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

To: Gus who wrote (4849)	12/5/2002 11:38:17 PM
From: Paul Lee	Read Replies (1) \| Respond to of 5195

December 5th, 2002 InterDigital Communications InterDigital Communications Corp. (IDCC-Nasdaq) By RTX Securities (17.26, December 4, 2002) We are initiating coverage on shares of InterDigital Communications with a Buy rating and a $25 price-target. InterDigital has a significant patent portfolio in wireless technologies including TDMA, CDMA, GSM/GPRS, and WCDMA. We believe that InterDigital remains in a strong position to capitalize on technologies for the next several years thanks to licensing agreements with major handset vendors. InterDigital is essentially an IP (Intellectual Property) house focused on wireless technology. While the company is trying to diversify its business to include value-added development services, we believe the core of the company remains unchanged. InterDigital is in arbitration and discussions with a number of handset vendors including Ericsson, Nokia, and Samsung to negotiate licensing revenue from past and future shipments of wireless technologies. While we have not built any of these revenue streams into our model, we believe that these settlements could result in significant upside to our estimates. At its current price level, InterDigital is trading at a premium to other IP licensing companies such as Rambus and Qualcomm. We believe that the short-term catalysts with Nokia and Samsung justify this premium since these two alone could provide north of $1.00 in incremental earnings per share in 2003. We believe that InterDigital is in an excellent position to capitalize on the wireless industry as a whole. With a solid patent portfolio covering 2G, 2.5G, and 3G technologies, we believe that the stock is a compelling investment at current levels. -- Jason Tsai