WILMINGTON, Del., Aug. 22, 2013 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq:IDCC), a wireless research and development company, today announced that it expects its total third quarter 2013 revenue to be between $55 million and $56 million. The revenue guidance for third quarter 2013 includes $43 million to $44 million of current revenue, as well as approximately $12 million of past sales revenue, primarily relating to past sales by Pegatron of certain products between July 1, 2012 and March 31, 2013, the royalties for which were covered by an arbitration award announced at the end of April.
The company further announced that it had received an award in an arbitration involving royalties due under one of its technology solutions agreements. The panel determined that InterDigital was entitled to the royalties sought by the company under the arbitration at the rates specified in the technology license agreement. The licensee under the agreement had paid the disputed amounts under protest and, as of June 30, 2013, the total deferred revenue balance was approximately $52.6 million as reported in the company's quarterly report on Form 10-Q for the period ended June 30, 2013. The company is reviewing the award and working through the related revenue recognition with its independent auditors.
The revenue guidance includes recognition of revenue for royalty reports received to date, but does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any amounts related to the most recent arbitration decision discussed above or to any other arbitration or dispute resolutions that may occur, during the balance of third quarter 2013.
InterDigital develops fundamental 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 third quarter 2013 revenue. Words such as "expects," "projects," "forecasted," 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 third quarter 2013; (iv) the timing and outcome of the company's litigation and arbitration proceedings and the payment of any related awards; and (v) the final accounting treatment of the recent arbitration award. 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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