ParkerVision (Nasdaq:PRKR), a Florida-based technology company, released quarterly earnings yesterday. While the stock dipped during yesterday's session, aggressive investors should view this dip as a buying opportunity to benefit from Parker's strong patent litigation prospects over the next six months.

Business Model

ParkerVision designs and develops proprietary technology, radio frequency and other products. PRKR technology is used in semiconductor circuits for wireless communication devices nationwide. In addition, PRKR is involved in ongoing efforts to sell its technology for processing RF waveforms in wireless applications.

The proprietary technology covers the functions of transceivers, transmitters and receivers. The transmission functionality, Direct2Power, enables the conversion of baseband data signals into RF carrier waveform at the desired output level in a single operation. PRKR's receiver functionality, Direct2Data, enables the conversion of an RF carrier to a baseband data signal.

ParkerVision also offers engineering consulting and design services to its clients to help them develop prototypes or integrating ParkerVision technology with their own platforms. The company's products can be integrated into a wide variety of products that utilize receivers, RF transmitters or transceivers. These include tablets, mobile handsets, machine-to-machine products, femtocells, RF identification and related infrastructure.

Its technology also is utilized in various RF components for industrial and military applications. The company was founded in 1989 and is headquartered in Jacksonville, Florida.

Recent Success as a Litigant

PRKR has been involved in several lawsuits regarding the company's patented technology. Recent successes are a good sign for shares of PRKR.

In July, ParkerVision reached a settlement with Samsung (OTC:SSNLF) for license of its patents. While the financial terms of the settlement were confidential, the settlement was clearly a win for ParkerVision. In the wake of the settlement, Samsung will hold a worldwide license to use ParkerVision's patented material in its huge number of cell phones, which had been the subject of ongoing litigation by ParkerVision against the company.

After ParkerVision's settlement announcement, the stock advanced dramatically during the trading day, with the price jumping nearly 95% before dropping slightly.

When PRKR filed its complaint against Samsung with the Federal Trade Commission in 2015, it also filed suit against Apple (Nasdaq:AAPL), LG (OTC:LGEAF) and Qualcomm (Nasdaq:QCOM), alleging the companies infringed on four patents. These are deep-pocket defendants, and I believe that settlement is likely, and that news of such a settlement will certainly push the stock higher.

One significant factor working in PRKR's favor on the litigation side is strong team of lawyers and financial backers. PRKR has retained the Boston Law Firm of Mintz Levin to pursue the FTC litigation and the IP team at Mintz has a great track record of settling IP cases for plaintiffs

Additionally, the litigation has significant financial backing. Brickell Key Investments provided $11 million in restricted funds to ParkerVision in exchange for payment via the company's future expected gross proceeds from its enforcement actions and patent assets. The team at Brickell has significant investing in IP litigation.

During yesterday's earnings conference call, PRKR executives were very positive on the firm's likelihood of success in pursuing the remaining lawsuits. During the call, CFO Cynthia Poehlman emphasized the positive impact that the Samsung litigation had on the company's results. Poehlman noted that "positive trends for the third quarter are primarily a result of revenue recognized from our intellectual property licensing and enforcement program and the July 2016 agreement with Samsung."

Jeffrey Parker, the firm's CEO, additionally noted that "there may be additional future amounts collected by us related to this (confidential) agreement, and these amounts are not reflected in our current financial statement."

Looking forward to resolution in the LG and Qualcomm actions, Parker remained positive. In the call, Parker reinforced his belief that Qualcomm's infringement of patents has been "rampant." He was also very positive about the progress and outlook for pending litigation against LG in Germany. Parker noted that "the German system is set up to help patent holders enforce their rights through a process that enables the patent holder to strengthen and validate the quality of their patent claims in short time frame" and "we are very confident in our ability to prevail."

With respect to Apple, Parker updated investors about the suit filed in Munich. Parker noted that the suit against Apple concerned the same patent as in the LG case and that the company "just recently learned that the hearing for that case has been set for May 4, 2017, less than six months from now."

Addressing the overall state of pending litigation, Parker was again positive, noting that the company was "encouraged by the progress of enforcement of our patents in the United States and abroad" and that he anticipates that the "final settlement conference for our ITC action will occur in about three months from now" and "assuming settlements patents been achieved, the ITC trial will begin about four months from now"

Conclusion: A Speculative Buy for Aggressive Investors

The low price of PRKR, combined with the stock's volatility will require an investor with a strong stomach who can tolerate the ups and downs of a mid-term play like this. I would caution readers that a mid-term, long position in PRKR is best suited for an aggressive, risk-tolerant investor.

That being said, PRKR's solid fundamentals and prospects for winning pending litigation make this stock a pick for me. PRKR's opponents are big names with deep pockets. Like Samsung, it's likely that some of these big names will settle in the mid-term. News of these settlements - like news of the Samsung settlement - could shoot PRKR stock still higher.

Another encouraging factor is the size and strength of PRKR's Mintz Levin litigation team and the significant support from Brickell Key.

Aggressive investors looking to profit from the likely settlement of these lawsuits should establish a long position over the next week. Because of PRKR's relatively modest trading volume, I would purchase shares in lots over several trading sessions.