INTERDIGITAL RAISES Q1 REVENUE GUIDANCE, LOWERS EXPENSE ESTIMATES
Substantial Base of Fixed Price Contracts Provides Significant Revenue Stability
WILMINGTON, Del., March 26, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced an increase to its revenue guidance and a lowering of expense estimates for first quarter 2020. The changes reflect the impact of two new license agreements to its respective portfolios of mobile and video technologies.
The company increased the top end of the range for its expected first quarter 2020 revenue, with a new range of $73 million to $76 million that includes less than $1 million in past sales revenue. The prior range was $73 million to $75 million. In addition, the company noted that it expects first quarter operating expenses to be in the range of $69 million to $73 million, down $4-8 million sequentially from Q4 2019. Previously, the company had guided operating expenses to be in the range of $71 million to $74 million.
William Merritt, President and CEO, noted: “With a strong balance sheet and nearly 90% of our revenue coming from fixed fee agreements that are not sensitive to our customer’s volumes, we are in a strong position to weather the current macro-economic environment and maintain our focus on continuing licensing discussions to drive top line growth.”
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the company’s current expectations with respect to first quarter 2020 revenue. Words such as "expects," "projects," "forecast," “anticipates,” and variations of such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, but not limited to: (i) the entry into additional patent license, patent sales or technology solutions agreements; (ii) the accuracy of market sales projections of the company's licensees, changes in our estimates of first quarter 2020 sales by our per-unit licensees, delays in payments from our licensees and related matters; (iii) amounts of royalties payable following routine audits, if any, and the timely receipt of such amounts during first quarter 2020; (iv) the timing, expenses, and outcome of the company's litigation and arbitration proceedings and the timely receipt of any related awards; (v) new developments in the company’s litigation or arbitration proceedings; (vi) our expenses from the acquisition of the Technicolor R&I Team; and (vii) the potential impacts on the company’s business as a result of the ongoing coronavirus pandemic. We undertake no duty to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise except as may be required by applicable law, regulation or other competent legal authority.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: .
InterDigital Contact:
Patrick Van de Wille
Email:
+1 (858) 210-4814
