Patent Sale Marks Milestone in Broader Patent Monetization Strategy
"We announced at the start of the year that InterDigital would seek to
broaden our strategies to monetize our patent portfolio through sales,
licensing partnerships and other means, and the transaction with
Consistent with prior stock repurchase authorizations, InterDigital may purchase stock from time to time through open market purchases, pre-arranged trading plans or privately-negotiated transactions. The amount and timing of the repurchases will be based on a variety of factors, including general business and market conditions, the availability of an open trading window, cash requirements, strategic investment opportunities, the timing of the signing of any new license agreements as well as the timing of any additional sale agreements related to the company's patent assets.
The accounting for the patent sale transaction is still being finalized.
However, the company expects that a significant portion of the gross
proceeds from the transaction will be recognized as revenue in the
period in which the transaction closes, which is anticipated to be the
third quarter of 2012. In addition, the company expects to record a
related charge of approximately
In connection with the
Additionally, the company confirmed today its revenue guidance for the
second quarter of 2012 of approximately $71 million, which includes
approximately $9 million for the sale of four patent families in a
separate transaction, as disclosed in the company's
Investor Conference Call
InterDigital will host a conference call on
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
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 InterDigital's
current beliefs, plans and expectations, including, without limitation,
with respect to: (i) the completion, and expected timing of the
completion, of the
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: (i) the approval of the transaction by antitrust authorities and the satisfaction of other closing conditions; (ii) the final accounting and tax treatment of the transaction proceeds; (iii) factors that could affect the manner, timing and amount of share repurchases, including the factors listed above; (iv) unanticipated technical or resource difficulties or delays related to further development of our technologies; (v) our ability to leverage or enter into new customer agreements, strategic relationships or complementary investment opportunities on acceptable terms; (vi) our ability to enter into additional patent license agreements on expected terms, if at all; (vii) our ability to enter into sales and/or licensing partnering arrangements for non-core portions of our patent assets; (viii) whether we have sufficient financial assets and/or cash flows; (ix) unfavorable outcomes in patent disputes and the expense of defending our intellectual property rights; (x) changes in accounting rules related to revenue recognition; (xi) changes or inaccuracies in market projections; (xii) the accuracy of market sales projections of the company's licensees and timely receipt and final reviews of quarterly royalty reports from the company's licensees and related matters; (xiii) amounts of royalties payable following routine audits, if any, and the timely receipt of such amounts during second quarter 2012; and (xiv) the timing of and proceeds from the sale of any portions of our patent portfolio. 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.
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: www.interdigital.com.
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