BB's Stock Haven

[was hotlinktuna]

Added FORG 1.22 after seeing this: FORG updated research from Dutton

Rating: Strong Speculative Buy
04/30/2007
Forgent Networks Files SEC Form 8-K Detailing Settlement With Nine Defendants on '746 Patent;Strong Speculative Buy
Reiterated
In the SEC Form 8-K filed on April 26, 2007, Forgent Networks, Inc. detailed that it had entered into settlement and license
arrangements with nine of the defendants in the '746 Patent litigation: Cable One, Inc.; Charter Communications, Inc.; Comcast Corporation; Comcast STB Software DVR, LLC; Coxcom, Inc.; Digeo, Inc.; Motorola, Inc.; Scientific-Atlanta, Inc.; and Time Warner Cable, Inc. Under the arrangements, Forgent granted the defendants a patent license and the defendants agreed to pay the Registrant a total of $20.0 million. Additionally, all parties agreed to release all claims against each other and the Registrant has no future obligations related to these settlements.

The $20.0 million is a gross figure and we estimate that after legal and other expenses the net realized by Forgent could be
approximately $10.0 to $12.0 million, or $0.40 to $0.48 per share.

Summary
There are six defendants remaining in the '746 Patent litigation, which is set to commence with jury selection on May 14, 2007. We are assuming that settlement negotiations are continuing with these remaining six defendants and we also assume that since these six did not join the initial settlement that their usage of the '746 Patent would net Forgent higher fees. Forgent's common stock hit an intra-day high of $1.54 immediately after the initial settlement agreement announcement and then sold off to close the week at $1.26 per share.

With the beginning of the trial so close, things may be happening behind the scenes. We reiterate our Strong Speculative Buy and price target of $2.40.


http://www.jmdutton.com/research/forg/notes/forg_note_043007.pdf
Saw it posted on another thread...tuna