Good day everyone. Welcome to today's InterDigital First Quarter 2009 Earnings Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Janet Point. Please go ahead.

All right. Thank you, Michael. Good morning everyone and welcome to InterDigital's first quarter 2009 earnings conference call. With me this morning are Bill Merritt, our President and CEO, and Scott McQuilkin, our CFO. Consistent with last quarter's call, we will offer some highlights about the quarter and the company and then we'll open up the call for questions. Before we begin our remarks, I do need to remind you that in this call we will be making forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results and events to differ materially from the results and events contemplated by such forward-looking statements. These risks and uncertainties include those set forth in our earnings release published yesterday and those detailed from time-to-time in our other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof and acceptance required by law, we undertake no obligation to update or revise any of them whether as a result of new information, future events, or otherwise. So, with that taking care, I would like to turn the call over to Scott.

Thank you, Janet and good morning to everyone. Our first quarter financial results reflect significant growth in revenue, core net income and cash balances. Total revenue was 70.6 million in first quarter of 2009, a 26% increase over the first quarter of 2008, all of that revenue was recurring in nature. Excluding a 37.1 million repositioning charge related to the cessation of the SlimChip program. Pro forma net income was 15.4 million, an increase of 8.1 million or more than double the level in first quarter of 2008. Free cash flow was 43.1 million and our cash and short-term investment balances were 186 million at March 31, 2009, up 31% from year-end 2008. The significant increase in revenue over the first quarter of 2008 is due primarily to the contribution of 21.4 million from Samsung. This revenue is a result of our recently signed patent license that will generate 400 million in cash over 18 months. With the first installment of 100 million received in January. The revenue was amortized on a straight line basis over the life of the agreement. So we recognized 2.5 months of revenue in first quarter 2009. The growth in revenue was tempered by a number of factors. Lower revenue resulting from a decline in sales for a number of per unit licensees, a decision by one of our licensees to exit the mobile handset business and the completion of work in full recognition of revenue for a technology solutions customer. During the guidance; in second quarter 2009, we expect to report recurring revenue from the existing agreements in the range of 72 million to 75 million. The expected increase over the first quarter 2009 reflects the recognition of our full quarter of revenue under our license agreement with Samsung and an expected 60 to…

Thank you, Scott and good morning to everyone. I'll keep my remarks brief this morning, touching principally on the growth prospects for the company. As Scott already noted, the first quarter finances were quite strong driven by our large base of patent license agreements and including the new agreement with Samsung. We anticipate very short second quarter driven by both good revenue growth and substantial reduction in expenses as a result of our exit from modem product business. That's all good news. We other good news is that we have in place a solid plan to drive growth both in future quarters, from future years. In the near term, our major focus for the company is of course the positive resolution of our patent licensing issues with Nokia. As in typical with these situations, we are moving forward on two fronts. One is the litigation track which is moving forward to evidentiary hearing in May with a decision from the ALJ (ph) expected in August 2009. We remain confident in our position in this case. The second path is discussions with Nokia towards the broad resolution of the patent issues. While we continue to have our differences, we also continue to have productive dialogue as we explore ways to resolving issues between the companies. And the settlement of the right terms remains are preferred throughout. However, we will also take the case to decisions and acceptable settlement can not be reached. As that for Nokia, we are also in dialogue with a number of manufactures worldwide on patent licensing agreements. Consistent with our strategy to drive greater value out of the licensing business, we had expanded the capacity of our patent licensing team and are beginning active discussions in both new regions and new markets. Regionally, we've began more direct…

Okay, Michael if you could give the instructions for asking questions. Michael Ciarmoli - Boenning & Scattergood: Hi guys good morning, thanks for taking the call. Sure question, I guess Scott, do you have the percent breakdown of revenues on how much was derived from fixed contracts versus per-unit contract?

Yeah, in the first quarter fixed was probably about 60% and variable was about 40%. Michael Ciarmoli - Boenning & Scattergood: Okay. And...

That includes obviously Samsung which is fixed. Michael Ciarmoli - Boenning & Scattergood: Got you. And given kind of the market conditions, do you anticipate that kind of rate holding, or should we think about that squiring (ph) a little bit higher towards fixed some of maybe the tough market conditions impact, some of the per-unit type of licensees you have?

As I said in my comments, we certainly saw some declines from our per-unit licensees in the first quarter and we expect some of those in the second quarter, which really relates back to the first calendar quarter in terms of the overall market. We'll see how the market performs for the rest of the year, some other forecast I'm looking at. So just the first quarter is going to be the weakest quarter of the year and the expectation sort of some analysis is that the market will begin to grow after the first quarter and certainly the 3G market, which is growing significantly faster then the overall market is expected to pick up. So, that's my perspective. Michael Ciarmoli - Boenning & Scattergood: Okay, that's helpful. And just on a topic of Japan, is there any other specific region of concentration in your revenue streams and is there a likelihood for some other regions to I guess employ some of the same regulation changes to their handset market that is negatively impacted the Japanese handset market?

