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Is this the 'Rabbit out of the hat' that will convince shareholders to approve the new incentive/comp plan for insiders?
It is a RENEWAL and not a new license agreement.
And it comes just 1 week before the Annual Shareholders Meeting ! Makes you wonder? ? ?
Is that all you've got? What about ZTE? What about LG? What about Lenovo? What about Xaiomi?
JMO
InterDigital and Panasonic Mobile Communications Renew Their 4G Patent License
WILMINGTON, Del., June 07, 2017 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile technology research and development company, today announced that its patent holding subsidiaries have renewed their worldwide, non-exclusive, royalty-bearing patent license agreement with Panasonic Mobile Communications Co., Ltd. (“PMC”), covering 4G technologies, including LTE and LTE-Advanced.
“Renewing this agreement with PMC confirms that reasonable parties can find agreement on mutually beneficial patent licenses through good faith negotiations. PMC is a long-standing InterDigital licensee and this renewal will ensure PMC continues to have access to our wireless technologies,” said Lawrence F. Shay, President of InterDigital’s patent holding subsidiaries.
About InterDigital®
InterDigital develops mobile 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 and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
JohnSamuel: Sounds like the Nortel Patent Sale of 2011, Many 'partnerships forming, trying to ensure that those who want the business are joining with other companies to get their bids in.
And the winner (Hopefully) is Western Digital who may buy the spoils at a lower price OR sell their interests and make a huge profit!
Western Digital was a 'gamble stock" I bought about 1 year ago on recommendation of Jim Cramer. It has nearly doubled in value (I'm up 88% and this is one I can sell because it is in my IRA account and not subject to gains taxes.
Why Apple, Amazon and Foxconn Face Tough Odds in Their Bid for Toshiba's Chip Unit
Eric Jhonsa Eric Jhonsa Follow Jun 5, 2017 2:44 PM EDT
Looks like a battle is brewing. IMO, because of the joint ventures,
Western Digital may have the upper hand right now. AND, the Japanese may not allow the company to go outside of the country.
JMO
Though Broadcom (AVGO) just signaled that it's no longer bidding for cash-strapped Toshiba's valuable NAND flash memory unit, Taiwanese contract manufacturing giant Foxconn apparently remains undeterred, and has won the backing of two tech giants with large internal flash memory needs. But given political pressures and Western Digital's (WDC) recent moves, the bid faces an uphill battle.
In a talk with Japan's Nikkei, Foxconn chairman Terry Gou confirmed prior reports that his company has bid for the Toshiba unit, and that Apple (AAPL) and Amazon.com (AMZN) are taking part. Apple and Amazon could each use a Toshiba investment to help guarantee stable supplies and reasonable prices for the massive amounts of flash memory used by both their consumer hardware businesses and their cloud data centers.
Gou didn't disclose the size of Foxconn's bid, or how much Apple and Amazon are contributing. However, the Nikkei's sources state Foxconn parent Hon Hai Precision "is the highest bidder among five interested buyers, supposedly offering more than 2 trillion yen ($18.2 billion)."
Second-round bids for the Toshiba unit were reportedly made last month. In addition to Foxconn, reported bidders included Western Digital, Broadcom (now apparently uninterested), a joint bid from PE firm Bain Capital and South Korean memory maker SK Hynix and a bid featuring PE firm KKR and two state-backed Japanese funds.
The Japanese government, keen on seeing Toshiba's flash unit remain locally-controlled, has reportedly been providing support for the bid featuring KKR and two state-backed funds. It has also reportedly been especially wary of a Foxconn bid, given the strong ties the company, which has many manufacturing plants in mainland China, has with Beijing.
Meanwhile, Western Digital, whose SanDisk unit has a series of major flash manufacturing and R&D joint venture agreements with Toshiba, filed an arbitration claim in mid-May seeking to prevent Toshiba from including its JV interests in a flash unit sale, something that would significantly reduce the sale price Toshiba would get. Western pointed out that its JV agreements with Toshiba state that neither party can transfer a JV interest without the other's consent.
Toshiba responded by taking some of those JV interests out of the flash unit, but Western was quick to counter by arguing that a large portion of Toshiba's JV interests still remain in the unit. Between the apparent strength of Western's legal claim, and the fact that it could take about a year for an arbitration court to rule on its claim, the company's actions throw a big wrench into any attempt by Toshiba to sell its flash unit in a deal that doesn't feature Western.
