InterDigital Issues Updated Guidance for Second Quarter 2022; Announces New License Agreements
June 28 2022 - 8:30AM
InterDigital, Inc. (NASDAQ: IDCC), a mobile and video technology
research and development company, today announced that it expects
second quarter 2022 total revenue to be between $120
million and $124 million, up from its previous expectations of $114
million to $120 million.
The company also announced it closed a license agreement
covering consumer electronics and other products. The revised
guidance includes approximately $98 million to $100 million of
recurring revenue. The remaining revenue relates to past sales
driven by the above-noted agreement as well as connected automobile
license agreements with GM and Ford Motor Company through a
licensing platform. 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 second
quarter 2022.
In addition, the company expects non-operating expenses,
including both interest expense and other income (expense), to be
in the range of $18 million to $21 million driven by a one-time
charge associated with the company’s second quarter 2022
refinancing. The company expects its effective tax rate for second
quarter 2022 to roughly approximate the first quarter effective tax
rate of 25%.
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: 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, including, without
limitation, our belief that we will continue to be able to execute
strongly on our business during the ongoing COVID-19 pandemic.
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 the COVID-19 pandemic or other macroeconomic events,
volatility or uncertainty could have on our financial position,
results of operations and cash flows; and (xvi) changes in our
business strategy.
We undertake no duty to revise or update publicly any
forward-looking statement for any reason, except as otherwise
required by law.
InterDigital
Contact:Email: investor.relations@interdigital.com +1
(302) 300-1857
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