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

To: carranza2 who wrote (4270)	6/15/2000 8:36:00 PM
From: postyle	Read Replies (2) \| Respond to of 5195

carranza2, I read your post on RB about considering IDCC as an investment...errr...."lottery ticket." In any event, I did want to respond to your comments "If it loses the ERICY case like it lost to Motorola, you can kiss it goodbye." I don't see it that way. If ERICY and IDCC do not settle this case after receiving the Special Master's report, then obviously the case will go to trial. When is the soonest InterDigital could "lose" in a trial? 2001? 2002? It's far off. And future 3G CDMA licenses will be signed by the end of this year or beginning of the next (per the company). IDCC will be actively marketing it's WCDMA ASIC next year, and revenue streams will be much easier to predict at that time. Also, with the change in accounting practices, and the using up of front-loaded TDMA licensing pre-payments, there will be a much more predictable revenue stream from recurring royalties. In a nutshell, IDCC's technology will be hitting the 3G market over the next few years, about the time any "trial loss" would occur (assuming the worst, of course). By that time IDCC's position in the marketplace, and ability to collect significantly on its technology in 3G, will be much better known than it is today - either positively or negatively. As an investor, I don't believe any benefits of receiving past payments from ERICY is calculated into the current market valuation of the company. And I don't believe a negative decision in a trial would disrupt 3G revenues and pre-existing TDMA royalties. And it is, after all, real earnings that drive a company's value - at least in the long term. So the only thing that can be "kissed goodbye" in a loss with ERICY is the chance at collecting from ERICY for past infringement on IDCC's technology... ...in the United States. Europe would be next. Regards, postyle p.s. I hope your DD leads you to believe IDCC is a real company, with real growth prospects and real ownership of wireless technology.