InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI
technology research and development company, today announced
results for the quarter ended September 30, 2024.
"In the third quarter we delivered revenues of about $129
million, exceeding the top end of our guidance, driven by a strong
performance from our consumer electronics and IoT licensing
program," commented InterDigital CEO and President Liren Chen. "In
addition, at the start of the fourth quarter, we announced a new
license agreement with OPPO Group, a top smartphone vendor, and a
binding arbitration agreement with Lenovo. Given the increasing
momentum across the business, we are raising the midpoint of our
2024 full-year revenue guidance by $145 million to $860
million."
Third Quarter 2024
Financial Highlights, as compared to Third
Quarter 2023:
| |
|
Three Months Ended September 30, |
|
(in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
| GAAP
Results: |
|
|
|
|
|
|
|
Revenues (a) |
|
$128.7 |
|
$140.1 |
|
(8)% |
|
Operating Expenses |
|
$89.3 |
|
$86.5 |
|
3% |
|
Net income 1 |
|
$34.2 |
|
$47.9 |
|
(29)% |
|
Net income 1 margin |
|
27% |
|
34% |
|
(7) ppt |
|
Diluted EPS 1 |
|
$1.14 |
|
$1.72 |
|
(34)% |
| |
|
|
|
|
|
|
| Non-GAAP
Results: |
|
|
|
|
|
|
|
Adjusted EBITDA 2 |
|
$64.8 |
|
$83.5 |
|
(22)% |
|
Adjusted EBITDA margin 2 |
|
50% |
|
60% |
|
(10) ppt |
|
Non-GAAP Net income 3 |
|
$44.9 |
|
$57.7 |
|
(22)% |
|
Non-GAAP EPS 3 |
|
$1.63 |
|
$2.13 |
|
(23)% |
| |
|
|
|
|
|
|
| Additional
Information: |
|
|
|
|
|
|
| Revenue by
type: |
|
|
|
|
|
|
|
Recurring revenues |
|
$98.6 |
|
$104.5 |
|
(6)% |
|
Catch-up revenues |
|
$30.0 |
|
$35.6 |
|
(16)% |
| Revenue by
program: |
|
|
|
|
|
|
|
Smartphone |
|
$87.4 |
|
$104.3 |
|
(16)% |
|
CE, IoT/Auto |
|
$40.6 |
|
$35.4 |
|
15% |
|
Other |
|
$0.6 |
|
$0.4 |
|
41% |
| |
| (a) Decrease is
primarily driven by lower catch-up revenues in Q3'24 and the
expiration of the Huawei agreement at the end of 2023. |
| |
Return of Capital to Shareholders
| (in millions,
except per share data) |
|
Share Repurchases |
|
Dividends Declared |
|
Total Returnof Capital |
|
|
Shares |
|
Value |
|
Per Share |
|
Value |
|
|
Third quarter 2024 |
|
<0.1 |
|
$3.1 |
|
$0.45 |
|
$11.4 |
|
$14.5 |
| |
Convertibility of 2027 Notes
Pursuant to the terms of the Indenture governing InterDigital’s
3.50% Senior Convertible Notes due 2027 (the “Notes”), the Notes
are convertible during its calendar quarter ending December 31,
2024. The current conversion rate of the Notes is 12.9041 shares of
InterDigital’s Common Stock per $1,000 principal amount of the
Notes.
Upon the conversion of any Notes, InterDigital will pay cash up
to the aggregate principal amount of the Notes to be converted, and
will pay cash, shares of its Common Stock or a combination of cash
and shares of its Common Stock for any conversion obligation in
excess of the aggregate principal amount being converted, if any,
at InterDigital’s election, as set forth in the Indenture governing
the Notes.
At the time InterDigital issued the Notes, InterDigital entered
into call spread transactions that together were designed to have
the economic effect of reducing the net number of shares that will
be issued in the event of conversion of the Notes by, in effect,
increasing the conversion price of the Notes from InterDigital’s
economic standpoint from $77.49 to $106.31. Refer to Footnote 5 of
the Financial Statements from InterDigital’s Form 10-Q for the
quarter ended September 30, 2024 for more information.
