InterDigital Issues Expense Guidance for Second Quarter 2021
June 17 2021 - 8:30AM
InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology
research and development company, today provided expense guidance
for second quarter 2021.
In order to increase focus on core technologies
and markets, the company anticipates taking a non-recurring, net
charge of approximately $28-$32 million, with approximately
two-thirds of the charge expected to be recognized in second
quarter 2021 and the remaining one-third expected to be recognized
in second half 2021. This charge includes a $12-14 million non-cash
impairment associated with a consolidated partially owned
subsidiary’s anticipated disposal of assets. Beginning in fourth
quarter 2021, the company expects these actions will drive annual
operating expense savings of approximately $15 million prior to any
reinvestments.
As a result of the above non-recurring, net
charge, the company expects total second quarter 2021 operating
expenses to be $91-96 million.
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 SmallCap 600® 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 second quarter 2021
revenue. Words such as “expects,” “projects,” “forecasts,”
“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
outcome of discussions with the works council in France; (ii) the
entry into additional patent license, patent sales or technology
solutions agreements; (iii) the accuracy of market sales
projections of the company’s licensees or our estimates of sales by
our per-unit licensees; (iv) delays in payments from our licensees;
(v) amounts of royalties payable following routine audits, if any,
and the timely receipt of such amounts; (vi) the timing, expenses,
and outcome of the company’s litigation and arbitration proceedings
and the timely receipt of any related awards; (vii) new
developments in the company’s litigation or arbitration
proceedings; and (viii) the potential effects that the ongoing
COVID-19 pandemic could have on our financial position, results of
operations and cash flows. 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:Tiziana
FiglioliaEmail: tiziana.figliolia@interdigital.com+1 (302)
300-1857
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