other things, the timing of ITC's recognition of revenue related to the nineteen and one-half million dollar pre-payment to be made by Matsushita, and the growth in ITC's 3G related patent license revenue. Such statements are subject to risks and uncertainties.
Actual outcomes could materially differ from those expressed in any such forward-looking statements due to a variety of factors.
These factors include, but are not limited to, Matsushita's success in marketing and selling 3G equipment, ITC's ability to achieve issuance of key patents now pending in Japan, and to maintain key patents worldwide, as well as other factors listed in the Company's most recent filed 10-k Annual Report.
Bill,
My thoughts and prayers are with your wife and yourself. Be strong.
John
A Big Thankyou to jaykayjones for another amazing mission to keep shareholders informed. As we say in NY "You are THE MAN".
Got you beat, I've still got my Radio Shack Tandy complete with two floppy drives, Z80 processor and CP/M operating system.
He is part of the manipulator crew. Tice's group probably pays these guys .10 cents a word. The objective is simple find respected posters, knock them off-topic and get them to concentrate on anything but the positives of IDCC. See what iHub posting gets you. Now I better go wash my keyboard off and get back to ragingbull.
Jim,
You have way too much class be wasting your time with Meander. Come back to the Bull where you can be appreciated.
Matt,
The teecee issues and the Once issues are totally separate.
You are right on one and wrong on one, in my opinion.
If you have a rule that says vulgarity is not allowed and that landed teecee in jail that is the rule and so be it.
As for giving Once an audience you are very wrong on this one.
This board that Jim has created is the best and most informed message board on the internet, period. Many, many posters spend hours upon hour researching and many more lurkers spend hours upon hours reading. Giving once access to this fine place is like giving a "KKK" member a column in the NY Times. Yes we can skip the column but by allowing him to post you are allowing him to have related credibility which he does not deserve.
He preys on investors and causes doubt. He is either a short seller or a paid poster. This type of individual can ruin a board and by the likes of it is ruining this one. He spends hours upon hours twisting anything he can into a negative and attempts to "hurt" the investor every single chance he gets.
So if we can't have a "Once" free board here we might as well move back to ragingbull.
My post refers to what we would need to achieve a triple digit stock price. Many people have high expectations. The results would coincide with whatever rate is set. My point is that we would need 1.5% for 3G to get to triple digits. Getting less would mean less of a stock price.
We will see how strong their IPR and how much intestinal fortitude (no spell check) IDCC has, by what rate 3G is set. I still beleive that the arbitration is about getting IDCC to set a lower 3G rate and not so much about 2G dollars.
So the battle begins. The next year will be very interesting. In order to make serious money here you must have very long term views. So if IDCC caves they still may get to $50 a share which I feel is the worst case scenario. If they fight we may see $100.
The SAGA of IDCC.
Many of the longs here beleive this stock to be a future triple digit play including myself. So we are about 85.5 points away give or take a few cents. Not speaking for mschere or Alley both of whom I enjoy reading I can only give my assesment of this investment.
A 5.5 billion dollar market cap would equate to about $100 a share. The current market cap is about $800 million.
The only way to get there from here would be to achieve phenomenal revenue growth.
$20 million a quarter won't cut it so what would we need?
First, NOK/SAM 2G. This revenue would add about $30 million a quarter. Now we are at $50 million and a $50 stock.
Next we have 3G revenue. We need to generate 1.5% royalties from NOKIA, SAM, ERIC. If this is accomplished we get to $100 if not we don't.
This stock is not for the weak stomached. If you beleive that IDCC will prevail not only in arbitration with NOKIA but they will have the backbone to collect the money at the rate which they charge NEC and SHARP then you can see how $100 is not a pipe dream.
If NOKIA succeeds to beat IDCC into submission and gets they to accept a 3G rate that is under 1% then IDCC will become an also ran and become irrelevant.
