Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Frank who wrote (4465)	7/21/2000 4:15:49 AM
From: Gus	Read Replies (2) \| Respond to of 5195

Good points, Frank. 1) Visibility. IDCC is now providing the following guidance: Recurring royalties - ~$20 million EXCLUDING new licensees Engineering services - ~$13-15 million from Nokia Base Revenue - $33-35 million Notes: a) Recurring royalties (post-SAB 101) were up at $5.8 million ($4.2 million pre-SAB 101) for the 2Q2000. 1Q2000 pre-SAB 101 recurring royalties were $4.3 million ($5.7 million post-SAB 101). b) Projections now show that likely new licensees will probably sign up in the 4th quarter rather than the 3rd quarter. Since under SAB 101, IDCC will now amortize those upfront payments that typically come with licensing agreements according to actual product sales instead of recognizing it as one-time revenue, any new license will probably show a larger cash inflow than the accrued royalty revenue. c) Outstanding shares (diluted) - 56 million shares d) Recurring royalties/Outstanding shares (diluted): $1l.5m* / 56 million shares = $0.20 per share for the first half of 2000, or $0.40 per share annualized; although, the December quarter tends to be the peak sales season for wireless handsets. * post-SAB 101 My thinking is that as this ratio approaches $1.00 per share, we should be getting some sell-side coverage, most probably from a regional shop. 2) ERICY vs IDCC: a) Markman report by the Special Master has already been filed under seal and is now being examined by counsels for both sides. 3) Notable quotes from CC: .......As we look at the market today, it seems quite likely that TDD will be offered most often as part of a full 3G solution in conjunction with FDD, perhaps in a multi-mode chip containing both FDD and TDD along with GSM technology. Multi-mode chips would offer full 3G capability wherever 3G networks are in place while providing 2G capability where only a GSM network exists. We believe that value proposition will be very attractive to equipment producers, carriers and consumers because it will offer virtually seamless roaming capability throughout most of the world while making 3G services available in as many locations as possible............ ......The number of essential patents which we hold in the standard is growing. In the second quarter, we had additional InterDigital intellectual property accepted in the W-CDMA standard. We also identified additional patented inventions that would be essential to the W-CDMA standard. We expect the total number of essential patents to continue to grow as we invent more wireless technology and as the standards are refined. Our essential patents are in the following technology areas: - the use of a common pilot channel - methods for transporting packet data, multi-code transmission - power ramp-up and call establishment - techniques for bandwidth allocation - power control - soft handover techniques - channel access and coding techniques....... ........Many of you have asked about our cross licensing agreement with Qualcomm as it regards 3G products. We signed that agreement in 1994. That license agreement includes rights under some of our patents to manufacture and sell products compliant with 3G standards with some limitations. The agreement also includes the right to pass along the license to their customers, under some of our patents, without paying us any further royalty. It is important to note, however, that the license excludes any rights under our TDMA patents, any rights under our patents filed after March 7, 1995, as well as patents relating to cellular overlay and interference cancellation. Many of our essential patents were filed after this date. Therefore, Qualcomm DOES NOT HAVE RIGHTS under all of our patents that we believe to be essential to 3G or all of the essential inventions contained in our pending patent applications...... interdigital.com