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I have Intel in my IRA portfolio; held it for years and am at a loss.
Intel is one company that IF they did a buyout, I hope it would be a cash buyout and NOT a stock swap. Their stock price sucks. I don't see any big rise in this stock over the coming years.
And now --- sixty-two O-REEN-O ! ! !
Do I hear 63 ? ? ?
oh My! We forgot to shout it out------
SIXTY O-REEN-O
SIXTY ONE O-REEN-O
blta
IF the Huawei matter is what was holding other licensees back from signing, then our 'Best-In-Class' licensing team, and the Management team need to move fast to get the others to sign up.
They need to sign up (or resign) at least 4 of the 'big players' (ZTE, LG, Apple, LeNovo, etc), as well as some 2nd, 3rd, and 4th tier companies) by year end. IF the company has truly been in ongoing discussions, then the bar may have been set and it's time to 'put up or shut up'.
Somebody once said 5 or so years ago 'Anything less is not acceptable'!
la-idcc-fan and DNDODD: Not a well thought-out 10Q! Or was it?
I didn't read the entire 10Q; just looked for the deferred revenue on Huawei. But, it seems like 2 pieces of good information were included in the report. Something for IDCC to hang its hat on and for the street to recognize.
And, as one said, maybe if nothing new on LG and ZTE, why even mention it, although one would think that continuity would be a good idea.
OR, maybe there is a surprise coming in the 'very near term' and maybe IDCC didn't want to tip its hand, thus pissing off the opposite party. (The old comment '...we don't comment on ongoing negotiations ...'
JMO
Mickeybritt, the street is cautious. The expressiions 'Don't count their chickens until they are hatched", 'A bird in the hand is worth two in the bush', and 'I'm from Missouri and have gotta be shown' are more realistic than old sayings of 'Engine and Transmission' and 'Calculator with a lot of zero's'.
Now that the Huawei ARB amount of $200 million is known AND IN HAND, and indications are good that it will be in 2016Q3, the street will factor it in to the price per share.
If and when ZTE and LG are at the same stage of a resolution as Huawei, the street will recognize the same results.
Lenovo and Xaomi will likewise come to fruition at some future date.
As to Microsoft/Nokia, that could be 13 or so years of wasted time and effort and money, although maybe miracles do happen!
I think we will see another bump 'up' when Huawei is finally put to bed and all court actions are dismissed.
JMO
mickeybritt: From the financial report 10Q:
(a( 0urrent deferred revenue includes $200.0 million of customer advances related to cash collected under an arbitration award. This customer advance has been deferred as all criteria for revenue recognition have not been met.
\10. DEFERRED REVENUE
Deferred revenue balances as of June 30, 2016 and December 31, 2015 were as follows (in thousands):
June 30, 2016 December 31, 2015
Current deferred revenue, including customer advances (a)
$ 309,340 $106,229
Long-term deferred revenue
$ 298,675 $ 289,039
Total deferred revenue
$ 608,015 $ 395,268
I think this is it: (Anybody agree?)
(a) Current deferred revenue includes $200.0 million of customer advances related to cash collected under an arbitration award. This customer advance has been deferred as all criteria for revenue recognition have not been met.
\10. DEFERRED REVENUE
Deferred revenue balances as of June 30, 2016 and December 31, 2015 were as follows (in thousands):
June 30, 2016
December 31, 2015
Current deferred revenue, including customer advances (a)
$
309,340
$
106,229
Long-term deferred revenue
298,675
289,039
Total deferred revenue
$
608,015
$
395,268
My guess on ARB amount is #160 million, still sitting in deferred revenues.
JMO
WILMINGTON, Del., Aug. 02, 2016 (GLOBE NEWSWIRE) -- InterDigital, Inc. (IDCC), a mobile technology research and development company, today announced results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights
Second quarter 2016 total revenue was $75.9 million, compared to $118.6 million in second quarter 2015. Second quarter 2015 included $27.3 million of past patent royalties.
Second quarter 2016 recurring revenue was $74.6 million, consisting of current patent royalties and current technology solutions revenue, compared to $91.2 million in second quarter 2015. This decrease in recurring revenue was primarily attributable to seasonality in shipments by certain of our licensees.
