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Section 1: 8-K (8-K 03.19.19)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of earliest event reported): March 19, 2019
______________

InterDigital, Inc.
(Exact name of registrant as specified in charter)


Pennsylvania
1-33579
82-4936666

(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)


200 Bellevue Parkway, Suite 300, Wilmington, DE
19809
(Address of Principal Executive Offices)
(Zip Code)

Registrant's telephone number, including area code: 302-281-3600

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

q    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
q    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
q    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
q    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))

Item 7.01.    Regulation FD Disclosure.
The slide presentation attached hereto as Exhibit 99.1 will be presented by InterDigital, Inc. (the “Company”) at the 31st Annual ROTH Conference in Dana Point, California on March 19, 2019. The presentation contains information on, among other things, the Company's share repurchase activity and may also be used by the Company at future investor conferences or meetings.

The information in this report, including Exhibit 99.1, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act.  The Company undertakes no duty or obligation to publicly update or revise the information contained in this report.






Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibits.

99.1




 

    
 

    








SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


                                
INTERDIGITAL, INC.
 
 
By: /s/ Jannie K. Lau
Jannie K. Lau
Chief Legal Officer, General
Counsel and Corporate Secretary


Date: March 19, 2019




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Section 2: EX-99.1 (EXHIBIT 99.1 INVESTOR PRESENTATION)

roth0319final
InterDigital 31st Annual ROTH Conference March 19, 2019 © 2019 InterDigital, Inc. All Rights Reserved.


 
AgendaForward-Looking Statements 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, plans and expectations, as to: (i) future results, projections and trends; (ii) its strategy and business plan; (iii) the company’s future revenues and expenses, including its expectations with respect to full year and first quarter 2019 revenues and first quarter and full year 2019 operating expenses and capitalization costs; (iv) future recurring cost and recurring revenue levels and the timelines for achieving such levels; (v) investments; (vi) partnerships, commercial initiatives and other potential business and revenue opportunities, including through new markets; (vii) technology development timelines; (viii) future global mobile, IoT and consumer electronics device shipments and market opportunities, and; (ix) the company’s plans to expand its footprint and engagement strategy. Such statements are subject to the safe harbor created by those sections. Words such as “anticipate,” “believe,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “will,” variations of any such words or similar expressions, and graphical timelines representing future estimates or events are intended to identify such forward-looking statements. Forward-looking 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, without limitation: (i) the market relevance of our technologies; (ii) changes in the needs, availability, pricing and features of competitive technologies as well as those of strategic partners or consumers; (iii) unanticipated technical or resource difficulties or delays related to further development of our technologies; (iv) the entry into additional patent license, patent sales or technology solutions agreements; (v) our ability to successfully identify and launch new commercial businesses; (vi) our ability to successfully identify and expand into new markets; (vii) our ability to enter into partnerships, strategic relationships or complementary investment opportunities on acceptable terms; (viii) the accuracy of market sales projections of the company's licensees, changes in our estimates of first quarter 2019 sales by our per-unit licensees, delays in payments from our licensees and related matters; (ix)our; (x) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such legal proceedings; (xi) unanticipated costs or expenses; (xii) changes in the company’s strategy going forward; and (xiii) changes or inaccuracies in market projections or technology development timelines, as well as other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2018, and from time to time in our other Securities and Exchange Commission filings. We undertake no duty to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority. © 2019 InterDigital, Inc. All Rights Reserved. 2


 
Why InterDigital, More than Ever Invention, Collaboration & Contribution Over four decades of pioneering wireless innovation Now combined with a portfolio reflecting decades of fundamental video expertise Brought to market through substantial contributions to global standards That drive a more powerful consumer experience With our contributions protected by one of largest patent portfolios in the world related to wireless and video technologies 3 © 2019 InterDigital, Inc. All Rights Reserved.


 
InterDigital Labs In Our Labs A world-class R&D lab • 5G & Beyond Cellular Standards that drives InterDigital’s • IoT Standards & Platforms technology development • Advanced Video Standards & Platforms • Mobile Edge Computing and is a respected • Service-based Architectures participant in international • mmW Access and Transport\ Systems standards & industry activities • Spectrum Sharing & Unlicensed Spectrum • Wi-Fi Standards • Artificial Intelligence / Machine Learning • Navigation and Localization Video Consumer Coding IoT Electronics • Intelligent & Autonomous Vehicles • Drones / UAVs / Robotics 4 © 2019 InterDigital, Inc. All Rights Reserved.


 
2018: A Global Footprint • California • New York • Pennsylvania • Montreal • Berlin • Brussels • Delaware • Maryland • Washington, D.C. • London • Shanghai • New Jersey • Paris • Indiana • Rennes • Seoul 5 © 2019 InterDigital, Inc. All Rights Reserved.


