InterDigital Inc (IDCC) 2022 Q2 法說會逐字稿

Good morning, and thank you for standing by. Welcome to the Second Quarter 2022 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Richard Lloyd. Please go ahead.

早上好，感謝您的支持。歡迎參加 2022 年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的第一位發言人理查德·勞埃德。請繼續。

Good morning to everyone, and welcome to InterDigital's Second Quarter 2022 Earnings Conference Call. I am Richard Lloyd, Communications Director, and with me in today's call are Liren Chen, our President and CEO; and Rich Brezski, our CFO.

大家早上好，歡迎參加 InterDigital 2022 年第二季度收益電話會議。我是通訊總監理查德·勞埃德 (Richard Lloyd)，參加今天電話會議的還有我們的總裁兼首席執行官陳立人 (Liren Chen)；和我們的首席財務官 Rich Brezski。

Consistent with last quarter's call, we will offer some highlights about the quarter and the company, and then open the call up for questions. Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans and expectations, which are not guarantees of future performance and are made only as of the date hereof.

與上季度的電話會議一致，我們將提供有關本季度和公司的一些亮點，然後開始電話會議提問。在我們開始發言之前，我需要提醒您，在本次電話會議中，我們將就我們當前的信念、計劃和期望做出前瞻性聲明，這些聲明不是對未來業績的保證，並且僅在本次電話會議中做出。

Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk Factors sections of our 2021 annual report on Form 10-K, our second quarter 2022 quarterly report on Form 10-Q and in our other SEC filings.

前瞻性陳述存在風險和不確定性，可能導致實際結果和事件與此類前瞻性陳述預期的結果和事件存在重大差異。這些風險和不確定性包括我們 2021 年 10-K 表格年度報告、2022 年第二季度 10-Q 表格季度報告以及其他 SEC 文件中所述的風險和不確定性。

In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our financial measures tracker, which is available on the Investor Relations section of our website. With that taken care of, I will turn the call over to Liren.

此外，今天的演示可能包含對非公認會計準則財務指標的引用。這些非 GAAP 財務指標與最直接可比的 GAAP 財務指標的對賬包含在我們的財務指標跟踪器中，可在我們網站的投資者關係部分找到。處理完之後，我會把電話轉給立人。

Thank you, Richard, and good morning, everyone. In the second quarter, we continue to make excellent progress across all parts of the business. And I'm particularly pleased that the strong momentum we built in 2021 has continued into the first half of this year.

謝謝理查德，大家早上好。第二季度，我們業務的各個部分繼續取得出色進展。我特別高興的是，我們在 2021 年建立的強勁勢頭一直持續到今年上半年。

In Q2, we significantly increased revenue and net income on both a sequential and year-over-year basis. We entered into a multiyear worldwide non-exclusive fee-bearing license with Amazon, covering a range of Amazon's consumer electronic devices and their individual patents. We made a major addition to our leadership team. We strengthened our balance sheet, and we saw significant growth in revenue of the core smartphone market.

在第二季度，我們的收入和淨利潤環比和同比均大幅增長。我們與亞馬遜簽訂了一份多年期的全球非獨家付費許可，涵蓋亞馬遜的一系列消費電子設備及其各自的專利。我們對領導團隊進行了重大補充。我們加強了資產負債表，核心智能手機市場的收入顯著增長。

In the second quarter, our total revenue increased 42% year-over-year to $125 million. We also delivered a substantial improvement to our profitability, more than doubling our adjusted EBITDA to $78 million, and we grew a 14-fold increase in earnings per share to $0.69 per share. I will let Rich talk you through our financial performance in more detail, while I cover some other notable highlights from the quarter.

第二季度，我們的總收入同比增長 42%，達到 1.25 億美元。我們的盈利能力也得到了大幅改善，調整後的 EBITDA 增加了一倍多，達到 7800 萬美元，每股收益增長了 14 倍，達到每股 0.69 美元。我將讓 Rich 更詳細地向您介紹我們的財務業績，同時我還將介紹本季度的其他一些值得注意的亮點。

Starting with the recent announcement that Dr. Rajesh Pankaj has joined InterDigital as our new CTO. Rajesh was previously a Senior Vice President and the Head of Corp R&D at Qualcomm. Rajesh spent 25 years in research and senior leadership roles. His pipeline in cellular wireless, including both 4G and 5G and the application of AI to connectivity is a perfect fit with our technology footprint and with the long-term direction of our innovation. He's a named investors in 230 patents worldwide, and he has a strong track record of translating technical breakthroughs into patented innovation. I'm delighted that Rajesh has joined us, and I'm confident that he will lead our R&I team to even greater heights and will build on the leadership of his predecessor, Dr. Hung Retiree.

首先，Rajesh Pankaj 博士最近宣布加入 InterDigital，擔任我們的新任首席技術官。 Rajesh 此前曾擔任高通高級副總裁兼公司研發主管。 Rajesh 在研究和高級領導職位上工作了 25 年。他在蜂窩無線領域（包括 4G 和 5G）以及人工智能在連接方面的應用的管道與我們的技術足跡和我們創新的長期方向完美契合。他是全球 230 項專利的指定投資者，並且在將技術突破轉化為專利創新方面擁有良好的記錄。我很高興 Rajesh 加入我們，我相信他將帶領我們的研發團隊達到更高的高度，並將在其前任退休洪博士的領導力基礎上再接再厲。

along with our ability to attract world-class talent, one of the keys to our recent success has been the value that we continue to drive as a leading innovator across a range of critical technologies. Our research on additional horizontal technologies like cellular, WiFi, Video and AI and machine learning. We license IP that covers these horizontal technologies across many verticals that utilize them. Smartphones use all of these technologies and continue to be our core market.

除了我們吸引世界一流人才的能力之外，我們近期成功的關鍵之一是我們作為一系列關鍵技術的領先創新者繼續推動的價值。我們對蜂窩、WiFi、視頻、人工智能和機器學習等其他橫向技術的研究。我們授權的知識產權涵蓋了許多利用這些水平技術的垂直領域。智能手機使用所有這些技術，並且仍然是我們的核心市場。

Meanwhile, CE devices as well as a growing array of IoT products over use multiple technologies such as WiFi and video. In short, we are in excellent position to drive growth from both existing relationships and new opportunities.