Second quarter 2016 operating expenses were $52.8 million, compared to $60.0 million in second quarter 2015. Intellectual property enforcement expenses were $5.1 million, a 47% decrease compared to $9.7 million in second quarter 2015.
The company recognized a $23.1 million discrete net tax benefit in second quarter 2016, related to refund claims for prior year domestic production activities deductions.
Net income1 was $40.0 million, or $1.14 per diluted share, compared to $32.6 million, or $0.89 per diluted share, in second quarter 2015.
In second quarter 2016, the company had cash flow from operating activities of $191.4 million and free cash flow2 of $182.5 million, compared to $25.3 million and $17.0 million, respectively, in second quarter 2015. These increases are primarily attributable to cash collected under an arbitration award and related patent license agreement. The amounts collected have been included in deferred revenue, as all criteria for revenue recognition have not yet been met. The company will recognize the related revenue from these payments, including both a recurring and past sales component, in the period in which it believes the revenue to be fixed or determinable. The company currently expects to reach that conclusion, and recognize the related revenue, in third quarter 2016.
Ending cash and short-term investments totaled $813.9 million.
“The company delivered another very solid quarter,” commented William J. Merritt, President and CEO. “While recurring revenue declined from first quarter, that decline was driven by expected seasonality in phone sales and has no impact on our confidence in our ability to drive the annual royalty platform for our core terminal unit licensing business to between $500 and $600 million. We also continued our strong work around expenses this quarter, taking some significant steps to lower our tax burden and drive higher profitability. Lastly, our engineers and scientists continued to drive substantial new innovation at the company, including making numerous contributions into the developing 5G standard. InterDigital was among the leaders in driving 3G and 4G innovation and we are working to drive a similar position for the company in 5G, where the opportunity to innovate is substantial and the technology needs are right in our wheelhouse.”
Additional Financial Highlights for Second Quarter 2016
The decrease in operating expenses of $7.1 million was primarily attributable to a $4.5 million decrease in intellectual property enforcement and non-patent litigation. Additionally, consulting services, commercial initiatives and personnel-related costs collectively decreased $5.7 million. These decreases were partially offset by a $2.9 million increase in performance-based compensation and depreciation and amortization.
During second quarter 2016, the company repurchased 0.3 million shares of common stock for $18.6 million. From July 1, 2016 through July 29, 2016, the company repurchased an additional 0.1 million shares at a cost of $5.7 million, bringing the total number of shares repurchased under the company's current $400 million stock repurchase program to 6.7 million shares at a cost of $313.7 million.
The company's second quarter 2016 effective tax rate was a benefit of approximately 74.4% as compared to a provision of 37.1% during second quarter 2015. The change in our effective tax rate was primarily attributable to the discrete impact of the refund claims discussed above, as well as the ongoing benefit from current year domestic production activities deductions.
Conference Call Information
InterDigital will host a conference call on Tuesday, August 2, 2016 at 10:00 a.m. Eastern Time to discuss its second quarter 2016 financial performance and other company matters. For a live Internet webcast of the conference call, visit www.interdigital.com and click on the link to the live webcast on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference, call 888-768-6569 within the U.S. or +1 785-830-7992 from outside the U.S. Please call by 9:50 a.m. ET on August 2 and give the operator Conference ID number 4484566.
An Internet replay of the conference call will be available on InterDigital's website in the Investors section. In addition, a telephone replay will be available from 1:00 p.m. ET August 2 through 1:00 p.m. ET August 7. To access the recorded replay, call 888-203-1112 or +1 719-457-0820 and use the replay code 4484566.
Rain chances are at around noon time.
Shay is working all night long tonight. Doing his rain dance! LOL
New Leadership? Maybe like a new company owning InterDigital and doing what the old regime could not accomplish.
I hope that we have Huawei finalized. If not, I hope that any call-ins nail Merritt with very specific and to the point questions, seeking more than the usual generic responses.
It is a shame that we can't come up with something to settle this BULL$HIT once and for all. Unless the offer is zero for back licensing obligations and peanuts for future licensing, I say take whatever monetary settlement (that was categorized as substantial by the Arb court) is offered ALONG WITH A FRANDly LICENSE and MOVE ON.