 
Contributing Deep wireless + a video portfolio Technology engagement… that reflects: Worldwide >50/yr journal and on Two Major 1,000+ conference contributions $1B+ papers published Fronts invested in to 3GPP R&D since 2000 >100/yr ~100 contributions to technical papers standards bodies & presentations submitted to In the last decade, peer-reviewed our engineers 25+ years conferences & attended hundreds of experience in publications in of global industry video compression 2017 alone conferences solutions 6 © 2019 InterDigital, Inc. All Rights Reserved.


 
A Recent History of 5G Innovation 2018 World’s 1st demonstration of 2014 2016 2016 2017 2017 service-based 5G World’s 1st World’s 1st World’s 1st Invited by GSMA World’s 1st control plane WiGig-based long-term demo successful trial of to present on successful mobile mesh backhaul of integrated IP-over-ICN-over- mainstage at edge computing technology fronthaul/ SDN demo MWC, alongside 5G network Demonstration of unveiled backhaul Intel and Ericsson architecture trial new service framework that will enable operators to move to a cloud-native deployment of mobile networks 7 © 2019 InterDigital, Inc. All Rights Reserved.


 
A Portfolio that Combines Depth and Breadth Across Technologies IDCC The InterDigital portfolio now brings together >34,000 patent assets that show enormous strength in key wireless and video technologies but also broad diversity across the entire gamut of technology needs. Cellular (incl. 3G, 4G, and 5G) Video Acquired from TCH Apps & Services Device Hardware/Software Networking WiFi 8 © 2019 InterDigital, Inc. All Rights Reserved. Data as of 12/01/18


 
Two Tech Footprints, Driving Three Interconnected Licensing Opportunities CONNECTED CONSUMER DEVICES ELECTRONICS INTERNET OF THINGS 9 © 2019 InterDigital, Inc. All Rights Reserved.


 
Consistent Leadership in Major Cellular Standards In studies by third-party analysts we’re aware of since 2012 that have evaluated the share of patents and applications that are likely essential to 3G and/or 4G standards... 7% – InterDigital’s share of likely LTE InterDigital’s share of likely 3G 10% SEPs ranges from 7% – 10%, 10% SEPs averages close to 10%, and averages more than 8% 8% across these studies, InterDigital appeared in the top 3 and our 3G SEP portfolio was among patent holders in combined ranked as either the second LTE/LTE-A ~2/3 of the time – tied for with InterDigital’s LTE portfolio or third strongest among all industry participants. the highest percentage of any ranked between the second company and fifth strongest in the industry. InterDigital did not fund any of these studies. InterDigital does not endorse any particular study or the methodology used by any of these studies, nor does InterDigital endorse a patent counting approach to determining the value of its portfolio and does not subscribe to the idea that all SEPs have an equal value. 10 © 2019 InterDigital, Inc. All Rights Reserved.


 
Wearables and 5G Penetration Drive New Volume Historically each generation of air interface technology has unlocked new user experiences on mobile. 5G will 1980s 1990s 2000s 2010s 2020s enable enhanced mobile broadband Analog Digital Phone Digital calls, messaging All IP-based across multiple devices and platforms Phone With text + data, 3.5 G with mobile broadband messaging mobile broadband 2018/19 Late 2019 2019 TBD TBD Consumer CPE Handsets/Tablets IoT/M2M Modules Automobile/ Emerging Devices/ Fixed wireless access 5G units are not NB-IoT modules lead Telematics Wearables an early US use case expected to be to higher shipment Anticipating Wearables – incl. based on operator incremental to 4G forecast standards definition; watches, AR glasses activity current focus on LTE – will likely drive roadmap growth Source: ABI Research, IHS Markit Confidential and Proprietary 11 © 2019© 2018 InterDigital, InterDigital, Inc. Inc. All AllRights Rights Reserved. Reserved


 
The Rise of the Synchronized Device Landscape Extends Wireless Opportunity Source: Jefferson Wang, IBB Consulting, 9/18/17 12 © 2019 InterDigital, Inc. All Rights Reserved.


 
Consumer Electronics: With New Scale Comes New Opportunity Vision Audio IoT / Other • TV Displays and Computer • Wireless Speakers / Smart • Wearable Devices Assistants Display Monitors • Imaging • Soundbars • Set Top Boxes, Media • Cameras / Camcorders Adaptors, Streamers • Hi-Fi, AV Receivers, • Drones Loudspeakers • Game Consoles • Smart Home • Wireless headphones • Consumer PCs ~850M Device Shipments ~500M Device Shipments ~750M+ Device Shipments Markets totaling $400B with a history of licensing, that represent greenfield opportunities for InterDigital 2017 shipment data: ABI Research – Device Forecasts; Futuresource Worldwide Consumer Electronics Update, October 2018 13 © 2019 InterDigital, Inc. All Rights Reserved.


