Slide 1: Positioned to Capitalize on Innovation in Wireless Technologies
Positioned to Capitalize on Innovation in Wireless Technologies December 2009
Slide 2: Forward-Looking Statements
This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding InterDigital, Inc.'s current beliefs, plans and expectations as to: (i) future results, p
Slide 3: Overview: Strong wireless technology expertise
Strong wireless technology expertise 200 engineers; 80% with advanced technical degrees Over 12,000 issued patents and patent applications Technology used in every cellular device Deep relationships in wireless ecosystem 55% of 3G market under license Software in millions of 3G devices Financial str
Slide 4: Technology development ahead of the curve
Technology development ahead of the curve When analog cellular started to gain traction, we were already working on digital wireless systems When the world was focused on voice, our focus was data When others looked at narrowband, we were developing wideband In the early 1980s: Roaming and handoff t
Slide 5: Traditional Wireless System
Traditional Wireless System 5 (c) 2009 InterDigital, Inc. All rights reserved. Since 1990 and continuing growth 6 B subscribers worldwide Over 1B devices shipped yearly
Slide 6: Huge Demand for Pervasive Wireless Services
Sensors Huge Demand for Pervasive Wireless Services Cellular WiMax WiFi Mesh Ambiance Femto Relays Social Networks Shopping, Banking, Secure Transactions Healthcare Intelligent Highways & Vehicular Comms Education Smart Power Grid Entertainment and Gaming New services and applications All shapes and
Slide 7: Pervasive Content = Bandwidth Crunch
Pervasive Content = Bandwidth Crunch Global Mobile Network Data Traffic Source: ABI Research, Mobile Data Traffic Analysis 009 20,000 2008 2009 2010 2011 2012 2013 2014 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Web/Internet VoIP Video Streaming/TV P2P Audio Streaming Petabytess Mo
Slide 8: Core solutions that support increased data usage
Core solutions that support increased data usage and a richer multimedia experience LTE Collaborative Communications Compression Untapped Spectrum HSPA+ LTE-A Local Content Routing Femto/WiFi Cognitive Spectrum Management Solutions in Our Labs Today (c) 2009 InterDigital, Inc. All rights reserved. 8
Slide 9: Tomorrow's Network of Networks
Sensors Tomorrow's Network of Networks Cellular WiMax WiFi Mesh Ambiance Femto Relays People connecting to people People connecting to machines Machines connecting to machines 9 (c) 2009 InterDigital, Inc. All rights reserved.
Slide 10: 2x to 5x Growth in Addressable Market
2x to 5x Growth in Addressable Market Sensors Cellular WiMax WiFi Mesh Ambiance Femto Relays Source: ABI Research, Mobile Data Traffic Analysis 2009 2010 2011 2012 2013 2014 700 750 800 850 900 950 1,000 1,050 1,100 Operator Services 2010 2011 2012 2013 2014 50 55 60 65 70 75 M2M & Infrastructure 15
Slide 11: Delivering Technical Knowhow Across Wireless Value Chain
Delivering Technical Knowhow Across Wireless Value Chain 11 (c) 2009 InterDigital, Inc. All rights reserved. Manufacturers Consumers Operators Engineering expertise Strong patent portfolio Substantial intellectual property in next generation wireless Compelling innovation roadmap beyond cellular Tec
Slide 12: Solid Financial Results to Drive Growth
Solid Financial Results to Drive Growth First nine months 2009 Revenues of $221.0 million, up 30% over 2008 Net income of $48.4 million, or $1.08 per share Pro forma net income, $72.8 million, or $1.61 per share * $307 million free cash flow * ~$400 million in cash and short term investments New Sam
Slide 13: Take Aways
Take Aways A leading developer of digital wireless technology Established technical expertise Strong track record of wireless innovation Successful R&D and licensing programs Strong portfolio of 3G and 4G technologies Financial strength and stability Multiple opportunities to drive growth 3G/4G roya
Slide 14: Q & A
Q & A December 2009 14
Slide 15: Appendix
December 2009 Appendix
Slide 16: Licensees
Licensees Alcatel Espana American Telephone and Telegraph Company (AT&T) Apple Inc. Arima Communications Corporation ASUSTeK Computer Cinterion Wireless Modules Danger Inc. Denso Corporation Giant Electronics, Ltd. High Tech Computer (HTC) Hitachi Ltd. Hop-On Wireless, Inc. Hughes Network Systems In
Slide 17: Cash Flow Reconciliation
Cash Flow Reconciliation (c) 2009 InterDigital, Inc. All rights reserved. 17 Free cash flow is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company's ability to invest in its business, make strategic acquisitions and fund share repurchases, among
Slide 18: Reconciliation of Consolidated Statement of Operations
Reconciliation of Consolidated Statement of Operations (c) 2009 InterDigital, Inc. All rights reserved. 18 The above pro forma statements of financial results exclude the expense associated with the repositioning charge and the related tax benefit. The company has provided these pro forma figures he