This is the BET in my opinion. If IDCC wants to be a big boy they must hold steady on 3G rates and force companies to pay a rate that they beleive is fair. Otherwise they will never hit the "homerun" and we will all be posting about woulda, coulda's and shoulda's.
Looks like IDCC doesn't it?
August 11, 2003
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We found an outstanding company at an unbelievable price. The company owns essential intellectual property that has been incorporated into the standards for a new technological shift that will occur over the next several years. This means that the government has granted a monopoly to the company, through its huge quantity of patents, over technology that the industry has incorporated into the standards with which all equipment manufacturers must comply.
This company will be paid a royalty rate on products that are sold which utilize its patented technology. The company's business model is the best we have ever seen. The costs of the company remain constant regardless of the revenues because they do not have a cost of product. That means 100% gross margins, which cause added revenues to go directly to the bottom line. Also, they make it easy to analyze the company because all one has to do is to predict the revenues.
The industry has already committed over $60 Billion dollars to the development of this technological shift. Therefore we see no alternative for it other than to continue with it. Regardless of the company's amazing business model and future potential, its market value remains unduly low. We estimate that, using conservative revenue figures, the company is trading at under two times future earnings. This implies an annual yield of around 50%. Not bad compared to current money market yields of roughly 2%.
At this point we were completely convinced that we had found the single best investment in the entire market. So then we set about trying to prove ourselves wrong. We double-checked our estimates and assumptions, but they nonetheless confirmed our initial conclusions. We further analyzed the company's recent developments and became even more convinced. So we then went about determining why the stock was so extremely undervalued. We soon discovered that it was the result of the convergence of several widely misunderstood factors.
The first was that the market misinterpreted the company's history. As a result, the market assumed that the past will be repeated. But the market is completely wrong. In the past, the company failed to collect royalties for their intellectual property for a previous technological standard. The market then assumed that the same will be true of the future. However, the assumption is an erroneous one because in the first situation the technology was not part of any standard, making manufacturers reluctant to pay royalties if there was any chance that they did not have to do so. This time around the patents have been incorporated into the standards. This indicates that the company has learned from its past mistakes. Also, we believe that the company lost some credibility several years ago because of a legal situation that went against it. We believe that this type of a legal situation will not occur again because of changes to the law that the Supreme Court made shortly after the company's legal situation.
In addition, the company has posted only a small amount of income recently on a GAAP (generally accepted accounting principles) basis. This is because they are investing huge amounts of money in order to generate even more profits in the future. The market views this as a negative, but we feel very strongly that it is a big step in a positive direction. These three facts, combined with several others, have brought about what we believe is a once in a decade opportunity. We believe that the potential of this investment will one day rival the gains of the likes of Microsoft and the other high-fliers of the 1990's.
Not buying the fact that Once is better than teecee. The ragging bull board was a pleasure because we didn't have to deal with short sellers like once that attack shareholder confidence. That is what made the ragging bull IDCC board the best on the internet. JimLur did a fantastic job keeping the "Once's" of the world off the forem.
Now we lose a great psoter like teecee and give once an audience he does not deserve. This is a sad state.
Put me on the side that says lets bake a cake with a file in it and spring teecee out of jail. I can't beleive they let Once_a_short_always_a_short post and keep teecee off the boards.
I beleive that a hostile takeover is a real possibility at this time. If NOK/SAM collude to get IDCC taken out at these levels then the savings to these big 2 would be enormous.
If NOKIA takes them out at say $20 a share you get $1.08 billion market cap - $100 million cash minus $200 million owed nets about $700 million. Now they start developing chips and screw qualcomm, cut a sweetheart deal with samsung and bingo, NOKIA becomes the new 3G king.
This may not be the plan but why would NOKIA put insider trading accusations in their filing? They wish to wound IDCC and either get them to agree to something substantially less or make them disappear.
Jaykay,
Sorry that you are not feeling very good about IDCC right now. I beleive in the long term value of this investment. Even without the NOK/SAM money it looks like quarter to quarter revenues will be rising for the forseeable future.
