MPartners Report (8/1/2012) - "Signs Wistron To Global License" is now at WirelessLedger.com.
View/Download PDF Report: http://wirelessledger.com/Mpartners_morning_note_2012_8_1.pdf
ANOTHER ASIA PAC CONTRACT MANUFACTURER
* InterDigital announced after market yesterday that it had entered a global nonexclusive royalty-bearing patent agreement with Wistron.
* The agreement covers various products, including handsets, wireless modules, computers, tablets and other consumer electronic devices, designed to operate in accordance with 2G, 3G, and 4G wireless standards, including LTE and LTE-Advanced
* Wistron is a Taiwanese based contract hardware manufacturer for computer-based systems including laptops, tablets, and peripherals. In 2011, Wistron generated US$21B of revenue.
* Wistron manufactures components for Acer, Dell, Microsoft and Hewlett-Packard among others.
* We believe this to be the sixth 4G LTE licensee announced and the fourth one signed so far this year. Our target price attributes $16.00 of value to LTE licenses and this deal supports our valuation assumption.
* At over US$21B of annualized revenue, Wistron is the largest licensee signed so far, 30% bigger than Acer as measured by revenue.
* We re-iterate our BUY recommendation and our 12-month share price target of $45.00
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