Replies to post #22172 on InterDigital Inc (IDCC)

[mschere]

OT: Mickey ..there must be a nicer way to win and influence people ..when favorable numbers are in your corner..

From a previous post to you..and I still stand by my numbers..

Posted by: mschere
In reply to: mickeybritt who wrote msg# 16094 Date:3/30/2003 9:54:01 AM
Post #of 22169

Good post Mickey..What seems to be missing from IDCC's 2003 projection of $430 Million...is 3G INCOME. NEC and Sharp have pre-paid $30 Million for their updated 3G licenses..and this amount has already been consumed by year end 2002!..I fully expect Sharp and NEC to pay IDCC over $20 Million in the first Quarter 2003..NEC and Sharp at best account for only 6% of the current 3G handset and Infrastructure sales and their early signing with IDCC for 3G with a FAVORABLE RATE ..will generate over $100 Million in 3G royalty for IDCC in 2003...I leave the analysis of the HUMONGOUS 3G royalties due from Nokia, Samsung, Ericsson , Motorola, Siemens, LG etc.. to the number crunchers, neophyte investors, newly inspired posters and technical Gurus..

[0nceinalifetime]

Mickey, in defense of sjratty, I think all he was saying is that we still don't know what that rate will be. It could be quite a small percentage and the one or two time payments should not be weighted much (if at all) when the actual royalty percentage (or amounts of recurring royalties) is key to valuing this company. We know there will be some recurring royalty. we just don't how much.

Seriously, didn't IDC have recurring royalties all through the 90's but had trouble peeking above $20 because the amounts were so small. Longevity also matters. For example, the recent 2G settlement with Ericy expires in 2006, 3 short years from now. Has anyone asked the company why they signed an agreement that will expire so soon when there will still be many millions of such devices in use? It has the net effect of inflating the recurring royalties in the short-term. I've learned to be quite sceptical of these agreements.

Once