EX-99.1 2 a5145100ex99-1.htm EXHIBIT 99.1 Unassociated Document
 
Exhibit 99.1
 
              
InterDigital Communications Corporation
 

 
              
This presentation contains forward-looking statements regarding InterDigital's current beliefs, plans and expectations as to: (i) our strategy; (ii); our future annual revenue potential; (iii) future global handset sales; (iv) growth in our 3G patent licensing program; and (vi) our goal of completing a dual mode 2G/3G ASIC for licensing and sale. Such statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including, but not limited to: (i) the market relevance of our technologies and changes in technology preferences of strategic partners or consumers; (ii) unanticipated technical or resource difficulties or delays related to further development of our technologies and products; (iii) our ability to leverage or enter into new customer agreements or strategic relationships; (iv) our ability to enter into additional license agreements; (v) unfavorable outcomes in patent disputes; and (vi) changes or inaccuracies in market projections. (C) 2006 InterDigital Communications Corporation. All rights reserved. 2
 

 
              
Shaping Digital Wireless Technologies o 30+ year history of pioneering inventionand worldwide deployments - Focus on complete systems solutions o Key contributor to standards bodies - 2G & 3G cellular, 802 Wireless o Highly Successful Licensor - Patent portfolio has generated over $1 billion o Strong Financial Condition (C) 2006 InterDigital Communications Corporation. All rights reserved. 3
 

 
              
Financial Strength and Expanding Revenues in millions $250 $200 $150 $100 $50 $0 Solid Balance Sheet 2003 2004 2005 2006* *March 31 Cash & ST Investments Share Repurchases Revenue Base Reflects Additional Revenue Streams $60 $50 $40 $30 $20 $10 $0 Q1 Q2 Q3 Q4 Q1 2005 2006 Recurring Royalties * Tech Solutions * Excludes payments for past sales (C) 2006 InterDigital Communications Corporation. All rights reserved. 4
 

 
              
Leading Brands License Our Patents All trademarks are the sole property of their respective owners. (C) 2006 InterDigital Communications Corporation. All rights reserved. 5
 

 
              
2006 - Bright Prospects & Strong Performance o Resolved 2G Dispute with Nokia -$253 Million o Added LG Electronics as New Licensee -$285 Million o Strong First Quarter - Revenue $51.6 million, + 45% - Net Income $12.9 million, EPS $0.23, up from a lossin Q1 `05 o $200 Million Share Repurchase Authorization (C) 2006 InterDigital Communications Corporation. All rights reserved. 6
 

 
              
Patent Licensing - Continues to Flourish o Nearly $600 M In License Agreements In Past 9 Months - Resolved Nokia royalty dispute, received $253 M - Licensed LG Electronics for 2G/3G products for $285 M - Licensed Kyocera Corporation for cdma2000(R) handsets for $50 M o Solid And Growing Position In 3G Market - 35 -40% of WCDMA and cdma2000(R) mobile devices covered - 5 new 3G licensees in past year o Cash From Patent Licensing Program NowApproaching $1.5 Billion (C) 2006 InterDigital Communications Corporation. All rights reserved. 7
 

 
              
Product Programs - Gaining Momentum o IP License Agreements In Place With Key IndustryPlayers - Philips Semiconductor: HSDPA ASIC design - General Dynamics: Complete W-CDMA terminal unit technologypackage - Infineon: W-CDMA and HSDPA terminal unit protocol stack o Targeting A Complete Dual Mode 2G/3G ASIC ForLicense And Sale - One of a very few companies demonstrating HSUPA capability (C) 2006 InterDigital Communications Corporation. All rights reserved. 8
 

 
              
Our Goal: Secure Revenue on Every 3G Mobile Device o Over One Billion Mobile Phones to Ship by 2008 0 200 400 600 800 1,000 1,200 1,400 2004 2005 2006 2007 2008 2009 2010 2G/2.5G 3G (CDMA) 3G (WCDMA) - 60% expected to be 3G by 2010 Global Handset Sales by Technology Source: Strategy Analytics, January 2006 (C) 2006 InterDigital Communications Corporation. All rights reserved. 9
 

 
              
Tremendous Opportunity - 2010 as an Example Today, We Derive Revenue on 35-40% of 3G mobile devices sold Annual Potential Revenue (in $ millions) Avg. $ per Device $350$350$260$260$175$175$ 85$ 85$0.50 $700$700$525$525$350$350$175$175$1.00 $1,050$1,050$800$800$525$525$260$260$1.50 $1,400$1,400$1,050$1,050$700$700$350$350$2.00 25% 50% 75% 100% Percent of Market Covered (C) 2006 InterDigital Communications Corporation. All rights reserved. 10
 

 
              
Tremendous Opportunity - 2010 as an Example Essential Patent Position Drives Market Coverage Annual Potential Revenue (in $ millions) Avg. $ per Device $350 $350 $260 $260 $175 $175 $ 85 $ 85 $0.50 $700 $700 $525 $525 $350 $350 $175 $175 $1.00 $1,050 $1,050 $800 $800 $525 $525 $260 $260 $1.50 $1,400 $1,400 $1,050 $1,050 $700 $700 $350 $350 $2.00 25% 50% 75% 100% Percent of Market Covered (C) 2006 InterDigital Communications Corporation. All rights reserved. 11
 

 
              
Tremendous Opportunity - 2010 as an Example Product Offerings Drive Higher Value Annual Potential Revenue (in $ millions) Avg. $ per Device $350 $350 $260 $260 $175 $175 $ 85 $ 85 $0.50 $700 $700 $525 $525 $350 $350 $175 $175 $1.00 $1,050 $1,050 $800 $800 $525 $525 $260 $260 $1.50 $1,400 $1,400 $1,050 $1,050 $700 $700 $350 $350 $2.00 25% 50% 75% 100% Percent of Market Covered (C) 2006 InterDigital Communications Corporation. All rights reserved. 12
 

 
              
InterDigital Communications Corporation