We must not confuse ourselves into thinking that because IDCC does not "hit a home run", that this investment is a failure. My beleif right now is that we can make a new high in the foreseable future. That is like 90% higher than the price it is today.
May I add that the work you did during the ERIC trial was outstanding and well appreciated. I can understand your disappointment but all that matters is that shareholders come out making money. I beleive that every shareholder MUST lower their expectations of this investment and re-think their exit strategy given the arbitration situation.
We deserve to make money and I expect to make money on IDCC. At $30+ everyone will make money(except the 2000 spike investors)but not the "quit your day job" money that we all thought we would make.
My method of picking and buying stocks is based on company valuation. While I missed the boat selling out partially at $28-$29 a share, I did this because I felt comfortable that with NOK/SAM money on a continuing basis IDCC valuation should rocket to about $5 billion or roughly just under $100 a share.
This model probably needs to be adjusted downward now that NOK/SAM put the brakes on. But the current valuation of this company is way too low. With a market cap of $840 million and $100 million in cash this company could be bought right now for under $740 million. In my opinion way too low for a company with this patent portfolio. Right now I'll guess at $28 or about $1.5 billion.
The only thing that has become constant in the last 2 years is that IDCC's stock price is totally unpredictable. Sure it hits highs and lows but no one knows when it will run or fall for that matter.
I just bought about 4000 trading shares between $15 and $16. These I'll hold until $20+ and then keep my core for the home run. Hopefully tommorrow IDCC will do a good job at the boston conference. More importantly the top guys are prepared for hard questions at the CC. They did not participate in the NOK arb CC and must be willing to re-answer questions from analysts. I think the CC was handled well but I'd like to hear what the top guys have to say.
Sorry for being repetative but the picture NOKIA wants to paint is a 5% royalty cap on 3G. That means hammering both IDCC and QCOM. I'm sure the meeting with SAMSUNG covered this topic. Now we have both NOKIA and SAMSUNG developing their own chips.
NOKIA beleives that a weak IDCC is the key to a lower 3G rate structure in the future. Offer .5% on 3G and see how fast they settle the arbitration, hense the battle begins.
What is the difference between NOKIA & MSFT? Different countries of origin.
In the end GREEN is the color everyone wants to see. Corporations rarely hold grudges. If NOKIA feels it is to their benefit to pay IDCC they will. Right now they feel it is in their benefit to weaken IDCC, IF THEY CAN.
In my opinion, the key here is a solid financial footing.
The market cap is about $840 mil so a buyout will cost about $740 less the $100 million in cash. No Debt.
The company is both cash flow positive and profitable. The key to an explosive growth company is obtaining these two very important milestones.
If revenues keep growing quarter to quarter this stock will rise REGARDLESS of what NOKIA does.
I also think that it is time for IDCC to flex its 3G muscles. Pick any company that sells 3G and does not have a license and initiate a law suit. Why? To scare the crap out of infringers that is why.
With $100 million in cash and positive cash flows IDCC could very well afford to let F&J do some serious butt kicking. No more coming to companies with hat in hand saying "Please license my technology".
These guys only understand STRENGTH. Now that IDCC has a war chest they need to punish someone on 3G. SAMSUNG? LG? MOT?
Pick a company and unlease the hounds.
Nokia is not happy about a 3G rate that NEC and SHARP agreed upon (1.5%). They want total 3G percentage to be capped at 5% and both QCOM and IDCC are not amicable to this arraignement. So the bully starts kicking sand over the smallest victim he can find. IDCC.
The big problem I have with Marsala is predicting revenue declines from years 2006 to 2010. If he wants to go ultra-conservative fine, move to a sell and drop coverage. He is forcasting IDCC to be an irrelevant entity going foward. This I believe is payback for IDCC's not closing the NOKIA deal. His $12 price target costs us $2.00 a share and cost many margin holders to be sold out of the stock. I was a buyer on this news although I pulled the trigger a little early ($16.00).
