InterDigital Inc (IDCC)

[okiebug]

I'll be satisfied with the 2/2.5G royalties till 2006. 3G and new wireless features are less important to the end users, at this time, than better coverage and reliabilty. Maybe some of the war coverage will stimulate the consumer market to want the camera phone. Be interesting to see who can put the magic marketing bullet in their arsenal to sell 3G.

Does anyone believe that the our share price is an indicator that folks want to see the 2/2.5G royalties deposited? Additionally, if/when we do see the money from NOK/Samsung and it is significantly less than the 10K outlined on pg.38 what will this do to our share price? For if we have over $3.00 cash per share, shouldn't we be trading in the $30.00. Show me the money, may be answer.

As posted back on April 1:
Just look at what 2003 will look like at year end:

Ericy settlement license $34.0
Ericy '03 license 12.0
Ericy Annual License 6.0
Nokia '02 85.0 e
Samsung '02 22.0 e
Nokia & Samsung '03 advances 100.0
NEC 3G 1.5
NEC 2G Dispute Settlement 13.25
Nokia Special Engineering 1.0

Total Revenues $274.75
Expenses (estimated based on
management represen-
tation that they will
be in line with '02
numbers) <86.0>

Earnings $188.75

(Ah say, Ah say, that miiillllions, son)

EPS (based on fully diluted 56 million share) $3.37

And the above analysis does not even take into account the '02 royalty obligations of Nokia and Samsung. If you look at page 37-38 of the 10K, management states that these obligations are $100-120 million and $22-27 million, respectively. I am a bit confused about this wording. Are they representing that these obligations are in addition to the estimated 2003 royalty revenues, or are the estimated 2003 royal revenues that are mentioned what management expects to collect on the 2002 royalty obligations? Anyone with insight, please respond. Anyone with thoughtful criticism of my analysis, please also respond.

All in all, going from $88 million in '02 revenues to $188 million in '03 revenues is a nice little 113% jump, and the earnings increases, both quarters to quarters and year to year, are going to be "one giant leap for" IDCC faithful