InterDigital Inc (IDCC)

[Dave Davis]

CEO Bill Merritt discloses discussions with Motorola

It's baffling to me how people can be getting out.

The company is generally tight-lipped about ongoing negotiations. I did not hear the Needham presentation, but TFWG did a good summary on AB's. If his summary is correct, which I expect it is, then we now know that InterDigital is talking to Motorola (a named trigger) about 3G and other products.

Is anyone else excited about this? Or is it just me?

Here's Bob's summary from AB:

(Thanks Bob)

Just listened to the conference. Nothing earth shattering was said. Clearly the shareholder value drivers remain:
1) Nokia 2g payment
2) Samsung 2g payment
3) Ericy 3g license
4) S/E 3g license
5) Mot...
6) LG...
7) LU ...
and of course
Nokia 3g
Sammy 3g
10) Chips....?????

Rich mentioned:
- IDCC is a key contributor to the standards boards for 2g, 3g, 802.x, cellular, & WIMAX
- recurring roy. rev. in '98 was approx. $1m per q, today it's risen to $40M+
- IDCC is better, stronger, faster [my words], we have 4 new 3g lic., Gen. Dyn. is a WCDMA cust. [rel. 4], Phillips is HSDPA, and IFX is offering the R4 sol. layer 2/3 protocal stack
- We have a complete IP solution
- Working on HSUPA, have a processor in lab that hit 10mbps, will demo in Spain
- FUTURE GOAL: to secure revenue from every 3g unit sold.

EXPECTATIONS [per RF]: '06 is an inflection point for company [my thought, replace lost 2g rev. or sink], understand the need to license 1 or more of the top 6.

Q&A:
Not much really. UB talked about:
- Nokia and Sammy. He also revealed they are talking to MOT. on 3g and other products.
- mentioned they can still work with Nokia even while engaged in legal pissing contest.
- 2g v 3g, confirmed 2g rev. traIls off in '06/'07 [can you say 'inflection point?']. 3g patent port strong and credibile...
- TD-SCDMA in China. IDCC has many patent filings in, is in good position as/if this tech grows.
- IDCC understands certain organizations need to be encouraged to pay.

Here's to '06, TALK ABOUT BEING ALL IN!


This link should bring you to the reply:
http://www.wsw.com/webcast/needham13/idcc/