Bottomline, I do not beleive the revenue projections and the model he is predicting has a factural basis. By covering his butt he hurt the shareholders of this company. Now we know analyst coverage is a double-edged sword and if Marsala would have come out with his report the day after the CC I'd have less problems with it. He sold out his clients and waited until IDCC stablized to produce his report. My guess is that their is some short selling involved here also.
So I wish that Frank "Chicken" Marsala would FLY THE COUP.
You meann Frank "Chicken" Marsala. LOL
This CC may very well be a defining moment for IDCC. They need to be extremely "THICK SKINED" and patient with questions. Marsala just kicked sand in their face after the bully NOKIA punched them down. Personally I thought the report from Marsala was very vindictive bordering on incompetant. From 2006 on he projects heavy revenue decreases.
2006 226,000
2007 214,000
2008 203,000
2009 195,000
2010 188,000
This is really ridiculous. With 3G in full swing and all the new patents and standards taking effect Marsala chooses to ignore IP just as NOKIA would like to. He obviously was left with a bad taste in his mouth and decided to extract his pound of flesh from KOP.
I would like IDCC group to be upfront and as open as they possibly can. Maybe this is the time that they decide to take questions from some key shareholders. They should really work to get their loyal following of holders behind them and against NOKIA. They way this can be accomplished is through access and information.
I'd expand the time allowed for this call 1/2 hour and use that to answer shareholder questions.
P.S.
One of the most encouraging events after the July 22th massacre was the fact fact that the analysts did not run. They are here for 3G and are not leaving before the train takes off. One analyst reduced his price target. No big deal.
So if I have to wait another year for my $100 a share price target so be it. I waited 3 years for Primus telecom.
Jul-30-02 0.67 0.71 0.67 0.70 91,800 0.70
Last Trade
4:00pm · 6.81 Change
+0.12 (+1.79%)
I can wait another year for IDCC. I don't think I'll be waiting that long but my money is on triple digits by July 30th, 2004.
Call me stupid but I bought more today at $16 a share.
IDCC's market cap is now at a little over $900 million. Hell SIRI is at 1.6 Billion.
What fundamentally changed? The timing of the NOKIA payment, PERIOD.
We have been here waiting for 1 1/2 years for NOKIA to kick up money. I'm sure IDCC management was as frustrated as shareholders were knowing the phase II date had past and no rate had been agreed to.
Nokia entered into a contract and agreed to pay. Well if ERIC is not the trigger what does NOKIA propose it to be. If they entered into a contract and agreeded to pay a rate what rate do they think they should be paying? .003 .002. .001?
The problem is that NOKIA executed this contract in BAD FAITH because they never really wanted to pay anything. If they do not want triggers then they do not want rates and they do not want to pay. Am I missing something here?
In the long run the courts will find that NOKIA needs to pay a rate. Eventually this will be put behind this company. This investment has always been about 3G and IDCC IPR in 3G.
So I'm a buyer at these levels because I beleive IDCC has the IPR in 3G to demand payments not because I beleive NOKIA will be forced to abide by a contract they executed and agreed to in 1999.
"IMO, was never on the table. IDCC won, Ericy wasn't going to give them a 3g besides. That was never part of the lawsuit."
My opinion on 3G is that NOK and ERIC want to keep rates like 2G, .5 percent. That is why no movement on 3G is occuring. Put an 1/2 percentage point on the table and I bet they would sign.
The fight now is to get IDCC to settle for a rate under 1%. I'd rather suffer with a low stock price and a year arbitration battle then to cave on 3G.
Many posters beleive that IDCC caved when the ERIC settlement was announced. I think big 2G money was lost at the MOT trial and the 2G money keeps IDCC well funded until 3G takes off.
I continue to go back last year when NOK stated that they wanted a 5% cap on 3G royalties and IDCC strongly disagreed with royalty cap. NOKIA will use whatever hammer they have to that will keep royalties down.
