Replies to post #95990 on InterDigital Inc (IDCC)

[ams13sag]

I have that feeling as well. A loss may be on the cards.

ams

[ellismd]

Jimlur,
IDCC should already know the impact for legal fees in 2004, now 2005 is probably a different story. It is kind of hard for me to feed into that angle. If NOK is resolve that problem goes away for 2005.

[mschere]

A 15% increase of $26.6..is a total of $30.5 Million..without any provision for Option true-up..that would leave $3 Million for net profits..


InterDigital Raises Royalty Revenue Guidance for Fourth Quarter 2004
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nov. 23, 2004--InterDigital Communications Corporation (Nasdaq:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced it is raising its royalty revenue guidance for fourth quarter 2004.

InterDigital now expects to report fourth quarter 2004 royalty revenues from current licensees in the range of $33.3 to $33.6 million. The Company had previously forecast fourth quarter 2004 royalty revenues in excess of $30 million.

Richard Fagan, InterDigital's Chief Financial Officer, said, "We are revising our guidance upward as recently received reports from our licensees indicate that we will record greater than expected royalty revenue during the fourth quarter. This increase reflects solid sales of both 2G and 3G products by key licensees."

2004 Outlook

Rich Fagan, Chief Financial Officer commented, "We expect to provide updated guidance on fourth quarter 2004 revenue shortly, after we receive and review all per-unit royalty reports. Based on reports received to date, we expect that fourth quarter 2004 revenue should exceed $30 million due to the strength of our licensees in the 3G market. We're also excited about the potential of our new relationship with General Dynamics and heightened interest in our AIM ANTENNA family of products. To take full advantage of these opportunities, we're scaling our developments efforts. As a result of additional investment in technology development and related productization and higher commissions related to per-unit royalty revenue, we expect our fourth quarter operating expenses to increase 10% to 15% over third quarter 2004 levels."

[Corp_Buyer]

4Q results - lackluster expectation?

In addition to legal expenses, we also have the start of development work on the GD contract, subcontractor engagements (GD contract), and increased antenna development and marketing.

My speculation is that we might see a $2M increase in the development line in the 4Q plus the repeated and surprising cost increases for public entity, employee development, strategic planning, commissions, etc., etc.

IMO, the delay in reporting 4Q results probably indicates it will not be great news (just as as an early reporting date usually indicates good results).

It may be that our lackluster stock price reflects low expectations for the year end 2004. In addition, there are mounting fundamental concerns about our management team and damage to our key assets (3G litigation with Nok).

If there is a silver lining in any weak (or negative) year end 2004 financial results, perhaps the company has actually prepaid some expenses e.g. legal retainers, 3rd party developers, etc. which will help us to maximize the expected upswing in 2005 (my hope).

MO,
Corp_Buyer