InterDigital (NASDAQ: IDCC) reported Q3 EPS of $0.07, $0.26 better than the analyst estimate of ($0.19). Revenue for the quarter came in at $72.1 million versus the consensus estimate of $72.82 million.

Third Quarter 2019 Financial Highlights

• Third quarter 2019 recurring revenue was $72.1 million, compared to recurring revenue of $75.0 million in third quarter 2018. This decrease was driven by lower royalties from one of our Taiwanese licensees.
• Third quarter 2019 operating expenses were $68.7 million, compared to $62.2 million in third quarter 2018. The increase was primarily driven by $15.8 million in costs related to the acquisition of Technicolor SA's (Euronext Paris:TCH) (OTCQX:TCLRY) patent licensing business and Research and Innovation (R&I) research and development organization. Of those, $6.2 million were either transaction, integration or amortization expenses.
• Third quarter 2019 net income1 was $2.2 million, or $0.07 per diluted share compared to net income1 of $21.8 million, or $0.61 per diluted share, in third quarter 2018.

“In third quarter we were successful at holding expenses below our expectations, and we remain completely on track to bring our expenses to the levels we saw prior to the acquisition of the Technicolor licensing business and the expansion of our R&D footprint,” said William J. Merritt, President and CEO of InterDigital. “Those efforts came together with redoubled licensing efforts that resulted in new successes in fourth quarter, highlighting the strength and operating leverage of our business model.”

For earnings history and earnings-related data on InterDigital (IDCC) click here.