February 19, 1999 10:01 AM
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Feb. 19, 1999--InterDigital Communications Corporation announced today a change in the structure of its B-CDMA Alliance(TM).
Siemens AG of Germany, as part of a strategic realignment of its business, has notified InterDigital that it intends to withdraw from the B-CDMA(TM) technology and product consortium. InterDigital and Siemens intend to define the process for Siemens' withdrawal and to address other aspects of the InterDigital/Siemens relationship.
"We are obviously disappointed with Siemens decision. They have been a partner with us since 1994," said William Doyle, President of InterDigital. "However, we have been informed by Siemens that its decision is a result of a change in strategic emphasis involving a restructuring of its business. Siemens has also indicated that our technology has performed well in field trials in several countries.
"We did not expect revenue from Siemens in 1999, since the company was not making further cash contributions for B-CDMA technology and product development, and we expected Siemens to contribute only a modest level of royalties from wireless local loop system sales in 2000."
InterDigital has previously indicated that its earnings performance in 1999 is expected to be driven by revenues from patent licensing and technology development relationships with other companies.
"The wireless local loop market has not yet generated rapid growth, while the market for third generation technology is accelerating," Doyle continued. "Recognizing that, we have been transitioning our business from a singular focus on the fixed wireless market to a diversified set of opportunities in both fixed and mobile markets. Our most recent agreement with Nokia, in which we will develop third generation wireless technology, will accelerate that transition."
Doyle indicated that the company intends to continue to support its other partners, Alcatel and Samsung, to capture value from B-CDMA technology and products. "We plan to work creatively with our partners to help them take full advantage of the robust capabilities of the B-CDMA air interface we have developed during the past five years. We want to help them meet their customers' needs in any market where B-CDMA technology can be effectively deployed."
InterDigital's work in developing B-CDMA technology has enabled the company to build a significant inventory of know-how and patents related to wideband CDMA technology. Since 1995, approximately 185 CDMA patents and patent applications have been filed by the company or issued to it around the world.
The company has a strong track record of success in generating substantial revenues and earnings from patent licensing.
InterDigital will announce its earnings for the fourth quarter and full year of 1998 on Feb. 25, 1999. The company announced on Jan. 28 that it plans to report stronger than expected results for the quarter and full year. Also, InterDigital more than doubled its cash balance at the end of 1998, compared with 1997.
Cash on hand is expected to increase further in the first quarter of 1999 as a result of payments from existing patent licensees and a long-term technology development and licensing agreement with Nokia.
On Feb. 1, 1999, InterDigital and Nokia announced a long-term cooperative agreement to develop wireless technology for third generation applications, including high-speed internet access. That project is now underway and is expected to last several years. InterDigital will be paid by Nokia for its work in developing this new technology over the life of the engineering development project.
As part of the agreement, Nokia is also making a payment of approximately $30 million in the first quarter of 1999.
InterDigital develops and markets wireless telecommunications systems and components using both proprietary and standards compliant technologies for voice and data communications. InterDigital(R), Broadband Code Division Multiple Access(TM), and B-CDMA(TM) are among the trademarks of InterDigital Communications Corporation.
As used herein., where the context so requires, references to InterDigital Communications Corporation includes reference to InterDigital Technology Corporation, the holder of InterDigital patents. For more information, please visit InterDigital's web site: www.interdigital.com.
This press release contains forward looking statements regarding InterDigital's current beliefs and expectations as to future revenues, earnings and cash position, InterDigital and Siemens defining the process for Siemens' withdrawal, the impact of this event on revenues, the Company's ability to diversify into mobile markets, its ability to continue working with other B-CDMA Alliance(TM) partners and capture value from B-CDMA(TM) technology and products, and anticipated payments from Nokia and from existing patent licensees.
Such statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in any such forward looking statement due to a variety of factors including, but not limited to: inability of Siemens and InterDigital to negotiate mutually acceptable terms for the withdrawal, attempts by other alliance partners to re-negotiate their relationship including withdrawal from the B-CDMA Alliance(TM), failure to achieve desired development goals, budgets and/or schedules, the availability of competitive products or technology superior on a perceived, relative or actual basis with the InterDigital's products or technology, Nokia's exercise of its rights to terminate the development project for convenience, inability to retain or hire adequate personnel, failure to enter additional sufficient strategic alliances necessary to achieve the Company's business objectives, failure of the Company to successfully negotiate patent licensing agreements, inability to enforce patents against third parties and failure of licensees to meet expectations and commitments.
InterDigital undertakes no duty to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.
Top
Terms of Use, and Privacy Policy. © 1996-1999 Microsoft Corporation and/or its suppliers. All rights reserved.
© 1999 Business Wire.
--------------------------------------------------------------------------------
Get Hotmail, free e-mail you can use from any PC with Internet access.
search
the web: other searches
--------------------------------------------------------------------------------
© 1999 Microsoft Corporation. All rights reserved. Terms of Use Privacy Statement Advertise
|
