InterDigital Inc (IDCC)

[loophole73]

Warbil

IDCC settled for pennies because they were constantly under the survival mode cloud. Those shareholders who are screaming for additional buybacks now are simply ignoring the greater necessity of preserving a warchest to avoid being placed in another survival atmosphere as we take on the top OEM's for 3g. LG will pay its final 95 mil in January and Samsung should finally pay a large amount in 2008 for 2g. This should give IDCC a sufficient cash base to litigate until conclusion avoiding a perception of the need for a pennies on the dollar settlement. Two sets of interested parties must be patient and not expect pre-victory rewards. The first and foremost is management. They must be willing to abstain from large bonus awards until the 3g licensing job is complete. The premature celebration and bonuses awarded for the Nok master agreement resulted in major dilution for the shareholders. The concentrated buybacks completed over the past few years has served as a correction. However, the existing shareholders are the next set who must cease expectations of additional buybacks and dividends until the 3g job is complete. Once LG and Samsung pay, the company should be fully capable of comfortably carrying on its legal wars and business plan for the time it takes to sufficiently complete same. Both groups must be willing to sacrifice their personal desires, wants and needs during this time in the company's history.

Of course, this is just my opinion formed from observations of the IDCC operations over several years. If IDCC prevails against MENS for 3g, there will be plenty of cash available to take care of both sets of interested parties.

MO
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