Replies to post #46888 on InterDigital Inc (IDCC)

[sailfreeee]

Eric:

I can kind of help with "One last question. When does IDCC report Q3?"

Last year they reported on 11/12, although they have not announced this year's date--many figure it to be around the same time.

[olddog967]

Eric. this comment from the annual report should answer your question.

In the third quarter of 2001, Nokia and the Company amended the agreement by refining the pace and scope of the development arrangement and Nokia committed to increase funding to a maximum of approximately $58 million, up from the original estimate of $40 million. We will be responsible for costs not covered by the maximum funding amount. This modification was treated as a new contract for accounting purposes and as a result, we changed the method of reporting revenue related to the remainder of the program to the percentage-of-completion accounting basis. Prior to the change, revenue had been reported on a time and materials basis and we had billed Nokia approximately $46 million under the contract, leaving approximately $12 million of revenue to be recognized on the percentage of completion basis. Of the $12 million, approximately $4.6 million and $6.2 million were recognized in 2002 and 2001, respectively. During 2002, we accrued a loss of $1.2 million on the modified contract based on our estimates of cost to complete the contract. The final $1.0 million payment associated with this contract will be withheld until final delivery of the remaining technology required under the agreement has been made. We currently expect final delivery to occur in the second half of 2003 and will defer the recognition of the final $1.0 million of specialized engineering services revenue associated with the agreement until that time.

[rmarchma]

Eric re Nokia engineering service revenues by year noted in bold beginning in 1999 as follows:

IDCC’s revenues by years and licensees

The following licensing/royalty revenues is based on info from the 10Q's and 10k's. The earliest I could get back to was 1991.

1991 = 0

1992 = $3m (possibly ATT)

1993 = 0

1994 = Qualcomm = $5.5m
Matsushita = $20m
Others = $3m?? (or this could be ATT)


1995 = Siemens = $13.6m in 1995 from a total $20m contract
Mitsubishi = $20m
NEC = $27m
Sanyo, Hitachi/Kokysai, PCSI = $7.1m (can not break out this total between individual companies)


1996 = Samsung = $23m in 1996 from a total contract of $35m
Siemens = $ 5m


1997 = Samsung = $3m
Siemens = $1.5m
Recurring Royalty = $1.5m


1998 = Kyocera = $27m
Toshiba = $15m
Sharp = $6m
Alcatel = $5m
Siemens = $3m
Denso, Sanyo, and Kokysai = $35m (can not break out this total between individual companies. I believe $20m was Denso and the remaining $15m was equally split between Sanyo and Kokysai/Hitachi)
Recurring Royalty = $1m


1999 = Nokia Paid-up P1 royalty = $31.5m
Nokia engineering services =$14m
Robert Bosch = $7.9m
Japan Radio and Shintom = $3.4m
Recurring Royalty = $9.5m


2000 = Nokia engineering services = $17.2m
Recurring Royalty = $34.2m (Sharp = $18m, Others = $16m)


2001 = Nokia engineering services = $21.8m
Recurring Royalty = $30.8m (Sharp = $16m, Others = $15m)


Full Year 2002 Revenues, excluding interest income:

Total Revenues $85.9m

Denso non-recurring $9.7m

Kyocera non-recurring $6.9m

NEC pre-2002 infrastructure $7.8m

Recurring revenues $61.5m

NEC 2G settlement $12.4m
NEC 2002 3G earned $10.1m

Total NEC 2002 recurring $22.5m

Nokia engineering services $4.5m

Samsung arbitration $.5m

Sharp and all others $34m

Sharp estimated recurring $26m ($18m through first nine months + $8m for 4th quarter)

All other licensees estimated $8m



The above Nokia TDD engineering service revenues add up to $57m. There is a remaining last payment of $1m due upon total completion of the TDD project, which should occur in either the third or fourth quarter of this year. IDCC's third quarter results will probably be announced sometime during the week of November 9 - 15.