InterDigital Issues Guidance for Fourth Quarter 2020

Rhea-AI Summary

InterDigital (NASDAQ:IDCC) announced fourth quarter 2020 revenue guidance of $84 million to $88 million. This estimate includes revenues from two small license agreements and $1 million to $2 million in non-recurring revenue. The forecast does not account for potential new patent licenses or disputes that may arise. CFO Richard Brezski emphasized the company's resilience and double-digit revenue growth amid challenging market conditions.

Positive

• Expected revenue for Q4 2020 between $84 million and $88 million.
• Includes revenue from two small license agreements.
• Projected for double-digit revenue growth in 2020.

Negative

• Revenue guidance does not include potential impacts from new agreements.
• Potential risks from litigation and arbitration proceedings.

WILMINGTON, Del., Dec. 16, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today provided revenue guidance for fourth quarter 2020.

The company expects total fourth quarter 2020 revenue to be between $84 million and $88 million, which includes revenues from two small license agreements signed since the beginning of the quarter, and approximately $1 million to $2 million in non-recurring revenue. 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 fourth quarter 2020.

“The guidance underscores our strong performance in 2020, putting us on track for double-digit revenue growth despite a very challenging environment in all markets worldwide,” said Richard Brezski, Chief Financial Officer.

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 fourth quarter 2020 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 fourth quarter 2020 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 fourth quarter 2020; (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 Q4 2020?

InterDigital expects fourth quarter 2020 revenue to be between $84 million and $88 million.

What factors are excluded from InterDigital's Q4 2020 revenue guidance?

The guidance does not include potential impacts from new patent licenses or technology agreements.

Who is the CFO of InterDigital?

Richard Brezski is the Chief Financial Officer of InterDigital.

What does InterDigital's revenue guidance indicate about its performance?

The revenue guidance suggests InterDigital is on track for double-digit revenue growth despite market challenges.

What are the risks mentioned in InterDigital's press release?

Risks include outcomes of litigation, arbitration, and potential delays in revenue from licensees.