InterDigital Inc (IDCC)

[Corp_Buyer]

"Cutting costs is easy" - yes, and holding costs should be even EASIER. The facts are that INVESTMENT in DEVELOPMENT has gone DOWN and G&A SPENDING has INCREASED SIGNIFICANTLY (19%)!

http://www.edgar-online.com/bin/cobrand/finSys_main.asp?nad=&formfilename=0001157523-04-002209&a....

Per the 8-K (I added the % figures, I hope the format is OK):

OPERATING EXPENSES (YE 12/31):
% Increase 2003 2002
Sales and marketing 15% 4,919 4,286 (Why this significant increase!?)
General and administrative 19% 18,183 15,227 (Why this significant increase!?)
Patents admin. and licensing 22% 15,995 13,074 (includes legal costs?)
Development 0% 45,936 46,068 (includes Tantivy employees?)
------------- -------------
TOTAL OPERATING EXPENSES 8% 85,033 78,655

I hope this helps explain my concern about unchecked and insufficiently explained SPENDING. How can management HOLD the line on DEVELOPMENT but not on SG&A and Marketing?? I'm OK with the patent expenses if the legal costs account for the increase.

While I usually agree with your thoughts, I want to know more about the spending increases, especially for SG&A and Marketing.

Respecfully,
Corp_Buyer