Interdigital, Inc. · NASDAQ:IDCC
Interdigital — UBS Global Technology & Services Conference 2007
11 slides from Interdigital's conference presentation, Nov 13, 2007
Slide 1: Positioned to Capitalize on Growth in 3G Market
November 2007 Positioned to Capitalize on Growth in 3G Market UBS Global Technology & Services Conference
Slide 2: Forward-looking statements
This presentation contains statements relating to future results of InterDigital, Inc. (“InterDigital”), including certain projections and business trends that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securit
Slide 3: Shaping the Future of Digital Wireless Technologies
Shaping the Future of Digital Wireless Technologies (Gp:) Invent Wireless Technologies (Gp:) Contribute to Standards (Gp:) License Patents (Gp:) Develop Wireless Products (Gp:) 35 Year Digital Cellular Technology Pioneer Thousands of patents worldwide Inventions used in every mobile device (Gp:) Key
Slide 4: The Mobile Device Market Opportunity
The Mobile Device Market Opportunity Over 1.3 Billion Handsets Expected to Ship by 2012 70% to be 3G Sixty Percent of 3G Handsets Expected to be HSxPA by 2012 Our Goal - Secure Cash Flow On Every 3G Mobile Device Millions of units Source: Strategy Analytics, July 2007 2006 2007 2008 2009 2010 2011 2
Slide 5: Leading Brands License Our 3G Patents
Leading Brands License Our 3G Patents All trademarks are the sole property of their respective owners. 30 - 35% of WCDMA and cdma2000® mobile devices licensed
Slide 6: Solid Financial Position
Solid Financial Position Body: Strong Results for First Nine Months 2007 Net income of $22 million, or $0.44 per share Strong free cash flow* Expanding recurring royalties New $100 million stock repurchase program Positioned for Growth Limited exposure to 2G royalty roll-off Majority of revenue driv
Slide 7: Solid Balance Sheet
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 equipment and investments in patents 2003 2004 2005 2006 9/07 Cash & Short-term Investments $105.9
Slide 8: Leveraging Technology Portfolio to Build Value
Leveraging Technology Portfolio to Build Value 2005 2006 2007 2008 2G/3G Modem IP General Dynamics: 3G WCDMA modem Baseband Chips 2G/3G Dual Mode baseband with HSDPA/HSUPA Integration IP Blocks NXP (formerly Philips): 3G HSDPA ASIC design Infineon: WCDMA and HSDPA protocol stack Enabling high-volume
Slide 9: Optimized Solutions for Distinct Market Segments
2G 3G / Wireless Broadband Basic Mobile Phones Feature/Smart Phones Data-Centric Devices Projected Annual Mobile Device Shipments (M units) Emerging data-centric segment exceed 400M units in 2012 Feature phones exceed 1B units and smart phones reach 250M units in 2012 Plays to our strengths in high-
Slide 10: Key InterDigital Takeaways
Key InterDigital Takeaways Body: Leading Developer of Digital Wireless Technology Consistent track record of successful innovation and licensing programs with top tier OEMs Influential member of multiple standards bodies Large, diversified, and high value patent portfolio: 3,000+ patents and 9,000 a
Slide 11: 3G Revenue Growth Potential
3G Revenue Growth Potential $950 $700 $475 $240 $1.00 $1,425 $1,050 $700 $350 $1.50 $1,900 $1,425 $950 $475 $2.00 Potential Annual Revenue per 3G device in 2012 ($ millions) 25% 50% 75% 100% Patent position drives market penetration Product drives value per device Today we derive cash flow on 30 - 3
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