 
Mobile + Consumer Electronics: An ~$800B Market That We’ve Already Begun to License Computer Displays TV Set-Top Box Mobile OTT Devices PCs Loudspeaker Network Equip. Game H/W Consumer Wearables Cameras Drones Wireless Speakers Wireless Active Program Program Launched Program Under Eval. Smart Home Headphones Source: Futuresource Worldwide Consumer Electronics Update, October 2018 14 © 2019 InterDigital, Inc. All Rights Reserved.


 
IoT Connectivity – An Expanding Market Despite slower-than-expected start, IoT market expected to reach installed base of >62B devices by 2022… Average with cellular technologies topping 7B devices including: 2017-2022 CAGR • 585M connected cars, 22% CAGR (2017-2022) of all cellular IoT • 345M retail/supply chain devices, 44% CAGR (2017-2022) markets outside • 26M smart buildings, 34% CAGR(2017-2022) mobile devices: • >100M smart home devices, 31% CAGR (2017-2022) • >300M devices in utilities/industrial IoT, 27% CAGR (2017-2022) 38% 2017 2022 Data: ABI Research Internet of Everything Market Tracker, Q3 2018 15 © 2019 InterDigital, Inc. All Rights Reserved.


 
Revenue Base Built on a Broad Range of Customer Relationships Currently license ~$660M 9 of the OF CONTRACTED CASH Including the RECEIPTS THROUGH 2022 top 20 not including additional smartphone brands TOP 2 licenses or per-unit worldwide VENDORS payments of the 60+ licenses & amendments ~90% we’ve signed in the past 10 years were achieved through bilateral negotiation alone 16 © 2019 InterDigital, Inc. All Rights Reserved.


 
Growth Drivers that Build Logically Over Several Years LTE CYCLE + VIDEO 2018 CONSUMER ELECTRONICS Revenue Drive core IoT of smartphone 5G recurring $307.4M annual Build licensing revenue base base in ~$400B to $500M+ market An installed base of >62B devices by A new market 2022, of which paradigm, that >10% will be high- expands cellular value devices using wireless beyond cellular, as well as handsets into a IoT middleware broad variety of areas and use cases 17 © 2019 InterDigital, Inc. All Rights Reserved.


 
Diligent Goal-Tracking Across All Our Programs LTE CYCLE + VIDEO CONSUMER ELECTRONICS IoT Currently at 5G recurring licensing A new effort at the revenue of company, but based Stated goal of $75- on historical revenues 100M by late 2021. >$300M, with a Growing ability to of the sector we’re Currently, initial wins size the market, and continued goal of optimistic for a rapid and opportunities in expected impact on $5-600M ramp a slow market but broad range of holding to goal additional markets 18 © 2019 InterDigital, Inc. All Rights Reserved.


 
A Post-TCH Transition to Regain Full Operating Leverage Q4 2018 Total Operating Expenses $ 71.5 With the anticipated closing Plus: Capitalized patent costs on internal patents 8.2 of the acquisition of Less: Depreciation & amortization (19.1) Technicolor’s R&I team, we Less: Intellectual property enforcement costs expect some cost increase (2.2) through 2019. Less: Partner reimbursement (0.6) Economic Cost * $ 57.9 Less: Transaction and integration related expenses (8.6) By end of 2019, we expect to see ongoing economic Q4 2018 Ongoing Economic Cost * $ 49.3 costs brought back to 2017 levels. * "Economic Cost" and "Ongoing Economic Cost" are supplemental non-GAAP financial measures that InterDigital believes provide relevant and useful information to investors and other users of our financial data in evaluating the effectiveness of our operations and underlying business trends related to operating expenses. A limitation of these measures is they do not represent the total increase or decrease in InterDigital’s total operating expenses for the period. The above calculation reconciles these two non-GAAP financial measures to their closest comparable GAAP measure, Total Operating Expenses. 19 © 2019 InterDigital, Inc. All Rights Reserved.


 
Continuing Our Practice of Returning Value to Shareholders • Since July 1, 2018, we have bought back more than $201 million in shares, totaling 2.8 million shares at an average price of $71.88 per share • We announced another $100 million increase to the authorization in December 2018 • As of 03/15/19, $68 million remained available under the authorization © 2019 InterDigital, Inc. All Rights Reserved. 20


 
© 2019 InterDigital, Inc. All Rights Reserved.


 
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