INTERDIGITAL RAISES Q1 REVENUE GUIDANCE, LOWERS EXPENSE ESTIMATES
March 26 2020 - 8:30AM
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: www.interdigital.com.
InterDigital Contact:Patrick Van
de WilleEmail: patrick.vandewille@interdigital.com+1 (858)
210-4814
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