InterDigital Inc (IDCC)

[The Count]

Share buyback answers

Obviously the company purchases their shares at the market price... with the cash onhand and then what does it become -- a short term investment?
It goes into the equity section of the balance sheet - treasury stock.

Also IDCC has bought back 3 million shares...does this in effect decrease the float, decreasing shares outstanding??
YES, it does decrease the float, which means the divisor for per share amounts is smaller. The 3 million buyback increases our per share earnings by 5%-6%. When IDCC gets the revenues flowing, this will increase our EPS, which will help the share price.

When will IDCC sell the shares...do they notify the investment community??
Unless IDCC develops a need for cash (and if that happens, we're all in deep trouble), I can see no reason for them to sell/issue any shares (other than for options). If they did decide to sell shares they would have to announce it similar to the buy back announcements.