InterDigital Inc (IDCC)

[JimLur]

To all, Here's some notes sent to me by an IDCC investor who attended the Needham presentation.

Still very impressed with Merritt. The presentations as well as the company is evolving. Bill definitely gets it. He know it will take providing technical solutions to get more companies "Licensed". Rich Fagan also gets it. He knows they need to deliver on their licensing.

My interpretation.
Big effort to move away from the patent collector mentality and into a solution provider with patents.

They want to use their expertise and products to make licensing with IDCC more palatable to manufacturers.

Rich and Bill both made a point that the 3G part of our patent portfolio was much larger than 2G.

Very focused on signing more than 1 tier 1 manufacturer to 3G NOW.

Also very focused on making sure 2006 is the year they sign 3G licenses.

I did like Bill's explanation of the stack and how they have the best product offerings period.

Mentioned TTPCom and how they can not only offer better products but also license the IPR.

I also liked the reference to the 2009 $1.2 billion sale number. It was handled very well. Basically the revenue will be generated depending upon the average selling price of the 3G units. If they go down in 2009 they make less. If they do not achieve 100% penetration they make less. It gives a clarity to the entire situation. It also allows them to show potential without sounding like they are hyping the stock.

Can you imagine what $1 Billion dollars in profit would mean to a company with a 50 million share float? That would be $20 a share earning per year and a share price somewhere between $200 and $400 a share.

I was very happy with Bill's comments on China. I have been reading about the China potential and the "home grown" TD-SCDMA. Howard once commented that he did not think IDCC could make money in China. Bill's answers were very different. Basically he said that they were one of the first companies and are very well respected in the country. I asked about
licensing Chinese companies and why he thought he would be able to do it and he basically said because they have the expertise and the products to show these companies how to do implement the technology.

Janet seems to be very excited about Barcelona in Feb.

I'm looking at this from the point when Merritt was hired. Hearing Merritt speak compared to the years I've listened to Howard is very, very refreshing. If they were singers Merritt would be Frank Sinatra and Howard would be Tiny Tim.


Bottom line, for years under Howard I listened to drab directionless conference calls with non answers to questions and no emotion in his voice. Merritt seems driven and so not focused on the past (Nokia) or 2G but 3G. He has a direction and a clear understanding of what he needs to make this company successful. Also their is no back patting in this group.
They know what they have to do and are driven to get this licensing done.