Near Term Outlook
The Company raised its full year 2024 outlook and provided an
initial outlook for fourth quarter 2024 in the table below. The
outlook for both fourth quarter 2024 and full year 2024 is based on
existing agreements only, and any new agreements that might be
reached over the balance of the fourth quarter would be
additive.
| |
|
|
|
Full Year 2024 |
|
(in millions, except per share data) |
|
Q4 2024 |
|
Current |
|
Prior |
| Revenue |
|
$239 - $249 |
|
$855 - $865 |
|
$690 - $740 |
| Adjusted EBITDA 2 |
|
$180 - $190 |
|
$533 - $543 |
|
$378 - $416 |
| Diluted EPS 1 |
|
$3.72 - $3.98 |
|
$11.63 - $11.90 |
|
$7.17 - $8.32 |
| Non-GAAP EPS 3 |
|
$5.42 - $5.70 |
|
$14.69 - $14.99 |
|
$9.70 - $10.95 |
| |
|
|
|
|
|
|
Conference Call Information
InterDigital will host a conference call on Thursday, October
31, 2024 at 10:00 a.m. ET to discuss its third quarter 2024
financial performance and other company matters.
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 is a global research and development company
focused primarily on wireless, video, artificial intelligence
(“AI”), and related technologies. We design and develop
foundational technologies that enable connected, immersive
experiences in a broad range of communications and entertainment
products and services. We license our innovations worldwide to
companies providing such products and services, including makers of
wireless communications devices, consumer electronics, IoT devices,
cars and other motor vehicles, and providers of cloud-based
services such as video streaming. As a leader in wireless
technology, our engineers have designed and developed a wide range
of innovations that are used in wireless products and networks,
from the earliest digital cellular systems to 5G and today’s most
advanced Wi-Fi technologies. We are also a leader in video
processing and video encoding/decoding technology, with a
significant AI research effort that intersects with both wireless
and video technologies. 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.
For additional financial measures, refer to our third quarter
2024 Form 10-Q and the financial metrics tracker, which are
available on the Investor Relations section of our website.
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) the resolution of current legal proceedings,
including any awards or judgments relating to such proceedings,
additional or related legal proceedings, including appeals, changes
in the schedules or costs associated with such proceedings or
adverse rulings; (iii) our ability to leverage our strategic
relationships and secure new patent license agreements on
acceptable terms; (iv) our ability to enter into sales and/or
licensing partnering arrangements for certain of our patent assets;
(v) our ability to expand our revenue opportunities by entering
into licensing arrangements with video streaming and other
cloud-based service providers; (vi) our ability to enter into
partnerships with leading inventors and research organizations;
(vii) our ability to identify and pursue strategic acquisitions of
technology and patent portfolios and other strategic growth
opportunities; (viii) our ability to commercialize our technologies
and enter into customer agreements; (ix) the failure of the markets
for our current or new technologies to materialize to the extent or
at the rate that we expect; (x) our continued ability to develop
new technologies and secure new patents, including the risk of
unexpected delays or difficulties related to the development of our
technologies; (xi) risks associated with our capital allocation
strategies, including risks associated with our planned dividend
payments and share repurchases; (xii) 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; (xiii)
risks related to the potential impact of new accounting standards
on our financial position, results of operations or cash flows;
(xiv) failure to accurately forecast the impact of our
restructuring activities on our financial statements and our
business; (xv) the timing and impact of potential regulatory,
administrative and legislative matters; (xvi) changes or
inaccuracies in market projections; (xvii) our ability to obtain
liquidity though debt and equity financings; (xviii) the potential
effects that macroeconomic uncertainty could have on our financial
position, results of operations and cash flows; (xix) impacts from
acts of terrorism, war or political or civil unrest, or any
responses thereto, in the United States or elsewhere; (xx) changes
in our business strategy; (xxi) changes or inaccuracies in our
expectations with respect to royalty payments by our customers and
(xxii) risks related to our assumptions and application of relevant
accounting standards, including with respect to revenue
recognition.
We undertake no duty to revise or update publicly any
forward-looking statement for any reason, except as otherwise
required by law.
Footnotes
1 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. Net income margin is net
income attributable to InterDigital, Inc. over total revenues.