與此同時，消費電子設備以及越來越多的物聯網產品過度使用 WiFi 和視頻等多種技術。簡而言之，我們處於有利位置，可以通過現有關係和新機會推動增長。

In recent years, our strength in video has become even more valuable, as we have built a formidable innovation pipeline, explore opportunities in building more immersive consumer experience and continue as a leading contributor to both the HEVC and VVC video standard. We have also achieved impressive growth in our video portfolio which now numbers approximately 7,000 patents and applications.

近年來，我們在視頻領域的優勢變得更加有價值，因為我們建立了強大的創新渠道，探索構建更身臨其境的消費者體驗的機會，並繼續作為 HEVC 和 VVC 視頻標準的主要貢獻者。我們的視頻產品組合也取得了令人矚目的增長，目前擁有約 7,000 項專利和申請。

In wireless, our portfolio of cellular SEPs for 5G multimode device continue to grow in the second quarter and now stand at more than 10,000 patents and applications, giving us an incredible strong base in a generation of mobile that will define connectivity for the rest of this decade. This foundation has been enabled by our team of superb engineers. In the second quarter, the institute of electrical and electronic engineers, IEEE, recognized 1 of our senior virus engineer for his work in 5G by awarding him the prestigious Benjamin Franklin Key Award .

在無線領域，我們用於 5G 多模設備的蜂窩標準必要專利組合在第二季度繼續增長，目前已擁有超過 10,000 項專利和申請，為我們在新一代移動設備中奠定了令人難以置信的強大基礎，而這將定義該設備其餘部分的連接性。十年。這個基礎是由我們優秀的工程師團隊建立的。第二季度，電氣和電子工程師協會 (IEEE) 表彰了我們的一位高級病毒工程師在 5G 方面的工作，授予他著名的本傑明·富蘭克林關鍵獎。

Specifically, he was recognized for his groundbreaking contribution to millimeter wave, which is a foundational technology that enables both 5G's incredible speed and its ultralow latency. Staying on the IEEE, another InterDigital engineer was recently appointed for the chairperson of a topic interest group that is responsible for identifying and exploring use cases for artificial intelligence and machine learning in WiFi.

具體來說，他因其對毫米波的突破性貢獻而獲得認可，毫米波是一項基礎技術，可實現 5G 令人難以置信的速度和超低延遲。留在 IEEE 的另一位 InterDigital 工程師最近被任命為一個主題興趣小組的主席，該小組負責識別和探索 WiFi 中人工智能和機器學習的用例。

While we continue to reap the rewards for innovation being implemented in today's devices, many of our research efforts are firmly focused on the technology that will shape connectivity and content consumption in the years to come. I'm especially excited by the new partnership we announced in June with Inria , France leading institute for research in digital science and technology. This new innovation will not only support innovation -- this new initiative will not only support innovations across France, but also enable engineers to pursue cutting-edge scientific research and to explore technologies that will define media currency in the future in areas such as XR and metaverse.

雖然我們繼續從當今設備中實施的創新中獲得回報，但我們的許多研究工作都堅定地專注於將在未來幾年塑造連接和內容消費的技術。我對我們在 6 月份宣布與法國領先的數字科學技術研究所 Inria 建立新的合作夥伴關係感到特別興奮。這項新的創新不僅支持創新——這項新舉措不僅支持法國各地的創新，而且使工程師能夠追求尖端科學研究，並探索將在 XR 和 XR 等領域定義未來媒體貨幣的技術。元宇宙。

On the licensing front, we believe strength of our innovation, the increasing value of patent portfolio and our licensing track record will position us to renew key agreements and sign new ones. In the second quarter, in addition to the Amazon deal I mentioned earlier, we also closed additional agreements with industry device manufacturing Zebra technology covering our 4G, 5G and WiFi technology. Zebra devices are used in retail, health care, banking, manufacturing, transportation and other industries.

在許可方面，我們相信我們的創新實力、專利組合價值的不斷增加以及我們的許可記錄將使我們能夠續簽關鍵協議並簽署新協議。在第二季度，除了我之前提到的亞馬遜交易之外，我們還與行業設備製造斑馬技術達成了額外協議，涵蓋我們的 4G、5G 和 WiFi 技術。 Zebra 設備應用於零售、醫療保健、銀行、製造、運輸和其他行業。

This license agreement demonstrates the broader stability of InterDigital's foundational innovation and our patent portfolio beyond smartphones. We also enjoy significant progress in licensing our innovation to auto sector with new deals signed with GM and Ford through our licensing platform partner. Almost half of the connected cars on the market are now licensed to our 3G and 4G standard essential patents.

該許可協議證明了 InterDigital 的基礎創新和我們的專利組合在智能手機之外具有更廣泛的穩定性。通過我們的授權平台合作夥伴與通用汽車和福特簽署的新協議，我們在向汽車行業授權我們的創新方面也取得了重大進展。現在市場上幾乎一半的聯網汽車都獲得了我們的 3G 和 4G 標準必要專利的授權。

In summary, our licensing platform performance this quarter underlines the opportunity that we see in our core markets and in newer areas where our innovation is helping creating considerable value. This is an exciting time to be an innovator in connected technologies, and I'm pleased with our strong foundational innovation translates into new licensing agreements.

總之，我們本季度的許可平台表現突顯了我們在核心市場和新領域看到的機會，在這些領域，我們的創新正在幫助創造可觀的價值。對於成為互聯技術創新者來說，這是一個激動人心的時刻，我很高興我們強大的基礎創新轉化為新的許可協議。

In terms of litigation activity, we continue to look forward to the upcoming decision from the U.K. High Court in our FRAND trial against Lenovo. And I will reiterate my message from our last earnings call that we remain confident in the strength of our technology, the quality of our IP portfolio and the merits of our case.

