InterDigital Inc (IDCC)

[rmarchma]

Loop without $9.4m bonus adjustment, earnings per share would have been 24 cents pro forma for IDCC’s fourth quarter, rather than the actual 9 cents per share, calculated as follows:

Revenues $58.7m actual

Operating Expenses $44.5m adjusted ($53.9m actual -$9.4m catch-up LTCP adjustment)

Operating Income $14.2m adjusted

Interest Income $.6m actual

Income before income tax $14.8m adjusted

Income tax expense $4.3m (at 29% actual rate of 4th quarter, due to special R & D credits in 4th quarter)

Net Income $10.5m adjusted

Diluted Earnings per Share = 24 cents adjusted (based on actual 44.3m weighted average diluted shares)

Without the $9.4m nonrecurring fourth quarter adjustment to the LTCP plan due to the Samsung agreement, IDCC would have had 24 cents of earnings per share, and would have blown-out the consensus 4th quarter estimates of 16 cents EPS. Due to the $9.4m adjustment, IDCC actual results came in way below consensus estimates at 9 cents per share, and the share price got killed IMO.