Replies to post #139594 on InterDigital Inc (IDCC)

[mschere]

Question..What does the 25%-50%-75%-100% "of market covered" relate to? TIA

When Rich talked about the "2009 opportunity" chart he said "we are in the upper LEFT hand quadrant today" which means low coverage and ~$2 per device for 3G patent licensing. He went on to say that he expected the avg per device to trend down over time as the coverage and volumes go up.

[bulldzr]

Data, oooh, water on my fire again, LOL... but not too bad when you look at it this way:

From the slide, as the market grows and our percentage penetration of it increases we can see the price per device approach your 'happy spot' of $1 per device as we near Merritt's goal of 100% market penetration.

So it would appear a best case scenario may be as follows:

$1 per device x 600 M devices = $600M revenue.
$600M Revs - ~$150M Costs(?) = $450M profit.
$450M divided by 55M sh float = ~$8 EPS
$8/sh x a very conservative 12.5 PE = $100

So Attention Loop, Rockitt, Tucker and all Houston cabal members: According to Data_Rox, depending on several factors, we need to start planning for the Houston 100 for a date certain no later than December 2009, and possibly sooner. ;)

Even though that is roughly 4 years from now, it is only a short time when compared to the years we have waited.

[xdx]

DR: yes, Fagan related it just as you say but, the bottom line for IDCC will increase because the expansion in volume will more than offset the reduction in $2 figure. That is customary and past experience in the computer manufacturing industry for example mirrors what Fagan was stating he expected.