Meanwhile, Western was reported last week to be open to a deal with KKR and the Japanese funds in which it obtains a minority stake in the Toshiba unit. Such an agreement could fit with Tokyo's goal of keeping the Toshiba unit under local control, while also meshing with Western's desire to grow its flash memory exposure and prevent the Toshiba unit's sale from hurting the long-term strategic goals it has for its SanDisk unit.
Thus, to secure Toshiba's flash unit, Foxconn and its allies not only have to make the highest bid, they likely have to convince Tokyo to have a change-of-heart and hope Western loses or abandons its arbitration claim. All while the two opposing forces it's dealing with reportedly discuss a compromise.
olddog967: Wouldn't it be nice if our company could issue this type of press release with ANY license signed?
Qualcomm boast it has 330 world-wide licenses; how many does InterDigital have? Where is our best in class licensing team at with signing ANY licenses?
I wish InterDigital's reports would highlight and name ALL LICENSED IN PLACE, even if it only generates $1 million per year.
What does Qualcomm have that Interdigital lacks? I wish we knew.
JMO
Below is a link to a list of over 150 mobile phone manufacturers throughout the world
https://en.wikipedia.org/wiki/List_of_mobile_phone_makers_by_country
From this list, how many shold ve licensed and how many are currently under license?
How many has IDCC licensed since January 1, 2016? Curious minds would like to know.
JMO
SO, will IDCC 'pull a rabbit out of its hat' or will it stay 'status quo' prior to the Annual Shareholder meeting?
Will they sign someone and hope to 'grease the way' to an approval of the new Executive Incentive plan or will they hope they get approval, with shareholders thinking they won't achieve targets
I just hope the shareholders, especially the top institutional holders VOTE AGAINST THE PROPOSAL.
With the huge hoard of cash in the bank, management and the board should focus their attention on its shareholders and give them something tangible in the form of a special dividend which they can spend instead of a promise to 'enhance shareholder value' through share buy-backs.
Get ZTE, LG, Xiaomi, and Lenovo licensed and then come and ask for a new executive incentive plan.
jmo
eagle: Yahoo recently (in the past week) started a new 'version'. I had to log in with my user code and ID and then got into my portfolios. (I think this was last weekend or Monday/Tuesday at the latest.
Everything worked OK since then. And I am on it now.
my3sons87: This was emailed to me by a friend. Developed in Israel but he didn't name the company other than what is below:
Look what they have developed in Israel. Forget everything you think technology can do.
This goes beyond that!! This will be available next year.
And it's waterproof too.
NEW GADGET!! HOPE IDCC IS IMBEDDED IN IT
https://www.youtube.com/embed/9J7GpVQCfms
la-idcc-fan: hare buybsacks for one.
mickeybritt: go to this website
http://avanci.com/vision/
click on HOW IT WORKS and VISION and read what is behind each tab to get a better understanding of the company.
FOUNDER AND CHIEF EXECUTIVE OFFICER
Kasim Alfalahi is the Founder and CEO of Avanci, where he is leading the mission to simplify patent licensing and make technology available for everyone’s benefit. Kasim has dedicated his career to pioneering the way companies license technology rights. An engineer by trade, he’s driven by the philosophy that great ideas happen when all parties contribute to the technology ecosystem.
In his previous role as Chief Intellectual Property Officer for Ericsson, Kasim led the company’s licensing and patent development worldwide – an industry-leading practice he built over 20 years. During this time, he and his team established the concept of patents as marketable business assets, transforming Ericsson from a net-payer to a net-receiver of royalty income. Under his direction, patent licensing became fundamental to Ericsson’s global success – bringing in $1.7 billion in revenue in 2015.
With a career built on collaboration, Kasim is widely known and respected in the licensing space for creatively negotiating agreements that achieve the requirements of everyone involved.
Kasim’s vision for Avanci came about as a result of conversations with technology owners and IoT product manufacturers who asked for a simple way to access patented wireless technology. He’s energized by the enthusiasm for the new marketplace and the opportunity to accelerate connectivity for the hundreds of new products coming online each day.
