WILMINGTON, Del., June 3, 2014 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq:IDCC), a wireless research and development company, today announced that it has updated its expectations for total second quarter 2014 revenue to be between $172 million and $210 million.
"We expect second quarter recurring revenues to be in the range of $72 million to $80 million, and past sales of $100 million to $130 million," noted Richard J. Brezski, Chief Financial Officer, InterDigital. "Our current level of recurring revenues provides a foundation to drive strong financial performance and free cash flow for the foreseeable future. Moreover, with roughly half of the market under license, we believe there is ample opportunity to continue to add to our recurring revenue base while adding little variable cost."
These updated expectations are based on preliminary accounting results that are subject to review and finalization and they do not include any contribution from the arbitration award the company received in May related to its agreement with Arima. The company will recognize any revenue related to the Arima arbitration award when all criteria for revenue recognition have been met.
This revenue guidance is based on royalty reports received and license agreements signed to date, and does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any other arbitration or dispute resolutions that may occur, during the balance of second quarter 2014.
InterDigital develops wireless technologies that are at the core of mobile 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.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
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 expectations with respect to the company's second quarter 2014 revenue and future financial performance and free cash flow. Words such as "expects," "projects," "forecast," "believe" 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 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 second quarter 2014; (iv) the impact of final accounting treatment; (v) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (vi) our ability to leverage our strategic relationships and secure new patent license agreements on acceptable terms; (vii) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such legal proceedings; (viii) changes or inaccuracies in market projections; and (ix) changes in the company's business strategy.
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.
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