Replies to post #359963 on InterDigital Inc (IDCC)

[dmiller]

The majority of the shares were repurchased at higher levels. Your figures don't include the shares bought back between 2009-2012 which were in the mid to high 30's if my memory is correct.

Besides, the buybacks are pointless if the company continues to do stupid, pointless financings.

[rmarchma]

Update: IDCC's Stock Repurchases through June 30, 2012

Most of IDCC's stock repurchases occurred between 2003 - 2008. Prior to 2003, IDCC had only repurchased 1.5m treasury shares. IDCC purchased no shares in 2010 or 2011, then started back up repurchasing shares in 2012. The following is a recap of IDCC's treasury stock repurchases through June 30, 2012:

Prior to 2003: purchased 1.5m shares at cost of $8.1m = $5.40 per share

2003: purchased 2m shares at cost of $34.7m = $17.35 per share

2004: purchased 1m shares at cost of $17.1m = $17.10 per share

2005: purchased 2m shares at cost of $34.1m = $17.05 per share

2006: purchased 6.54m shares at cost of $192.5m = $29.43 per share

2007: purchased 5.75m shares at cost of $176.3m = $30.66 per share

2008: purchased 3.76m shares at cost of $81.5m = $21.68 per share

2009: purchased 1.01m shares at cost of $25.02m = $24.77 per share

2010: no shares were purchased

2011: no shares were purchased

Q1 2012: purchased .66m shares at cost of $25.33m = $38.38 per share

Q2 2012: purchased 1.73m shares at cost of $52.42m = $30.30 per share


Total purchased 25.96m shares at cost of $646.99m = $24.92 per share


IDCC's stock repurchases really began in earnest in 2006 when they were flooded with cash after receiving the first $95m LG installment and the $253m Nokia 2G settlement. These two key events triggered significantly higher stock prices of IDCC also during this ensuing time of stock repurchases. IDCC got flooded again with cash in 2009 receiving $200m from new licensee Samsung, and $182m in prepaid royalties from two existing licensees.

IDCC made no stock repurchases in 2010 or 2011, although they still had some unused 2009 share repurchase authorization during those years. IDCC began repurchasing shares in Q1 2012, and finally used-up the remainder of the 2009 authorization in May 2012. Then they announced another $100m share repurchase authorization on May 4, 2012. On June 18 2012, in conjunction with the announced $375m patent sale to Intel, IDCC authorized an additional $100m for share repurchases. This action brought the 2012 share repurchase authorizations to $200m thus far this year.