在訴訟活動方面，我們繼續期待英國高等法院即將就針對聯想的 FRAND 審判作出裁決。我將重申上次財報電話會議上的信息，即我們對我們的技術實力、知識產權組合的質量以及我們案件的優點仍然充滿信心。

On the policy front, I want to highlight that the DOJ, NIST and USPTO recent we saw of our 2019 policy statement on SEP licensing and FRAND remedy is a positive development. I will not get into all the details here but the announcement has moved the ICC policy in U.S. in a third, balanced and more particular direction and confirmed our belief that while dispute over SEP license do arise, factors such as the value of the under innovation should guide across decision-making.

在政策方面，我想強調的是，最近我們看到 DOJ、NIST 和 USPTO 關於 SEP 許可和 FRAND 補救措施的 2019 年政策聲明是一個積極的進展。我不會在這裡詳細介紹所有細節，但該公告已將美國的 ICC 政策推向第三個、平衡且更具體的方向，並證實了我們的信念，即雖然確實出現了有關標準必要專利許可的爭議，但諸如創新不足的價值等因素應該指導整個決策。

The second quarter also saw more progress in our ESG program. We then released our second annual corporate sustainability report. At InterDigital, we passionately believe that our technology contributes to building a better and more sustainable world, and this year's report details not only how we mitigate our environmental footprint but also how we maximize our social impact, ensure our governance meets best practices and how we strive to help our employees to excel. I will encourage you all to read the report, which can be found on our website. With that, I will turn it over to Rich.

第二季度我們的 ESG 計劃也取得了更多進展。隨後，我們發布了第二份年度企業可持續發展報告。在 InterDigital，我們堅信我們的技術有助於建設一個更美好、更可持續的世界，今年的報告不僅詳細介紹了我們如何減輕環境足跡，還詳細介紹了我們如何最大限度地發揮社會影響、確保我們的治理符合最佳實踐以及我們如何努力幫助我們的員工取得卓越成就。我鼓勵大家閱讀該報告，該報告可以在我們的網站上找到。這樣，我就把它交給里奇了。

Thanks, Liren. As Liren noted, we delivered another strong quarter with significant increases in revenue and profitability on both a sequential and year-over-year basis. we grew total revenue, 42%, over second quarter 2021 to $125 million, including $100 million of recurring revenue. While mobile agreements such as Xiaomi have driven a large part of our growth, we have also begun to see meaningful growth in the CE, auto and IoT markets.

謝謝立仁。正如立人指出的那樣，我們再次實現了強勁的季度業績，收入和盈利能力環比和同比均大幅增長。與 2021 年第二季度相比，我們的總收入增長了 42%，達到 1.25 億美元，其中包括 1 億美元的經常性收入。雖然小米等移動協議在很大程度上推動了我們的增長，但我們也開始看到消費電子、汽車和物聯網市場出現有意義的增長。

In second quarter 2022, we had over $35 million in combined revenue from the CE, auto and IoT markets, including almost $12 million on a recurring basis. Both the total and recurring revenue from these markets represent record levels. For the first half of 2022, we recognized about $23 million of recurring revenue from these markets, representing a 70% increase from the comparable period in 2021. While we are pleased to report such strong revenue from these markets, we remain committed to driving continued growth.

2022 年第二季度，我們來自消費電子、汽車和物聯網市場的綜合收入超過 3500 萬美元，其中經常性收入近 1200 萬美元。這些市場的總收入和經常性收入都達到了創紀錄的水平。 2022 年上半年，我們確認來自這些市場的經常性收入約為 2300 萬美元，比 2021 年同期增長 70%。雖然我們很高興報告這些市場的收入如此強勁，但我們仍致力於推動持續增長生長。

Moving on to expenses. You can see the benefits from the cost management actions we initiated a year ago in our first half 2022 results. On an annualized basis, excluding litigation and stock-based compensation, we have reduced our operating expenses by almost $35 million. This savings is net of the reinvestment we have already made, and we believe that we have improved our capabilities while lowering our cost base.

繼續討論支出。您可以在 2022 年上半年業績中看到我們一年前發起的成本管理行動所帶來的好處。按年計算，不包括訴訟和股票補償，我們的運營費用減少了近 3500 萬美元。這筆節省是我們已經進行的再投資的淨額，我們相信我們在降低成本基礎的同時提高了我們的能力。

Moving on to capital allocation. We made the decision to refinance our convertible debt during the second quarter as it became clear, we were heading into a volatile period marked by inflation and rising interest rates. Similar to our prior financings, we entered into an option structure that increases the per share price at which we experienced dilution from our new debt to [$106].

繼續進行資本配置。我們決定在第二季度為可轉換債務進行再融資，因為很明顯，我們正進入一個以通貨膨脹和利率上升為標誌的動盪時期。與我們之前的融資類似，我們進入了一種期權結構，該結構將我們的新債務稀釋到每股價格提高到[106美元]。

The net proceeds from our new debt were primarily used for 2 purposes. First, to buy back approximately 2/3 of our old debt and second, to concurrently buy back $75 million of our common stock. Looking forward to the third quarter, we currently expect revenue to come in between $96 million and $100 million. At this point, our revenue guidance is based only on existing contracts, so the entire range is comprised of recurring revenue.

我們新債務的淨收益主要用於兩個目的。首先，回購大約 2/3 的舊債務；其次，同時回購 7500 萬美元的普通股。展望第三季度，我們目前預計收入將在 9600 萬美元至 1 億美元之間。目前，我們的收入指導僅基於現有合同，因此整個範圍由經常性收入組成。

On the expense side, we expect additional investments in research and development and an uptick in litigation costs related to ongoing proceedings will drive operating expenses to the range of $76 million to $80 million.

在費用方面，我們預計研發方面的額外投資以及與正在進行的訴訟相關的訴訟費用的上升將導致運營費用達到 7600 萬至 8000 萬美元。

Finally, we expect nonoperating expenses comprised of interest and other expenses to be in the range of $6 million to $8 million and an effective tax rate in the range of 25% to 27%. With that, I'll turn it back over to Richard.

最後，我們預計由利息和其他費用組成的營業外支出將在 600 萬至 800 萬美元之間，有效稅率將在 25% 至 27% 之間。有了這個，我會把它轉回給理查德。

Thank you, Rich. Thank you, Liren. Operator, we can now open the call for questions.

