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Inventergy Outlines Current Strategy and Highlights 2015 Transactions
Company's Current Assets Cover Various Market Segments Totaling Over $200 billion in Relevant Annual Revenue of Potential Licensees
CAMPBELL, CA--(Marketwired - Dec 10, 2015) - Inventergy Global, Inc. (NASDAQ: INVT) ("Inventergy" or the "Company" today provided an update to investors regarding Inventergy's strategic growth initiatives with regards to its current and prospective monetization and licensing opportunities.
Joe Beyers, Chairman and CEO of Inventergy, said, "We've closed over $6 million in transactions in 2015 including a $2 million license arrangement with a mid-tier telecommunication company and a $4 million sales agreement for two patent families in the mobile communications infrastructure and mobile handset market segments. We also announced a settlement agreement for an undisclosed amount with Genband US LLC, concluding our third settlement agreement for the year. We believe these transactions serve as testament to the strength of our patent portfolio and represent additional opportunities ahead. Inventergy has a rich technology patent portfolio consisting of more than 700 worldwide patents acquired from industry leaders including Panasonic, Nokia and Huawei. The portfolios contain a handpicked set of worldwide assets that are a combination of standards essential patents (SEPs) and valuable implementation patents. We remain focused on driving value from our patent monetization and licensing efforts with telecommunications device and infrastructure companies and telecommunications service providers."
Inventergy's patent assets are applicable to at least four significant primary market segments, on which Inventergy is keenly focused. Capturing the appropriate value from just a part of these markets will significantly bolster Inventergy's financial position and in turn help the Company achieve its primary goal of generating shareholder value. These four core segments include the following:
1. Mobile handset and other end user devices. Earlier this year Inventergy notified the majority of the worldwide mobile handset providers stating that the company owned at least 186 patents in 15 families which the Company believes may be essential to 3G and 4G/LTE mobile communications. Inventergy's total mobile handset related portfolio consists of approximately 320 patents in at least 40 families worldwide. Inventergy estimates the addressable market for these patents at 8.5 billion units over the next five years. Inventergy has offered a license for its SEPs in this segment for 15 cents to 30 cents per device, depending upon configuration.
2. Mobile Infrastructure (Cellular Base Stations). Cellular base stations provide the gateway for mobile user voice and data communications. Inventergy estimates based upon Infonetics reports that the cumulative revenue for these systems to be in excess of $107 billion over the next five years. This estimate does not include another significant market segment of small and femtocell base stations. Inventergy currently owns approximately 390 mobile infrastructure patents in 51 families applicable to this market segment.
3. IP Multimedia Subsystem (IMS) and Voice over Internet Protocol (VoIP) This markets consists of IMS infrastructure equipment and software providers which provide the backbone for rich media communications and are forecasted to have cumulative sales of approximately $25 billion over the next 5 years. The VoIP service providers such as cable operators are projected to generate over $100 billion in applicable revenue over the next five years. The Inventergy portfolio includes approximately 280 IMS/VoIP patents in 56 families. Inventergy has closed two transactions in this market and has established a solid base royalty rate for this market segment.
4. Cellular Service Providers. This market consists of telecom operators and service providers. Based on IDC and Infonetics reports, there are over 1.4 billion subscribers served by approximately 50 telecom operators in the geographies covered by the Inventergy patents. The applicable revenue of these firms as estimated by Inventergy, based on Infonetics reports, is well in excess of $100 billion annually.
The aggregate relevant annual revenue of these four key segments is well in excess of $200 billion, providing Inventergy with very robust target markets addressable by the Company's existing patents.
Market estimates are based on published reports from by IDC and Infonetics.
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