InterDigital Inc (IDCC)

[jai]

Before the Ericsson settlement their were articles stating that Ericsson exposure could be upwards of $1 billion dollars. We have heard of the $100 million dollar offer whether fact or fiction. Most investors thought that IDCC got a low ball settlement when Ericsson was done. It turns out that the Ericsson settlement is key to IDCC's survival and progress.

Now a year and 3 months later and we are in a dog fight with Nokia and have not had any major cell phone manufacturers come to the table. Can a Nokia settlement help IDCC bring all the other manufacturers into fold?

My question is that because IDCC management has stopped using specific numbers when refering to Nokia could this be a sign that they are negotiating off these numbers?

Just suppose they are. That would explain the removal of Nokia and Samsung past due revenues from the annual report. It would also explain the changing of the investors presentation to remove Nokia/Samsung numbers.

If IDCC settles and gives a $200 million dollar credit, I feel it would be a very smart move.

$200 million cash would equate to less than $4.00 a share.
($200 million / 55 million shares = $3.63 a share).

If IDCC was able to keep the revenue stream going foward at the rate they received from Ericsson we are talking $20 million a quarter or $80 million a year. IDCC currently sell for about 7 times yearly revenues. 7 times 80 million
= $560 million.

At a minumin a settlement with $0 dollars past due from just Nokia would be at least $10+ a share in price increase.

Now we've got SAMSUNG, LG, NT, SIEMENS, MOTOROLA, LUCENT, PANASONIC, PALMONE, NOVATEL, etc,, etc. Plus 3G growth, IFX.

Finally is it worth $150 to $200 million of one time money to get the company moving now without the risk of a bad arbitration decision.

If the company decides that it is, I'm all for it.