InterDigital (NASDAQ: IDCC) reported Q3 EPS of $0.76, $0.63 better than the analyst estimate of $0.13. Revenue for the quarter came in at $87.5 million versus the consensus estimate of $85.49 million.

Third Quarter 2020 Financial Highlights

• Third quarter 2020 recurring revenue was $87.0 million, compared to recurring revenue of $72.1 million in third quarter 2019, a 21% year-over-year increase. This increase was driven by eight new patent license agreements signed over the last twelve months, including Huawei and ZTE. Third quarter 2020 total revenue was $87.5 million, compared to $72.5 million in third quarter 2019.

• Third quarter 2020 operating expenses were $72.1 million, compared to $68.7 million in third quarter 2019 and $0.5 million lower than in second quarter 2020.
• Third quarter 2020 operating income was $15.4 million, compared to $3.8 million in third quarter 2019.
• Third quarter 2020 tax provision includes discrete benefits of $18.5 million, which primarily relates to the expected amendment of a prior year tax return and the reversal of a tax reserve.

• Third quarter 2020 net income1 was $23.8 million, or $0.76 per diluted share, compared to net income of $2.2 million, or $0.07 per diluted share, in third quarter 2019.

“While continuing to prioritize the safety of our employees, we’ve also executed effectively this quarter, driving strong results and highlighting the resilience of our recession resistant business,” noted William J. Merritt, President and CEO of InterDigital. “Our performance reflects the incredible operating leverage in our model, which saw a 21% increase in recurring revenue drive a fourfold increase in year-over-year operating income. Going forward, we remain focused on pursuing agreements with remaining unlicensed handset companies and expanding our consumer electronics licensing business.”

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