A true global citizen, Kasim has lived in six countries and speaks four languages. He received his Master of Science degree in Engineering and Management from Linköping Institute of Technology in Sweden. Kasim and his wife enjoy traveling with their five children and introducing them to the world.
ALSO, check the following for information on the person behind Avanci
http://www.iam-media.com/blog/detail.aspx?g=9c504727-f2c3-4bc0-b3ae-70cb2316be5b
some information is as follows:
Ericsson’s Alfalahi to leave CIPO role and head up new IoT licensing initiative
04
FEB 16 Next > < Previous < Back to Blogs
Jack Ellis
Ericsson announced yesterday that it is to launch an independently operated platform for licensing patents relating to Internet of Things (IoT) technology. The Swedish company’s CIPO Kasim Alfalahi will leave his current role to run the new entity.
In a press release, Ericsson stated that it will make its patents for relevant technologies available for licensing through the platform – which will be run by an independent company – to “device manufacturers, spanning from autonomous cars to irrigation sensors”. Other IP owners will be able to participate in the marketplace, which will “adopt a revenue sharing model for contributing companies and receive a mandate to license on behalf of the joining patent holders”.
For prospective licensees, it is intended that the platform will offer “flat per unit licensing fees for the various [business] verticals that reflect how much of the connectivity technology a device uses”.
Alfalahi will take the reins at the new venture, bringing to a close an 11-year stint as CIPO at Ericsson.
Hope this gives you an idea what Acanci is, and is trying to do.
Yes, they can raise the dividend AND even pay a nice Special Dividend ($2.00 would be great, but I would settle for $1.00) at the Annual Shareholder Meeting !
JMO
jeffree & la-idcc-fan: here is some Accounting 101 information
As a business, you want to recognize revenue in a period when it is earned. SO, if on Jan 1, I pay you (give you 12 million in cash) for 1 year licensing fees) that I would owe you, the following entries are made:
Debit Cash 12 milllion
Credit Income 1 million (1 month's income you are due
Credit Deferred Revenues 11 million (11 months of future income you are due
Each month, you move 1 of Deferred Revenues to Income until the 11 months is used up
Debit Deferred Revenues
Credit Income
The $12 million cash received is to pay Expenses (Salaries, taxes, legal fees, etc. as well as dividends to us shareholders. Hopefully, you don't burn through all the cash (12 million) but a portion of it. The rest stays in cash or other accounts (investments, etc.).
As long as you have licenses that renew when due, as well as signing new licenses, you have 'cash flow' coming in. ONCE THE LICENSES EXPIRE OR NEW LICENSING DRIES UP, you have no incoming cash but you still have expenses (salaries, dividends, ongoing expenses, etc. with no cash coming in. You may evenually burn the $12 million and be 'out of cash'.
As to accounting for 'executive stock comps', the accounting may get more complicated and the company 'may have to purchase stock' on the open market, but that is a whole different ballgame.
Moral of the story -- WE HAVE TO SIGN NEW LICENSEES AND RENEW EXISTING LICENSES WHEN THEY EXPIRE ! !
LTE: Hope this isn't another one of those 'Engine & Transmission' statements.
Will our 'Best In Class' licnesing team be able to license customers or will it be up to the Avanchi team to do the job for us?: What do we need a Best In Class licensing team for ?
THEN WHY ARE YOU STILL HERE WHEN YOU LOST MILLIONS YEARS AGO?
MICKEYBRITT: Maybe he set his target, met the target, and followed thru with his exit strategy.
Whether he guessed right or not, he stuck to his guns. And now, with hindsight, he is saying what he did was a smart move.
We got a deal and settlement with Microsoft and didn't see any pop up, but saw a decline.
Maybe he is waiting for a lower entry point to start his climb all over again.
Once you sell, it doesn't necessarily mean you will never look at IDCC again.
JMO
hrbart: Yep, I think IDCC has peaked for another 7 years or so.
After yesterday's drop, my wife is again saying 'you should have sold out'.! Damn, she is right again.
SO, into a condo or some or a single family home?
'm doing OK. Hope your health is better also. Getting out of the downtown area (Marina Towers?) and the congestion will give you a better feeling.
Best of luck at GV !
Maybe the BOD can support the share price by increasing the dividend OR better yet, paying a special dividend of $2.00 per share. Bothe would be even better.
These would go a long way to showing the street that IDCC is strong and the future is promising.
