ParkerVision Inc (PRKR)

[JJSeabrook]

JPMorgan's Qualcomm analyst Rod Hall said Parkervision is expecing $500-$2 billion in damages.

Parkervision (PRKR) Continues Run as It Seeks to Bleed Qualcomm (QCOM) of up to $2B

After gaining 61% on Thursday on the back of positive jury verdict, Parkervision, Inc. (NASDAQ: PRKR) is tacking on another 29% today as some figures come out on how large a settlement in the matter could be.

In a note today, JPMorgan's Qualcomm (NASDAQ: QCOM) analyst Rod Hall said Parkervision is expecing $500-$2 billion in damages.

"We believe that ParkerVision is seeking about $500m in damages," Hall notes. "Bloomberg reported that the US district judge allowed ParkerVision to ask for $432m in damages. ParkerVision announced that should the jury find willful infringement by Qualcomm, the damages could be enhanced by up to three times. We believe this puts the range of damages between $500m and $2.0bn for Qualcomm."

Hall said he believes the jury ruled that QCOM had infringed in a majority of the instances cited in the case. Given this, he believes it is likely that the jury awards at least the $500m sought and possibly more.

Still he doesn't see much of a hit for Qualcomm. "We estimate Qualcomm's cash payments could impact its FY14 EPS in the range of (0.1%)-(0.4%) or equivalently in the range ($0.005)- ($0.019)."

"Needless to say the direct impact of this case is relatively small even in the worst case," he said.

He added, "Given this trial only covers US infringement we believe that ParkerVision may seek leverage to force Qualcomm to settle globally. One possible tool is a US injunction, which would stop products with infringing technology from shipping into the US. If employed and successful this strategy could result in increased short term risk to QCOM's share price and earnings."