OR, sell the company to someone who can capitalize and monetize our patents.
JMO
jeffree, just holding shares. No puts, calls, nothing exotic.
just waitin for the train to finally come in to the station, loaded with engines and transmissions, calculators with lots of zero's, stacks of new licenses, and boatloads of money (yen, euro, brexit currency, and US Dollars) that the company will distribute to the long and faithful shareholders.
Not holding my breath, just got my fingers crossed!
LOL
So how will the street respond to earnings?
First, if IDCC picks up the Huawei arb money, or any revenue from any sale of patents, they will discount that as a one-time windfall;
Second, any 'Audit adjustments' from past quarters findings' will be discnounted as non recurring income;
Third, IF Huawei does license up and any litigation is resolved, it may factor in as a positive, depending on the amount as ongoing revenues.
Fourth, if existing licensees stop paying, it will have a negative impact on earnings going forward
Fifth, a 'miss' based on comparing last year to this year quarter will negatively impact the stock (it always does.
Lastly, if Huawei is NOT resolved, it depends on Merritt's updated comment to his previous statement of " This revenue guidance is based primarily on royalty reports received to date, and does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of second quarter 2016."
The 'Sale of Patents" may be the rabbit in the hat that will be a big surprise to most.
SO, AT THE END OF THE DAY, the street will let us know what they think about qnd quarter earnings.
Weather forecast calls for sunny skies in Delaware and no storms. The conference should go on as scheduled!
JMO
m3s: What I don't like about buy backs is that it is not 'real money in our hands'. It looks good on paper but unless you sell the shares, you don't have any 'buying power'. AND, it can disappear in a down market or with any negative news.
With a special dividend, one can pay the taxes on it and do whatever one wants with the remainder, including buying more shares in the company or diversify into other companies.
I don't know what tax effects and ramifications come with a 'STOCK DIVIDEND' (when the dividend is paid and when the stock is sold), so I can't comment one way or the other if this is a better alternative.
One thing, however. A special dividend rewards ALL insiders that hold shares (and not just the chosen ones). And, it can reward those who continue to hold whatever shares they own or received (the more you hold, the more you get)
JMO, but for some, this could make a difference.
I continue to hold and monitor this stock because I hope that some day, either someone offers a premium on a buyout either all cash OR a stock swap with a company like Google or Apple with positive future growth prospects OR 'they' finally get it right and the stock price moves to my target selling point.
And NO, no forecasting of accounting irregularities. Just looking at the timing of when some of these good things will take place. Right now, Huawei is teetering between the end of the year and the beginning of next year, depending on how Management handles the situation.
m3s: We shareholders will NEVER see any of the money except on the Balance Sheet of InterDigital.
It would be a miracle and a blessing IF they would declare a special dividend and give some of the windfall to the shareholders.
Instead, they will keep it either '...for share buy backs, acquisitions or partnerships in other ventures, and, of course, for payment of bonuses and other perks to insiders.
I wish someone would ask a relevant question of 'How much in legal fees has InterDigital spent on all Huawei matters and compare it to how much we receive from the Arbitration amount'.
IMO, none of the 'substantial amount' should go towards the calculation of bonuses, etc. since it took all the legal fees and time to get a license.
Just saying and wondering !
Not a good 'weather day' for IDCC to hold its earnings conference call:
http://www.accuweather.com/en/us/wilmington-de/19801/august-weather/327535?monyr=8/1/2016
Looks like a sunny day, with NO STORMS EXPECTED!
Lets hope it is a truly sunny day for the shareholders!
IDCC money coming in the form of the dividend payment on the 27th of July.
Management is still trying to wrap up a deal for all flavors of licensing ? ? ? I think they still can book it as of June 30th if they reach a decision this week. Otherwise, we may have to wait until next quarter.
Too bad our real estate taxes are due the next week.
We need to go to Rivers 5-year anniversary and bet it all on the come line or black.
I'm finding tahat Friday and Saturday evening is good as well as Sunday between 1 PM and 6 PM.
Weekdays during the daytime suck!
Power31
ARE WE GONNA GET PAID EVER ?? Probably not this year. They are appealing the ARB 'final' decision. IDCC is trying to structure the current licensing agreement to encompayy everything; so, we know how those negotiations go.
i think it is like the Cubs say 'WAIT TILL NEXT YEAR' !