謝謝你，里奇。謝謝你，立人。接線員，我們現在可以開始提問。

Thank you. (Operator Instructions) Anja Soderstrom, Sidoti. Please go ahead. Your line is open.

謝謝。 （操作員說明）Anja Soderstrom，Sidoti。請繼續。您的線路已開通。

And congrats on good progress. Can you (inaudible) and maybe if at all the sentiments among your counterparts have changed given the economic environment and geopolitical situation? Is that affecting at all your discussions?

並祝賀取得了良好的進展。鑑於經濟環境和地緣政治局勢，您能否（聽不清）或者您的同行之間的情緒是否發生了變化？這會影響你們所有的討論嗎？

Yes. Hey Anja, this is Liren. So I understand the geopolitical situation in [parts], in particular,it's very sensitive. And then the economic has been in turmoil in the last couple of years, partially due to COVID. But our current revenue is primarily supported by our fixed revenue contract. So we are largely very shorter from the near-term turmoil. And some of the downturn may play a role in our renewal discussion, but the major contract we are currently negotiating, they're not being that much impacted by some of the issues. So we are well positioned.

是的。嘿安雅，我是立人。所以我了解[部分地區]的地緣政治局勢，特別是非常敏感。過去幾年，經濟一直處於動蕩之中，部分原因是新冠疫情。但我們目前的收入主要是由我們的固定收入合同支撐的。因此，我們距離近期的動盪基本上還很遙遠。一些經濟低迷可能會在我們的續約討論中發揮作用，但我們目前正在談判的主要合同，他們並沒有受到某些問題的太大影響。所以我們處於有利位置。

On the geopolitical side here, we are a global player. So we have been watching the global environment very, very carefully. And so far, we have been demonstrating a very strong track record through striking fairly deals across multiple vendors in many different continents. So -- but we are watching it very carefully.

在地緣政治方面，我們是一個全球參與者。所以我們一直非常非常仔細地觀察全球環境。到目前為止，我們通過與許多不同大陸的多個供應商達成公平交易，展示了非常良好的業績記錄。所以——但我們正在非常仔細地觀察它。

Okay. And Rich, you mentioned the operating expenses were reduced by $35 million, net of reinvestments already made. What kind of remaining reinvestments do you have?

好的。 Rich，您提到運營費用減少了 3500 萬美元，扣除已經進行的再投資。您還有哪些剩餘的再投資？

Yes. So we've been reinvesting primarily in R&I, and we expect that to continue. For the moment, I'll stick to the guidance I've provided for the next quarter where we mentioned an uptick led by R&I reinvestments, but also a little bit from the litigation associated with the ongoing matters.

是的。因此，我們主要對研發進行再投資，並且我們預計這種情況將繼續下去。目前，我將堅持我為下個季度提供的指導，其中我們提到了研發和投資再投資帶來的增長，但也有一點來自與正在進行的事項相關的訴訟。

So that uptick is related to the third quarter?

那麼這種上升與第三季度有關嗎？

Yes. Yes. That relates to the third quarter guidance, the uptick of being on a sequential basis versus Q2.

是的。是的。這與第三季度的指導有關，與第二季度相比環比有所上升。

Our next question comes from [Jonathan Ivinson] from Bank of America.

我們的下一個問題來自美國銀行的 [Jonathan Ivinson]。

The first thing I want to touch on is if you have any visibility for your OpEx guidance given that the implied operating margin seems to decline sequentially. So would appreciate any color there. And then I also just wanted to ask if you have any updates on the Apple and Samsung deals?

我想談的第一件事是，鑑於隱含運營利潤率似乎連續下降，您是否對運營支出指南有任何了解。所以我會欣賞那裡的任何顏色。然後我也想問一下您是否有關於蘋果和三星交易的最新消息？

Sure, Jonathan. I'll take the first part. So our -- there's not a close association between our revenue in a given period and our operating expense in any given period. The R&I that I was just referring to relates to the last question that we are investing in today is to drive revenue that we would see years down the road because we make such long-term investments in fundamental research. So it's not so much that we really have a effectively 100% gross margin on new business because there's not variable costs associated with it. When we license, we're granting permission to use technology that we've already invented in the past. So is that -- so this uptick in R&I is really to drive future growth, not related to the upcoming third quarter. So hopefully, that answers that part of the question. I'll let Liren answer the second part.

當然，喬納森。我將採取第一部分。因此，我們在特定時期的收入與特定時期的運營費用之間沒有密切的關聯。我剛才提到的研發與創新與我們今天投資的最後一個問題有關，即推動我們在未來幾年內看到的收入，因為我們在基礎研究方面進行瞭如此長期的投資。因此，我們在新業務上實際上並沒有真正擁有 100% 的毛利率，因為沒有與之相關的可變成本。當我們獲得許可時，我們授予使用我們過去已經發明的技術的許可。所以，研發創新的增長確實是為了推動未來的增長，而不是與即將到來的第三季度相關。希望這能回答這部分問題。第二部分我就讓立人來回答吧。

Hey Jonathan. For the Apple-Samsung negotiation, obviously, our relationship with Samsung is very, very important to us. We have been focusing on the renewing our contract for quite a while. And I think that everyone is aware. The Apple contract expires end of Q3 of this year, and Samsung contract expires end of Q4 this year. And it's always worth reminding that, hey, those licensing agreement with us, it really represents a very long-term relationship.

嘿喬納森。對於蘋果與三星的談判，顯然，我們與三星的關係對我們來說非常非常重要。很長一段時間以來，我們一直專注於續簽合同。我認為每個人都知道。蘋果合同將於今年第三季度末到期，三星合同將於今年第四季度到期。始終值得提醒的是，嘿，與我們簽訂的許可協議確實代表了一種非常長期的合作關係。

Apple has been our licensee since 2007 before they shipped the very first Iphone, and Samsung has been our licensee for IP more than 25 years before they ship the very first Galaxy phone. So through such a long-term relationship here, there have been multiple renewals happening. And we feel confident about the currency negotiation based on how much our technology has advanced. And frankly, they have become even more important with the connected world with -- it's a lot of multi-video content in consumer on the device.