My position wasn't always positive. Since the ERICSSON settlement this company has been providing BETTER answers and a clearer picture. I now have a better understanding of what was/is going on with these wireless handset vendors. They do not respect IPR until they are forced to. NOKIA no different than ERICSSON which is no different than MOTOROLA. They pay lawyers to fight IPR.
The difference is now IDCC has no guesswork. They have a valid contract negociated in good faith by NOKIA. This isn't a question of IPR this is an 800 poind Gorilla using lawyers to attempt to get them out of a contract they negociated.
I like the fact that IDCC may use NOKIA's accruals in the arbitration procedures. Love to see them try to explain away the fact that they accrued almost the exact amount that IDCC states it is owed.
Bottomline, it is time for us longs to rally behind this company and fight this 800 pound bully. King kong went down and so will NOKIA.
"there isn't anything to put any upward pressure on the price "
Disagree again, I say 2 things will cause us to get past $20.
1. The return of the bull market in technology. Nasdaq is up over 25% this year.
Jan-02-03 1,346.93 1,384.91 1,336.98 1,384.85 12,875,400 1,384.85
2. 3G adoption in full swing.
If NOKIA dispute was about 3G that would be different. 2G money is gravy. This company is focused on 3G and 3G licenses.
We have many more opportunities for positives than for negatives at this point.
I still say this is all about the 3G rate that NOKIA wants. They want no part of 1.5% and IDCC is not about to give a sub 1% rate. NOKIA thinks strong arm will work.
My take NOKIA loses first round to have docs unsealed and negociates a 3G rate at 1.25%
Totally disagree. Analysts were all satified with the answers. This call was very good. Direct questions and clear answers.
My take is we will drift up not down. Look for low 20's by next CC August 13th.
Basically my new philosophy has been to buy when their is blood in the streets. I couldn't today because I maxed out last week but I'm holding strong.
I beleive the company was consistant in stating the royality obligation and the arbitration possibilities. They spent probably 2 years trying to get NOKIA to agree on a rate. Now NOK wants to go to arbitration, fine let them. Getting people to write big checks is very, very difficult. I for one am happy IDCC stood its ground. Now lets hope for a positive call.
Smart move. Get out there and defend your position. Let the analysts have access to upper level management while shareholders can listen. Issue a statement and let the questions fly. Analysts will now wait until after the CC to issue their opinions.
Press Release Source: InterDigital Communications Corporation
InterDigital to Host Conference Call to Discuss Announcement of Arbitration Proceedings with Nokia
Wednesday July 23, 9:21 am ET
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--July 23, 2003--InterDigital Communications Corporation (Nasdaq:IDCC - News), a leading architect, designer and provider of advanced wireless technologies and product platforms, announced today that it will host a conference call today, July 23, 2003 at 2:00 p.m. Eastern Daylight Time to discuss the recently announced arbitration proceedings with Nokia. For access to the conference call within the U.S. please dial (877) 505-0448 by 1:50 p.m. EDT and ask the operator for the InterDigital Conference Call. Participants calling from outside the U. S. should dial (706) 679-3165.
InterDigital also will provide live access to the call on its web site at: www.interdigital.com. The Company encourages participants to take advantage of the Internet option if possible. For the live Internet broadcast, click on the microphone icon next to "Live Web Cast" on the homepage and you will link to the web cast. In preparation for the web cast, InterDigital recommends that you complete the Pre-Event System Test.
In addition, a replay of the call will be available from 4:00 p.m. EDT July 23 through 5:00 p.m. EDT July 25, 2003. To access the recorded replay, dial (800) 642-1687. Participants calling from outside the U. S. should dial (706) 645-9291 to access the replay and use the confirmation code 1909001.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers. InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com. InterDigital is a registered trademark of InterDigital Communications Corporation.
