InterDigital's (IDCC) Updated Q4 Revenue Guidance Tops Views

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.

(Street sees Q4 revenue of $99.6 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.

You May Also Be Interested In

• Orgenesis (ORGS) Issues Year End Business Update
• Mawson Infrastructure Group (MIGI) Appoints Ryan Costello as Board Chair
• Ingredion (INGR) Appoints Michael Leonard as Chief Innovation Officer