Apple 自 2007 年發貨第一部 Iphone 之前就已成為我們的被許可人，三星在發貨第一部 Galaxy 手機之前已成為我們的 IP 被許可人超過 25 年。因此，通過這裡的長期關係，發生了多次更新。基於我們技術的進步，我們對貨幣談判充滿信心。坦率地說，它們在互聯世界中變得更加重要——消費者設備上有很多多視頻內容。

Obviously, the 5G adoption will be a pretty major driver in our negotiations. And also, it's worth noting that both Apple and Samsung has a much higher concentration of the premium devices in the worldwide sales. So those devices actually make more and better use of our high-end technology. So to that degree, it's worthwhile obviously for us to remind them how much they have benefited from everything we have developed.

顯然，5G 的採用將成為我們談判的主要推動力。此外，值得注意的是，蘋果和三星的高端設備在全球銷量中的集中度要高得多。所以這些設備實際上更多更好地利用了我們的高端技術。因此，從這個角度來看，我們顯然有必要提醒他們，他們從我們開發的一切中受益匪淺。

Our next question comes from Tal Liani from Bank of America. Your line is open, go ahead. Tal, your line is open.

我們的下一個問題來自美國銀行的塔爾·利亞尼。您的線路已開通，請繼續。塔爾，您的線路已開通。

Perhaps it was an inadvertent analyst.

也許這是一個無心的分析師。

Okay. Tal, did you have a question?

好的。塔爾，你有問題嗎？

I'm sorry. I was on mute, and I was talking to myself. So can you hear me now? I had really good question for you. I have to repeat that. We get...

對不起。我處於靜音狀態，我在自言自語。那麼你現在能聽到我說話嗎？我有一個很好的問題要問你。我必須重複一遍。我們得到...

Yes.

是的。

You get 2 for 1 from BMA. So -- and I apologize if my questions are green because I'm new to cover the stock. So last year, you grew sequentially in 3Q, 63%. And this year, you're guiding for a decline both on a sequential basis and year-over-year basis. Can you talk about the seasonality? Can you talk about -- if I get it right, you're guiding for $98 million, which will be down year-over-year and will be down sequentially. So can you talk about seasonality? What drives these fluctuations in growth? And any color -- any color on kind of what to expect later on, even if we don't -- there's no explicit guidance, can we talk about kind of what drives ups and downs these quarterly fluctuations?

您可以從 BMA 獲得 2 比 1 的優惠。因此，如果我的問題是綠色的，我深表歉意，因為我是新來報導該股票的。去年第三季度環比增長了 63%。今年，您預計環比和同比都會下降。您能談談季節性嗎？你能談談嗎？如果我沒猜錯的話，你的指導價是 9800 萬美元，這個數字將逐年下降，並將連續下降。那麼你能談談季節性嗎？是什麼推動了這些增長波動？任何顏色——任何關於以後預期的顏色，即使我們沒有——沒有明確的指導，我們可以談談是什麼推動了這些季度波動的起伏嗎？

Yes, yes. No, no, it's a good question, Tal. Happy to address it. A couple of things I'd point to. The first, regarding seasonality, there's not a lot of seasonality in our revenue because if -- and you can find this on our financial metrics that we publish on our website. We show the percentage of revenue that comes from variable agreements per unit where customers are reporting the volume they shipped and the associated revenue or royalties they pay us for the quarter.

是的是的。不，不，這是一個好問題，塔爾。很高興解決這個問題。我想指出一些事情。首先，關於季節性，我們的收入沒有太多季節性，因為如果 - 您可以在我們網站上發布的財務指標中找到這一點。我們顯示了來自每單位可變協議的收入百分比，其中客戶報告了他們的發貨量以及他們在本季度向我們支付的相關收入或特許權使用費。

And then also fixed fee revenue where there's a fixed price over the term of the agreement, and we typically amortize that total quantum over the term on a straight-line basis with maybe sometimes exceptions. But 92% of our revenue in the quarter and year-to-date is coming from those fixed price agreements. So therefore, that's a really stable base quarter-to-quarter.

然後還有固定費用收入，在協議期限內有固定價格，我們通常在期限內以直線方式攤銷總金額，有時可能會有例外。但本季度和年初至今我們 92% 的收入都來自這些固定價格協議。因此，這是一個非常穩定的季度基數。

And there's only a small amount that's coming from the variable less than 10% that maybe is subject to any seasonality that does exist. The majority of the fixed -- the majority of the total revenue is on the mobile side. That definitely means towards the fixed fee.

只有一小部分來自小於 10% 的變量，可能會受到任何確實存在的季節性的影響。大部分固定收入——總收入的大部分來自移動端。這絕對意味著固定費用。

On the consumer electronics side, that's where it's more -- it tends to be more variable and maybe there is a little bit more seasonality, but overall, a small component. So what's driving some of these changes on a sequential basis? We also break out, I'll mention recurring revenue from past sales. And with some of the new agreements that we signed this quarter, when you think about Amazon and then through a licensing partner, GM and Ford as well as others. There are some past sales where they're basically catching up for the use of our technology prior to entering into these agreements.

在消費電子產品方面，這就是它更多的地方——它往往更加可變，也許有更多的季節性，但總的來說，它的組成部分很小。那麼是什麼連續推動了這些變化呢？我們還討論了，我會提到過去銷售的經常性收入。考慮到我們本季度簽署的一些新協議，當你想到亞馬遜，然後通過許可合作夥伴、通用汽車和福特以及其他公司時。在簽訂這些協議之前，過去的一些銷售基本上是在追趕我們技術的使用。

So we recognize that past amount and we try to delineate, so it's clear to everybody what that impact on the quarter was. And in the current quarter, it was roughly $25 million. The recurring number of $100 million, therefore, is kind of what to think about going from quarter-to-quarter. And at the midpoint, we're maybe down 2%. It's a relatively small number. And that, again, can be driven by expectations around the variable side.

