Results from the Markman Hearing on the CDMA/WiFi Case Should bring Defendants to the Table.

The results from WiLAN’s Markman hearing in the CDMA/WiFi case against Apple and others that was held on March 21st have been issued. WiLAN followed-up with a press release late this morning reiterating its belief that it views the results as positive. We have reviewed the Judge’s claims constructions and believe that the results should be the catalyst that brings Apple, Dell, HP, HTC, Novatel Wireless, and Sierra Wireless to the negotiating table. In our opinion, this is the first catalyst of many in 2013 that will help turn around the share price.

We are reiterating our BUY recommendation and $6.50 per share target price based on our DCF and comps analyses.

What’s next?

Within the next 30 days, the parties will have to sit down and go through a mediation process. If the parties do not come to a respected conclusion, the trial is scheduled to be held on October 7th.

Potential Impact

In our opinion, Apple represents the largest licensing opportnity this year. We believe that on a cumulative basis, the group settlement could easily reach ~$150 million over five years. Combined with the potential settlements in the 3GPP case against Alcatel-Lucent, Ericsson, HTC, and Sony Mobile, we believe that the total settlements are worth $100’s of millions to WiLAN over time. These potential settlements will have a significant impact on replenishing and growing the company’s backlog.

From mindreader.....