InterDigital Inc (IDCC)

[lastchoice]

Boenning& Scat abstract:

Investment Conclusion:
The English High Court’s ruling that InterDigital’s European patent is essential to the 3G
European standard reinforces our belief that InterDigital will be able to generate substantial
royalty revenues from the global handset market. We would point out that over the past few
months all data points have been positive for InterDigital — licensed Apple and RIMM to 3G
deals, received a favorable ruling in Samsung Arbitration case, and today’s English High Court
ruling — but the stock remains under pressure. We anticipate this positive momentum will
continue and maintain our belief that shares of InterDigital are undervalued and continue to be
one of the best options for investors who are looking for a pure play on growth in the 3G cellular
market. We would recommend acquiring shares at current price levels before new licensing
deals are inked or ahead of what we expect will be a favorable ruling in the ITC Court
proceedings. We reiterate our Market Outperform rating and $30 target.

Key Points:
• Today’s English High Court ruling is, in our opinion, favorable for four key reasons.
• We maintain our belief that shares of InterDigital are undervalued and represent an
excellent way to participate in the growing 3G market.