Interdigital, Inc. · NASDAQ:IDCC
Interdigital — Credit Suisse Under Followed Opportunities Conference 2007
14 slides from Interdigital's conference presentation, Sep 12, 2007
Slide 1: Positioned to Capitalize on Growth in 3G Market
1 September 2007 Credit Suisse: Under Followed Opportunities ConferencePositioned to Capitalize on Growth in 3G Market
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements regarding InterDigital’s current beliefs, plans and expectations as to: (i) our strategy; (ii) our future growth potential in cash flow; (iii) our projected third quarter 2007 recurring revenues; (iv) future global mobile device sales and marke
Slide 3: Shaping the Future of Digital Wireless Technologies
3 Shaping the Future of Digital Wireless Technologies (Gp:) Invent Wireless Technologies (Gp:) Contribute to Standards (Gp:) License Patents (Gp:) Develop Wireless Products (Gp:) 30+ Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every mobile device (Gp:)
Slide 4: The Mobile Device Market Opportunity
4 The Mobile Device Market Opportunity Over 1.3 Billion Mobile Devices Expected to Ship by 2012 70% to be 3G Sixty Percent of 3G Mobile Devices Expected to be HSxPA by 2012 Our Goal - Secure Cash Flow On Every 3G Mobile Device Millions of units Source: Strategy Analytics, July 2007
Slide 5: Innovation Drives Patent Licensing Success
5 Innovation Drives Patent Licensing Success Body: Strong Patent Portfolio - 2G/3G Cellular and Emerging Technologies 3,000+ Patents Issued in U.S and Worldwide and growing Ranked 94 among companies worldwide with patents issued from USPTO Major Accomplishments for 2006 LG Electronics – $285 million
Slide 6: Solid Recurring Revenue Base
6 Solid Recurring Revenue Base * Excludes revenues for past sales $ in Millions 2006 2005 2007 $55.5 - $56.5 Million
Slide 7: Strong Free Cash Flow Drives Shareholder Value
7 Strong Free Cash Flow * Drives Shareholder Value Solid Balance Sheet $ in Millions $ in Millions Investing in Business & Returning Value to Shareholders As of June 30 * InterDigital defines “free cash flow” as operating cash flow less purchases of property and equipment and investments in patents.
Slide 8: Moving IP to Silicon Brings New Opportunities
8 Moving IP to Silicon Brings New Opportunities (Gp:) IP Blocks (Gp:) Full Modem Solution (Gp:) ASICs NXP (formerly Philips): 3G HSDPA ASIC design Infineon: WCDMA and HSDPA terminal unit protocol stack Provides Validation Broadens Market Opportunity Can Drive Significant Value General Dynamics: 3G W
Slide 9: Mobile Device Market Opportunity
9 (Gp:) (Gp:) 2G 3G / Wireless Broadband Basic Mobile Phones Feature/Smart Phones Data-Centric Devices Projected Annual Mobile Device Shipments (M units) Mobile Device Market Opportunity Emerging data-centric segment exceed 400M units in 2012 Feature phones exceed 1B units and smart phones reach 250
Slide 10: Optimized solutions for distinct market segments
10 Optimized solutions for distinct market segments High Performance Modem Technology (Gp:) Baseband Designs (Gp:) Dual Mode Modem Technology (IP) (Gp:) Protocol Software Basic Mobile Phones Feature / Smart Phones Data-Centric Devices Enabling semiconductor suppliers to compete in the feature / smar
Slide 11: Future Growth Potential in Cash Flow
11 Future Growth Potential in Cash Flow $800 $600 $400 $200 $1.00 $1,200 $900 $600 $300 $1.50 $1,600 $1,200 $800 $400 $2.00 Annual Gross Margin Potential in 2011 ($ millions) 25%50% 75% 100% Essential patent position drives market penetration Product drives value per device Today we derive cash flow
Slide 12: What to Look for in 2007
12 What to Look for in 2007 Body: New license agreements Add new 3G licensees Build momentum for 2008 and beyond Product development initiative goals IP Agreements Engineering samples by end of summer Commercial offering by end of year Leveraging capital Future technology development for 4G and beyo
Slide 13: Appendix
13 Appendix
Slide 14: Licensees as of September 2007
14 Licensees as of September 2007
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