Replies to post #66406 on InterDigital Inc (IDCC)

[jai]

My focus right now is on short term share price action. That $7 million is going to be hard to swallow with $24 million dollar revenue quarters. The timing of this expense may very well hurt the share price in the short run. I was until this press release expecting a good quarter and a pop back over $20. Now we have .03 cents added to the expenses per quarter. This can mean the difference between profit and loss. Which will mean the difference between the stock rising or falling.

$7 million / 55 million shares = .127 cents.

Long term I'm not concerned, I think deals will come. I also think that $7 million will be a lost less costly and would have no effect whatsoever on the stock price after Nokia.

As to why would they do this at this time? They want more cookies. They can sugar coat it all they want this is a way to gain more compensation. Tell you what they can double it for all I care only if they wait until after Nokia is done.

[ams13sag]

It seems to me that the cash awards are a foregone conclusion.

On the one hand the information given to us says " PROVIDES BOTH A CASH INCENTIVE AWARD TIED TO LONG TERM COMPANY PERFORMANCE GOALS."

The above would seem to imply that if long term goals are not met then no costs will be charged to the P & L account. Really sounds great, that is exactly as it shoud be, if the management fails then they suffer a wee bit.

Now a couple of questions come to mind.

1. What do they mean by long term.

2. What are these performance goals.

3. Who set the performance goals.

If I recall correctly the last time MG (CEO) set goals that were not achieved, the annual bonuses still hit the maximum permitted and they then fired him and abandoned all such goals.

A little later down the page it says, " IN 2004, AS A RESULT OF THE COMPENSATION PROGRAM CHANGES, INTERDIGITAL WILL RECOGNIZE EXPENSES OF APPROXIMATELY $3 MILLION AND $4 MILLION, RESPECTIVELY, RELATED TO THE CASH BASED LTI AND RESTRICTED STOCK UNITS".

What have i missed, they have already met the long term goals, and awarded themselves $12 million or 13% of income on an annual basis.

THAT WAS QUICK.

DUMP THE NODDY MEN, SELL THE COMPANY.

AMS