2 Adjusted EBITDA and Adjusted EBITDA margin are
supplemental non-GAAP financial measures that InterDigital believes
provide 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 include restructuring costs, impairment charges and other
non-recurring items. Adjusted EBITDA margin is Adjusted EBITDA over
total revenues. These non-GAAP financial measures used by the
company may be calculated differently from, and therefore may not
be comparable to, similarly titled measures used by other
companies. The presentation of these financial measures, which are
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 the
most directly comparable GAAP financial measure is provided
below.
3 Non-GAAP net income, Non-GAAP EPS, and Non-GAAP
weighted-average diluted shares are supplemental non-GAAP financial
measures that InterDigital believes provides investors with
important insight into the Company's ongoing business performance.
InterDigital defines Non-GAAP net income as net income attributable
to InterDigital, Inc. plus share-based compensation, acquisition
related amortization, depreciation and amortization, restructuring
costs, impairment charges and one-time adjustments, losses on
extinguishments of long-term debt, the related income tax effect of
the preceding items, and adjustments to income taxes. Non-GAAP EPS
is defined as Non-GAAP net income divided by Non-GAAP weighted
average diluted shares, which adjusts the weighted average number
of common shares outstanding for the dilutive effect of the
Company's convertible notes, offset by our hedging arrangements.
InterDigital’s computation of these non-GAAP financial measures
might not be comparable to similarly named measures reported by
other companies. The presentation of these financial measures,
which are 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 each of
these metrics to its most directly comparable GAAP financial
measure is provided below.
|
|
|
SUMMARY CONSOLIDATED STATEMENTS OF INCOME(in
thousands except per share data)(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenues |
|
$ |
128,679 |
|
|
$ |
140,106 |
|
|
$ |
615,714 |
|
|
$ |
444,070 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
Research and portfolio development |
|
|
48,331 |
|
|
|
50,253 |
|
|
|
147,851 |
|
|
|
149,560 |
|
|
Licensing |
|
|
27,467 |
|
|
|
21,522 |
|
|
|
149,212 |
|
|
|
59,534 |
|
|
General and administrative |
|
|
13,539 |
|
|
|
14,678 |
|
|
|
41,665 |
|
|
|
38,686 |
|
|
Total operating expenses |
|
|
89,337 |
|
|
|
86,453 |
|
|
|
338,728 |
|
|
|
247,780 |
|
| |
|
|
|
|
|
|
|
|
|
Income from operations |
|
|
39,342 |
|
|
|
53,653 |
|
|
|
276,986 |
|
|
|
196,290 |
|
| |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(10,681 |
) |
|
|
(12,683 |
) |
|
|
(34,086 |
) |
|
|
(36,911 |
) |
| Other income, net |
|
|
12,554 |
|
|
|
14,725 |
|
|
|
33,483 |
|
|
|
42,303 |
|
|
Income before income taxes |
|
|
41,215 |
|
|
|
55,695 |
|
|
|
276,383 |
|
|
|
201,682 |
|
| Income tax provision |
|
|
(7,025 |
) |
|
|
(8,541 |
) |
|
|
(50,877 |
) |
|
|
(29,715 |
) |
| Net income |
|
$ |
34,190 |
|
|
$ |
47,154 |
|
|
$ |
225,506 |
|
|
$ |
