InterDigital Inc (IDCC)

[blueskywaves]

The $34M ERICY settlement is backend-loaded.

 
          Settlement     Infrastructure    Recurring 
 ......                                    Royalties** 
 ...... 
 ...... 
 1Q2003        -             $ 1.5M           - 
 2Q2003     $ 5.3M*            1.5M       $2.5M-$3.1M 
 3Q2003       5.3M*            1.5M       $2.5M-$3.1M   
 4Q2003       5.3M*            1.5M       $2.5M-$3.1M 
 ...... 
 FY2003    $ 16.0M             6.0M       $7.5M-$9.3M 
 ...... 
 ...... 
 1Q2004      18.0M           $ 1.5M      $ 2.5M-$3.1M      
 2Q2004        -               1.5M        2.5M-$3.1M     
 3Q2004        -               1.5M        2.5M-$3.1M     
 4Q2004        -               1.5M        2.5M-$3.1M 
 ...... 
 FY2004    $ 18.0M           $ 6.0M     $10.0M-$12.4M 
 ...... 
 .... 
 ... 
  
 *Assumes that the $16M projected inflow comes in  
 evenly over 3 quarters in 2003. 
 ...... 
 ...... 
 ......  
  
 **Sony/Ericsson currently has 6%-7% of the handset 
 market.   ERICY is contractually obligated to prepay 
 24 months of recurring royalties estimated at  
 $20M-$25M or approximately $2.5M to $3.1M per quarter 
 on an accrual basis.  Again, this is based on 6%-7% 
 market share and does not account for seasonality. 
 Any market share gains by Sony/ERICY will probably 
 result in an acceleration of DEFERRED REVENUE 
 recognized.   
 

We expect to receive aggregate payments currently estimated to be approximately $34 million from Ericsson and Sony Ericsson related to sales of terminal and infrastructure products through December 31, 2002. These payments should be received over four quarters, commencing in the second quarter 2003.