JMO
ORIENTBULL: How many shares are 'some"?
mickeybritt:
I am presuming you sent this to the Board of Directors and Shareholder relations.
I hope that the Board (or investor relations) will forward this on to Mr. Merritt for his response or along with a reason why appropriate notification was not afforded to the shareholders.
Too bad the shareholder meetings are no longer live; under the old method of shareholder meetings we could be heard and got some additional information from the participants/management.
JMO
jeffree: How about by the Annual Shareholder meeting date (MEETING DATE: June 14, 2017)?
Time for them to pull a rabbit (LG) or two (and ZTE) or three (and Lenovo) or four (Xioami) out of their hat!
Just think --- the more rabbits (licenses) pulled out of their hat prior to the shareholder meeting will make their new Executive/Officer comp plan palatable to shareholders as they will have shown accomplishments!
But, if no rabbits, then they may meet with objections to the comp plan and perhaps see some 'defection' of soldiers (share holders) in re-election of Directors.
JMO
mickey: check your math:
$46,000,000 received
34,000,000 shares outstanding
$1.35 per share value to IDCC share price
How do you come up with 414.00?
New Math ?
mickeybritt; All of IDCC's press releases are cryptic messages. They are worded in such a manner that you get little if any information out of the releases.
Why don't you communicate with Patrick VanDeWille from Investor relations and ask him specifically what is and is not covered in terms of US sales versus world sales by the MICROSOFT/nOKIA pre and post acquisisition and what was claimed IDCC was owed versus what Microsoft offered to pay.
Perhaps Patrick can direct you to the releases or filing reports citing specifically what the amounts were.
Then, you can inform us as we would surely like to put these issues to bed.
JMO
hrbart: I was quoting mickeybritt on the $3 billion.
Double D: In addition, all of the 'claims' made by management that they could not back up with results tend to make the street question the company.
Things like:
Engine and transmission
Calculator with lots of zero's
The courts errored in their decision
We will strongly defend our patents
Revenues of $800 million
Restatement for revenues of $600 million
Restatement for revenues of between $400 and $600 million
Best n class licensing team
And so forth.
The street wants results, not promises.
JMO
Just a thought -- but maybe now Microsoft is in contention for a buyout of InterDigital.
Maybe they will make a offer that will start the ball rolling (with other companies looking seriously at an acquisition.
JMO
mickeybritt: As I stated some time ago, anything we receive from Microsoft / Nokia on past infringement is a goft/bonus as this was a lost cause.
Most important is the fact that it settles ALL issues and maybe including the anti-trust issue???
And, as to the future, there may still be some money coming to IDCC
Lastly, possibility of future dal with the IOT etc.
SO, overall, it is a victory, albeit a small one and not 3 billion like you claim was due to IDCC
ZTE is the next to come to terms with InterDigital before the Annual Shareholder meeting.
JMO
My wife was smart enough to save some of the catalogs; fun to look back at the stuff in the 70's ! ! !
SEARS made a big mistake when it closed its catalog sales and centers.
Sears and Wards were among the leaders in catalog sales, along with a couple of other stores (Majestic Distributors, Mostow, and Penny's) to name a few.
We always looked forward to getting the Sears catalogs, especially the Christmas edition, in the olden days.
Institutional Holders should vote AGAINST on all proposals before the annual meeting relating to compensation and abstain on election of directors.
We need Institutions like
VANGUARD GROUP INC (2,735,394 shares),
BLACKROCK FUND ADVISORS (2,066,151 shares),
STATE STREET CORP (1,086,958 shares),
BLACKROCK INSTITUTIONAL TRUST (1,039,376 shares),
DIMENSIONAL FUND ADVISORS LP (890,333 shares),
ROYAL BANK OF CANADA (831,695 shares),
BANK OF NEW YORK MELLON CORP (753,793 shares),
GOLDMAN SACHS GROUP INC (752,469 shares)
NORTHERN TRUST CORP (612,727 shares)
and any other funds managers
TO SEND A MESSAGE TO THE BOARD VIA A NO VOTE on the compensation /bonus plans of the company.
They need to let the insiders know that the company has not been successful in licensing activities for which they get paid a salary and now want to give them other perks when they license someone in the future!!
