InterDigital Inc (IDCC)

[sinnet14]

Thanks, Jim, for the report.

I sure hope that providing technical solutions can get more companies licensed. And I want to see the effect by the end of Feb, at least for some small to mid OEM/ODMs(in fact, any new license will do).

Two comments:

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

I remember the original words were "one or more tier 1 manufacturers...".

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.

LOL, Anyone really believes this kind of fantasy thinking?

1. Handset ASP will go down as market matures, that's for sure.

2. 100% coverage only exist in dream. 90% and I will give our management two-thumb up.

3. Even if 1&2 holds, the expense will go up. When revenue reaches 1 billion, the expense will be over 200 million. I can bet on this with anyone on this board. Name your wage.

4. Now even if 1&2 holds and expense won't go up. 1.2b revenue gives 1b profit BEFORE TAX. What will be the profit?
about 600 million. Can't believe people alway forget tax part. Maybe those people never pay tax in real life. Maybe I should ring IRS for a checkup... LOL.

Now re-do the calculation.