--------------------------------------------------------------------------------
Contact:
InterDigital Communications Corporation
Media Contact:
Dawn Goldstein, 610-878-7800
dawn.goldstein@interdigital.com
or
Investor Contact:
Janet Point, 610-878-7800
janet.point@interdigital.com
--------------------------------------------------------------------------------
Source: InterDigital Communications Corporation
While I'm taking a big hit in my portfolio my thoughts have always been that IDCC was a 3G play and not a 2G one. The 2G money is "gravy". NEC is kicking NOKIA butt and SHARP is moving camera phones left and right.
Question? Can IDCC go after SAMSUNG for selling camera phones? I know they can't go after NOK because they have a similar 3G license with regard to rate as they do 2G but how about a nice 'CEASE AND DECIST' order on SAMSUNG to scare the crap out of the rest of the industry.
With $100 million plus in the war chest and the company being profitable I say it is time to take the gloves off. Let the 3G litigation begin only this time go for the jugular and stop letting companies off the hook. During the 10 year ERICSSON period they were negociating from a period of weakness. CASH BURN + NO LICESES = WEAKNESS.
Now they may not be an 800 pound Gorilla like QCOM but let F & J loose on 3G and start slapping around infringers like SAMSUNG who wish to hide behind NOKIA'a coat tails.
They are claiming that the ERICSSON agreement is NOT a triggering event for licensing.
"Nokia is seeking a determination that it has no royalty obligations to ITC based upon ITC's licensing of Ericsson and Sony Ericsson."
How does NOKIA argue in arbitration that the rate should not be set?
We spoke with a Nokia representative yesterday who confirmed that Nokia has a 2G
GSM/TDMA licensing obligation with InterDigital for 2002 through 2006. This is
important, in our view, because prior to this, Nokia had been vague in describing its
relationship with IDCC outside of the 3G engineering work that IDCC performed for Nokia.
While NOK would not specifically comment on the financial terms of obligation, we believe
information found in a Nokia filing reinforces the recent figures that IDCC’s management
stated on their conference call that discussed the Ericsson patent licensing settlement.
• Nokia booked 93 million euros, or approximately $100 million, for 2002 for intellectual
property rights (IPR) infringement. This is from a Form 20-F filing. As Nokia admits that
it has a royalty obligation to IDCC, and Nokia indicated to us that it, "...has taken prudent
steps to provision for any liability", we believe that a large majority or perhaps even all of the
93 million euro provision in 2002 for IPR relates to Nokia's obligation to InterDigital.
• Nokia's $100 million figure for 2002 matches the $100 million to $120 million obligation
that InterDigital's Chief Financial Officer stated on the conference call announcing the
Ericsson settlement. Importantly, the fact that NOK admits the obligation (and provisions
an amount) indicates to us that the final royalty rate could be settled soon and that it will
likely also be settled amicably. Another positive is that once the NOK rate is finalized,
Samsung also becomes an IDCC licensee for GSM/TDMA because late last year Samsung
exercised a most favored licensee (MFL) clause whereby it will receive the same licensing
terms as Nokia. Currently, IDCC receives no licensing revenue from Nokia or Samsung.
Back past $17 in after hours.
18.01 $ 17.20 100
18.01 $ 17.18 400
18.01 $ 17.25 300
18.01 $ 17.25 100
18.01 $ 17.25 100
18.01 $ 17.14 100
18.01 $ 17.10 800
18.01 $ 17.02 1000
18.01 $ 17 1000
18.01 $ 16.95 200
Years of frustration in NOKIA dealing contributed to IDCC settling ERIC and establishing a rate. IDCC thought ERICSSON to be the bottleneck and NOK has inherited that part. The numbers will still be fine with ERIC, NEC, SHARP and RIMM.
I keep remembering NOK phase II and finding out that they would be paying Jan. 1st 2002 and how exciting that was. I can't see NOKIA's position in going 1 1/2 years posturing over 1/2 of 1 percentage point. How do they argue the point that they have already accrued this money in their financials?
Bottomline NOKIA has about as much of a chance to win in arbitartion as Sadam Hussean does in recapturing IRAQ.
