Interdigital Communication(IDCC) Message Board

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Technology Stocks : Interdigital Communication(IDCC)

IDCC 324.00

-1.7%

Feb 3 3:59 PM EST

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To: Bill Dalglish who wrote (2565)	11/4/1998 4:04:00 PM
From: Jim Lurgio	Read Replies (2) of 5195

Nice review Bill here's mine. The 13 cents loss was in line with what I expected because I believe MK had it at minus 16 cents . There was 2.5 million in Licensing @ Alliance revenues so that shines a little light on the DENSO deal. With 6 months L@A revenues at 53 million and the Denso filing stating 75 million for year to date that leaves 22 million. Taking off the 2.3 million in L@A revenues for the 3 q that puts the DENSO deal at about 20 million which is 40 cents a share before taxes. That is a huge amount of money from a handset maker that is virtually un-known to us and should indicate that when the real players license the revenues will be much larger. Although the 3 q lost money the company over all will be profitable in 1998. It also mentioned building backlog in 1999 so what happened to the statement management made earlier this year that "1998 will be the year of the backlog " It also nice to see management has finally realized what we have known for a long time and that is the Myanmar deal is a dead issue. The conference call was as usual with management side stepping many questions . Rip Tilden did mention that DENSO asked not to have the amount of the licensing agreement made public but also mentioned that the filing made it possible for most to figure it out so my figure of 40 cents a share before taxes is real close. I wish RIP would have elaborated more on the IOWA field trial but he only said they have completed site planning. In the release of 07/06/98 it said , " The trials are planned to take place in northwest Iowa, beginning in the fall of 1998. " Is there a delay ? Our board member Bill from Minnesota asked if the company monitors the boards such as Yahoo and also invited the company to participate. They said they do monitor but refused to participate because they thought it was not a good idea. I wonder why the CEO of American On Line thought it was a good idea and participated in his stock forum ? Management should realize that just as they don't answer some questions on conference calls , the chat forums afford the same opportunity. Some CEO's such as the last CEO of Coke who passed away go beyond the call of duty. This man personally answered all of his E-mail from investors. This is a growing practice in the business world and yet brokers are telling me that they have phone calls into IDC that are not returned. One party today asked what the company was doing to build share holder value and they said they were doing things like the cc call . Well maybe they shouldn't have had the call because as I am typing this we are down 1/2. Some value. Later another caller mentioned that if this guy didn't see shareholder value than he should get out his microscope. Rip gave him a big thank you and he proceeded to ask when the litigation would end in Germany ? Rip should have told him you are the one who needs the microscope but he politely answered it ended in March. It was asked if IDC had bought any shares back and they answered no but are viewing the situation on a daily basis. The broker suggested with the amount of cash they have and the stock under valued that to him it appeared a good time. Twice it was answered " we will do it as we can " . I have a theory on why they aren't buying back yet that I will post at a later date for opinions. It was asked when a CFO would be brought aboard and it was said in the near future as they are at the end of their search. I think we've heard that before ? Also a CEO was asked about and Doyle responded it was not a important or a significant thing and defended management and complimented Investor Relations on the great job they are doing as well as defending performance over the past four years. I would venture to say that as far as performance goes IDC stock has under performed every index in the last four years. To me Doyle's message was loud and clear . He is the " King " in King of Prussia and wants to remain on the throne. His efforts to get the company through some hard times should be appreciated but it's time for him to step down and put someone at the helm who is well known in the industry to attract the interest of Wall Street. I would hope that somehow Heartland or another large investor might submit a proposal for next years annual meeting demanding a CEO be hired from outside the company in three months. I believe any proposals to be voted on by share holders must be submitted by this December. A comparison of Air Touch's technology Vs B-CDMA was asked for and Rip wisely stated he wasn't a technician but the company thought B-CDMA features are the best. It was also mentioned that Alcatel did a worldwide search for the best technology before selecting B-CDMA and is eagerly awaiting the second generation ASIC from TI. It was also asked if the $500.00 per line industry demand for WLL will be met. It was answered that a $500.00 per line tender in Turkey was made but not who made it. Most after asking questions were allowed to follow up with another question or comment but after Doyle's response to me I was dis-connected immediately as I expected. The last CC call I wasn't even called on and I was told they had technical problems. I commented on the poor quality of the DENSO release as it only obtained there name and also added to me it afforded 40 cents a share before taxes. I then commented on the German decision and the Alcatel agreement containing nothing of TDMA revenues. I used the wrong word and called it a litigation and Doyle casually commented it was an opposition proceeding and that Alcatel was not that big of a GSM dealer and that I was correct that there was no TDMA agreement with them. Well I knew all that but still want to know when we are going to get paid for what they did sell. Remember the Handset Sales I posted before well here they are again. Worldwide Handset Sales Share from WSJ 10/16/98 ------------------------------------------------------------ Motorola 24.5% Nokia 19.9% Ericson 15.5 Matsushita 7.3 (20 million to IDC ) NEC 5.0% (27.5 million to IDC ) Siemens 3.6% Samsung 3.0% Mitsubisi 3.0% (15 million to IDC ) Sony 2.6% Alcatel 2.5% Philips/Lucent 2.0 Nortel 0.6%

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