171,967 |
|
|
Net loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(787 |
) |
|
|
— |
|
|
|
(3,016 |
) |
| Net income attributable to
InterDigital, Inc. |
|
$ |
34,190 |
|
|
$ |
47,941 |
|
|
$ |
225,506 |
|
|
$ |
174,983 |
|
| Net income per common share —
Basic |
|
$ |
1.36 |
|
|
$ |
1.82 |
|
|
$ |
8.92 |
|
|
$ |
6.42 |
|
| Weighted average number of
common shares outstanding — Basic |
|
|
25,149 |
|
|
|
26,285 |
|
|
|
25,286 |
|
|
|
27,259 |
|
| Net income per common share —
Diluted |
|
$ |
1.14 |
|
|
$ |
1.72 |
|
|
$ |
7.84 |
|
|
$ |
6.19 |
|
| Weighted average number of
common shares outstanding — Diluted |
|
|
30,034 |
|
|
|
27,812 |
|
|
|
28,759 |
|
|
|
28,261 |
|
| |
|
|
|
|
|
|
|
|
| Cash dividends declared per
common share |
|
$ |
0.45 |
|
|
$ |
0.40 |
|
|
$ |
1.25 |
|
|
$ |
1.10 |
|
|
|
|
SUMMARY CONSOLIDATED CASH FLOWS(in
thousands)(unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
34,190 |
|
|
$ |
47,154 |
|
|
$ |
225,506 |
|
|
$ |
171,967 |
|
|
Non-cash adjustments |
|
|
64,268 |
|
|
|
99,994 |
|
|
|
86,433 |
|
|
|
67,711 |
|
|
Working capital changes |
|
|
(20,827 |
) |
|
|
163,462 |
|
|
|
(232,445 |
) |
|
|
(2,360 |
) |
|
Net cash provided by operating activities |
|
|
77,631 |
|
|
|
310,610 |
|
|
|
79,494 |
|
|
|
237,318 |
|
| Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
Net sales (purchases) of short-term investments |
|
|
54,306 |
|
|
|
2,322 |
|
|
|
173,208 |
|
|
|
(43,706 |
) |
|
Capitalized patent costs and purchases of property and
equipment |
|
|
(12,836 |
) |
|
|
(9,642 |
) |
|
|
(35,434 |
) |
|
|
(31,159 |
) |
|
Long-term investments |
|
|
382 |
|
|
|
567 |
|
|
|
1,576 |
|
|
|
567 |
|
|
Net cash provided by (used in) investing activities |
|
|
41,852 |
|
|
|
(6,753 |
) |
|
|
139,350 |
|
|
|
(74,298 |
) |
| Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
Payments on long-term debt |
|
|
— |
|
|
|
— |
|
|
|
(139,069 |
) |
|
|
— |
|
|
Repurchase of common stock |
|
|
(3,056 |
) |
|
|
(56,858 |
) |
|
|
(66,726 |
) |
|
|
(302,728 |
) |
|
Dividends paid |
|
|
(10,052 |
) |
|
|
(9,273 |
) |
|
|
(30,425 |
) |
|
|
(29,106 |
) |
|
Other |
|
|
(4,590 |
) |
|
|
(2,886 |
) |
|
|
(14,805 |
) |
|
|
(8,635 |
) |
|
Net cash used in financing activities |
|
|
(17,698 |
) |
|
|
(69,017 |
) |
|
|
(251,025 |
) |
|
|
(340,469 |
) |
| Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
|
101,785 |
|
|
|
234,840 |
|
|
|
(32,181 |
) |
|
|
(177,449 |
) |
| Cash, cash equivalents and
restricted cash, beginning of period |
|
|
308,995 |
|
|
|
290,872 |
|
|
|
442,961 |
|
|
|
703,161 |
|
| Cash, cash equivalents and
restricted cash, end of period |
|
$ |
410,780 |
|
|
$ |
525,712 |
|
|
$ |
410,780 |
|
|
$ |
525,712 |
|
|
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS(in
thousands)(unaudited) |
|
|
|
|
|
SEPTEMBER 30, 2024 |
|
DECEMBER 31, 2023 |
| Assets |
|
|
|
|
|
Cash, cash equivalents and short-term investments |
|
$ |
813,210 |
|
$ |
1,006,356 |
|
Accounts receivable |
|
|
212,420 |
|
|
117,292 |
|
Prepaid and other current assets |
|
|
128,106 |
|
|
43,976 |
|
Property & equipment and patents, net |
|
|
310,439 |
|
|
324,567 |
|
Other long-term assets, net |
