Zacks Analyst Blog Highlights: InterDigital Communications, Nokia Corp., Kyocera Wireless and iPass, Inc.CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: InterDigital interdigital between two digits. interdigital cysts see interdigital pyoderma, pododermatitis. interdigital dermatitis 1. the early lesion in the development of infectious footrot in sheep; called also sheep scald. Communications (Nasdaq:IDCC IDCC Integrated Dual-use Commercial Companies ), Nokia Corp. (NYSE NYSE See: New York Stock Exchange :NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), Kyocera Wireless Kyocera Wireless Corporation (KWC) is a manufacturer of mobile telephones for CDMA networks and is a wholly owned subsidiary of Kyocera Corporation that was formed in February 2000 when Kyocera acquired QUALCOMM's San Diego, California-based terrestrial handset division. Corp. (NYSE:KYO) and iPass, Inc. (Nasdaq:IPAS IPAS Iowa Physician Assistant Society IPAS Integrated Program Assessment System IPAS Inventory Product Assurance Surveillance IPAS Integrated Pressurized Air System (gas turbine systems) ). See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2673 Here are highlights from Friday's Analyst Blog: InterDigital Upgraded InterDigital Communications (Nasdaq:IDCC), a leading wireless technology and licensing company, announced highly impressive first quarter earnings results (ended March) with a record high quarterly revenue. This was primarily driven by increased recurring royalties, both from existing licenses as well as from the new agreements signed by the company in the last nine months. On April 27, the company settled its 2G royalty litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Nokia Corp. (NYSE:NOK), per which Nokia will pay $253 million to IDCC during 2006. Recent deals with LG Electronics and other manufacturers provide improved revenue visibility in future. We are upgrading shares to a Buy Rating based on our valuation projections. To maintain its technology leadership, IDCC spends a significant portion of its annual revenue on research and development activities as it works closely with various manufacturers and international standard-setting bodies in the wireless industry. In 2004, IDCC filed a total of 858 patent applications and royalties received from its use are usually passed through the income statement without product costs (no Cost of Goods Sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold ), in effect benefiting the bottom-line without margin. Most of the company's patent-licensing agreements are multi-year deals with recurring revenue based on the number of units sold. Two recently concluded deals, namely a $285 million license pact with LG Electronics and a $50 million agreement with Kyocera Wireless Corp. (NYSE:KYO), have already started expanding the company's top line. As it signs agreements with additional wireless industry players, profit margins will continue to expand, and cash flow should improve dramatically. IDCC already has a solid balance sheet, with $197 million of cash and only $4.5 million of debt as of March 31, 2006. This should give the company the flexibility to defend its intellectual property rights, invest in new technology solutions and continue to buy back shares. Free cash flow during the first quarter was $78.82 million. Challenges at IPAS Although iPass, Inc. (Nasdaq:IPAS) has a promising new business model as a provider of endpoint security and broadband access See broadband and wireless broadband. , the company is facing significant challenges as it transitions its business model away from its narrowband (dial-up) focus. While the company has experienced success with new initiatives and we are encouraged with the GoRemote acquisition, falling revenue and margin pressure will keep the stock under pressure until growth in new initiative outgrows declines in its legacy business. Accordingly, we maintain a Sell rating on iPass with a six-month target price of $5.50. We are apprehensive about iPass' successful migration to broadband and wireless technologies and believe the model will eventually shift towards purely a fee for security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the business as wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 access becomes more ubiquitous. While falling as an overall portion of revenue, dial-up (a service that is in decline as broadband technologies grow in popularity) still comprised over 70% of revenue in the March 2006 quarter. The ability of Wi-Fi users to have a single billing party is a big advantage. However, this may be at risk, should consolidation among Wi-Fi providers result in more pervasive network coverage, reducing the need to go through a third party for billing. Further, the use of Wi-Fi access to the iPass connection still requires the user to be in range of a partner's hot spot, otherwise the user will likely use a different broadband connection See broadband and wireless broadband. and bypass the network. Moreover, wireless technologies are still developing and the Wi-Fi landscape may change significantly. See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645 About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2674. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. 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