QUESTIONS AND ANSWERS:
Q - Nortel patents
A - BM - auction 6/20/11 - winner picked 6/30/11
Google participation took it to a different level - not to buy patents but to protect the Android Eco-System - bidding could get crazy (Chinese may have a front man in on the action) good for IDCC as it shows the value of our patents - bad for IDCC as we may not be able to purchase the patents. However, after the auction we may be able to work with the winning firm as they may not know how to use the patents most effectively - going in after the auction is a less competitive situation than trying to win the initial bid outright.
Q - Mr. Espy from Atlanta - owns several hundred thousand shares - wants predictable earnings - stuck in the mud with Nokia for 2G for 4 years and 3G for 3 years all on 3 out of 8,000 patents.
14% of our shares are shorted - Qualcom has l % shorted - Why? Our company is poorly promoted. Only 1 main Wall Street firm covering.
How many board members have bought stock on the open market - raise your hand and only 1 hand was raised.
We have important technology and need to have our value recognized. I don't have 5 years to wait.
A - Clontz - We are not a normal business model - lumpy earnings have not been easy for analysts but they are getting better at it. Intrinsic value of our company is best realized not by signing by some arbitrary deadline but rather getting the right rate - not so simple. We are frustrated with LG but it does not matter whether it is next week or next quarter as long as we get the right rate. Our $230,000,000 note is one of our efforts at promoting exposure for the company and is the beginning and not the end of those efforts.
BM - Since the adverse ITC decision, we have added licensees that have contributed $100,000,000 in additional revenue. It is about execution and we are dealing in a very large market and we appreciate your concern.
Q - We were stuck on 2G and 3G - will there be a repeat on 4G?
A - BM -We are very highly respected in LTE - will drive licensing faster.
Q - Will Apple or another vendor be a 10% contributor?
A - No time soon
Q - Institutional owner ( DeWitt Cap Management) - It is all about expectations - 15% of the shorts are betting against execution - 10% dividend is dilutive.
A - Clontz - We are not empire building - balance sheet shows that we are careful about spending. Don't know much about PE ratios - pre-cash flow is what really matters. I will compare our Bd/Management ownership of our stock to see how we compare to other companies.
Q - The shorts are betting $260,000,000 that we can't block and tackle(execute). You need to cultivate the institutional base. Tivo has 8 main Wall Street analysts for coverage - why doesn't IDCC?
A - Janet Pointe - we are closer to 65% institutional coverage but the reportable numbers are greatly influenced by options activity. We have current institutions invested in IDCC who are reaching out to other institutions?(or IDCC?) and are trying to help get additional Wall Street coverage.
(more to come)
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