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Sunday, May 18, 2003 7:58:32 PM
INTERDIGITAL (IDCC)
PSR@Different Sales Growth Rates
2003-2007
.
.
.
15% PSR@ 20% PSR@ 25% PSR@
p.a. $1.42B p.a. $1.42B p.a. $1.42B
.
2002(A) $ 88M 16.1 $ 88M 16.1 $ 88M 16.1
2003(E) 200M 7.1 200M 7.1 200M 7.1
2004 230M 6.2 240M 5.9 250M 5.7
2005 265M 5.4 288M 4.9 313M 4.5
2006 304M 4.7 346M 4.1 391M 3.6
2007 350M 4.1 415M 3.4 488M 2.9
.
Assumption: 2003 Sales baseline is $200M
It now appears that the new accounting rule change
regarding option expensing will either go into effect
in 2004 -- a presidential election year -- or 2006
-- congressional mid-terms.
The expected hit on S&P 500 earnings ranges from
10%-20%. There are 75 technology companies in the
S&P 500. The expected hit on tech company earnings
is expected to be much higher -- up to 60%-70%
according to some estimates -- although everybody
understands that those numbers include the
illusory costs of underwater options.
However, expensing options is expected to change
corporate behavior, particularly compensation
policies as part of the larger issue of corporate
governance. That takes time so many PE-oriented
valuation approaches will suffer from the lack of
"comparables." It will probably take at least
4 quarters for PE-based valuation approaches to be
meaningful again once the new rule goes into effect
in 2004 or 2006.
My hunch is more people will rely on cash flow and
PSR analysis until the new PE numbers settle down.
I don't think it will affect an emerging growth
company like IDCC all that much.
If cash flow is the one constant in the valuation
of a company from start-up to maturity then
IDCC's PS is more important than PE at this early
stage of IDCC's growth when earnings are still
immature (read: unpredictable). PE becomes more
important later on when IDCC's earnings power start
to mature (read: predictable and easier to model
according to various discounted cash flow methods).
Recent IDCC News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/22/2024 12:17:49 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/20/2024 08:06:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 01:05:55 PM
- More than half of connected devices will be haptic enabled by 2028, revealing exciting opportunity for immersive video • GlobeNewswire Inc. • 08/20/2024 08:00:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/19/2024 08:19:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/19/2024 12:28:06 PM
- InterDigital Announces 2024 Investor Day • GlobeNewswire Inc. • 08/01/2024 12:45:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 12:35:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 12:32:54 PM
- Interdigital Announces Financial Results for Second Quarter 2024 • GlobeNewswire Inc. • 08/01/2024 12:30:21 PM
- InterDigital signs license agreement with Panasonic • GlobeNewswire Inc. • 08/01/2024 08:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:52:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:48:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:47:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:45:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:40:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:37:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:31:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:30:03 PM
- InterDigital Announces Date for Second Quarter 2024 Financial Results • GlobeNewswire Inc. • 07/18/2024 12:30:00 PM
- UK Court of Appeal rules in favor of InterDigital in dispute with Lenovo • GlobeNewswire Inc. • 07/12/2024 01:10:00 PM
- InterDigital Announces Convertibility of 3.50% Senior Convertible Notes Due 2027 • GlobeNewswire Inc. • 07/03/2024 08:00:00 AM
- InterDigital signs license agreement with Google • GlobeNewswire Inc. • 07/02/2024 08:00:00 AM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/20/2024 12:30:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:56 PM
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