This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

InterDigital's CEO Hosts Investor Conference (Transcript)

Stocks in this article: IDCC

Scott McQuilkin

Thanks Bill. In the agreement InterDigital will be selling Intel portfolio of approximately 1700 patents and patent applications leading primarily to 3G, 4G LTE, and 802.11 technology. Transaction is valued at 375 million and net amount will be paid in cash once the transaction is completed which we expect in the third quarter of 2012.

The portfolio in this transaction includes approximately 1200 granted worldwide patents and the balance in applications. The U.S. patents in this transaction include approximately 160 issued patents and roughly 40 patent applications, none of the patents included in this deal are included in any of our ongoing litigations.

In terms of the percentage of our portfolio that the deal represents, let me provide you some numbers. We currently have a portfolio of approximately 20,000 patents and patent applications. Given that this transaction represents approximately 8% of our overall portfolio. Also given that our R&D team continues to develop new innovations every day, we expect the continued monetization parts of our intellectual property portfolio to be an ongoing element of our strategy going forward. The added financial strength generated by the sale of these patents it also enabled us to pursue our licensing efforts and expansion of our strong patent portfolio even more aggressively.

From a financial perspective although we are still working to finalize the accounting for this transaction, we expect that a significant portion of the 375 million from the sale will be recognized as revenue in the period in which the transaction closes. It has anticipated to be the third quarter of 2012.

After taking into account taxes, the transaction is expected to generate approximately 250 million in cash. We also expect to record a related charge of approximately 3 million in second quarter 2012 to increase our accrual for the company’s long-term compensation program cycle ending December 31, 2012. You may recall we managed our performance incentives on rolling three cycles. So, this adjustment includes 10 quarters worth of an accumulated accrual.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs