InterDigital Inc (IDCC)

[mschere]

My comment..This news today may well determine some future revenue for IDCC.

Dow Jones Business News
Ericsson May Repay Unit Sale Proceeds To Infineon-Sources
Wednesday February 19, 9:50 am ET


BERLIN -(Dow Jones)- Telefon AB LM Ericsson may have to return much of the proceeds it received from the disposal of its microelectronics unit to Infineon Technologies AG , people familiar with the deal said Wednesday.

Infineon and Ericsson are in talks about potential adjustments to the EUR300 million deal completed in September last year, but no agreement has yet been reached.

"We are in talks with Ericsson and want to settle it as partners," said Infineon spokesman Guenter Gaugler.

"Neither of us is of course happy with the way the market has developed," said Ericsson Chief Executive Kurt Hellstroem, at a news conference at the 3GSM World Congress in Cannes.

He said the two companies would discuss any adjustments. He declined to comment directly on a question whether the company would have to pay up to EUR130 million in adjustments.

As part of the deal with Infineon, Ericsson agreed to guarantee a certain amount of the unit's sales, a source close to the situation told Dow Jones Newswires.

But in light of the persistent weakness in the wireless equipment sector, Ericsson's orders from its former semiconductor unit have fallen short, the source said.

Adjustments to the deal would be a blow for Ericsson, the world's largest supplier of equipment for mobile networks.

The Swedish company is struggling with a slump in demand from mobile operators over the past two years and has shed nearly 40% of its workforce. The sale of the unit was part of Ericsson's efforts to raise cash and focus on its core business.

Company web site: http://www.infineon.com