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Rambus Inc. Message Board

  • patentsaddicted patentsaddicted Oct 24, 2012 5:02 AM Flag

    Strong earnings preview from MPartners - Reporting a Milestone quarter today after market

    - Interdigital ( NASDAQ:IDCC ) is about to explode, check out the reasons for the $45 Price target from MPartners ( last night )
    - This quarter IDCC recognized revenue from its first batch of patent assets sold to Intel for $375M (announced in June 2012) and also received positive ruling from the CAFC regarding its appeal of a 2009 ITC decision in favor of Nokia with respect to two 3G essential patents.
    - The recent good news has been undermined by underperformance of its core 3G licenses. Particularly revenue from per unit licensees continued to erode because handset vendors in Japan, along with RIM, and HTC continued to lose market share to Samsung and Apple. Samsung and Apple are both fixed-term licensees where revenue streams are unaffected by volumes.


    We believe that due to the timing of asset sales, as well as license renewals and outcomes of litigation, that quarterly results are difficult to forecast. However, we
    should continue to see an annualized trend towards growth through licensing, partnerships, and asset sales. This is reflected in our sum-of-the-parts analysis
    below. Our estimate of cash includes our estimate incremental cash that resulted from the sale of the patents to Intel.

    We reiterate our BUY recommendation and our 12-month share price target of $45.00. Our estimate excludes licensing revenue from Nokia, Huawei,
    ZTE, and LG, which are all involved in litigation with Interdigital currently.
    Yesterday's the stock closed with a gain of 5% in the after hours trading. Calls are also very active lately

    Sentiment: Strong Buy

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