InterDigital Inc (IDCC)

[rmarchma]

Recap of IDCC's Stock repurchases through Q3 2013


Most of IDCC's stock repurchases occurred between 2003 - 2008, and then significant repurchases in 2012. Prior to 2003, IDCC had only repurchased 1.5m treasury shares. The following is a recap of IDCC's treasury stock repurchases through Q3 2013:

Prior to 2003: purchased 1.5m shares at cost of $8.1m = $5.40 per share

2003: purchased 2m shares at cost of $34.7m = $17.35 per share

2004: purchased 1m shares at cost of $17.1m = $17.10 per share

2005: purchased 2m shares at cost of $34.1m = $17.05 per share

2006: purchased 6.54m shares at cost of $192.5m = $29.43 per share

2007: purchased 5.75m shares at cost of $176.3m = $30.66 per share

2008: purchased 3.76m shares at cost of $81.5m = $21.68 per share

2009: purchased 1.01m shares at cost of $25.02m = $24.77 per share

Total purchased thru 2009: 23.57m at cost of $569.25m = $24.15 per share

2010: no purchases

2011: no purchases

2012: purchased 4.9m shares at cost of $152.7m = $31.16 per share

2013: no purchases through Q3 2013

Total Treasury stock purchases thru Q3 2013 = 28.4m shares at cost of $721.9m = $25.42 per share


IDCC's stock repurchases really began in earnest in 2006 when they were flooded with cash after receiving the first $95m LG installment and the $253m Nokia 2G settlement. These two key events triggered significantly higher stock prices of IDCC also during this ensuing time of stock repurchases.

IDCC got flooded again with cash in 2009 receiving $200m from new licensee Samsung, and $182m in prepaid royalties from two existing licensees. These treasury stock repurchases helped reduced IDCC's outstanding shares at 12/31/09 to 43.26m.

After no stock purchases in 2010 and 2011, IDCC began repurchasing stock in 2012 triggered by the sale of patents to Intel for $375m cash. In 2012, IDCC finally completed the 2009 authorization by purchasing 2.3m shares for $75m. IDCC then authorized another $100m share buyback in May 2012 and then authorized another $100m share buyback in June 2012 for a total $200m for the 2012 authorized share buyback. IDCC purchased an additional 2.6m shares for $77.7m in 2012, leaving $122.3m remaining on the 2012 authorization for future stock buybacks.

Although IDCC purchased no additional shares in 2013 thru Q3, they did begin to buyback shares in October 2013, but less than 100,000 shares thru Oct. 30 for $1.7m according to the latest 10Q. Since IDCC is currently flush with cash (over $750m thru Q3 2013) and the stock price is relatively low, I would imagine that IDCC is currently purchasing significantly more shares at the present time. IDCC had 41.2m outstanding shares at 9/30/13.