因此，我們認識到過去的金額，並嘗試進行描述，以便每個人都清楚這對本季度的影響是什麼。本季度的銷售額約為 2500 萬美元。因此，1 億美元的經常性數字是每個季度都需要考慮的。在中點，我們可能下降了 2%。這是一個相對較小的數字。這同樣可以由變量方面的預期驅動。

And then the final aspect of all this is what are the meaningful changes. And that's -- if you look year-over-year, we had some licenses that expired last year, renewed a bunch of them, not all of them. Some customers have left the business. And then in terms of growth, it's the step function changes from adding significant new agreements. A great example of that is third quarter of last year when we signed Xiaomi. Incidentally, third quarter of last year, signing Xiaomi there's a lot of past sales there as well. So on a year-over-year basis, that drives some of that decline.

所有這一切的最後一個方面是有意義的改變是什麼。那就是 - 如果你逐年查看，我們有一些去年到期的許可證，續簽了其中一些，而不是全部。一些客戶已經離開了公司。然後就增長而言，這是由於添加重要的新協議而發生的階躍函數變化。一個很好的例子就是去年第三季度我們簽約小米。順便說一下，去年第三季度，簽約小米的時候也有很多過去的銷售。因此，與去年同期相比，這推動了部分下降。

Got it. Now the industry is weakening. If you look at Qorvo and what they reported in Qualcomm, what they reported. Everyone is talking about slowdown of devices. Devices still make the majority -- vast majority of your revenues. And I know you have a different business model with a lot of it being fixed revenue rather than per device revenues. And the question is, what happens the industry is weakening? What's the history? Do you have customers coming back to you and say, "Hey, want to renegotiate our historical agreement because now we're selling 15% less or not." Or is there -- what's the variable portion of your revenues that is tied to the weakening handset market smartphone market?

知道了。現在這個行業正在走弱。如果你看看 Qorvo 以及他們在高通的報告，他們報告的內容。每個人都在談論設備速度變慢。設備仍然佔您收入的大部分——絕大多數。我知道你們有不同的商業模式，其中很多是固定收入，而不是每台設備的收入。問題是，這個行業正在走弱，會發生什麼？歷史是怎樣的？您是否有客戶回去找您說：“嘿，想要重新談判我們的歷史協議，因為現在我們的銷量減少了 15% 或不。”或者，您的收入中與疲軟的手機市場（智能手機市場）相關的可變部分是多少？

Yes Tal, this is Liren. So as Rich mentioned earlier, so a vast majority of our smartphone license agreement, is fixed fee agreement. What that means is the under contract, those vendor pay outs the same dollar amount year after year during the term of the contract. So I mean, all our customers honor their contracts. So we do get paid regardless whether the market goes up or down, if you would.

是的，塔爾，我是立人。正如 Rich 之前提到的，我們的智能手機許可協議絕大多數都是固定費用協議。這意味著根據合同，這些供應商在合同期限內年復一年支付相同的金額。所以我的意思是，我們所有的客戶都遵守合同。因此，無論市場上漲還是下跌，我們都會得到報酬，如果你願意的話。

And that dynamic does come in play when we have to renegotiate for the next contract, right? So if they have lost significant market share and those factors will be frankly factored in. But it's worth noting that for the next contract, we are trying to negotiate is also a long-term contract. We actually try to frankly look at third-party projections, try to -- both partly make certain amount of forward-looking expectation projection to see in the next 5 years or longer, how much the volume will be. So some of the shorter-term up and downs will be hopefully faster in but not exactly driving the long-term numbers.

當我們必須重新談判下一份合同時，這種動力確實會發揮作用，對吧？因此，如果他們失去了大量的市場份額，這些因素將被坦率地考慮在內。但值得注意的是，對於下一份合同，我們正在嘗試談判也是一份長期合同。我們實際上嘗試坦率地看待第三方預測，嘗試兩者都部分地做出一定量的前瞻性預期預測，看看在未來 5 年或更長時間內，銷量會是多少。因此，一些短期的上漲和下跌有望更快，但並不能完全推動長期數據。

But more importantly for us, though Tal, it's worth noting that we currently have roughly 55% coverage of the market, 50% a little bit higher of the smartphone market, so we see over a relatively short curve of time after we resolve less than a handful of vendors relationship here. We should be able to grow into about 80 to 85 market penetration percent -- market penetration. So I think gaining more vendors under coverage will actually be, in my opinion, a much bigger driver than the short term in a certain amount of vendor losing some market share.

但對我們來說更重要的是，儘管塔爾，值得注意的是，我們目前的市場覆蓋率約為 55%，智能手機市場的覆蓋率略高於 50%，因此，在我們解決以下問題後，我們會看到相對較短的時間曲線。這裡有一些供應商關係。我們應該能夠增長到大約 80 到 85% 的市場滲透率——市場滲透率。因此，我認為，在我看來，獲得更多供應商的覆蓋實際上比短期內某些供應商失去一些市場份額的驅動力要大得多。

And these missing vendors are mostly Chinese vendors as much as I understand? In the current environment where China market is weakening, does it help you to get the contract, that could it inject delays in the contract, in signing the contract? What's the timing aspect of getting this extra vendors that are currently not paying?

據我了解，這些失踪的供應商大多是中國供應商？在目前中國市場疲軟的環境下，這對你們拿到合同有幫助嗎？會不會導致合同延遲、合同簽訂？獲得這些目前尚未付款的額外供應商的時間安排是什麼？

Yes. So these 3 major vendors, we are -- we have identified our main vendors we need to sign up for. And the largest 1 is OPPO who amongst 3 brands, OPPO , Realme and OnePlus ships over 200 million devices per year. And then the next vendor is Vivo, which is somewhat smaller than OPPO but still very, very large vendors. And then the third one, which is Lenovo, again, through the purchase of Motorola brand, they are a major player in a number of different markets, including U.S.

