InterDigital Announces Buyback Authorization Increase and Revenue Guidance for Fourth Quarter 2018, Declares Regular Dividend...
December 10 2018 - 8:30AM
InterDigital, Inc. (NASDAQ:IDCC), a mobile technology research and
development company, today issued revenue guidance for fourth
quarter 2018 and announced that its Board of Directors has declared
a regular quarterly cash dividend and authorized an increase to the
company’s existing share repurchase authorization.
Revenue Guidance
The company expects total fourth quarter 2018 revenue to be
between $70 million and $76 million. This range includes
approximately $1 million of non-recurring revenue.
Under the accounting rules in effect prior to the company’s
adoption of ASC 606, the company’s expected fourth quarter 2018
total revenue range would have been between $92 million and $96
million, again including approximately $1 million of non-recurring
revenue. The company is providing this information under the
previous revenue recognition rules solely in the interest of
comparability during the transition year to ASC 606, and it should
be considered in addition to, and not as a substitute for, nor
superior to or in isolation from, the financial guidance prepared
in accordance with ASC 606.
This revenue guidance does not include the potential impact of
any new patent license, technology solutions or patent sale
agreements that may be signed, or any arbitration or dispute
resolutions that may occur, during the balance of fourth quarter
2018.
Increase to Share Repurchase Authorization
In addition, InterDigital’s Board of Directors has authorized a
$100 million increase to the company’s existing stock repurchase
program. The Board authorized a $300 million stock repurchase
program in June 2014, which was increased to $400 million in June
2015 and to $500 million in September 2017. The latest
increase brings the total authorization to $600 million. In 2018,
the company has repurchased 1.2 million shares for $91.9 million.
Following the latest increase, the remaining amount available
under the authorization is approximately $187 million.
Regular Dividend
Finally, the company today announced that its Board of Directors
has declared a regular quarterly cash dividend of $0.35 per share
on its common stock, payable on January 23, 2019 to shareholders of
record at the close of business on January 9, 2019.
About InterDigital®
InterDigital develops mobile 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 and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless 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 fourth quarter 2018
revenue and its plans to repurchase common stock. 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 fourth
quarter 2018 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 fourth quarter 2018; (iv) the timing and
outcome of the company's litigation and arbitration proceedings and
the payment of any related awards; (v) new developments in the
company’s litigation or arbitration proceedings; and (vi) an
increase in the company’s cash needs or a decrease in available
cash. 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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