InterDigital Inc (IDCC)

[rmarchma]

Jimlur re guidance before or after lawsuits

IDCC provided expense guidance for the fourth quarter in the third quarter CC on Nov. 9, 2004. The UK lawsuit was filed earlier in June. The Delaware lawsuit was not filed until January 2005, and would have no impact on fourth quarter 2004 expenses. BTW the CC that provided 4th quarter expense projections also mentioned increased expenses in the fourth quarter due to the anticipated (at that time) General Dynamics contract as follows:

"We are also excited about the potential new relationship with General Dynamics and heightened interest in our AIM Antenna family of products. To take full advantage of these opportunities, we are scaling our development efforts. As a result of higher commissions related to per unit royalty revenue and the additional investment in technology development and related productization, we expect our fourth quarter operating expenses to increase 10% to 15% over third quarter 2004 levels."