InterDigital (IDCC) FY Conference Summary Company Overview - InterDigital is a technology company founded in 1972, specializing in foundational research in wireless, video, and artificial intelligence [6][7] - The company has built a large and evergreen patent portfolio, licensing it to major vendors in the industry [7][8] - InterDigital employs around 500 people across 14 sites in 7 countries, focusing on hiring top talent from leading universities [11][12] Business Model and Strategy - The business model is centered on foundational technology, investing in research to stay ahead of the curve by 5 to 10 years [10][11] - The company participates in standard development, which drives value creation and technology dissemination [14][21] - InterDigital has a high concentration of inventors, with over 90% of employees being scientists and engineers [13] Financial Performance - The company has signed over 40 agreements with an economic value exceeding $3.7 billion in the last four years [33] - Revenue growth has been approximately 20-25% CAGR over the past four years, with adjusted EBITDA margins increasing [35][36] - The company has increased its dividend by 50% in the last twelve months and reduced share outstanding by 45% since 2011 [36] Market Opportunities - The mobile ecosystem has an economic impact of approximately $5.7 trillion, making it the third-largest GDP if considered a separate country [38] - InterDigital's core markets include smartphones, consumer electronics, and IoT, with a significant opportunity identified in cloud-based streaming video [39][40] - The smartphone market is expected to grow from over $400 million to $500 million in recurring revenue [42] Patent Portfolio - The patent portfolio has nearly doubled from 2017 to 2025, with a focus on wireless communication technology [29] - InterDigital's patent quality is ranked number one in 5G, top five in video, and top ten in WiFi [31] Capital Allocation - The company maintains a strong balance sheet and invests 50% of recurring revenue back into R&D [54] - InterDigital is optimistic about future M&A opportunities, having previously acquired Technicolor's patent assets [55] Licensing Agreements - 94% of revenue in 2024 is expected to come from fixed fee agreements, minimizing exposure to volume fluctuations [64] - The largest contract with Apple is a seven-year deal signed in 2022, providing stable revenue [66] Litigation and Customer Relations - InterDigital rarely resorts to litigation, focusing on bilateral negotiations for licensing agreements [71][73] - The company emphasizes fairness in licensing, ensuring that all competitors pay their fair share for using its technology [72][74] Long-Term Growth Strategy - The company aims to grow recurring revenue at 14% year-over-year, targeting over $600 million in adjusted EBITDA by 2030 [57] - Investments will continue in next-generation technologies, including 6G and advanced AI [57] Conclusion - InterDigital is positioned for significant growth with a strong patent portfolio, innovative technology, and a clear strategy for expanding into new markets [58]

Core Insights - Nokia has delivered its Banshee tactical private wireless solutions to the Marine Corps Tactical Systems Support Activity (MCTSSA), enhancing secure communications for tactical operations [1] - The collaboration between Nokia and the Marine Corps has focused on developing next-generation communication capabilities to meet critical operational needs [1][2] Group 1: Product Development and Testing - In 2023, a proof-of-concept was conducted at Marine Corps Air Station Yuma, validating Banshee's capability to provide secure, high-capacity tactical communications [2] - Nokia and MCTSSA showcased Banshee's effectiveness in denied, disrupted, intermittent, and limited (DDIL) environments during Project Convergence [2] - Following successful evaluations, MCTSSA acquired multiple Banshee units in early 2025 for further integration into Marine Corps exercises [3] Group 2: Training and Deployment - Nokia provided hands-on training to MCTSSA and other Marine Corps units, covering private wireless network operations, setup, troubleshooting, and live demonstrations [3] - The training aims to ensure seamless deployment and operational success of the Banshee system [3] Group 3: Strategic Importance - Banshee is described as a game-changer for modern warfare, offering a scalable private wireless solution that enhances battlefield connectivity and operational efficiency [4] - High bandwidth and low latency are critical for sensor-to-shooter integration, ensuring timely data flow and maintaining battlefield advantage [5] Group 4: Product Features and Benefits - The Nokia Banshee family is designed for rapid deployment in demanding environments, providing a high-speed, long-range, and secure tactical communication solution [6] - As a cost-efficient commercial off-the-shelf (COTS) system, Banshee leverages industry R&D investments, offering a scalable alternative to traditional Marine Corps communications [6] - The lightweight and easy-to-use design of Banshee ensures resilient connectivity while significantly reducing costs, aligning with MCTSSA's modernization vision [6]