InterDigital, Inc. · NASDAQ:IDCC
InterDigital — InterDigital Communications — Investor Presentation (February 2003)
14 slides from InterDigital's investor presentation, February 2003
Slide 1: InterDigital Communications Corporation, February 2003
February 2003 • ©InterDigital Communications Corporation • www.interdigital.com
Slide 2: InterDigital Communications
InterDigital Communications • Architect, design and develop advanced digital wireless technology platforms • Heritage of leadership in wireless technology - Core essential patented inventions in TDMA and CDMA - Active leadership in worldwide standards bodies - Generated nearly $400 million from lice
Slide 3: Our Strategy is Designed to Produce Substantial Growth in Current and Future Wireless Markets
Our Strategy is Designed to Produce Substantial Growth in Current and Future Wireless Markets • Invest in technology architecture, design and development • Highly-integrated, standards-based solutions for voice and data • Combine intellectual property licensing with product offerings • Strategic par
Slide 4: Our Strategy is Designed to Generate Multiple Revenue Streams
Our Strategy is Designed to Generate Multiple Revenue Streams Wireless Royalties Platform Patented Inventions Technology Hardware & Software Product Sales Development Technology Technology Know-how Transfer Fees Spec. Engineering Services Royalties February 2003 • ©InterDigital Communications Corpor
Slide 5: Managing Cash in a Period of Heavy Investment
Managing Cash in a Period of Heavy Investment 120 100 $ in Millions 80 60 40 20 0 1999 2000 2001 Sep-02 Cash and Short-term Investments Debt February 2003 • ©InterDigital Communications Corporation • www.interdigital.com
Slide 6: Expanding Recurring Patent Royalty Revenues
Expanding Recurring Patent Royalty Revenues 50 68% 45 40 60% 59% 35 $ in Millions 30 25 20 15 13% 10 5 0 1999 (Pre SAB 101) 2000 2001 1st Nine Months 2002 % Recurring patent royalties as a percent of total sales February 2003 • ©InterDigital Communications Corporation • www.interdigital.com
Slide 7: Licensing Program is the Foundation
Licensing Program is the Foundation • 31 license agreements in place • Since 1995, generated nearly $400 million from licensing program • Expansion of IPR in key technology areas - Tantivy • Momentum in 2.5 and 3G CDMA licensing - Sharp Corporation - NEC Corporation - Matsushita (Panasonic) - Japan
Slide 8: Migration Path to 3G Presents Huge Opportunities in WCDMA
Migration Path to 3G Presents Huge Opportunities in WCDMA 20% 5%-10% ANSI-41 UWC-136/ IS-54/136 (US/LA) GSM EDGE 15% 20-30% IS-95A IS-95B/C CDMA 2000 INTEROPERABILITY 65% GSM (world) GSM GPRS EDGE WCDMA 70-80% Sources: InterDigital estimates and independent market analysts estimates February 2003 •
Slide 9: The Complete WCDMA Solution: FDD & WTDD
The Complete WCDMA Solution: FDD & WTDD InterDigital Among the Few Companies Developing Both Technologies February 2003 • ©InterDigital Communications Corporation • www.interdigital.com
Slide 10: Incorporating Advanced Technology into Product
Incorporating Advanced Technology into Product • Complete WCDMA Solution - FDD • Joint development with Infineon • Software protocol stacks for terminals • Actively marketing product - WTDD • End-to-end standards compliant solution • Software for terminals and infrastructure - SmartRRM™ • Smart Radi
Slide 11: 3G - The Evolution is Underway
3G - The Evolution is Underway • NTT DoCoMo – 3G service in Japan in October 2001 • +40 WCDMA launches projected in Europe in 2003 - T-mobile, Vodafone, Hutchison, TIM • 3G handsets – Nokia, Motorola, NEC, Panasonic, Samsung • +100 contracts for 3G infrastructure awarded Current 3G Licensing Status
Slide 12: Wireless Technology for Data on the Move
Wireless Technology for Data on the Move Pictures, Music, Videoclips, and More • In January, 60% of all J-Phone’s subscribers had a camera phone - More than 8 million camera phones sold • Data-oriented services - 40+ MMS operators live - 100+ GPRS networks launched - 30+ CDMA 1X networks launched •
Slide 13: The InterDigital Difference
The InterDigital Difference • Essential and commercially important patents and inventions • Focus on the complete WCDMA solution - FDD and WTDD technologies • End-to-end solutions expertise • Migrating technology to product offerings • Key strategic industry relationships • Leadership in the standar
Slide 14: February 2003 ©InterDigital Communications Corporation www.interdigital.com
February 2003 • ©InterDigital Communications Corporation • www.interdigital.com
InterDigital Communications — Investor Presentation (February 2003) on 6ix