|
|
261,175 |
|
|
278,623 |
| Total assets |
|
$ |
1,725,350 |
|
$ |
1,770,814 |
| Liabilities and
Shareholders' equity |
|
|
|
|
|
Current portion of long-term debt |
|
$ |
454,250 |
|
$ |
578,752 |
|
Current deferred revenue |
|
|
156,885 |
|
|
153,597 |
|
Other current liabilities |
|
|
100,636 |
|
|
148,779 |
|
Long-term deferred revenue |
|
|
216,665 |
|
|
223,866 |
|
Long-term debt & other long-term liabilities |
|
|
74,377 |
|
|
84,271 |
| Total liabilities |
|
|
1,002,813 |
|
|
1,189,265 |
| Total shareholders'
equity |
|
|
722,537 |
|
|
581,549 |
| Total liabilities and
shareholders' equity |
|
$ |
1,725,350 |
|
$ |
1,770,814 |
| |
RECONCILIATION OF NON-GAAP
MEASURES
The following tables present InterDigital's GAAP financial
measures reconciled to the non-GAAP financial measures included in
this release for the third quarter and year-to-date periods ended
September 30, 2024 and 2023:
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
(in thousands) |
|
(in thousands) |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income
attributable to InterDigital, Inc. |
|
$ |
34,190 |
|
|
$ |
47,941 |
|
|
$ |
225,506 |
|
|
$ |
174,983 |
|
|
Net loss attributable to non-controlling interest |
|
|
— |
|
|
|
(787 |
) |
|
|
— |
|
|
|
(3,016 |
) |
|
Income tax provision |
|
|
7,025 |
|
|
|
8,541 |
|
|
|
50,877 |
|
|
|
29,715 |
|
|
Other income, net & interest expense |
|
|
(1,873 |
) |
|
|
(2,042 |
) |
|
|
603 |
|
|
|
(5,392 |
) |
|
Depreciation and amortization |
|
|
17,549 |
|
|
|
19,527 |
|
|
|
52,165 |
|
|
|
58,698 |
|
|
Share-based compensation |
|
|
9,081 |
|
|
|
10,335 |
|
|
|
28,122 |
|
|
|
26,865 |
|
|
Other items (a) |
|
|
(1,161 |
) |
|
|
— |
|
|
|
(4,361 |
) |
|
|
10,037 |
|
| Adjusted
EBITDA 2 |
|
$ |
64,811 |
|
|
$ |
83,515 |
|
|
$ |
352,912 |
|
|
$ |
291,890 |
|
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
|
(in thousands, except for per share data) |
|
(in thousands, except for per share data) |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net income
attributable to InterDigital, Inc. |
|
$ |
34,190 |
|
|
$ |
47,941 |
|
|
$ |
225,506 |
|
|
$ |
174,983 |
|
|
Share-based compensation |
|
|
9,081 |
|
|
|
10,335 |
|
|
|
28,122 |
|
|
|
26,865 |
|
|
Acquisition related amortization |
|
|
8,282 |
|
|
|
10,262 |
|
|
|
25,027 |
|
|
|
30,792 |
|
|
Other operating items (a) |
|
|
(1,161 |
) |
|
|
— |
|
|
|
(4,361 |
) |
|
|
10,037 |
|
|
Other non-operating items (b) |
|
|
(262 |
) |
|
|
(6,112 |
) |
|
|
(1,788 |
) |
|
|
(9,370 |
) |
|
Related income tax and noncontrolling interest effect of above
items |
|
|
(3,347 |
) |
|
|
(3,042 |
) |
|
|
(9,870 |
) |
|
|
(13,498 |
) |
|
Adjustments to income taxes |
|
|
(1,861 |
) |
|
|
(1,706 |
) |
|
|
(4,270 |
) |
|
|
(2,884 |
) |
| Non-GAAP net
income 3 |
|
$ |
44,922 |
|
|
$ |
57,678 |
|
|
$ |
258,366 |
|
|
$ |
216,925 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average
dilutive shares - GAAP |
|
|
30,034 |
|
|
|
27,812 |
|
|
|
28,759 |
|
|
|
28,261 |
|
|
Less: Dilutive impact of the Convertible Notes |
|
|
2,439 |
|
|
|
743 |
|
|
|
2,084 |
|
|
|
333 |
|
| Weighted average
dilutive shares - Non-GAAP 3 |
