InterDigital Inc (IDCC)

[mickeybritt]

Jimlur provided this to me.

This is from Carpenter, and if IDCC is indeed getting .40 cents the high side of his estimation per chip, in a years time that can add up to some real money/

Here is what Carpenter stated.

InterDigital will benefit from Apple’s 3G iPhone, Research in Motion’s new Storm and Bold,
and Google’s new G1 phone. Apple is licensed for 2G and 3G, although financial terms are not
public. Additionally, InterDigital may receive a royalty from its technology and licensing relationship
with Infineon, a chip provider to Apple. According to InterDigital’s management, it receives a royalty
every time Infineon sells a 3G chip. We estimate the royalty at $0.25 to $0.40 per chip. An important
point to remember is that InterDigital recognizes licensing revenue (whether handset or chip) with a
one quarter lag, so InterDigital would likely only recognize a nominal amount of revenue from
Apple’s 3G shipments in InterDigital’s 3Q08. The larger revenue contribution will be in 4Q08.
Research in Motion is introducing new 3G touch screen phones, and as a licensee, will pay InterDigital
a royalty every time a phone is sold. Google’s G1 phone is manufactured by High Tech Computer

This as more and more hopefully need these chips can really boost the per unit rate up significantly.
Just my opinion.

Corporation (HTC), an InterDigital licensee. Our understanding is that InterDigital receives a royalty
every time HTC manufactures a phone. We expect Google’s handset shipments to increase
significantly over the next two years.

If just these 4 are paying for the chips this isn't chicken feed, as their sales are pretty robust, could be just from Apple if it is .40 cents almost 2.5 million this past quarter.
If they keep that avg sales up then Apple alone at .40 cents would increase revenues by 10 million a year. I don't know the sales of Google or Rimm, or HTC but add them in and next thing we know we are talking some pretty good revenue.


Mickey