InterDigital Inc (IDCC)

[rmarchma]

Breakout of IDCC's 2010 Revenues

Total Revenues = $394.5m

Past Sales = $41.3m (Casio Hitachi= $29m, Kyocera= $4.9m, True-Up Audit= $6.7m, Other= $.7m)

Technology Solutions = $24.3m (New 2010 Tech licensees= $14.7m: Capisemi and another new unnamed Chinese Chip Company $6.2m, Beceem $8.5m, including $4.3m termination fee; Infineon= $9.6m)

Fixed-Fee royalty of $195.8m as follows:

Samsung ...$102.8m ($25.7m per quarter)
LG .........$57.4m ($14.35m per quarter) Expired 12/31/10
Pantech....$15.6m ($3.9m per quarter)
Apple......$8.4m ($2.1m per quarter)
Amended fixed-fee License 2nd qtr...$3.5m (Q2:$.5m, Q3:$1.5m, Q4:$1.5m)
Lucent ....$2.8m ($700,000 per quarter)
Unidentified fixed-fee Licensee $5.3m ($1.35m per quarter, arising from Q3, 2008 conversion from per-unit to fixed-fee license)

= Subtotal Fixed-Fee Licensees....$195.8m

Per-Unit royalty of $133.1m as follows:

RIM.... $38.8m (Q4 actual: $10.4m + other 3 quarters estimated: $28.4m = Canadian revenues)
Sharp estimated.....$37.1m (Q3 actual: $10.1m, other 3 quarters estimated: $27m)
Casio Hitachi....$4.2m ($33m total - $28.8m past sales). Now part of NEC.
Other Japanese per-unit licensees....$46.1m (includes NEC, Panasonic, Toshiba, Kyocera recurring; $121.1m total Japan
- $37.1m Sharp estimated - $33m Casio/Hitachi - $4.9m Kyocera past sales)
Taiwan per-unit licensees....$21.6m (includes HTC, Quanta, Arima, Inventec, Asustek)
Other per-unit estimated...$1.5m
*Less: true-up audit (6.7m) and other unidentified past sales (.7m) -7.4m
*Less: unidentified fixed-fee licensee -$5.3m
*Less: amended fixed-fee licensee -$3.5m

= Subtotal Per-Unit Licenses....$133.1m

Total Revenues....$394.5m


*these subtractions from the per-unit total are necessary to keep from double-counting these amounts. I now believe that these unidentified revenue sources are from licensees in Japan and/or Taiwan. Since I used the totals for Japan and Taiwan in my per-unit calculations, they have to be subtracted because they were previously included in the unidentified past sales number and in the unidentified fixed-fee numbers.


A further reconciliation of 2010 revenues to the chart of revenues by country in the 10K:

Korea....$175.6m (Samsung: $102.8m; LG: $57.4m; Pantech: $15.6m)
Japan....$121.1m (Sharp estimated: $37.1m; Casio/Hitachi: $33m; Kyocera past sales: $4.9m ; all other Japanese licensees: $46.1m)
Canada....$38.8m (RIMM)
Taiwan....$21.6m (IDCC has never furnished any info to break-out this total among the various Taiwan licensees. I would think that HTC provides the greatest revenue amount from among the Taiwan licensees)
*US....$18.9m (Apple: $8.4m; Beceem: $8.5m??; Lucent: $2.8m)
Germany....$10.3m (Infineon: $9.6m; Cinterion?: $.7m)
China....$6.2m (Capisemi and unnamed Chinese chip maker in Q3)
*Other Europe....$1.9m (unsure could be Phillips/ST Ericy or some portion of Lucent/Alcatel)
Other Asia....$.1m (very insignificant only $100,000)

Total Revenues by Licensee’s Country....$394.5m


I’m having some problems reconciling US revenues to the component licensees for both 2010 and 2009. I think 2009 US amounts should be Apple at $8.4m and Lucent at $2.8m = $10.6m versus the US chart total of $9.4m for 2009, or a $1.2 difference. I think 2010 US amounts should be Apple at $8.4m, Beceem at $8.5m, and Lucent at $2.8m = $19.7m, or a difference of $.8m from the $18.9m chart total.

Why I think Beceem’s 2010 revenues were $8.5m linked as follows:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60458552

I think perhaps Lucent’s $2.8m annual fixed-fee revenue is somehow being split between the US and "Other Europe" due to Lucent’s parent company now being Alcatel (French). However all of Lucent’s annual $2.8m is not going into “Other Europe”, because “Other Europe” only totaled $1.9m in 2010 and $1.2m in 2009. Also I believe IDCC is getting some royalty from Philips/ST Ericy, which would be classified as other Europe too.