I'd say no to that Mike. The Japanese market is little bit unique because they were first out of the box in terms of development 3G technology and we capitalized on that and that's probably the main reason that in the past they've represented a significant percentage of our royalties. But you look at the rest of our licensee base and their sales are well diversified. Michael Ciarmoli - Boenning & Scattergood: Okay, I got it.

As I said in my comments, I think that trend towards increasing diversification and reduced concentration in Japan is going to continue. Michael Ciarmoli - Boenning & Scattergood: Okay. And then I guess Bill, just on the relationship with in Infineon, are there any specific handsets out there that are driving current revenues or expected to be introduced in the near term that could help increase that line item that the revenues from in Infineon further in the coming periods. I know in Infineon does have some product on the 3G Apple iPhone. But are there any other products out there that are really contributing to that growth?

We've got design wins into LG and design wins in the Samsung, so we see those as opportunities for them. Obviously, Apple is also talking about other devices they're going to shift and we'll see Infineon's position with respect to those devices. So right now, we Infineon actually doing a very job in the market with their solutions, I'm very encouraged by the results. Michael Ciarmoli - Boenning & Scattergood: Okay and this might be a little premature here, but LG that contract has been going for while now. At what point do you start to think about discussing with them about contract expansion. Then I guess that back through for all true for all of your licensees. At what point of process due you start engaging them to kind of re-up their contracts and continue as a royalty paying customer?

It has never become totally disconnected from the customers. We're having dialogue with them on various topics. And as far as active satellite is in discussions, you try to get started there as early as it can. Obviously you have to be -- these folks have other things to do too. So they have to be at time when it's going to make sense and then to engaging it. But, you get down as soon as you can and when you work your way through it and we've been very successful at re-up in licenses over the year or so. We expect that we'll have the same level of success with LG. Michael Ciarmoli - Boenning & Scattergood: And just follow up on that. Sony Ericsson, I mean that's one you had the successful 2G deal there and that seems kind of -- I think everyone is waiting. Is there any particular hang-up there that's holding-up a potential I guess renewal that license, you're converting that into a 3G. Are any major sticking points or is that just kind of normal course of business.

Yeah, it's the normal way in which kind of re-approach the market and how you -- the level of focus you put on different customers at different time. I think there is a lot because we have a lot of focus, had a lot of focus on Samsung and Nokia and the LG (ph). There is dialog with the other people where you kind of put their energy towards you're getting first deals closed and then you move on to the next step. That actually makes other deals easier to do. We've seen an awake (ph) of Samsung for example with respect to a number of customers out there. You're flipping right pass the due diligences and you get right economic discussions. So to some extent to make your life easier, you want to leverage off for some positive results. Michael Ciarmoli - Boenning & Scattergood: Okay, okay that's helpful. And just I guess, I'm looking at the incentive for some of these companies to sign licensees or to sign license agreements today. Obviously the market is weaker now. It seems to me that there would be encouraged to hold-off as long as they can to wait for ASPs -- handsets ASPs to fall further. This way they could probably get a better deal. Is that kind of one of the major thought processes for some of OEMs out there?

Yeah, I really don't see that. We see -- obviously there that the issue of just the economic strength of some of these companies and then trying to figure out how they can make the payments that would be required. But beyond that, we see people using a pretty -- for the most part are trying to figure out way to these things resolved. The market turbulence does throw some additional factors into the consideration. If you looking at fixed price deal because it's factoring out what's the market forecast you are going to use. But I think its going to be a valuable per unit type deal than what it will -- those are the amateurs self correcting. So, we don't really see people hanging back other than the typical. As we've always said, you kind of have three cuts to licensees. People that go really get it done. People in the middle they kind of take you to a little bit due diligence and then get it done and other people that kind of wait until the end, apparent continues to be what we see. Michael Ciarmoli - Boenning & Scattergood: Okay, perfect. Thanks a lot you guys.

And we'll go next to Tom Carpenter of Hilliard Lyons.

Good morning.

Good Morning.

Good morning.

When you look on the acquisition front, whether its securities display or other parts of the handset and you brainstorm how it's going to be part of the licenses handsets or other areas. Do you think you're going to bundle everything which is been your traditional approach or might you do some one-off deals or separate acquisitions from your existing technology?

