Replies to post #408619 on InterDigital Inc (IDCC)

[FISH21049]

olddog: If it were 'substantial' and either on its own or combined with the other payment exceeds the 10% treshhold level AND it is taken into income, wouldn't they be required to disclose?

Thanks

[sonic22]

Olddog,

I am hoping they will disclose the amount of payment. As you mentioned they may not however not sure what they can't once the payment hits. I believe with the Intel arbitration they reported it and I think the Amira arbitration they did as well. If they payment comes in on Friday it will be a debit to cash and credit to deferred revenue. At that point there is no reason they can't issue an 8-k with payment otherwise we will have to wait until August and the 10-K to see what the payment was.

I am also hoping they are working on settling all issues with Huawei as in the past IDCC usually releases guidance around the end of May. They hinted on the last CC that Q2 due to seasonality won't be as good on the per unit royalties so I am optimistically thinking they want to finalize Huawei so they can incorporate the revenue into Q2 guidance. I understand they may not be the case but this will be frustrating to have deferred revenue buildup for another year while Huawei still plays around in the courts.

[squingeqbob]

Someone could ask Patrick VD Wille, but he'll likely reply that he knows it won't help much but it's company policy not to say whether or not they're going to say anything about whether are not anyone paid anything or how much they paid if they did pay which of course they can't say.

[zombywolf]

OD, lets try to figure it out

I think you wrote a little while back that the arb decision vs
Huawei only goes back to smartphones made starting in 2013. The
numbers I found show Huawei smartphone ships in 2013 about 46 million, 2014 75 million and 2015 100 million. I dont think any
2016 ships were in the arb- need a license after the arb to get paid on any ships?

So, it looks like we are at about 220 million smartphones. They
seem to have similar, but faster growing ships as LG, which we
averaged $57MM per year when they were licensed. It is probably
a fair bet that the arb looked at that license rather than the
Apple one for some basis. That might get us a check north of
$150MM plus interest. However, I cant imagine IDCC getting more
than .60 per phone from the arb, so methinks the final check to
be like $130MM plus interest. Still falls under substantial to me.
A buck in special div to us, rest to the IDCC bank account. JMO.