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

To: D.J.Smyth who wrote (3734)	2/3/2000 8:06:00 PM
From: JP Sullivan	Read Replies (1) \| Respond to of 5195

IDC's reocurring royalties are beginning to kick in. Darrell, what are your estimates for this? What I have been unable to figure out is the relationship between the upfront payments and recurring royalties. Are the upfront payments a form of advance? (Is it like how a writer receives an advance on his books which is offset against the royalties due to him?) Also, how much of the royalties do the upfront payments represent? (Again, back to the writer analogy, how many copies of the book does the advance account for?)

To: D.J.Smyth who wrote (3734)	2/3/2000 10:21:00 PM
From: w molloy	Read Replies (1) \| Respond to of 5195

>> just to do some simple calculations Molly: OK - but let me check your figures a) 800 million TDMA/GSM/PDC Seems high. What are your sources? b) IDC has received about $300 million in up-front payments and re-occuring licensing fees, Checking the latest 10Q, and IDC report (for revenues back to 1996) I could only find the following... 10Q Licensing/strategic partner revenue 10,321 (3 months ending 09/99) 56,285 (1999 - 9 months) Annual Report Licensing/strategic partner revenue 1998: 92,221 1997: 5,982 1996: 28,719 It's a pity that IDC don't separate the Licensing and Strategic partner revenues. So I don't see where you get your $300 million figure from. (c) IDC's revenue base of that $300 million came from less than 12% of all past TDMA sales, Where did you get 12% from? a) 12% of 800 million phones sold at an average price of $55 again - I don't know where you got 12% from. And a figure of $55 for a 'phone BOM is actually low (in my experience). Your revnue model looks OK bur your key figures of - $300 million (IDC revenues) resulting from - 12% of past TDMA sales of - 800 million 'phones are unsupported. I can only find evidence for less than $170 million in Licensing and strategic partner revenue. Of this $170m million, anything between $40 million and $70 million (depending on your source) has come from NOK alone. The Licensing stream is impossible to determine, but is more likely to be $70 million rather than your $300 million. The 12% figure - you will have to come up with a source. I trust you didn't cook it. 800 million 'phones. Over what time frame? Other sources on this thread put the figure closer to 400 million. The only analyst covering IDC dropped it, becuase he couldn't get answers to how much licensing revenue IDC were really earning. How come you can? w.