Some thoughts and observations at the ASM:
(Same Warning: I love this company ;)
Harry ran the meeting from start to finish. Usually, the CoB turns over the contol of the meeting to the CEO - but not Harry. My read is that Harry plays an active role in InterDig governance. Harry introduced Howard, and then, Rip for their presentations, then took the podium back for questions.
Howard's presentation was well done, the best I've heard from him. I liked the unscripted ending most of all - something like: we're making progress and having lots of fun doing it.
Also, Howard made the point that financial strength was required for any development partnerships or other alliances. I believe this is part of the "mandate" to settle the Ericsson suit - lots of good things will result.
Howard listed his five year goals - here's what my limited notes say:
1. Maintain financial stability
2. Broader range of products
3. Active in new markets
4. Growing product sales
5. Deeper and broader core competencies
6. More geographical diversity
7. Selected M&A activity
Rip's presentation was as good as expected. But, the fact that he made a presentation was significant to me. Some here have speculated that Rip was on the outs and others have suggested that InterDig doesn't need a COO.
Clearly, Rip is a solid insider - and I find great comfort in that. Too many companies are controlled by one dominant personality (think Qualcomm, Oracle, Worldcom) which can be very dangerous. Shared governance is much safer for shareholders; and, the more, the better, as far as I'm concerned.
(Shared governance greatly reduces the risk of wrongdoing and provides for more extensive review of important issues and decisions).
The message I got from the structure of the meeting is that Harry is an active CoB relying on Howard and Rip to run the company. No matter what you think of the personalities, this separation of duties to our benefit.
I was standing in the back of the room waiting my turn to ask a question when Mr. Espy (sp?) made his lengthy anti-prop 2 presentation. I was a bit surprised at his earnestness in light of the proposal's previously announced resounding defeat - seemed like piling on. Espy was followed by another anti-2 speaker who made a speech and left the microphone saying he had no question - when he tried to return to the mike, two fellows tried to pull him away. The second guy ended with a threat to Harry over his reelection. Both of these speakers ignored the printed rules for shareholder questions. Silly stuff, IMO.
I finally got to the mike and told Harry I voted for prop 2 in an effort to relieve some tension - Harry said thanks.
My questions were: what is guidance for 3G royalties and how many 3G licenses this year (I also violated the printed rules by asking two questions ;)
Harry quipped "how many licenses would you like?" then turned the answer over to Howard.
Howard acknowledged that previous guidance for 2G was 1% to 3% for second tier companies (which might partially explain why Ericsson is lower). The balance of his response was expectedly unresponsive LOL.
I had a chance to talk to Janet after the meeting and will share later.
AI
