Replies to post #252430 on InterDigital Inc (IDCC)

[Learning2vest]

Let's get real Loop. From yo post, reason #3 - "I think the earnings came in below analysts forecasts." Well, poot up a tree what "the analysts" expected. I did MY homework on IDCC's public disclosures and factored in the rest of the story - no way I was expecting to be sandbagged with a wild card $9.4 million LTCP charge.

Yes, as Revlis has pointed out, they DID "mention" that there was a need to "adjust" their bonus plan funding. But what reasonable investor would take that "no details - therefore of no significant consequence" comment to mean a quarter killing charge to earnings WHEN THEY DID NOT DISCLOSE that it would be? I did not, and doubt many others did either.

I am not a day trader so these "whoops si doo" moves do not cost real money, but seeing IDCC continue to play that kind of "doodoo in the punchbowl - SUPRISE!" game gives me pause to wonder exactly who is calling the shots in KOP, and what they are thinking.

IMHO the $9.4 mil LTCP charge to 4th qtr '08 earnings should have been disclosed better than it was.

[dmiller]

IDCC not getting from Apple what many here thought they would get? What a surprise!

I remember those days when many were debating to death, the Apple license agreement. WM said they average $2.00 a handset and many wouldn't budge off of that number. Another learning lesson for the stubborn few I guess.

So far it seems like IDCC is not getting anywhere close to $2.00 a handset. They may be getting it with the smaller co's but it looks like they won't even come close with the players who make up most of the handset sales.

[nicmar]

"It still boils down to an investor's confidence that IDCC will bring Nok into licensing status. If you believe they will, then this is just a temporary rain delay. If you do not believe they can, then it is time to cash in and move to another sport."

Sammy brought us a 4 year $400 million dollar deal. Our analyst expects Nokia to bring us a 5 year $398 million dollar deal. According to the analyst we get 1 more year for about the same money.

Seems like we're not getting much revenue per phone. 35 cents for nok and 50 cents for sam don't look to me like we'll hit $100 soon. And apple and rimm, I don't know. mo. nic

[rmarchma]

Loop without $9.4m bonus adjustment, earnings per share would have been 24 cents pro forma for IDCC’s fourth quarter, rather than the actual 9 cents per share, calculated as follows:

Revenues $58.7m actual

Operating Expenses $44.5m adjusted ($53.9m actual -$9.4m catch-up LTCP adjustment)

Operating Income $14.2m adjusted

Interest Income $.6m actual

Income before income tax $14.8m adjusted

Income tax expense $4.3m (at 29% actual rate of 4th quarter, due to special R & D credits in 4th quarter)

Net Income $10.5m adjusted

Diluted Earnings per Share = 24 cents adjusted (based on actual 44.3m weighted average diluted shares)

Without the $9.4m nonrecurring fourth quarter adjustment to the LTCP plan due to the Samsung agreement, IDCC would have had 24 cents of earnings per share, and would have blown-out the consensus 4th quarter estimates of 16 cents EPS. Due to the $9.4m adjustment, IDCC actual results came in way below consensus estimates at 9 cents per share, and the share price got killed IMO.