I have a Shareholder Proposal in mind that would benefit us as well as insiders (all IDCC ataff, including the doorman and janitors holding sahres in IDCC);
Tie in a SPECIAL DIVIDEND to the Executive Compensation Plan and Incentive Plan
1. Make it effective with the financial results of calendar year 2017.
2. Make it a 'Return Of Capital" to the extent possible, thus freeing recipients of paying taxes on the amount received (within guidelines for 'Return of Capital' rules.
3. Use the same type of formula for calculating the amount that is used in the Exec Comp. Plans for long term comp and current year comp plans.
4. Pay a special dividend (either as a return of capital OR ordinary dividend) of 5o% to 100% of the regular annual dividend paid on its common stock.
It would ba a double win for Executives, and a win-win for employees including our first in class engineers, and to our faithful shareholders who are counting on the success of our company.
gejebr3: I trust you wouldn't balk on this type of arrangement.
If anybody doesn't want the money, they can turn around and buy additional shares (OK?)
IDCC Investor Newsletter Third Edition Now Available
InterDigital’s latest quarterly investor newsletter, primarily focused on IoT and Q1 2016, is available now!
The newsletter highlights two important studies from Machina Research and Telecommunications Industry Association, and commissioned by InterDigital, relating to IoT technology. It also includes important news about our technology development efforts, and highlights InterDigital’s engineers as thought leaders in a variety of publications and analyst reports.
InterDigital Showcases Future of Wireless at MWC Shanghai
Company Showcases Innovative Solutions in Enhanced Mobile Broadband, Next Generation Networks and IoT
InterDigital, Inc.
InterDigital, Inc. breached its 50 day moving average in a Bullish Manner : IDCC-US : June 24, 2016 Capital Cube q 4 days ago
InterDigital, Inc. : IDCC-US: Dividend Analysis : July 13th, 2016 : By the numbers : June 23, 2016 Capital Cube q 5 days ago
More
WILMINGTON, Del., June 29, 2016 (GLOBE NEWSWIRE) -- With 1.3 billion mobile users and nearly half of the handset market share in 2015, China is one of the world leaders in the mobile industry. InterDigital, Inc. (IDCC), a mobile technology research and development company, will demonstrate its latest innovations in the future generation of mobile networks in China at MWC Shanghai, Asia’s biggest mobile industry event, being held June 29 through July 1, 2016.
InterDigital will showcase innovation that comprises the future of mobile networks. The three major demonstration areas include Enhanced Mobile Broadband, Next Generation Networks (NGN) and the Internet of Things (IoT).
Enhanced Mobile Broadband: One of the first of its kind, and more than five years ahead of expected broad market rollout of 5G, InterDigital’s 5G access technology platform is an enhanced mobile broadband solution which demonstrates 5G access link technologies for enabling higher capacity mobile broadband and low latency communication.
NGN: The evolution to 5G will require a new way of envisioning the architecture of network infrastructure. InterDigital will showcase a unique NGN architecture with a flexible routing solution that reinvents the approach to IP-based services. This NGN architecture and technology has been developed in collaboration with four other collaborators from the EU-funded collaborative research and development projects, POINT ("iP Over IcN — the betTer IP") and RIFE (aRchitecture for an Internet For Everybody).
IoT: By 2020, it is anticipated that nearly 50 billion devices will be connected. However, the promise of IoT is not more connected devices, but rather the business and societal value that can be unlocked through the creation of smarter cities, transportation and services. InterDigital will highlight how its suite of IoT solutions, including oneMPOWER™ and wot.io™, enable smart buildings, services and cities to move communications to the next level. The cornerstone of the IoT showcase is oneTRANSPORT, an innovative smart cities initiative which recently expanded its reach by 2.5 million residents through the Birmingham Smart Routing Project.
“With a major stake of the handset market, China is a leader in the mobile industry with real influence in the advancement of mobile technology,” said Robert DiFazio, Vice President, InterDigital Labs – Future Wireless, InterDigital. “Our presence this year at Mobile World Congress Shanghai, Asia’s biggest mobile event of the year, underscores the strength of our company's research and contributions to the industry worldwide.”
http://finance.yahoo.com/news/interdigital-showcases-future-wireless-mwc-123000151.html
Securities Alert: IDCC - ResearchTeam Rating Change
TD Ameritrade/Markit On Demand
Today 2:29 PM
IDCC New
Rating REDUCE
Rating Change for InterDigital Inc (IDCC):
Changed to REDUCE from NO RATING on 6/27/16
Recap of recent events
1. Huawei loses at Paris Arb Court
2. Huawei immediately appeals decision; shareholders not informed
3. Revenue guidance overdue in May
4. ASM bombs out with power outage; IDCC elects not to rscuedule Q&A portion of meeting.
5. Revenue guidance finally released; projections below expectations AND does not include Huawei
6. IDCC S/P takes a $2+ dive
Just a feeling but seems like IDCC has been making the wrong choices lately.
A timely release of Revenues forcast with a qualifier that revenues for 2nd quarter typically drop because of lag reporting would have easily eased investors minds;
If IDCC would have disclosed the Huawei ARB appeal by an updated press release, stating what to expect would have sat better with investors.
The delay in releasing revenues perhaps was the attempt to 'close the deal' and a drop in revenues may not have occurred because of the inclusion of Huawei in current revenues might have negated the decline, along with a 'catch-up in past royalties';
I just hope there is not more bad news down the road, either with Huawei or other parties, that may kill our $500 - $600 million million goal in recurring revenues.
One glimmer of hope would be that IF Huawei was resolved before month-end, or within a 'short period' after June 30th, It would perhaps it would ease some minds on the direction for the future.
JMO
Why Are Traders Buzzing About These Five Stocks on Wednesday?
Published on June 22, 2016 at 10:54 am by INSIDER MONKEY TEAM in Market Movers,News
InterDigital Guides Lower
InterDigital, Inc. (NASDAQ:IDCC) is in the spotlight after the company posted guidance for second quarter revenue of $75 to $77 million, which is below the analyst’s consensus estimate of $85.93 million. On the plus side, the revenue guidance is comprised almost entirely of recurring revenue and it does not include the amounts collected from Huawei in the second quarter of 2016 that were due and outstanding under the arbitration awards at the time of payment. Among the funds we track, 21 funds owned shares of InterDigital, Inc. (NASDAQ:IDCC) at the end of the first quarter, up by two funds from the previous quarter.
http://www.insidermonkey.com/blog/why-are-traders-buzzing-about-these-five-stocks-on-wednesday-461374/
OMG OMG OMG!! We're down over $2.00.
Options related again? NO, must be earnings alert.
Innovate UK Mobile App Project Extends oneTRANSPORT Reach to UK’s Second-Largest City
Birmingham Smart Routing Project will Drive Commercial-Grade oneM2M Application; Extends Smart City Initiative to Region’s 2.5 Million Residents
InterDigital, Inc.
4 hours ago
GlobeNewswire
LONDON and WILMINGTON, Del., June 21, 2016 (GLOBE NEWSWIRE) -- Five public, private and academic partners have been awarded a project by the UK's innovation agency, Innovate UK, to start development and trial of the first commercial-grade travel application based on an integrated transport initiative, oneTRANSPORT.
The project, Smart Routing, is a novel multi-modal device-centric public transport routing and monitoring system that will use advance analytics and data caching to offer travel information even under no connectivity. The collaborative project will start on July 1, 2016 and will span 18 months aiming to create a commercial grade fast-route-to-market mobile application – one of the first commercial applications in the world to implement the growing oneM2M™ standard.
The innovative project was proposed by five partners comprising of the University of Aberdeen, Ayoupa, Birmingham City Council, Caution Your Blast and InterDigital Europe. The project partners will develop and trial an enhanced, personalized, end-to-end real-time journey routing service using the oneTRANSPORT backend system and data management model, which will also enable Local Authorities to better understand transport users and have more control over the data they produce. The goal of Smart Routing is to deliver improved user experience, reduced industry and local authority operational overheads and innovative new business models.
“The Smart Routing project underscores how oneTRANSPORT can be leveraged to position the transport industry at the forefront of the Internet of Things,” said Alan Carlton, Vice President, InterDigital Europe. “It also underscores Innovate UK’s role as a global leader in driving smart city initiatives that can benefit individuals, companies and regional authorities. As the project’s platform provider, InterDigital looks forward to bringing our IoT data and analytics expertise to this collaborative project.”
