Replies to post #63593 on InterDigital Inc (IDCC)

[rmarchma]

Mschere re NEC 3G handset shipments to Hutchison

There is a difference between "shipped" and "began shipping". Therefore at this point we don't know the actual NEC 3G handset shipments to Hutchison, and we can't assume that the entire order will all be shipped during the first quarter. I think that the actual shipments will tend to follow the demand.

Hutchison has only added 400,000 new 3G subscribers thus far since January 1, so I doubt that 3m new 3G handsets will get shipped this quarter. However, the demand appears to be increasing significantly lately, ie 10,000 per day. Therefore 3G handset shipments will need to be significantly increased also to cover demand and to build-up inventory.

[TFWG]

mschere, I don't know if they have, but I know they are trying! I've sent an email to Hutchison asking them how many handsets they have received/are available from NEC since the resolution of the software glitch. So far, no response.

NEC, as you know, would not commit to updated numbers for the current quarter. They only restated their goal of 2.5M for the year (note: of 2.5M, 5K was shipped in '03).

3M handsets is a $hitload. I suppose it's possible if they had a third party rework existing handsets, i.e., the 700K December shipment, and kept existing production focused on making up for lost volume.

3M shares will create quite a bang! I hope you are correct.

Best regards,

Bob