ParkerVision 2007.12.21 OEM Announcement

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On December 21, 2007 ParkerVision announced they had signed an OEM deal with an unnamed customer.

 

We called our contacts at the major cellphone chipset makers (we have good sources at 8 PA companies representing well over 80% of the PA supply in the world, including RFMD, Skyworks, Anadigics, Freescale, Axiom, and others). Uniformly they said that they had not and would not be signing any deals with ParkerVision. They all were laughing at the announcement and at Jeff Parker - they've never heard of making any announcement like this without both parties involved, and to keep the name of the partner secret is very strange. The firm belief of everyone we talked to is that the "licensee" is an small or unknown Asian company (probably Chinese or Korean). It certainly didn't make anyone want to revisit their rejection of D2P technology.

 

Everyone we spoke to also said that ParkerVision is never mentioned by handset makers (except in passing "Are they still around?"), and there appears to be no interest in D2P. Now that a number of existing PA companies are shipping or sampling high efficiency 3G PAs, the need or desire of handset makers to take risks has gone way down. Cost is still very much the driving issue. High-efficiency 4G PA are still of interest, but the demand (LTE and WiMax) are still years away.

 

We remain confident that the issued and provisional patents relating to D2P are not workable. The issued patent simply doesn't work, and the provisionals are unworkable for a number of reasons. This is confirmed by our consultants and by our conversations with large PA chip companies. Jeff Parker may have signed a "deal", but (like *all* previous ParkerVision deals) we remain confident in our belief that no meaningful revenue will ever arise from the deal.

 

The current announcement will improve the odds of Jeff closing his annual PIPE - which was the whole point of the announcement, given that the company has well under a year of operating capital, and no expected revenue in 2008.