How about paying a special dividend to those who hold shares. If the insiders hold shares, they WILL RECEIVE FAIR, REASONABLE, AND NON DISCRIMINATORY [F R A N D} COMPENSATION, just like the shareholders would receive.
Their 'bonuses' for licensing companies would be that they get to keep their jobs !
WHAT'S GOOD FOR THE GOOSE IS GOOD FOR THE GANDER!
JMO
Here is a plan of action:
1. If we don't sign any of the remaining top tier, we vote AGAINST election of the entire board.
2. If we sign ONE of the remaining top tier, we vote yes for the board
3. If we sign TWO of the top tier, we also approve the executive compensation plan.
4. If we sign all FOUR of the remaining top tier, we also send them to Hawaii on vacation.
LOL
mickeybritt: While I too am not thoroughly pleased with our licensing team, in snips from Paullee's post of comments by Merritt, the following are notable:
IoT Research Paper: Road to Energy Savings, ROI Goes Through Telecom Operators
WILMINGTON, Del., May 02, 2017 (GLOBE NEWSWIRE) -- A new research effort co-sponsored by mobile technology research and development company InterDigital (IDCC) highlights the potential for enormous energy reduction and cost savings accessible through IoT technology – the equivalent of 41 million barrels of oil per day – but only if short-sighted investment rationales can be overcome and operators provide the interconnectivity required for peak efficiency.
The new research whitepaper by Telecoms.com Intelligence, Smart Cities: what are the opportunities for telcos, highlights the role of telco infrastructure in providing the connectivity necessary to bring about energy reduction through IoT. Despite telcos facing increasing pressure due to heightened competition in the IoT market, the whitepaper points to the unrivalled advantage of operators in delivering the IoT capabilities necessary to properly and seamlessly roll out smart cities, and specifically, smart buildings.
According to statistics from the United Nations Environment Program, residential and commercial buildings consume approximately 60 percent of the world’s electricity. Therefore, there exists an overwhelming opportunity to significantly reduce energy and unnecessary resource consumption through implementing IoT functions as part of future building designs. Indeed, as cited in the whitepaper, recent trials conducted as part of the EU-funded BESOS project concluded that IoT rollouts across buildings and cities have the potential to deliver 30 percent cost reduction by minimizing energy inefficiency, with deployment CAPEX being recouped within 5 years.
The whitepaper also highlights the opportunity for IoT sensors to become part of building standards, similar to wireless technologies of today, such as fiber to the home (FTTH), and deliver unparalleled energy savings.
Despite the predicted benefits of smart cities and buildings, the whitepaper revealed some of the biggest challenges to mass roll out and market adoption:
Legacy: Connectivity and IoT aspirations can be curtailed due to aging infrastructure that is limited in capabilities.
Ensuring broadband penetration: Lack of broadband infrastructure prohibits the creation of a smart city environment.
Short-sighted views on return on investment (ROI): A smart city or smart building project won’t deliver an ROI on a strategy based on one or two-year payback cycles. Instead, it must be a longer-term view over a five to 10-year period.
The whitepaper also indicates the need for a united approach to tackle these challenges and see the realization of the overall potential of smart cities and smart buildings. Research interviews conducted by Telecoms.com revealed that operators are considered to be the connectivity ‘glue’ necessary for the integration of all the necessary players within the industry’s ecosystem. In addition, research suggested that operators are essential to the successful delivery of IoT strategies – particularly in delivering access to core network, OSS/BSS functionality in the backend, and onboarding new customers of IoT services.
“A united approach from building management, municipalities, service providers, and telecoms operators, among others, will be imperative to drive mass market adoption and ultimately change how society operates,” said Jim Nolan, Executive Vice President, IoT Solutions, at InterDigital. “Furthermore, responsible deployment of IoT technology will require the future-proofing and guaranteed interoperability that standards, such as oneM2M™, are designed to drive.”
InterDigital develops wireless technologies for mobile devices, networks, and services. It is a key contributor to global wireless standards, designing and developing a wide range of innovations that are used in digital cellular and wireless products and networks, including IoT, 2G, 3G, 4G and IEEE 802-related products and networks.
In two complementary smart city applications, the oneTRANSPORT™ trial and Smart Routing, InterDigital’s standards-based horizontal IoT platform and integration framework are being used to demonstrate the world’s first open and scalable IoT platform enabling multi-region, multi-modal, and multi-system transport integration across geographies in the United Kingdom. In addition, InterDigital is developing solutions for the smart cities, smart buildings and energy and utilities markets with partners HARMAN and CA Technologies.
