InterDigital Inc (IDCC)

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You can be confident that management will NOT give us the Nokia and Samsung rates even if we learn those rates are not being challenged. We will still be in the dark and that's why this CC/earnings release is not as important as many are making it out to be. The really important numbers won't come in till later in the year/beginning of next year.

Based on managements guidance last quarter (regarding how IDCC was planning on accounting for specific licensing revenue), I believe the current numbers will look quite good due to the lumping of a lot of past and future revenue into the current quarter. However, maybe we will learn that they have decided to spread it out a bit more so numbers later in the year don't look so bad. In the end, it's not the specific numbers that matter so much but how solid the revenue stream is. If most of the money is comprised of one-time upfront payments or royalties from contracts due to expire in 2006, then these revenues will be viewed more along the lines of nuisance payments, not a solid stream of royalties that can be depended upon like an artesian well.

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