InterDigital Inc (IDCC)

[Corp_Buyer]

4Q results - lackluster expectation?

In addition to legal expenses, we also have the start of development work on the GD contract, subcontractor engagements (GD contract), and increased antenna development and marketing.

My speculation is that we might see a $2M increase in the development line in the 4Q plus the repeated and surprising cost increases for public entity, employee development, strategic planning, commissions, etc., etc.

IMO, the delay in reporting 4Q results probably indicates it will not be great news (just as as an early reporting date usually indicates good results).

It may be that our lackluster stock price reflects low expectations for the year end 2004. In addition, there are mounting fundamental concerns about our management team and damage to our key assets (3G litigation with Nok).

If there is a silver lining in any weak (or negative) year end 2004 financial results, perhaps the company has actually prepaid some expenses e.g. legal retainers, 3rd party developers, etc. which will help us to maximize the expected upswing in 2005 (my hope).

MO,
Corp_Buyer