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mschere

08/31/05 12:59 PM

#124756 RE: Dave Davis #124751

It is virtually impossible to break down NEC WCDMA Infrastructure sales from their gross network solutions volume..What is possible is to take Sharp's entire Mobile Sales reported and apply their 2G/3G recurring revenue payments to IDCC..and you will IMO:find that they are paying IDCC some slightly less than 1%...All NEC's payments to IDCC are for 3G sales ..less the $2.8 million? (as I recall) that they are paying each Quarter for their 2G paid up agreement.

Just poking around the annual reports for some our licensees:

Seems like NECs business segment that applies to 3G is the 'Network Solutions' segment, in which they had about $16.8 billion in revenue for the 12 months ended March 31, 2005.


http://www.nec.co.jp/ir/en/library/annual/2005/pdf/ar05-18.pdf

Don't we (I-Hub members) have InterDigital's royalty revenue from NEC and Sharp broken out some place?

Ron Marchma or olddog?



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rmarchma

09/02/05 11:53 AM

#124917 RE: Dave Davis #124751

IDCC’s Licensing Revenues by years and licensees

Detail re IDCC’s licensing revenues by year and by licensee from 1991 through the second quarter of 2005 as follows:

The following licensing/royalty revenues is based on info from the 10Q's and 10k's. The earliest I could get back to was 1991.

1991 = 0

1992 = $3m (possibly GM Hughes)

1993 = 0

1994:
Matsushita = $20m
Qualcomm = $5.5m
AT&T = $2.4m
Others = $0.6m

Total 1994 = $28.5m

1995:
NEC = $27m
Mitsubishi = $20m
Siemens = $13.6m in 1995 from a total $20m contract
Hitachi/Kokysai = $3.5m
Sanyo = $2.8m
PCSI = $0.8m

Total 1995 = $67.7m

1996:
Samsung = $23m in 1996 from a total contract of $35m
Siemens = $ 4.8m
One unspecified licensee = $0.9m

Total 1996 = $28.7m

1997:
Samsung = $3m
Siemens = $1.5m
Others Recurring Royalty = $1.5m

Total 1997 = $6m

1998:
Kyocera = $27m
Denso = $20m
Toshiba = $15m
Sharp = $6m
Alcatel = $5m
Siemens = $3m
Sanyo and Hitachi/Kokysai = $15m (can not break out this total between the licensees)
Others Recurring Royalty = $1m

Total 1998 = $92m

1999:
Nokia Paid-up P1 royalty = $31.5m
Nokia engineering services =$14m
Robert Bosch = $7.9m
Japan Radio and Shintom = $3.4m
Others Recurring Royalty = $9.5m (mostly Sharp)

Total 1999 = $66.3m

2000:
Nokia engineering services = $17.2m
Sharp Recurring Royalty = $18m
Others Recurring Royalty = $16.2m (Note: accounting change in 2000 that converted previous nonrefundable upfront advances into recurring royalty streams based upon earned amounts each accounting period)

Total 2000 = $51.4m

2001:
Nokia engineering services = $21.8m
Sharp Recurring Royalty = $16m
Others Recurring Royalty = $14.8m

Total 2001 = $52.6m

2002:
Total Revenues $87.9m

Denso discontinued standards $9.7m

Kyocera discontinued standards $6.9m

NEC pre-2002 infrastructure $7.8m

Nokia engineering services $4.5m

Recurring Royalty Revenues = $59.0m

NEC 2002 recurring $22.5m ($12.4m 2G settlement and $10.1m 3G recurring)

Sharp recurring $26.2m ($23.5m PDC and $2.7m GSM/3G)

Samsung arbitration $0.5m

Others Recurring Royalty $9.8m

Total 2002 = $87.9m


2003:
Total Revenues and Other Income $125.2m

Sony Ericy past years’ settlement $20.3m

Ericy past years’ settlement $10.6m ($14m - $3.4m expected insurance reimbursement )

Other past year true-ups $0.3m

Nokia engineering services $1.0m

Recurring Royalty Revenues = $93.0m

NEC recurring $33.4m ($13m 2G settlement and $20.4m 3G)

Sharp recurring $28.5m ($19.5m PDC and $9.0m GSM/3G)

Sony Ericy recurring $13.0m

Ericy fixed recurring $6.0m

Others Recurring Royalty $12.1m (includes HTC, RIM, Sanyo, Sierra, etc)

Total 2003 = $125.2m


2004:
Total Revenues $103.7m (Note only includes 3 Quarters of recurring per unit royalties)

Past years true-up on new licensees $1.4m

Licensee discontinued standards $0.4m

General Dynamics $0.1m

Recurring Royalty Revenues = $101.8m

NEC recurring $44.3m ($13m 2G settlement and $31.3m 3G)

Sharp recurring $25.1m ($12.1m PDC and $13.0m GSM/3G)

Sony Ericy recurring $12.7m

Ericy fixed recurring $6.0m

Sanyo fixed PDC/CDMA2000 $3.3m ($1.1m per quarter x 3 quarters in 2004)

Others Recurring Royalty $10.4m (includes HTC, RIM, Sierra, Sanyo for GSM/WCDMA, Toshiba, Option, Danger, etc)

Total 2004 = $103.7m


2005 First Quarter:
Total Quarterly Revenues = $35.5m

General Dynamics $4.7m

Recurring Royalty = $30.8m

NEC (32%) $11.4m ($3.3m fixed 2G per quarter and $8.1m 3G)

Sharp (27%) $9.6m

Sony Ericy (12%) $4.3m

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Others Recurring Royalty $2.9m

Total 2005 first quarter = $35.5m


2005 Second Quarter:
Total Quarterly Revenues = $38.6m

General Dynamics $5.5m

Recurring Royalty = $33.1m

NEC (36%) $13.9m ($3.3m fixed 2G per quarter and $10.6m 3G)

Sharp (20%) $7.7m

Sony Ericy (estimated) $3.1m (10% of total revenues for first six months less first quarter)

Ericy fixed recurring $1.5m per quarter

Sanyo fixed PDC/CDMA2000 $1.1m per quarter

Late royalty report from 1st qtr $1.1m

Others Recurring Royalty $4.7m

Total 2005 second quarter = $38.6m