Replies to post #22792 on InterDigital Inc (IDCC)

[georgebailey]

Mickey
Your management philosophy would have made the existence of this board and the club board before it an example of what could have been. Idc wouldn't be here. will we cross 24 today?

[rmarchma]

Mickey re stock splits and stated goals

I too was disappointed that IDCC's latest proxy did not request an increase in authorized shares. I think this is a matter that the shareholders would have to vote on, but I am not sure. Currently IDCC does NOT have enough authorized and unissued shares to do a 2 for 1 stock split. We all know that stock splits increase the float without being dilutive to the existing shareholders, UNLIKE options/warrants/restricted shares.

If IDCC had requested additional authorized shares, then that would have been an excellent sign that they believed the stock price was on the verge of explosive growth. The float would then have to be significantly increased through a split to provide for a subsequent surge in demand. If management’s stated projections of additional cash inflows of $360m to $420m coming into IDCC over the next twelve months were virtually assured, then the request for additional authorized shares would have been more than appropriate and necessary. But to only ask for more stock options is just a slap in the face to the outside shareholders.

I was also disappointed that the new Annual Report does not include any stated goals for 2003. I was hoping that IDCC’s stated goals, especially regarding licensing activity, would be included this year in the Annual Report like last year. It was stated in the Ericy resolution CC that the Ericy lid was now removed so that new licensing should flourish. Just how many new 2G and 3G licenses does IDCC really expect for 2003? Well the answer is we don’t know, because they won’t say. It’s very difficult to fully evaluate a management team who will not explicitly state its goals each year. One of my shareholder concerns dealt with this issue as follows:

7. IDCC needs to have in place before or at the beginning of each year a clearly laid out Business Plan, which should achieve increased shareholder value if properly executed. This plan should include annual goals, accompanying strategies, and milestone measurements. The plan should also provide measurement milestones per quarter for certain goals, such as quarterly revenues/earnings/cash flow. The Business Plan itself and a comparison of actual results to the plan should be clearly communicated to the Board, shareholders, and analysts on an ongoing basis. Company officers should be evaluated by and held accountable for the execution of the Business Plan by the Board.

[0nceinalifetime]

I agree Mickey. For me this is the bottom line: If IDCC is such the great get-rich company that so many dreamers claim it is, then why not let the employees get rich the same way as everyone else, namely by investing their own hard-earned money into IDCC and leaving it there until it pops? The way the insiders sell off their shares as they are exercised one would assume they know it's not ever going to amount to much so they might as well get the money while the getting is good.

Should we do as IDCC insiders say or should we do as they do?

Once