ParkerVision: The Next Hot Stock to Watch Out for
Mumbai, India -- (SBWIRE) -- 10/21/2013 -- Jacksonville, Florida-based ParkerVision, Inc. (PRKR) has shot into the limelight over the last few weeks due to its ongoing litigation with Qualcomm Incorporated (QCOM). ParkerVision develops RF technologies which are used in circuits of a variety of mobile devices such as smartphones, tablets and other wireless comm devices. Their RF technologies have demonstrated huge reductions in both power consumption and heat generation in handsets as manufacturers strive to improve device performance, reliability and extend battery life.
The litigation against Qualcomm which was filed in July 2011, involves Qualcomm developing and selling products which ParkerVision claimed were infringing numerous claims from six patents which it owned. While the patent infringement litigation has been going on for quite a while, recent developments have signalled an acceleration in the progress of the case. In its pretrial statement filed on September 13, 2013, ParkerVision was seeking damages to the tune of nearly $500 million. CEO Jeffrey Parker had stated at the time that their damage estimates for direct and indirect infringement were limited to an estimate of infringing units shipped only in the U.S. since it was the court’s jurisdiction.
The much awaited trial finally began on October 7, 2013, with the first phase involving jurors determining whether Qualcomm actually infringed on ParkerVision’s patented technology. On October 17, 2013, much to their relief, ParkerVision announced that the jury in the case found Qualcomm guilty of direct and indirect infringement of ParkerVision patents. The jury’s verdict would come as a significant boost to them, further solidifying their case in the second phase of the proceedings.
The second phase involves the same jury determining the scope of damages awarded and whether Qualcomm is guilty of willful patent infringement. Interestingly, being found guilty of ‘willful patent infringement’ enables the judge to multiply jury-awarded damages by up to three times. This clearly makes the next phase in proceedings extremely crucial for both ParkerVision and Qualcomm.
ParkerVision has seen a huge jump in its legal fees for the second quarter of 2013, increasing approximately $400,000, mainly tied to higher litigation fees, expert fees and other expenses related to the Qualcomm litigation. At the Q2 earnings call in August, CEO Jeffrey Parker had stated that based on expectations in the court schedule they believed that the jury would reach a verdict by the time they held their Q3 results call, which should be somewhere in the third week of November.
He also said that Qualcomm had filed a motion for partial summary judgment to remove certain identified products from the case and to eliminate ParkerVision’s claims of induced and contributory infringement for four of the six patents in this case. Jeffrey Parker felt that this motion by Qualcomm for summary judgment was aimed at reducing their potential damages.
ParkerVision’s stock, which had seen relatively stable price movement over the last three months, trading at $4.03 on August 8, 2013, the day it released Q2 results jumped to $5.43 at close on the 17th of October, the day the jury verdict was out. It has since kept rising, closing at $6.39 on Friday, the 18th of October. The next three to four weeks should see aggressive activity in the stock, with a spike, or a drop, likely once the jury’s verdict is out in the second phase of the proceedings. Investor attention would no doubt be completely focused on how the case pans out in the end.
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