Seeking Alpha

J.P. Morgan sees ParkerVision damages of $500M-$2B, negligible effect on Qualcomm

  • ParkerVision (PRKR +17.9%) shares closed higher as the market looks forward to the company's damages trial against Qualcomm (QCOM -0.4%) after a jury found in favor of ParkerVision on the questions of patent validity and infringement in an initial trial.
  • J.P. Morgan's Rod Hall thinks ParkerVision may see a "range of damages between $500m and $2.0bn" pivoting on whether ParkerVision's $432M claim for past damages is enhanced by a treble due to willfulness. Worthy of note: PRKR's market capitalization now sits at ~$590M after more than doubling in the last week.
  • The analyst, though, doesn't see much of an effect to Qualcomm's EPS (a decrease of $0.005-$0.019 in FY14). "Needless to say the direct impact of this case is relatively small even in the worst case," Hall muses.
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