Nokia is getting off the first punch. They are delaying IDCC going to arbitration. Bad news and good news.
The bad news is the share price, OUCH!
The good news is after waiting for a NOKIA rate for 1 1/2 years we will get one.
I can't beleive that any arbitor worth his weight would continue to let NOKIA wait for a rate until another unknown party settle (MOT?).
NOKIA is guilty of entering into a contract in bad faith, IMO. Why aggree to pay and not expect to pay.
My take is that both SAM and NOK would like to screw IDCC and they will use every legal method they can.
Shorts are winning. With no news, no buyers and light volume, Tice's group has momentum. Very difficult to fight unless we get new coverage or new buyer.
In my opinion 2 strategies work when investing.
The first is technical trading which I never do. Programs that analyze movement patterns based on volume do work. Way to complicated for me and way to much time required to study all the data.
The second is fundamental trading. Stocks will always rise to a fundamental value of the entire company. Common stock - debt = value. This is how I trade. Fundamental investors should not worry about daily flucuations in stock price. They find a value that they think the company is worth and hold it until that value comes to pass or if any negative fundamental events cause things to change.
IDCC is a fundamental play for me. Right now the company is valued at $1.3 Billion. My belief is that this is too low based on the amount of future revenues this company will receive. When the dust settles and NOK/SAM pay and 3G licenses start coming in I beleive this company should be worth $5 billion or 4 times its current value.
When ERICSSON signed the fundamentals of this company changed. If it goes down to $20 or up to $30 it does not matter to me. I'm long term waiting for the $5 bil market cap. I beleive we will get there but it is anybody's guess when.
QCOM down big last week.
Jul-18-03 35.75 36.00 35.26 35.49 7,721,500 35.49
Jul-17-03 36.33 36.38 35.55 35.78 15,328,100 35.78
Jul-16-03 37.99 38.11 37.00 37.32 8,825,000 37.32
Jul-15-03 38.57 38.72 37.39 37.80 11,350,700 37.80
Jul-14-03 38.91 39.56 38.11 38.37 11,368,300 38.37
Started at $38.37 ended at $35.49 close to a $3 haircut.
IDCC was down about .61 cents on the week from $24.73 to $24.12.
Jul-17-03 25.60 25.60 24.49 24.69 1,048,200 24.69
Jul-16-03 25.55 26.25 25.21 25.64 1,593,800 25.64
Jul-15-03 25.21 25.55 25.13 25.47 822,300 25.47
Jul-14-03 25.00 25.26 24.85 25.10 451,600 25.10
Jul-11-03 24.77 24.98 24.56 24.75 245,700 24.75
Where have we been mislead?
I've only been invested here for 3+ years but un that period I've never heard management "misleed" investors. I've listened to numerous conference calls where management would steadfastly refuse comment on revenue projections from NOKIA.
The fact is all the pie in the sky numbers came from either legal filing (Law suits and arbitration positions) or this board.
This is why I'm extremely confident that the NOK/SAM money will hit IDCC's bank account. This was the first time I've ever heard detailed revenue projections and I beleive they would not have made those statements if the legal agreement did not support those numbers.
My feeling is that the point of contention is 3G rate. Nokia has been on record stating they want the total lic rate capped at 5%. IDCC has been on records saying their should be no cap. NOK needs IDCC to come down from 1.5% because QCOM must be paid also.
This is all about furture revenue streams and very little about past 2G money. I think NOK beats up IDCC for a sub 1% rate and then goes after the 800 pound gorilla QCOM. IDCC is tired of being a wireless doormat and putting up a fight. ERICSON is sitting and playing the NOK game. Go get a 3G rate from NOK then we will give you the same rate.
So this battle (in my opinon) will be the foundation of future revenue for years to come. If IDCC caves, then SHARP, NEC, ERICSSON, and SAMSUNG will all be getting discount 3G rates. If IDCC goes to the mat and stays above 1% for 3G then everyone will be saying remeber when IDCC hit $100 PRE-SPLIT.