Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of InterDigital (Nasdaq: IDCC) fell 13% today after releasing a disappointing earnings report.

So what: Revenue fell to $69.3 million from $78.5 million a year ago, falling just short of expectations. The really bad news was on the bottom line, where net income fell 53% to $10.9 million and earnings per share of $0.24 were below the expected $0.31 from analysts.

Now what: The company is attempting to turn its technologies into license royalties, but revenue was down by every measure in the quarter despite some new agreements. The company's litigation against companies is also a big unknown in the IP space that could be either profitable or costly. The only positive I can point to in this quarter is a $616 million cash hoard, but that's not enough for me to overlook falling revenue and profit and buy shares today.

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