InterDigital Issues Updated Revenue Guidance for Fourth Quarter 2016
16 December 2016 - 12:50AM
InterDigital, Inc. (NASDAQ:IDCC), a mobile technology research and
development company, today announced that it has updated its
expectations for total fourth quarter 2016 revenue to be between
$258 million and $268 million.
“After the expiration later this month of certain module license
agreements that overlap with the target markets of the Avanci IoT
licensing platform, we see our annual royalty platform as being in
the range of $360 million to $380 million,” said Richard J.
Brezski, CFO of InterDigital. “In addition to revenue guidance, we
expect a sequential increase in operating expenses over third
quarter 2016 of between $14 million and $16 million, approximately
$11 million of which is related to adjustments to compensation
accrual rates reflecting strong company financial performance. We
do not believe these increased expenses reflect structural changes
that will impact our long-term view of operating expenses.”
“Our focus during 2016 was to balance revenue growth with
long-term revenue stability. Having long-term agreements now in
place with the top three terminal unit manufacturers, we’ve
achieved that goal,” commented William J. Merritt, President and
CEO of InterDigital. “With that strong and stable platform in
place, we’re well-positioned to drive towards our goals of $500
million to $600 million in annual recurring revenue from our core
terminal unit licensing business and $75 million to $100 million
from our IoT business.”
These updated revenue expectations are based on preliminary
accounting results that are subject to review and
finalization. In addition, this revenue guidance is based
primarily on royalty reports received and license agreements signed
to date, and does not include the potential impact of any new
agreements that may be signed, or any arbitration or dispute
resolutions that may occur, during the balance of fourth quarter
2016.
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 beliefs, plans and expectations, including,
without limitation, our expectations with respect to fourth quarter
2016 total revenue and fourth quarter 2016 operating expenses, our
belief that the expected sequential increase operating expenses
does not reflect structural changes that will impact our long-term
view of operating expenses and our current beliefs with respect to
our royalty platform and revenue goals. Words such as "expects,"
"projects," “believes,” "forecast, "goal” 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
timing of entry into additional patent license, patent sales or
technology solutions agreements; (ii) the accuracy of market sales
projections of the company's licensees and timely receipt and final
reviews of quarterly royalty reports from the company's licensees
and related matters; (iii) amounts of royalties payable following
routine audits, if any, and the timely receipt of such amounts
during fourth quarter 2016; (iv) changes in the market share and
sales performance of our primary licensees, delays in product
shipments of our licensees, delays in payments from our licensees
and related matters; (v) unanticipated operating expenses; (vi) the
impact of final accounting treatment; (vii) delays or difficulties
relating to the growth of our IoT business; (viii) the timing and
outcome of the company's litigation and arbitration proceedings and
the payment of any related awards; and (ix) new developments in the
company’s litigation or arbitration proceedings. 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 Wille
Email: patrick.vandewille@interdigital.com
+1 (858) 210-4814
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