Replies to post #297453 on InterDigital Inc (IDCC)

[NukeJohn]

Whether it's tens of millions or hundreds of millions...it's still all gravy. The market is not factoring in any M2M licensing revenue (or the PE wouldn't be 8).

Based on comments from the recent CC's, the NPV of LTE licenses is 900 Million per .1%. If IDCC only gets 1% (and I think they'll go for 2% and get at least 1.5%), then the market cap should be $9 Billion right now (yet it is only $1.3 Billion).

This does not even include the licensing revenue that will come from operators like AT&T or Verizon when they start licensing IDCC's technologies to improve signal reception like the Fuzzy Cell technologies.

I don't think the shorts can even comprehend how hard it will be to cover when Nokia signs.

JMHO,

NJ

[ellismd]

IDCC has the patents for the modules and the MTM wireless interface.

[Data_Rox]

OD - you are correct. In the foreseeable future, cellular modules will get to maybe 10% of the volumes of cellular handsets on an annual basis. And with an ASP of under $30 (most GSM are well under $30 today), a 1% rate starts getting pretty small. Let's hope we shoot for a buck a unit R^)

As example.... in the ABI report that was the basis of the PR you posted from, the $3.8B revenue number in 2015 is representative of approx 115M cellular module units, about 30% GSM/GPRS, 35% WCDMA, 20% CDMA 1x & EVDO, the remainder is LTE with a little sliver of WiMAX.

[dndodd]

"revenues would only be $38 million."

Putting that in context divide by 44 million shares outstanding equals .864 earnings per share less 35% for taxes equals .562 times a conservative multiple of 15 equals $8.43 in additional share price or approx 28% of our current share price.

I will be glad to have it.