The full Telecoms.com whitepaper is available to download here.
About InterDigital®
InterDigital develops mobile 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 and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
Yesterday, B. Riley upgraded InterDigital Inc. (NASDAQ: IDCC) from Neutral to Buy with a price target of $100.00.
Analyst Eric Wold says shares could push to $130 if the company signs successful licensing agreements with remaining handset OEMs which could drive EBITDA run-rate higher and increase incremental cash flows.
What he didn't incorporate (IMO) is the possibility of the benefits from a tax cut!
jmo
First Quarter 2017 Financial Highlights
First quarter 2017 total revenue was $94.5 million, compared to $107.8 million in first quarter 2016. The decrease was primarily attributable to the elimination of seasonality related to Apple shipments as a result of the fixed-fee agreement signed in fourth quarter 2016. That seasonality, driven by new product launches, had previously resulted in higher per-unit revenue in first quarter. The decrease in first quarter total revenue was partially offset by revenue from our fixed-fee agreement with Huawei, signed in third quarter 2016.
First quarter 2017 operating expenses of $60.6 million were relatively flat compared to $59.4 million in first quarter 2016.
Net income1 was $33.8 million, or $0.93 per diluted share, compared to $28.1 million, or $0.79 per diluted share, in first quarter 2016. This increase was driven by a discrete first quarter 2017 tax benefit associated with vesting of stock-based compensation.
In first quarter 2017, the company recorded $25.9 million of cash used by operating activities, compared to cash generated of $19.6 million in first quarter 2016. The company used $33.9 million and generated $10.0 million of free cash flow2 in first quarter 2017 and first quarter 2016, respectively. These decreases in cash generated were primarily due to the timing of cash receipts under new fixed-fee agreements. Ending cash and short-term investments totaled $886.1 million.
“Our licensing success in 2016 has resulted in very strong and stable revenues that provide the company with a platform for continued growth,” said William J. Merritt, President and CEO of InterDigital. “With a significant proportion of the cellular market left to license, our position in the Avanci IoT licensing platform, and strong technologies to market in both IoT and sensor technology, InterDigital is focused on growing our business while maintaining strong expense discipline.”
Additional Financial Highlights for First Quarter 2017
The slight increase in operating expenses was primarily attributable to a $2.6 million increase in costs associated with commercial initiatives and a $1.7 million increase in depreciation and amortization, both primarily due to the acquisition of Hillcrest Labs during fourth quarter 2016. These increases were partially offset by a decrease in performance-based incentive compensation and personnel-related costs, primarily due to the recognition in first quarter 2016 of a $4.9 million non-recurring charge related to an increase to accrual rates associated with our long-term performance-based compensation plans and the recognition of a severance charge.
The company's first quarter 2017 effective tax rate was a benefit of 5.2% compared to a provision of 34.1% during first quarter 2016 based on the statutory federal tax rate net of discrete federal and state taxes. The effective tax rate was favorably impacted by our current year adoption of Accounting Standard Update 2016-09, “Improvements to Employee Share-Based Payment Accounting.” As a result, we recorded discrete benefits of $11.8 million for excess tax benefits related to share-based compensation. The effective rate would have been a provision of 32.6% not including these discrete benefits.
Conference Call Information
InterDigital will host a conference call on Thursday, April 27, 2017 at 10:00 a.m. Eastern Time to discuss its first quarter 2017 financial performance and other company matters. For a live Internet webcast of the conference call, visit www.interdigital.com and click on the link to the live webcast on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference, call (800) 211-3767 within the United States or +1 719 325-2341 from outside the United States. Please call by 9:50 a.m. ET on April 27 and give the operator conference ID number 3262776.
An Internet replay of the conference call will be available on InterDigital's website in the Investors section. In addition, a telephone replay will be available from 1:00 p.m. ET April 27 through 1:00 p.m. ET May 2. To access the recorded replay, call (888) 203-1112 or +1 719 457-0820 and use the replay code 3262776.