Yeah, I think that we want to move more toward some level of segmentation. But probably do it by market in a sense that if the handset is licensed, its licensed basically that portfolio, but if that would be relative to the handset. But the portfolios both from internal development and the external acquisition that gives you opportunities to license service providers and things like that. So, those licensing focus has been principally handsets and I think that make a lot of sense that it is biggest market and where the patent portfolio was the deepest, but as we look to grow, the company beyond that handset market. We're going to need to segment out the portfolio to identify those things that are services related and application related and purchased equipment related.

Great, one of the challenges on the patent license in the front especially the past couple of years, it has been the increase of litigation, how accepted is licensing in those areas and you think it can beyond from interims like you guys have done with Apple, LG and Raymond (ph), most of the Japanese licensees versus maybe how they're going to court to get the first licensee being given the increase litigation industry from the past couple of years?

I think depending upon what market goes into, you can think it can be more than the other and that's the fact, do you think about in evaluating opportunities within certain markets. We're bringing people on board into the licensing team that have had this experience in these other markets and they've been successful in doing it without litigation that's always on a preferred tax. And, so its -- at the end of day, it's not so much the segment in which the company participates, it's the company itself what their particular advantage. I think we will -- we certainly have to factor into movement into any new market, what the litigation cost that we see in that market if any, and how that it will effect the overall returns of going into that market. But the real -- other than this high profile cases that we tend to have with Nokia and Samsung is 95%, license again has come (ph) we never having the good (ph) litigation. And, so we would hope to think that same level of success into those new certainty markets.

Verizon's talking about a very aggressive rollout time lies for LTE 4G technology and Qualcomm license maybe about half measures, or LTE. You guys expect to have any licensing deals with the majors ahead of the Verizon rollout, or are you going to be after the technologies introduced?

Well, actually if you look at the license agreement today, they would cover LTE products maybe for examples, if it's a per-unit license, it gives me shock as an example, a shipped -- and LTE cables is the way, well that's also going to be capable on the 3G network, so, you're going to capture that product within the existing license agreement. So, if the license here is in fact today cover LTE hasn't been an advertise part of the program because its 3G has been the focus. This from the portfolio standpoint we're in very good shape to go out and license LTE, again its one of those things we need to get people sort of focus on that and I think today its looks for the remains on 3G. And, I would expect over the next year, so that the discussions might they did at one point a certain mix between 2G and 3G discussions will become next between 3G and LTE.

Are you saying that it's Sharp or another Samsung another license, do you think what's next possibly paid in their license that ship a multi-node 3G, 4G handset, you'd receive royalties also for the 4G component of the phone?

Yeah, if you go back in the specific license agreements, it's typically the way the license agreement has been structured, if that device is capable of operating on a 3G network, it doesn't matter that it can also operate on LTE network, it's still a reportable product under those deals. So that's true with respect, you tend to do that with respect your current unit deals, what you do on your fixed price deals, you've done a fixed price deals you try to exclude the LTE capable stock program, but the payment and typically see it on the fixed price deals that include the LTE component.

Got it, a quick for Scott, Scott it didn't look like you guys bought the shares in the March quarter, if you bought any in April or May quarter to-date?

Yeah, we made the decisions to buyback additional stock in March, the window opened up for us and we put in place the 10B-51 plan which started in April.

So you have repurchase shares quarter today?

We have.

Okay, thanks so much. And one final question and I'll get back in the queue. You guess have the evidence your hearing coming up with LTE at the end of the month. And I think staff report, which is not public came out a (ph), last year the evidence share in the first hour and half, when the size was under the case of the staff attorney (ph) stood up and he said no, I think that's due to lot of investors. The stock fell ultimately, you wind up signing the deal with Samsung for 2G and 3G, any words of wisdom for those that is going to be evidentiary hearing this year on what could be said there?

Yeah, until the until staff opinion is public, its typical back assurance contract staff opinion. I think you noted the importance of Samsung went through the case with us. So the evidence and signed the $400 patent licensing deal, I think that's the deal that people should be focused on it.

Since it's a -- I guess I had done deal and hopefully you'll find out one day. Was the -- it was -- those was speculative last year that the staff attorney's opinion was not based on whether (ph) that was based on some other higher deals scale that you might have been a part of this Samsung argument that either those employed license, or some other case loss from one of the standard's parties, is that fairly accurate?

Yeah, I think that the staff opinion on the Samsung case was eventually explained, I think portion of that remained publicly, since I don't remember what was main patent or was that the only one getting those within that in the opinion.

Okay, great. Thank you. Operator: (Operator Instructions). And at this time, we have no further questions. I'll go ahead and turn the call back over to Janet Point. Please go ahead

Hi, thank you Mike. I want to -- thanks everyone for dialing in on the call. If you have any follow-up questions, we'll be available and we'll talk to you next quarter. Thank you.