InterDigital (IDCC) Revises Q2 Revenue Outlook

InterDigital, Inc. (Nasdaq: IDCC) 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.

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