InterDigital Inc (IDCC)

[loophole73]

IDCC today

If the Nok arbitration goes to a decision by the panel, we are looking at the 2nd Q of 2005 for the results. The accounting as to the monies awarded will be tricky. The remaining 6 Q's thereafter will not be taken seriously as recurring revenue because of the short term remaing on 2g at that time.

3g is the driving force and new licenses are a must. I believe HG when he says that IDCC is reaching the potential licensee number crunchers sooner today. This is a good sign. The difference between HG and Merrit is that HG does not address matters on the basis of what the listeners want to hear. He made the statement twice that IDCC will get the OEM's licensed. This is the equivalent to pointing to centerfield in my assessment of HG over the years. You all know my previous opinions of Mr. Merrit and I choose not to reiterate. The Sharp deal is good for IDCC regardless of how it is spun.

HG also alluded to internal review as to rate expectations. He was very candid about the matter. They do not believe that they are high at this time. However, the are realists and an inside the park homerun may serve the shareholder value better than waiting to hit a towering shot. Howard alluded to the fact that IDCC was not going to wait forever last year and we are in litigation with LU this year. He was quick to say that this is the first litigation initiated in 11 years. It was not done hastily and IPR companies have to protect their patent claims or they have no value at all. I believe that IDCC is doing the right thing.

Fagan got a taste of the hard questions today and fell a bit short. Sooner or later is going to learn that he is expected to spout numbers off the top of his head during a CC. Good CFO's do not have problems with doing so. I am sure that he will work on this or the misery of each future confrontation will cause him to bring someone with him who can recall the numbers from memory and relate same to the analyst offering the question.

I am on my way to pick up a Cat scan with irregular results to review with my doctor. I have no idea what this means and frankly am scared beyond any level in my previous experience. I am not in any fear regarding IDCC on the basis of what HG stated today. Just watch the 3g license barometer from this point forward and all will end well.


Good luck all.
MO
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