Interdigital Communication(IDCC) Message Board

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Technology Stocks : Interdigital Communication(IDCC)

IDCC 396.54

+9.6%

Nov 3 9:30 AM EST

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To: nicmar who wrote (5026)	3/11/2009 12:56:39 AM
From: barty	2 Recommendations Read Replies (1) of 5195

Nicmar The value of Samsung settlement ($400m) clearly covers a period 2002-2012. So its 10yrs of Samsung shipments that's squeezed into 4yr revenue recognition period for IDCC. So when you're working out what the per unit rate is, make sure you get the right volume number. Keep in mind that IDCC had already won a GSM arbitrary award over Samsung covering the period 2002-2005 which they never got paid for amounted to around $160m which has been lumped into this $400m deal. So when you back this out, the remaining value of the settlement ($230m or so) covers an awful lot of volumes. Now when so much of the $400m settlement relates to back dated shipments but IDCC recognise all the Samsung revenues on a go forward basis, the sales are going to look great. when you do the math on the 3G component of this deal and work out what the per unit royalty is, then you might have cracked what Nokia could have to stump up.

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