Replies to post #28117 on InterDigital Inc (IDCC)

[blueskywaves]

Thanks for clarifying that, Joel. The RS/RSU/Option numbers are in SHARES while the R&D numbers are in dollars. I extracted those numbers from the 10Ks.

[blueskywaves]

One thing that can be said about the way QCOM has
managed its balance sheet over the years is that
it has consistently taken full advantage of whatever
the market was willing to give to them.

For instance, the March 1999 landmark deal with Ericsson
allowed it to generate more cash from option exercises
and royalties than at any other point in its corporate
history! As a direct result of a stronger balance sheet,
they can enforce their patents better and invest more in
R&D consistently.

Note that QCOM has an even more generous options program
than IDCC and it effectively sets the market prices for
top 5% wireless managerial and technical talent despite
the fact that its stock has been in a relentless decline
since 2000.
.

Qualcomm (QCOM) 
 Selected Financial Data 
 1995 to 2002 
 . 
 . 
      Net  Proceeds                 Major 
      from issuance                 Cash      Cash/ 
     of common stock + Royalties = Inflows   Mkt. Sec.    R&D    
 . 
 . 
 1995      $499M     +  $  45M     $ 544M    $ 579M    $  80M 
 1996        24M          100M       124M      154M      162M 
 1997        33M          152M       185M      809M*     236M 
 1998        50M          218M       268M      303M      349M 
 . 
 1999       1.3B          454M       1.8B      1.7B      381M 
 . 
 2000       144M          705M       849M      2.5B      340M 
 2001       132M          777M       909M      2.6B      415M 
 2002       120M          851M       971M      3.2B      452M 
 . 
 . 
 **Includes $606M in net proceeds from the issuance 
 of trust convertible preferred securities of 
 subsidiary trust. 
 . 
 Note:  Royalties have 80%- 90% gross margins depending 
 on the costs of patent enforcement.  For the purposes of 
 this analysis, the simplifying assumption is that  
 royalties are as good as cash. 
 . 
 Source: 10Ks (SEC)