InterDigital Inc (IDCC)

[jimmylee]

DR - Specific mention of impact on HTC


TAIPEI (Dow Jones)--High Tech Computer Corp. (2498.TW) said late Thursday its first quarter sales won't be affected by a U.S. court ruling ordering Qualcomm Inc. (QCOM) to stop marketing some of its products.

The company reached this conclusion after a preliminary evaluation, according to the filing to the Taiwan Stock Exchange.

An investor relations official said Friday High Tech Computer made the evaluation after discussing the issue with Qualcomm, a San Diego producer of digital-communication technologies, which is High Tech Computer's supplier for handset chips.

"We will work with Qualcomm to come up with other solutions, such as upgrading the technology or amending the technology, so there will be no effect on our sales in the first quarter," said the official, who declined to be named.

U.S. District Judge James V. Selna in Santa Ana, Calif., ordered Qualcomm on Dec. 31 to stop producing and marketing in the U.S. cellular-phone chipsets and software that infringe three patents of Broadcom Corp. (BRCM), the Irvine, Calif., producer of semiconductors for wired and wireless communications.

High Tech Computer's shares have fallen 9.6% since Dec. 31 on concerns that High Tech Computer may not be able to ship its handsets to U.S. after the court ruling. At 0336 GMT they were trading at NT$541.

Bill Huang, an equities sales trader at KGI securities, estimated that sales would fall 27% on quarter if High Tech Computer wasn't able to ship any handsets to U.S. But said "the chance of that happening is low, as an alternative solution will likely be reached between Qualcomm and Broadcom."

High Tech Computer's combined revenue in October and November was NT$27.64 billion, according to monthly filings by the company.

High Tech Computer Chief Executive Peter Chou said Nov. 14 he expected revenue in the first quarter of 2008 to be higher than the revenue of NT$23.6 billion in the first quarter of 2007.

High Tech Computer makes personal digital assistants for Hewlett-Packard Co. and smart phones for Palm Inc., and is the world's largest maker of phones using Microsoft Corp.'s operating system, in terms of shipments.

-By Wei Yi Lim, Dow Jones Newswires, 8862-2502-2557, [e-mail]

(END) Dow Jones Newswires

January 03, 2008 23:02 ET (04:02 GMT)

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