InterDigital Inc (IDCC)

[blueskywaves]

FOLLOW THE CASH
or how IDCC's management diluted its stock and looted the company from 1998 to 2002.

NOT!
.

INTERDIGITAL (IDCC) 
 Selected Financials  
 1998 to 2002 
 . 
 . 
 . 
                Total          Cash Flow   Net Proceeds 
     Diluted  Operating           from     from option/   Cash/ 
       O/S    Expenses         Operations  warrant exer.  Inv. 
 . 
 . 
 1998  48.8M  $ 55.2M (215)*    $ 30.1M     $  0.8M     $ 52.2M 
 1999  50.5M    44.3M (126)*      27.7M       12.4M       83.2M 
 2000**57.3M    53.6M (191)*       5.3M       12.3M       89.0M 
 2001  53.4M    73.1M (319)*       9.6M        2.6M       90.0M 
 2002  56.2M    78.7M (300)*    (  2.6M)      12.3M       87.5M 
 . 
 Total        $304.9M                       $ 40.4M  
 . 
 *Headcount   
 **SAB 101 implemented     
 . 
 Notes: 
 . 
 1) Cumulative R&D (1998-2002) - $154.9M (51% of Cumulative OPEX) 
 . 
 2) Cumulative Patent Administration (1998-2002) - $44.5M (15% of Cumulative OPEX). 
 .

Note the following:

1) IDCC entered the final stages of the Nokia
negotiations in late 1998 or early 1999 with
ONLY $52M in cash and 1998 total operating
expenses of $55M.

2) IDCC entered the final stages of the
Ericsson negotiations in early 2003 with
ONLY $88M in cash and 2002 total operating
expenses of $79M.

3) IF IDCC hadn't spent $151M in R&D from
1998 to 2002, they wouldn't have the higher
quality patent portfolio they have today.