InterDigital Inc (IDCC)

[Learning2vest]

My worry over the past year has been seeing the IRS asking InterDigital how they were building cash so fast without paying much, if any, corporate income tax. Continued investment in the biz, big legal bills, lots of write-offs, AND a few very significant accounting changes that kept the earnings at about break-even is part of the answer I'm sure, but maybe IDCC has been a bit TOO conservative.

Wireless waz raised some questions the other day along those lines(post 98071). He wondered if IDCC has been "sandbagging" the profit picture a bit by taking charges early and deferring income(AND, how about that accounting change that effectively created a 3 qtr recurring revenues year at IDCC in 2004).

Kinda has me thinking that while the IRS is ok with everything IDCC has been doing, an SEC review team wants to take a closer look. Hmmmm....., is it possible that any "adjustments" the SEC asks IDCC to consider will cause a re-statement of HIGHER earnings?