InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology
research and development company, today announced selected and
unaudited preliminary financial results for the quarter ended
December 31, 2022.
- The company expects total revenue to
be approximately $114 million, including recurring revenue of $101
million. The update from the company's prior expectation of $98 to
$102 million was driven primarily by new agreements signed in the
second half of the quarter.
- The company expects operating
expenses to be approximately $79 million, updated from its previous
expectation of $76 to $79 million.
- The company expects net
non-operating income1 will be approximately $1 million, updated
from its previous expectation of net non-operating expense1 of $4
to $6 million. The increase in the company’s expectation was driven
by higher interest income, as well as foreign currency gains.
- Net income2 is expected to be
approximately $28 million, or $0.93 per diluted share.
- Adjusted EBITDA3 is expected to be
approximately $60 million.
- Cash and cash equivalents,
restricted cash and short-term investments are expected to total
$1.2 billion as of December 31, 2022, and include approximately
$400 million of customer receipts during fourth quarter 2022.
The company has not yet finalized its financial results for the
quarter and full year ended December 31, 2022. These preliminary
financial results reflect the company’s current estimates, based on
information available to management as of the date of this release,
and are subject to further changes upon completion of the company’s
standard quarter and year-end closing procedures. This update does
not present all necessary information for an understanding of
InterDigital’s financial condition as of the date of this release,
or its results of operations for the fourth quarter and full year
ended December 31, 2022. As InterDigital completes its quarter-end
and year-end financial close processes and finalizes its financial
statements for the quarter and year-end, it will be required to
make significant judgments in a number of areas and expects to
receive new information including customer royalty reports for
periods ended December 31, 2022. It is possible that InterDigital
may identify items or receive new information that require it to
make adjustments to the preliminary financial information set forth
above and those changes could be material. InterDigital does not
intend to update such financial information prior to release of its
final fourth quarter and full year ended December 31, 2022
financial statement information, which is currently scheduled for
Wednesday, February 15, 2023.
Conference Call and Webcast Information
InterDigital executives will host a conference call on
Wednesday, February 15, 2023 at 10:00 a.m. Eastern Time (ET) to
discuss the company's performance.
For a live Internet webcast of the conference call, visit
www.interdigital.com and click on the “Webcast” link on the
Investors page. The company encourages participants to take
advantage of the Internet option.
For telephone access to the conference call, visit
www.interdigital.com and click on the “Dial In Registration” link
on the Investors page. Registration is necessary to obtain a dial
in phone number and PIN to join.
An Internet replay of the conference call will be available on
InterDigital’s website under Events in the Investors section. The
replay will be available for one year.
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.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website:
www.interdigital.com.
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 our
current beliefs, plans and expectations. Words such as “believe,”
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“forecast,” “goal,” “could,” "would," "should," "if," "may,"
"might," "future," "target," "trend," "seek to," "will continue,"
"predict," "likely," "in the event," and variations of any such
words or similar expressions are intended to identify such
forward-looking statements.
Forward-looking statements are made on the basis of management’s
current views and assumptions and are not guarantees of future
performance. Forward-looking statements are inherently subject to
risks and uncertainties that could cause actual results, and actual
events that occur, to differ materially from results contemplated
by the forward-looking statements. These risks and uncertainties
include, but are not limited to: (i) unanticipated delays,
difficulties or accelerations in the execution of patent license
agreements; (ii) our ability to leverage our strategic
relationships and secure new patent license agreements on
acceptable terms; (iii) our ability to enter into sales and/or
licensing partnering arrangements for certain of our patent assets;
(iv) our ability to enter into partnerships with leading inventors
and research organizations and identify and acquire technology and
patent portfolios that align with our roadmap; (v) our ability to
commercialize our technologies and enter into customer agreements;
(vi) the failure of the markets for our current or new technologies
and products to materialize to the extent or at the rate that we
expect; (vii) unexpected delays or difficulties related to the
development of our technologies and products; (viii) changes in our
interpretations of, and assumptions and calculations with respect
to the impact on us of, the 2017 Tax Cuts and Jobs Act, as well as
further guidance that may be issued regarding such act; (ix) risks
related to the potential impact of new accounting standards on our
financial position, results of operations or cash flows; (x)
failure to accurately forecast the impact of our restructuring
activities on our financial statements and our business; (xi) the
resolution of current legal proceedings, including any awards or
judgments relating to such proceedings, additional legal or
regulatory proceedings, changes in the schedules or costs
associated with legal proceedings or adverse rulings in such
proceedings; (xii) the timing and impact of potential
administrative and legislative matters; (xiii) changes or
inaccuracies in market projections; (xiv) our ability to obtain
liquidity though debt and equity financings; (xv) the potential
effects that corresponding macroeconomic uncertainty could have on
our financial position, results of operations and cash flows; (xvi)
changes in our business strategy; and (xvii) changes or
inaccuracies in our expectations with respect to royalty payments
by our customers.
We undertake no duty to revise or update publicly any
forward-looking statement for any reason, except as otherwise
required by law.
Footnotes
1 Net
non-operating income (expense) is comprised of interest expense and
other income (expense).
2 Throughout this
press release, net income and diluted earnings per share (“EPS”)
are attributable to InterDigital, Inc. (e.g., after adjustments for
non-controlling interests), unless otherwise stated.
3 Adjusted EBITDA
is a supplemental non-GAAP financial measure that InterDigital
believes provides investors with important insight into the
company's ongoing business performance. InterDigital defines
Adjusted EBITDA as net income attributable to InterDigital, Inc.
plus net loss attributable to non-controlling interest, income tax
(provision) benefit, other income (expense) & interest expense,
depreciation and amortization, share-based compensation, and other
items. Other items may include restructuring costs, impairment
charges and other non-recurring items. InterDigital’s computation
of Adjusted EBITDA might not be comparable to Adjusted EBITDA
reported by other companies. The presentation of Adjusted EBITDA,
which is not prepared under any comprehensive set of accounting
rules or principles, is not intended to be considered in isolation
or as a substitute for the financial information prepared and
presented in accordance with GAAP. A reconciliation of Adjusted
EBITDA to net income attributable to InterDigital, Inc., the most
directly comparable GAAP financial measure, is provided below.
RECONCILIATION OF NON-GAAP
MEASURE
The table below presents a reconciliation of the preliminary
fourth quarter 2022 Adjusted EBITDA to the preliminary fourth
quarter 2022 net income attributable to InterDigital, Inc., the
most directly comparable GAAP financial measure (in millions):
|
For the three months ended |
|
December 31, 2022 |
Net income
attributable to InterDigital, Inc. |
$ |
28 |
|
Net loss attributable to non-controlling interest |
|
0 |
|
Income tax provision |
|
8 |
|
Other (income) expense, net & interest expense |
|
(1 |
) |
Depreciation and amortization |
|
19 |
|
Share-based compensation |
|
6 |
|
Other items |
|
0 |
|
Adjusted
EBITDA3 |
$ |
60 |
|
CONTACT: |
InterDigital, Inc.: |
|
investor.relations@interdigital.com |
|
+1 (302) 300-1857 |
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