About InterDigital®
InterDigital develops mobile 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 and a richer multimedia experience years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website: www.interdigital.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, our belief that our strong and stable revenues provide the company with a platform for continued growth and our plans to focus on growing our business while maintaining strong expense discipline. Words such as "believe," "anticipate," "estimate," "expect," "project," "intend," "plan," "forecast," "goal," and variations of any such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, without limitation, those identified in this press release, as well as the following: (i) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (ii) our ability to leverage our strategic relationships and secure new patent license agreements on acceptable terms; (iii) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (iv) our ability to enter into partnerships with leading inventors and research organizations and identify and acquire technology and patent portfolios that align with InterDigital's roadmap; (v) our ability to commercialize the company's technologies and enter into customer agreements; (vi) the failure of the markets for the company's current or new technologies and products to materialize to the extent or at the rate that we expect; (vii) unexpected delays or difficulties related to the development of the company's technologies and products; (viii) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees, delays in the timely receipt and final reviews of quarterly royalty reports from our licensees, delays in payments from our licensees and related matters; (ix) the resolution of current legal or regulatory proceedings, including any awards or judgments relating to such proceedings, additional legal or regulatory proceedings, changes in the schedules or costs associated with legal or regulatory proceedings or adverse rulings in such legal or regulatory proceedings; (x) changes or inaccuracies in market projections; and (xi) changes in the company's business strategy.
mister: from B Riley:
Here is B Riley's comments on InterDigital:
B. Riley upgraded InterDigital Inc. (NASDAQ: IDCC) from Neutral to Buy with a price target of $100.00 (from $86.00).
Analyst Eric Wold says shares could push to $130 if the company signs successful licensing agreements with remaining handset OEMs which could drive EBITDA run-rate higher and increase incremental cash flows.
NOTE THE WORDS 'COULD' AND IF'
InterDigital, Inc. – Value Analysis (NASDAQ:IDCC) : April 26, 2017
http://www.capitalcube.com/blog/index.php/interdigital-inc-value-analysis-nasdaqidcc-april-26-2017/
Capitalcube gives InterDigital, Inc. a score of 84.
Our analysis is based on comparing InterDigital, Inc. with the following peers – BlackBerry Limited, QuickLogic Corporation, Sony Corporation Sponsored ADR, Intel Corporation, Oclaro, Inc., Xilinx, Inc., Apple Inc. and LM Ericsson Telefon AB Sponsored ADR Class B (BBRY-US, QUIK-US, SNE-US, INTC-US, OCLR-US, XLNX-US, AAPL-US and ERIC-US).
Investment Outlook
InterDigital, Inc. has a fundamental score of 84 and has a relative valuation of UNDERVALUED.
Company Overview
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
It’s current Price/Book of 4.11 is about median in its peer group.
We classify IDCC-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
IDCC-US has relatively high profit margins while operating with median asset turns.
The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
IDCC-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
While IDCC-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
The company’s level of capital investment seems appropriate to support the company’s growth.
IDCC-US has the financial and operating capacity to borrow quickly.
Leverage & Liquidity
IDCC-US has the financial and operating capacity to borrow quickly.
With debt at a relatively low 11.03% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 13.77%), and a well-cushioned interest coverage level of 20.70x, IDCC-US can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
All 8 peers for the company have an outstanding debt balance.
IDCC-US has moved to a Quick & Able from an Some Capacity profile at the prior year-end.
IDCC-US‘s interest coverage is greater than (but within one standard deviation of) its four-year average interest coverage of 12.97x.
While its interest coverage increased to 20.70x from 6.86x (in 2015), its peer median decreased during this period to 12.69x from 13.99x.
Interest coverage rose 15.14 points relative to peers (and is now higher than its peer median).
IDCC-US‘s debt-EV is its lowest over the last four years and compares to a high of 37.41% in 2015.
The decrease in its debt-EV to 11.03% from 37.41% (in 2015) was also accompanied by a decrease in its peer median during this period to 13.77% from 17.07%.
Relative to peers, debt-EV fell 23.08 percentage points (and is now lower than its peer median).
Key Liquidity Items see chart in article
Company Profile
InterDigital, Inc. engages in the design and development of advanced technologies that enable and enhance wireless communications, and capabilities. It offers innovations that are used in digital cellular and wireless products and networks, including 2G, 3G, 4G and IEEE 802-related products and networks. The company was founded by Seligsohn I. Sherwin in 1972 and is headquartered in Wilmington, DE.
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