Thank you for your reply..On the same subject.. IMO:I believe that Tom Carpenter of Hilliard Lyons has made a similar error in not recognizing FOUR FULL QUARTERS of 2003 recurring income from Nokia and Samsung..Even if Nokia and Samsung only start their royalty payments in the second half of 2003..They would owe royalties for the ENTIRE year..Any recognition before year end 2003 is 2003 royalties due for the entire Year and the TOTAL should be classified as recurring revenue..Their accrual started in 2002..but he will call those royalties "other income" but any payment in 2003 is for the full year..If there is no Arbitration..IDCC will earn $2.50 per share RECURRING INCOME mininum from just those licensees that are currently signed on.
P.S. In his April revised report..He utilizes less than 60,000,000 FULLY DILUTED SHARES for year end 2003.
Our published earnings per share estimate for IDCC this year is $1.23 and our price
target is based on a 20x-25x multiple, or a range of $25-$31. The $1.23 estimate only includes
revenue from Nokia and Samsung for 2H03. We believe Nokia and Samsung will actually pay
IDCC revenue for all of 2003, but the agreement may not be finalized until summer. Thus, if we
were to include revenue for all of 2003, which we will likely do once the royalty rate is finalized,
IDCC could earn north of $2.00 per share. If you use the same P/E multiple on what IDCC
could earn in 2003, a significantly higher price target is not outside the realm of possibilities.
