Slide 1: Positioned to Capitalize on Growth in 3G Cellular Market and Beyond
June 2009 Positioned to Capitalize on Growth in 3G Cellular Market and Beyond
Slide 2: Forward-looking statements
2 (c) 2009 InterDigital, Inc. All rights reserved. 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,
Slide 3: Highly Integrated Business Model
3 (c) 2009 InterDigital, Inc. All rights reserved. Highly Integrated Business Model 35 + Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every cellular device Key Contributor to Standards 2G, 3G, and LTE - 4G and beyond Wireless LAN & Mobility/Convergence H
Slide 4: The Mobile Device Market Opportunity
The Mobile Device Market Opportunity 4 (c) 2009 InterDigital, Inc. All rights reserved. Almost 1.5 Billion Handsets Expected to Ship by 2014 70% to be 3G/LTE Millions of units Source: Strategy Analytics, June 2009
Slide 5: A History of Innovation...
5 (c) 2009 InterDigital, Inc. All rights reserved. A History of Innovation... Starting in the early 1980s, developed key inventions used in 2G systems today: Fundamental system architecture Roaming and handoff techniques Distributed base station technologies In the early 1990s, continued pioneering
Slide 6: ....Drives Solid Financial Results
6 (c) 2009 InterDigital, Inc. All rights reserved. ....Drives Solid Financial Results Solid Financial Performance in 2008 Net income of $26.2 million, or $0.57 per share Repurchased $82 million of common stock Good start in Q1 2009 Samsung $400 million 2G/3G Agreement 50% of 3G devices sold under li
Slide 7: Global Reach
7 (c) 2009 InterDigital, Inc. All rights reserved. Global Reach These trademarks are the sole property of their respective owners. Sampling of customers, licensees, and strategic relationships
Slide 8: Solid Recurring Licensing Royalty Revenue
8 (c) 2009 InterDigital, Inc. All rights reserved. Solid Recurring Licensing Royalty Revenue ** ** Excludes revenues for past sales $ in Millions * Due to a transition in revenue recognition, includes only 3 quarters of per unit royalties
Slide 9: Strong Free Cash Flow Drives Shareholder Value
9 (c) 2009 InterDigital, Inc. All rights reserved. Strong Free Cash Flow* Drives Shareholder Value Solid Balance Sheet $ in Millions $ in Millions Returning Value to Shareholders & Investing in the Business * InterDigital defines "free cash flow" as operating cash flow less purchases of property and
Slide 10: People Connecting to People Since 1990 and continuing growth
People Connecting to People 10 Since 1990 and continuing growth 6 B subscribers worldwide Over 1B devices shipped yearly Over $2.5B in patent licensing Cellular WiFi WiMax Femto Relays (c) 2009 InterDigital, Inc. All rights reserved.
Slide 11: Tomorrow's Network of Networks
Sensors Tomorrow's Network of Networks 11 Cellular WiMax WiFi Mesh Ambiance Femto Relays Billions of subscribers, trillions of connections (c) 2009 InterDigital, Inc. All rights reserved.
Slide 12: Key InterDigital Takeaways
12 (c) 2009 InterDigital, Inc. All rights reserved. Key InterDigital Takeaways Leading Developer of Digital Wireless Technology Consistent track record of successful innovation and licensing programs with top tier OEMs Inventions address fundamental technical challenges Influential member of multipl
Slide 13: Technology Initiatives Address New Market Potential
Technology Initiatives Address New Market Potential 13 Advanced Air Interfaces Cellular System Evolution People to People Security and Trust Advanced Communication Systems People to Things Things to Things Time Future Device Architectures Market Potential (c) 2009 InterDigital, Inc. All rights reser
Slide 14: interDigital’
interDigital’
Slide 15: Appendix
interDigital’ Appendix
Slide 16: Licensees as of May 2009
16 (c) 2009 InterDigital, Inc. All rights reserved. Licensees as of May 2009 Alcatel Espana American Telephone and Telegraph Company (AT&T) Apple Inc. Arima Communications Corporation ASUSTeK Computer Danger Inc. Denso Corporation Giant Electronics, Ltd. High Tech Computer (HTC) Hitachi Ltd. Hop-On
Slide 17: Cash Flow Reconciliation
17 (c) 2009 InterDigital, Inc. All rights reserved. Cash Flow Reconciliation 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
18 (c) 2009 InterDigital, Inc. All rights reserved. For the Three Months Ended March 31, 2009 Actual Adjustments Pro Forma REVENUES OPERATING EXPENSES Other operating expenses Repositioning (Loss) income for operations OTHER INCOME: Interest and investment income, net (Loss) income before income tax