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

To: leigh aulper who wrote (4724)	1/16/2002 10:30:51 AM
From: mightylakers	Respond to of 5195

Great news!!! Ericy is next.

To: leigh aulper who wrote (4724)	1/16/2002 3:00:45 PM
From: Gus	Read Replies (2) \| Respond to of 5195

IDCC's most recent quarter's recurring royalty income was $9.9M or about $40M when annualized. With only 53M shares outstanding, this annual run rate represents about $0.75/share in annual recurring royalty income. This NEC deal should push IDCC closer to the $1/share milestone in recurring royalty income, or about $13.25M a quarter in royalty income or $53M a year. Notice how NEC's payment of $53M in paid-up royalties for 2G matches this milestone? Cash should go also go up from $95M to $167.5M or $3.16/share as a result of this settlement. Effectively, assuming a close of $12, the current $0.75 to $1.00/share in recurring royalty income is being valued at less than $9/share, net of cash. That is due, of course, to the uncertainty of IDCC vs ERICY and the presumed linkage between that case and IDCC's deal with Nokia, i.e., Nokia's deal with IDCC contains most favored nation clauses that effectively entitle Nokia to better terms than ERICY. With Nokia's share of the handset market going from 35% to 40% (140M-160M handsets a year), this puts IDCC in a very interesting position since removing all that certaintly will most certainly make the stock skyrocket and open up new opportunities especially now that it already has the Infineon 10-year chip deal.