Smart Routing is a part of Birmingham’s ambitious and detailed smart city strategy that recently earned the city a ranking as the third leading smart city in the UK. The ranking comes from a study, commissioned by Huawei and conducted by Navigant Consulting, that examined ten UK cities and established an index based on to their perceived smart city strategy and smart city execution. In addition to Birmingham, the city of Bristol was ranked second within the UK Smart Cities Index for its Bristol is Open project. InterDigital Europe has been involved as a founding member of Bristol is Open, a joint venture between University of Bristol and Bristol City Council to develop an open programmable city region, since December 2015.
“Birmingham City Council sees Smart Routing as an excellent opportunity to open existing data streams for the improvement of resident’s transportation experience through the development of an effective transport application,” said Nikki Spencer, Digital Projects Manager, Birmingham City Council. “With six universities, the highest level of startup entrepreneurship in the UK and a regional economy of over $120 billion, Birmingham is committed to leveraging modern technology to drive the development of the region for the benefit of residents and companies, and this project is a great example.”
INTERDIGITAL, INC. Files SEC form 8-K, Submission of Matters to a Vote of Security Holders EDGAR Online 10 days ago
InterDigital, Inc. breached its 50 day moving average in a Bullish Manner : IDCC-US : May 23, 2016 Capital Cube q 28 days ago
More
oneTRANSPORT is an integrated transport initiative targeted at transport authorities driven by a consortium of eleven partners including InterDigital. The project integrates a multitude of previously fragmented and isolated data assets and data services into a holistic application that sets the foundation for more efficient transportation systems for cities and travelers alike.
http://finance.yahoo.com/news/innovate-uk-mobile-app-project-070000567.html
Turney, as of 3-31-16 there were 237 Institutional holders of Interdigital stock, holding
Of the 35 million shares outstanding:
237 institutions hold 24.563 million shares (71.05%)
That leaves around 10.437 million shares held by 'others'.
I wish there was some source where the 10.437 million shares would show how many individuals own those shares.
I would think that the Stock Transfer Agent for InterDigital would have the number of individual shareholders at least as of the record date for the dividend. I do not know, however, if a brokerage firms had multiple clients with IDCC shares, would the transfer agent know the individual holders or would it just show '1 holder for Scottrade, 1 holder for Schwabb, 1 holder for Goldman Sachs, etc.
Olddog: Your thoughts or expertise would be informative.
TIA
Or sell itself to the highest bidder, since it can't monetize its patents by licensing them.
Maybe whoever would buy IDCC for its patents could buy others and create a monopoly -- on that manufacturers can't live without the patents.
100,000 SHARES TRADED IN FIRST 5 MINUTES. Down $0.28
OLDDOG, I thought that the courts had 2 months to decide whether to accept Huawei's appeal request and then Huawei had 4 months to file their briefs followed by IDCC's 2 months to submit their answer.
SO, the time frAame looks like this ( ? )
April 27th, Huawei notifies court of their appeal
August 27th, Huawei must file their briefs by this date
October 27th, IDCC must file their responses
A DATE AFTER OCTOBER 27TH, 2016 -- the Courts come up with their decision.
WHAT WE DO KNOW:
1 ONE Payment was made on April 27th, 2016
2 ONE Payment was made on May 27, 2016
What we DON'T know:
1. Whether there is an additional payment due June 27, 2016 under the 'substantial amount' stated by the courts
2. Any additional payments due monthly or quarterly beyond June 27th, 2016 on the 'substantial amount'
3. Whether these 'payments' are back-payments going back to January 1, 2014
4. Whether they cover 'Outside of China' or 'China proper' or ' Both'.
SO, it could be choices (based on Lawyers, Accountants, and/or Management's feelings) between:
1. Book it when there are no give-backs and everything is signed, sealed, and delivered (which may be as late as 2017);
2. Book it the 3rd or 4th Quarter which will give 'us' time to sort it all out and be closer to a final answer;
3. Book it now and adjust it later (provided we can see everyting being settled before year-end).
The fact that guidance hasn't been determined, it could be that the decision is leaning toward booking it this quarter.
