InterDigital Inc (IDCC)

[bulldzr]

Welcome back Alley!

"1.What is the potentalposotive/neative impact of the CAFC ruling... when is it scheduled to be released?"

The impact to the shareprice is unknown, but I expect it will be significant either way... more up with a win than down with a loss IMO. In the case of a win, most believe it will lead to a settlement with Nokia for a worldwide 3G license... which would be like 2 or 3 LG's revenue wise I reckon. A loss at the CAFC would probably mean another 2-3 years of litigation with Nokia, since they don't seem to be in any mood to settle before they are forced to.

As far as when the decision will come down, the CAFC has no schedule or date certain when they will make their decision public. Various opinions put the decision date as soon as tomorrow, or out another 60-90 days... torture.

"2.Where do we stand on LG and how much revenue will be lost and when as a result?"

During the recent cc, Merritt was very positive regarding LG; seemed to indicate an agreement could be signed at any time. Some here suggest LG is awaiting the Nokia outcome before signing. Most believe IDCC is going for a per unit royalty bearing license including LTE in lieu of the past fixed fee license. The revenue from the previous license was around $14M per quarter I believe, and as of Jan 1 we have already lost it; which is the reason for the revenue guidance shortfall for 1st Q 2011. Someone here will correct me if I am wrong.

You might listen to the 4th Q cc for a better feeling on matters currently... I think it can be accessed on the IDCC website, if not in a sticky note at the top of the message board.

Hope this quick and dirty summary helps.