InterDigital Inc (IDCC)

[Dave Davis]

ddutta: This post by TFWG on AB should give you some consolation:

TC, this news is still sinking in. But, I'm getting a queasy
By: tfwg in IDCC | Recommend this post (2)
Mon, 23 Jan 06 8:15 PM
Boardmark this board | InterDigital Communications Msg. 09167 of 09175

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feeling just thinking about what is going to happen next. LG is number #5/6 and they control about 7.5% of the mobile market or 60M units sold per year. At a $1 a phone, LG's annualized contribution, could be around $60M. Now, Sony/Ericsson is also about 7.5% market share, and assuming the forementioned, let's assume $60M for them too. Benq controls approx. 8.5%, so they could contribute $68M. Mot. and Sammy control about 16% each, so they will be a volume discount of say 15%, so I'd WAG a 100M[ish] for each. And then there's Nokia. I'm thinking Nokia will manage to drop IDCC to .75%, so they could contribute $175M per year. Add it up, I get a nummy north of $560M[ish] per. Subtract expenses of $125M and tax effect the net for 38% and you wind up with $300M. Divided by 57M shares outstanding, and bang, you get an EPS of 5.26!

Two interesting thoughts: this WAG does not include chippies or any other future revenue streams, and I've not added in the existing business, what PE do you put on this company? 15, 28, 40? LOL! And two, for all those screaming whinning investors who think IDCC employees are over paid. Consider this, IDCC has approx. 325 employess...just do the math!