是的。所以這 3 個主要供應商，我們已經確定了我們需要註冊的主要供應商。其中最大的一個是 OPPO，在 OPPO、Realme 和 OnePlus 三個品牌中，每年的設備出貨量超過 2 億台。接下來的供應商是 Vivo，它比 OPPO 小一些，但仍然是非常非常大的供應商。第三個是聯想，通過收購摩托羅拉品牌，他們在包括美國在內的許多不同市場上都是主要參與者。

So currently, we are in the litigation with Lenovo and OPPO. Our Lenovo litigation is actually in year 3 now. And we are -- as I mentioned earlier, we are waiting for a major court decision out of the U.K. where the court will decide on a global base, how much our worldwide patent portfolio is worse, there's so-called FRAND redetermination case. And that trial also consists of past damages, how much money is this supposed to owe us for all the patents infringing of our patents against the worldwide scope. The OPPO, we are also indication with OPPO. InterDigital has filed a series of lawsuits last December. Newmark jurisdictions against them. And -- but we don't have a progress to report yet because those cases are relatively new.

所以目前我們正在與聯想和OPPO進行訴訟。我們的聯想訴訟實際上已經進入第三年了。正如我之前提到的，我們正在等待英國法院的一項重大裁決，法院將在全球範圍內做出裁決，我們的全球專利組合有多糟糕，即所謂的 FRAND 重新裁決案件。該審判還包括過去的損害賠償，對於全球範圍內侵犯我們專利的所有專利，這應該欠我們多少錢。至於OPPO，我們也跟OPPO表示。去年 12 月，InterDigital 提起了一系列訴訟。紐馬克對他們有管轄權。而且 - 但我們還沒有進展報告，因為這些案例相對較新。

So back to your earlier question to see how much the China weakening impact those negotiations? I site have somewhat impact but not significant. The reason being all the 3 vendors we are talking about, they are really global vendors. And like Lenovo and OPPO and Vivo, they sell a very significant market outside China. Actually, in the case of Lenovo, a vast majority phones sold outside China. So it's really, everything is determined on the global basis here.

那麼回到你之前的問題，看看中國的衰弱對這些談判有多大影響？我的網站有一定的影響，但並不顯著。原因是我們談論的所有 3 個供應商都是真正的全球供應商。與聯想、OPPO 和 Vivo 一樣，它們在中國以外擁有非常重要的市場。事實上，就聯想而言，絕大多數手機在中國境外銷售。所以實際上，一切都是在全球基礎上決定的。

Last question. My education is in finance, but I became almost a lawyer covering Qualcomm. With the history in the Qualcomm case, it always goes to court but in the last second, there is an agreement. Once someone loses a side, the court rarely decides. It's been following Qualcomm since the '90s, and it's always settled out of court eventually. What's the history of your negotiations? Is it based on court decisions? Or do you typically negotiate once you win a major milestone or you lose a major milestone in court?

最後一個問題。我的專業是金融，但我幾乎成為了高通的一名律師。從高通案件的歷史來看，它總是訴諸法庭，但在最後一秒達成協議。一旦有人輸掉了一方，法庭很少會做出裁決。自 20 世紀 90 年代以來，它一直在跟踪高通，並且最終總是達成庭外和解。你們的談判歷史是怎樣的？是基於法院的判決嗎？或者，一旦您贏得一個重要的里程碑或在法庭上失去一個重要的里程碑，您通常會進行談判嗎？

Yes, so you are correct that, frankly, a vast majority of the cases are negotiated outside before the trial. That frankly, has been traditional experience also. So we -- like Qualcomm, we prefer bilateral negotiations and most of the deals do get done through bilateral negotiations. So just trying to give you a data point here. Since the beginning of last year, we have signed 16 new agreements up to the end of Q2 here. So that's a very large number.

是的，所以你說得對，坦白說，絕大多數案件都是在庭審前在外面協商的。坦率地說，這也是傳統經驗。因此，我們與高通一樣，更喜歡雙邊談判，而且大多數交易確實是通過雙邊談判完成的。所以只是想在這裡給你一個數據點。自去年初以來，截至第二季度末，我們已在這裡簽署了16項新協議。所以這是一個非常大的數字。

And it will be, frankly, at a rate breaking year last year, signing 13 new agreement last year. So a vast majority of agreement was signed through bilateral negotiation without lawsuits. But once in a while, we do have to file lawsuits. Generally, those are after a very lengthy negotiations where the other side simply refused to pay a fair term that many other vendors are paying.

坦率地說，這一速度將突破去年，去年簽署了 13 份新協議。所以絕大多數協議都是通過雙邊談判簽署的，沒有經過訴訟。但偶爾，我們確實必須提起訴訟。一般來說，這些都是經過非常漫長的談判之後的，另一方只是拒絕支付許多其他供應商正在支付的公平條款。

So when we go for those litigations, sometime the FRAND case get set up before got trial and sometimes we do go to trial and get a court decision. It's hard to see. It's really case by case. But it's worth noting that through the history of InterDigital, whenever we have filed a lawsuit to enforce our patent right, our IP rights, every single time, we end up license agreement under the FRAND terms. So our track record in this are quite strong.

因此，當我們提起這些訴訟時，有時 FRAND 案件會在審判之前就已成立，有時我們確實會接受審判並獲得法院判決。很難看到。確實是具體情況具體分析。但值得注意的是，縱觀 InterDigital 的歷史，每當我們提起訴訟以強制執行我們的專利權、知識產權時，我們最終都會根據 FRAND 條款簽訂許可協議。所以我們在這方面的記錄非常好。

(Operator Instructions) So our next question is from Scott Searle with ROTH.

（操作員說明）我們的下一個問題來自 ROTH 的 Scott Searle。

Liren and Rich, I apologize, I got on the call late, so I won't rehash probably some of the stuff you covered in your opening monologue, but I was wondering on a couple of fronts, Samsung recently renewed with Qualcomm. I'm wondering if there's anything to be read in that in terms of read-through for you guys in their ability, willingness to negotiate before an expiration of a renewal agreement?

