InterDigital Inc (IDCC)

[la-tsla-fan]

I was holding off waiting for some accountant to chime in - it seems most accountants have either moved on or are busy.

Here is my (layman) take.

In past years when IDCC was active in courts around the world, a high, available cash balance was helpful in convincing litigants that we would not just fold in the face of their bluff. Now we are less active, so you would think that we do not need quite as much. However, licenses do have to be renewed. Money in the bank can disappear awful fast - example Qualcomm.

Therefore, I am of the opinion that our current AVAILABLE CASH position of about $160 million is, if anything, on the low side. I define "available cash" as net cash earnings retained from past years, and exclude cash which will be used as future revenues. If you spend future revenue you have to be prepared for future negative cash flow, which could do a real number on our stock price.

jmo
LA