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Technology Stocks : Interdigital Communication(IDCC) -- Ignore unavailable to you. Want to Upgrade?

To: Manx who wrote (2878)	12/29/1999 2:56:00 PM
From: Manx	Read Replies (1) \| Respond to of 5195

NEW YORK (Dow Jones)--Interdigital Communications Corp. (IDC) shares rose to a 52-week high Wednesday, shadowing the rise in Qualcomm Inc. (QCOM) shares. Qualcomm shares were up 21% Wednesday after PaineWebber Inc. initiated coverage of the stock with a buy rating and a $1,000 price target. The price target was largely based on the potential value of royalties Qualcomm will receive from its code division multiple access wireless technology. CDMA is a popular standard for digital wireless communication and data transfer. Interdigital, King of Prussia, Pa., also is developing technologies that support the standard. The company recently has become known as "Baby Qualcomm," and the moniker seems to be paying off for the company's stock. Recently, Interdigital shares changed hands at 30 3/8, up 6 13/18, or 29.4%, on Nasdaq volume of 2.5 million, which compares with average daily turnover of 996,800. The Amex-listed stock reached an intraday high of 31 1/2, passing the 52-week high of 28 set Dec. 23. Interdigital didn't release any news Wednesday that would explain the stock's rise, said company spokeswoman Susan Sutton. She said the comparison to Qualcomm that some are making could be one factor contributing to the stock's increase. Interdigital and its founders have been working on celluar technologies for more than 20 years, said Sutton. She added, "Some of our founders worked with the founders of Qualcomm." Interdigital currently owns about 800 patents around the world that fit the standards for CDMA and time division multiple access, a technology used to separate multiple conversations transmitted over the air, said the spokeswoman. And like Qualcomm, most of Interdigital's revenue comes from royalties it receives on its patent technology. "But that's where the similarities end," said Sutton. In November, Interdigital highlighted its patent portfolio and announced that its technologies support all five modes of third generation wireless standards adopted by the International Telecommuncatiosn Union earlier in the month. Since that time the stock, which had been trading under $6, gained momentum and investor interest. The stock also became widely discussed in Internet chatrooms and was touted by stock picker Bill Dalglish, who operates a Web site dedicated to telecommunications stocks. In September, Dalglish claimed to hold a significant stake in Interdigital. Interdigital has become driven by chatroom speculation, said Morgan Keegan & Co. analyst Ramkrishna Kasargod. He explained the company is one of 50 to 60 companies that can claim to hold intellectual property for third generation technology. Kasargod doesn't know if the comparison of Interdigital to Qualcomm is a valid one. "(For investors, what it will come down to) at the end of the day is what share of the pie do you get," said Kasargod. In the nine months ended Sept. 30, Interdigital earned $24.3 million, or 52 cents a share, after an undisclosed charge, on revenue of $58.3 million. The analyst thinks it's too early to predict how much royalty revenue Interdigital can generate in the future, and he wouldn't predict future revenue levels for the company. However, he noted that the company needs to improve the predictability of its revenue. "In the past, it has been very lumpy," he said. Sutton also declined to predict future revenue. -Christina Cheddar; Dow Jones Newswires; 201-938-5400 christina.cheddar@dowjones.com