|
|
27,595 |
|
|
|
27,069 |
|
|
|
26,675 |
|
|
|
27,928 |
|
| |
|
|
|
|
|
|
|
|
| Diluted EPS
1 |
|
$ |
1.14 |
|
|
$ |
1.72 |
|
|
$ |
7.84 |
|
|
$ |
6.19 |
|
| Non-GAAP EPS
3 |
|
$ |
1.63 |
|
|
$ |
2.13 |
|
|
$ |
9.69 |
|
|
$ |
7.77 |
|
| |
| (a)
Other items in the above tables include one-time
contra-expenses of $1.2 million and $4.4 million related to
litigation fee reimbursements during the three and nine months
ended September 30, 2024, respectively. The nine months ended
September 30, 2023 includes $7.5 million of one-time charges
for net litigation fee reimbursements and a $2.5 million
one-time impairment on our patents held for sale. |
| (b)
Other non-operating items includes net (gains) or losses from
observable price changes of our long-term strategic
investments. |
| |
The following tables present a reconciliation between GAAP and
non-GAAP versions of the estimated financial measures for the
fourth quarter of fiscal 2024 and full year fiscal 2024 included in
this release:
| |
|
Outlook |
| |
|
(in millions) |
| |
|
|
|
Full Year 2024 |
|
|
|
Q4 2024 |
|
Current |
|
Prior |
| Net income
attributable to InterDigital, Inc. |
|
$118 - $126 |
|
$343 - $351 |
|
$205 - $238 |
|
Income tax provision |
|
24 - 26 |
|
75 - 77 |
|
55 - 60 |
|
Other income, net & interest expense |
|
1 |
|
2 |
|
7 |
|
Depreciation and amortization |
|
18 |
|
70 |
|
73 |
|
Share-based compensation |
|
19 |
|
47 |
|
42 |
|
Other items (a) |
|
— |
|
(4) |
|
(4) |
| Adjusted
EBITDA 2 |
|
$180 - $190 |
|
$533 - $543 |
|
$378 - $416 |
| |
|
Outlook |
| |
|
(in millions, except for per share data) |
| |
|
|
|
Full Year |
|
|
|
Q4 2024 |
|
Current |
|
Prior |
| Net income
attributable to InterDigital, Inc. |
|
$118 - $126 |
|
$343 - $351 |
|
$205 - $238 |
|
Share-based compensation |
|
19 |
|
47 |
|
42 |
|
Acquisition related amortization |
|
33 |
|
33 |
|
33 |
|
Other operating items (a) |
|
— |
|
(4) |
|
(4) |
|
Other non-operating items (b) |
|
(2) |
|
(2) |
|
(2) |
|
Related income tax and noncontrolling interest effect of above
items |
|
(11) |
|
(16) |
|
(14) |
|
Adjustments to income taxes |
|
(2) |
|
(2) |
|
(2) |
| Non-GAAP net
income 3 |
|
$155 - $163 |
|
$399 - $407 |
|
$258 - $291 |
| |
|
|
|
|
|
|
| Weighted average
dilutive shares - GAAP |
|
31.6 |
|
29.5 |
|
28.6 |
|
Less: Dilutive impact of the Convertible Notes |
|
3.0 |
|
2.3 |
|
2.0 |
| Weighted average
dilutive shares - Non-GAAP 3 |
|
28.6 |
|
27.2 |
|
26.6 |
| |
|
|
|
|
|
|
| Diluted EPS
1 |
|
$3.72 - $3.98 |
|
$11.63 - $11.90 |
|
$7.17 - $8.32 |
| Non-GAAP EPS
3 |
|
$5.42 - $5.70 |
|
$14.69 - $14.99 |
|
$9.70 - $10.95 |
| |
| (a)
Other items in the above tables includes contra-expenses
related to a litigation fee reimbursement. |
| (b)
Other non-operating items includes net (gains) or losses from
observable price changes of our long-term strategic
investments. |
| |
|
|
CONTACT: |
InterDigital, Inc. |
| |
|
Email:
investor.relations@interdigital.com |
| |
|
+1 (302) 300-1857 |
InterDigital (NASDAQ:IDCC)
Historical Stock Chart
From Nov 2024 to Dec 2024
InterDigital (NASDAQ:IDCC)
Historical Stock Chart
From Dec 2023 to Dec 2024