You can probably guess that I am trying to set some strategies in place and time-frames for possibly re-positioning my holdings and may be swayed by what happens and when.
Thanks for your guidance and clarification on matters I am uncertain about.
idOcARE: Second, on April 27, 2016, Huawei filed an appeal of the April 12, 2016 Paris Court of Appeal decision with the French Cour de Cassation. The appeal is currently pending (From a Post Response from olddog967.
SO, 2 months from April 27th, give or take a day here or there. I would hope that the date is on or around June 27th, but you know how that goes.
olddog967: Thank You. The good news is that you clarified that the royalty terms for the period beginning January 1, 2014. Also, the issues cover 2 different rates (Worldwide versus In-China rates.
The bad news is If Huawei wins their appeal and there is no agreement, Huawei can request that the monies paid be refunded.
This seems to imply that IDCC cannot recognize any monies received as income until both parties agree to a license or Huawei loses the appeal. So, the soonest we can recognize income is in 2 months from the date of the appeal and going out to 2017 once the appeal process is completed and back to the courts for a decision.
It is sad to say that a binding arbitration decision is not binding and is subject to appeal, but that's the way it is.
Thanks again. Looks like we are still in the 'wait and see' mode.
olddog: I'm totally lost on what is going on. Maybe my comprehension has been affected by my frustration with the goings on since the ASM power outage coupled with some other matters going on.
Am I correct to assume that:
1. We have some type of licensing agreement in place for product licensing agreement from 2015 going forward? The monies collected in April and May pertain to this licensing agreement.
2. The appeal of the Paris Arbitration is under consideration by the Paris Court and is for product licensing prior to the Licensing agreement now in hand and may result in additional sums of money (substantial amount) if the appeal is rejected.
The monies already collect MAY be adjusted if Huawei and IDCC agree to some settlement terms (on the substantial amount) which may result in the revision of the 'licenes in hand' and their terms.
Thanks for trying to clarify this for me.
SO, a 1-2 punch will be forthcoming, possibly in the beginning of 2017 (in the timetable for Huawei's appeal if accepted by the courts).
Punch 1 is the Huawei matter
Punch 2 is the achievement of the revenue target of $500 million.
olddog; so we may be into EARLY 2017 now before this part is put to bed. Then who knows what other angle Huawei will come up with to delay even further.
UNLESS, as Merritt hinted in his cryptic manner that IDCC and Huawei are perhaps trying to structure some other deal that are beneficial to both parties (from the Annual Shareholder Meeting).
STATUS LETTER SUBMITTED IN HUAWEI CASE
Payment made (no amount shown) and Huawei has appealed to French Supreme Court.
Re: InterDigital Commc’ns, Inc. et al. v. Huawei Inv. & Holding Co., Ltd. et al.,
Case No. 1:15-cv-04485-JGK
Dear Judge Koeltl:
Pursuant to paragraph 3 of the Court’s April 26, 2016 Order (Dkt. No. 88), InterDigital writes to provide updates regarding (1) Huawei’s compliance with its agreement to make payments to InterDigital and (2) the status of the annulment litigation in France.
First, we confirm that as of this date, Huawei is in compliance with its obligations under the April 26 Order, including its obligation to make the payment to InterDigital specified in paragraph 1(a) of that Order by May 27, 2016. Second, on April 27, 2016, Huawei filed an appeal of the April 12, 2016 Paris Court of Appeal decision with the French Cour de Cassation. The appeal is currently pending.
Respectfully submitted,
WILSON SONSINI GOODRICH & ROSATI
Now that I recall i also think it was olddog that reported the appeal. I questioned why they didn't do a press release and it was a matter of timing between filing some report and when notifioation was received by InterDigital.
mickeybritt: I believe earlier discussions on the board stated that Huawei DID appeal the Paris decision. I thought it was 1 day AFTER the decision was rendered.
Somehow, I remember something about 2 months for the courts tod ecide whether to accept the appeal, 2 to 4 months for Interdigital to respond, and then another 2 or 4 months for Huawei, followed by a decision by the courts within 2 months after that.
I may be wrong, because I was in and out a lot the last couple of weeks.