Liren 和 Rich，我很抱歉，我遲到了，所以我不會重複你們在開場獨白中提到的一些內容，但我想知道幾個方面，三星最近與高通續約了。我想知道在續約協議到期之前，對於你們的能力和談判意願，是否有什麼值得閱讀的內容？

Yes. Hey Scott, this is Liren. So I did read the same news about Samsung renewing that agreement. They have continued their existing agreement, added 7 more years to it. I think it's a great development for Samsung is also a great development for Qualcomm. And I do not really know for sure how that will impact our negotiation. So -- but we are -- definitely see that as an encouraging sign that licenses and license [source] continue their long-term relationship. And we -- as I mentioned earlier, has a very long-term relations with Samsung, and I think that's an encouraging sign.

是的。嘿斯科特，我是立人。所以我確實讀到了有關三星續簽該協議的相同新聞。他們繼續維持現有協議，並延長了 7 年。我認為這對三星來說是一個偉大的發展，對高通來說也是一個偉大的發展。我真的不確定這將如何影響我們的談判。所以——但我們確實認為這是一個令人鼓舞的跡象，許可證和許可證[來源]繼續保持長期關係。正如我之前提到的，我們與三星有著非常長期的關係，我認為這是一個令人鼓舞的跡象。

Okay. Good. And on the technical front, I'm not sure, did you quantify CE or video contribution to the current quarter? And I guess as part of that, you've been building some momentum on that front. Now with the macroeconomic overhang, if you will. Is that changing the discussion and the dialogue and opportunity with any of the customers in the near term? Or are things kind of progressing as they were before?

好的。好的。在技​​術方面，我不確定您是否量化了本季度的 CE 或視頻貢獻？我想作為其中的一部分，您已經在這方面建立了一些勢頭。如果你願意的話，現在宏觀經濟懸而未決。這是否會改變近期與任何客戶的討論、對話和機會？或者事情是否像以前一樣進展？

Hey Scott. I'll take the first part of that question. Yes, we mentioned we didn't break it out. But in combination, we said that CE, auto and IoT contributed $35 million of total revenue in the quarter and $12 million of recurring revenue in the quarter. So we're pleased by the traction across those markets, and both that total and recurring figure represent records for us.

嘿斯科特。我將回答這個問題的第一部分。是的，我們提到我們沒有打破它。但綜合來看，消費電子、汽車和物聯網為本季度貢獻了 3500 萬美元的總收入，並為本季度貢獻了 1200 萬美元的經常性收入。因此，我們對這些市場的吸引力感到高興，無論是總數還是經常性數字都代表了我們的記錄。

Got you. And Liren, is there any impact in terms of the discussions going forward when you look at what's going on from a macroeconomic standpoint, particularly some of the end markets and slowdown in TVs or smartphones or other video display types of opportunities?

明白你了。立人，當您從宏觀經濟的角度來看正在發生的事情時，特別是一些終端市場以及電視或智能手機或其他視頻顯示類型機會的放緩，對未來的討論是否有任何影響？

Yes, Scott. I mean as, in general, we do not see an impact to our existing agreement because they are fixed fee agreement. But for the new license agreement here, it's really a key space. You guys know our near-term focus is on Apple and Samsung. And they are a major player on the premium tier and based on the report, we see the IP less impacted than some of the players who are competing in the low- to mid-tier devices. Regarding the TVs and others, it's really -- Scott, it's hard to see generically, but we are, as you probably, are focused on getting some of the leading brand TV vendor deal signed. And those agreements are long-term agreement also. And frankly, there's a fairly significant part sales components to it. So it's really -- the near-term impact is relevant but it's not necessarily a deciding factor.

是的，斯科特。我的意思是，總的來說，我們認為現有協議不會受到影響，因為它們是固定費用協議。但對於這裡的新許可協議來說，這確實是一個關鍵空間。你們知道我們近期的重點是蘋果和三星。他們是高端設備的主要參與者，根據報告，我們發現 IP 受到的影響比一些中低端設備競爭的參與者要小。關於電視和其他產品，這確實是 - 斯科特，很難籠統地看到，但正如您可能一樣，我們專注於與一些領先的品牌電視供應商簽署協議。這些協議也是長期協議。坦率地說，其中有相當重要的部分是銷售組件。所以，短期影響確實是相關的，但不一定是決定性因素。

Got you. And lastly, if I could, I'm not sure, Liren, if you had any comments in terms of other video monetization and opportunities. I'd love to hear your thoughts on that front. If not, we can take it offline.

明白你了。最後，如果可以的話，我不確定立人，您對其他視頻盈利和機會是否有任何評論。我很想听聽您在這方面的想法。如果沒有，我們可以將其離線。

Yes, we didn't comment specifically, Scott. But 1 thing I was describing earlier is we combined with our Technicolor acquisition. We really built ourselves through the past several decades, I agree , into 1 of the leading technology developer and frankly, leading patent holders in video space. We are increasingly becoming relevant for many, many devices, smartphones and many other connected devices here.

是的，我們沒有具體發表評論，斯科特。但我之前描述的一件事是我們與 Technicolor 收購相結合。我同意，在過去的幾十年裡，我們確實把自己打造成了視頻領域領先的技術開發商之一，坦率地說，是視頻領域領先的專利持有者。我們越來越多地與這裡的許多設備、智能手機和許多其他連接設備相關。

We did identify there's different layers of technology involved and some of these services leader also benefiting from our video technology, and we are actively looking into the space, and we will hopefully provide more updates in the future.

我們確實發現涉及不同的技術層面，其中一些服務領導者也受益於我們的視頻技術，我們正在積極研究這個領域，我們希望在未來提供更多更新。

I'd now like to turn the call back to Liren Chen for closing remarks.

現在我想將電話轉回給陳立人，讓其致閉幕詞。

Yes. Hey. Thanks, everyone. Before we sign off, I'd just like to thank all the shareholders for their continued support and our employees for their contribution to another outstanding quarter. Thank you all for joining us today, and I hope everyone enjoys the rest of the summer.

是的。嘿。感謝大家。在我們結束之前，我要感謝所有股東的持續支持，感謝我們的員工為另一個出色的季度做出的貢獻。感謝大家今天加入我們，希望大家度過愉快的夏天。

Yes. Thank you for your participation in today's conference. This concludes the program, and you may now disconnect.

是的。感謝您參加今天的會議。程序到此結束，您現在可以斷開連接。