Company Signs Five New or Expanded License Agreements Year-to-Date, all Covering LTE Technologies
Highlights for first quarter 2012:
"We also maintain our belief in the adoption of the technologies that we
have developed over the last five years," continued Merritt. "At the
First Quarter 2012 Summary
Revenue in first quarter 2012 totaled
The company's first quarter 2012 net income was
First quarter 2012 operating expenses were
First quarter 2012 net other expense of
The company's first quarter 2012 effective tax rate was approximately 34 percent, compared to 36 percent for first quarter 2011. The decrease in the effective tax rate was primarily driven by recognition of a tax benefit in first quarter 2012 and non-deductible investment impairment charges recognized in first quarter 2011.
In first quarter 2012, the company used
"We are pleased with the momentum of our licensing program and expect
positive revenue contributions from our five recently signed agreements
and any new agreements moving forward," commented
Conference Call Information
InterDigital® will host a conference call on
For telephone access to the conference, call (888) 802-2225 within the
U.S. or (913) 312-1254 from outside the U.S. Please call by
An Internet replay of the conference call will be available on
InterDigital's web site in the Investor Relations section. In addition,
a telephone replay will be available from
About InterDigital
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.
InterDigital is a registered trademark of
For more information, visit the InterDigital website: www.interdigital.com.
Forward-Looking Statements
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
beliefs, plans and expectations, including, without limitation: (i) our
plans to continue to drive our licensing pipeline and press forward with
our ITC litigation against Nokia, LG, Huawei and ZTE; (ii) our continued
confidence in our ability to grow our revenue consistent with our
strategic plan, based on the strength of our patent portfolio and
licensing program; (iii) our continued belief in the adoption of the
technologies that we have developed over the last five years; (iv) our
belief that the close alignment of our vision of a network of networks
with the industry's vision at
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, without limitation, those identified in this press release, as well as the following: (i) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (ii) our ability to leverage our strategic relationships and secure new patent license agreements on acceptable terms; (iii) our ability to enter into sales and/or licensing partnering arrangements for certain of our patent assets; (iv) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees and timely receipt and final reviews of quarterly royalty reports from our licensees and related matters; (v) the failure of the markets for our technologies to materialize to the extent or at the rate that we expect; (vi) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such legal proceedings; and (vii) changes or inaccuracies in market projections. 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.
Footnotes
1Free cash flow is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company's ability to invest in its business, make strategic acquisitions and fund share repurchases, among other things. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period. InterDigital defines "free cash flow" as net cash provided by operating activities less purchases of property and equipment, technology licenses and investments in patents. InterDigital's computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). A detailed reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP financial measure, is provided at the end of this press release.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
|
(dollars in thousands except per share data) |
||||||||
|
(unaudited) |
||||||||
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| REVENUES: | ||||||||
| Per-unit royalty revenue | $ | 34,446 | $ | 39,450 | ||||
| Fixed fee amortized royalty revenue | 33,681 | 35,201 | ||||||
| Past sales | 455 | 2,311 | ||||||
| Technology solutions revenue | 723 | 1,496 | ||||||
| Total Revenue | 69,305 | 78,458 | ||||||
| OPERATING EXPENSES: | ||||||||
| Patent administration and licensing | 23,228 | 15,948 | ||||||
| Development | 17,489 | 17,424 | ||||||
| Selling, general and administrative | 9,183 | 7,780 | ||||||
| 49,900 | 41,152 | |||||||
| Income from operations | 19,405 | 37,306 | ||||||
| OTHER EXPENSE | (2,734 | ) | (942 | ) | ||||
| Income before income taxes | 16,671 | 36,364 | ||||||
| INCOME TAX PROVISION | (5,741 | ) | (13,025 | ) | ||||
| NET INCOME | $ | 10,930 | $ | 23,339 | ||||
|
NET INCOME PER COMMON SHARE — |
$ | 0.24 | $ | 0.52 | ||||
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — |
45,401 | 45,306 | ||||||
| NET INCOME PER COMMON SHARE — DILUTED | $ | 0.24 | $ | 0.51 | ||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — DILUTED | 45,946 | 45,872 | ||||||
| CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.10 | $ | 0.10 | ||||
|
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(dollars in thousands) |
||||||||
|
(unaudited) |
||||||||
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Net Income before income taxes | $ | 16,671 | $ | 36,364 | ||||
| Taxes paid | (906 | ) | (3,048 | ) | ||||
| Non-cash expenses | 10,084 | 8,819 | ||||||
| Increase in deferred revenue | 17,718 | 17,338 | ||||||
| Deferred revenue recognized | (56,865 | ) | (61,610 | ) | ||||
| (Decrease) in operating working capital, deferred charges and other | (12,407 | ) | (3,070 | ) | ||||
| Capital spending and patent additions | (9,158 | ) | (7,602 | ) | ||||
|
FREE |
(34,863 | ) | (12,809 | ) | ||||
| Tax benefit from share-based compensation | 1,468 | 564 | ||||||
| Payments on long-term debt, including capital leases | (77 | ) | (46 | ) | ||||
| Dividends paid | (4,570 | ) | (4,526 | ) | ||||
| Share repurchases | (25,325 | ) | — | |||||
| Net proceeds from exercise of stock options | 240 | 2,612 | ||||||
| Unrealized gain/(loss) on short-term investments | 1,135 | (23 | ) | |||||
| NET (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS | $ | (61,992 | ) | $ | (14,228 | ) | ||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(dollars in thousands) |
|||||||
|
(unaudited) |
|||||||
|
|
December 31, | ||||||
| 2012 | 2011 | ||||||
| ASSETS | |||||||
| Cash & short-term investments | $ | 616,002 | $ | 677,994 | |||
| Accounts receivable (net) | 31,029 | 28,079 | |||||
| Current deferred tax assets | 52,573 | 53,990 | |||||
| Other current assets | 6,239 | 8,824 | |||||
| Property & equipment and patents (net) | 147,474 | 145,960 | |||||
| Other long-term assets (net) | 79,100 | 82,121 | |||||
| TOTAL ASSETS | $ | 932,417 | $ | 996,968 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current portion of long-term debt | $ | 104 | $ | 180 | |||
| Accounts payable, accrued liabilities, taxes payable & dividends payable | 33,242 | 38,886 | |||||
| Current deferred revenue | 108,212 | 134,087 | |||||
| Long-term deferred revenue | 140,681 | 153,953 | |||||
| Long-term debt & other long-term liabilities | 196,906 | 198,180 | |||||
| TOTAL LIABILITIES | 479,145 | 525,286 | |||||
| SHAREHOLDERS' EQUITY | 453,272 | 471,682 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 932,417 | $ | 996,968 | |||
|
RECONCILIATION OF FREE CASH FLOW TO NET CASH |
|
USED IN OPERATING ACTIVITIES |
| In the summary consolidated statements of cash flows and throughout this release, the company refers to free cash flow. The table below presents a reconciliation of this non-GAAP financial measure to net cash used in operating activities, the most directly comparable GAAP financial measure. |
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| Net cash used in operating activities | $ | (25,705 | ) | $ | (5,207 | ) | ||
| Purchases of property, equipment, & technology licenses | (531 | ) | (931 | ) | ||||
| Patent additions | (8,627 | ) | (6,671 | ) | ||||
| Free cash flow | $ | (34,863 | ) | $ | (12,809 | ) | ||
Media Contact:
patrick.vandewille@interdigital.com
or
Investor
Contact:
janet.point@interdigital.com
Source:
News Provided by Acquire Media
