InterDigital Issues Guidance for First Quarter 2021

Rhea-AI Summary

InterDigital (NASDAQ:IDCC) announced its revenue guidance for Q1 2021, projecting total revenue between $77 million and $81 million. This forecast reflects a growth from $76.2 million in Q1 2020, attributed to an expanded licensing program. The guidance excludes new potential patents or technology licensing agreements that may impact results. CFO Richard J. Brezski highlighted the benefits of a diverse licensing strategy. The release also contains forward-looking statements subject to uncertainties, including market projections and potential COVID-19 effects.

Positive

• Projected revenue for Q1 2021 between $77 million and $81 million.
• Expected growth from $76.2 million in Q1 2020, indicating strong performance.
• Benefits noted from a broader and more diverse licensing program.

Negative

• Revenue guidance does not include potential new patent licenses or agreements.
• Risks associated with market projections and potential delays in payments from licensees.

WILMINGTON, Del., March 18, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today provided revenue guidance for first quarter 2021. 

The company expects first quarter 2021 total revenue to be between $77 million and $81 million, which includes revenue from one Consumer Electronics license agreement signed during the quarter.

Richard J. Brezski, Chief Financial Officer, InterDigital noted, “We expect our revenue this quarter to exceed our first quarter 2020 revenue of $76.2 million, which highlights the benefits of having a broader and more diverse licensing program.” 

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 first quarter 2021. 

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 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 first quarter 2021 revenue. Words such as “expects,” “projects,” “forecasts,” “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 first quarter 2021 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 first quarter 2021; (iv) the timing, expenses, and outcome of the company’s litigation and arbitration proceedings and the timely receipt of any related awards; (v) new developments in the company’s litigation or arbitration proceedings; (vi) changes in our interpretations of, and assumptions and calculations with respect to the impact on the company of, the Tax Reform Act, as well as further guidance that may be issued regarding the Tax Reform Act; and (vii) the potential effects that the ongoing COVID-19 pandemic could have on our financial position, results of operations and cash flows. 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:
Tiziana Figliolia
Email: tiziana.figliolia@interdigital.com
+1 (302) 300-1857

FAQ

What is InterDigital's revenue guidance for Q1 2021?

InterDigital projects total revenue between $77 million and $81 million for Q1 2021.

How does the Q1 2021 revenue guidance compare to Q1 2020?

The projected revenue for Q1 2021 is higher than the $76.2 million reported in Q1 2020.

What factors could affect InterDigital's Q1 2021 revenue?

The guidance does not include the impact of new patent licenses or potential disputes, which could materially affect actual revenue.

Who is the CFO of InterDigital?

The CFO of InterDigital is Richard J. Brezski.

What risks does InterDigital face according to the press release?

Risks include uncertainties in market projections, delays in licensee payments, and impacts from the COVID-19 pandemic.