WILMINGTON, Del., Dec. 15, 2016 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile technology research and development company, today announced that it has updated its expectations for total fourth quarter 2016 revenue to be between $258 million and $268 million.
“After the expiration later this month of certain module license agreements that overlap with the target markets of the Avanci IoT licensing platform, we see our annual royalty platform as being in the range of $360 million to $380 million,” said Richard J. Brezski, CFO of InterDigital. “In addition to revenue guidance, we expect a sequential increase in operating expenses over third quarter 2016 of between $14 million and $16 million, approximately $11 million of which is related to adjustments to compensation accrual rates reflecting strong company financial performance. We do not believe these increased expenses reflect structural changes that will impact our long-term view of operating expenses.”
“Our focus during 2016 was to balance revenue growth with long-term revenue stability. Having long-term agreements now in place with the top three terminal unit manufacturers, we’ve achieved that goal,” commented William J. Merritt, President and CEO of InterDigital. “With that strong and stable platform in place, we’re well-positioned to drive towards our goals of $500 million to $600 million in annual recurring revenue from our core terminal unit licensing business and $75 million to $100 million from our IoT business.”
These updated revenue expectations are based on preliminary accounting results that are subject to review and finalization. In addition, this revenue guidance is based primarily on royalty reports received and license agreements signed to date, and does not include the potential impact of any new agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of fourth quarter 2016.
About InterDigital®
InterDigital develops mobile technologies that are at the core of 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. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400® index.
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 the company’s current beliefs, plans and expectations, including, without limitation, our expectations with respect to fourth quarter 2016 total revenue and fourth quarter 2016 operating expenses, our belief that the expected sequential increase operating expenses does not reflect structural changes that will impact our long-term view of operating expenses and our current beliefs with respect to our royalty platform and revenue goals. Words such as "expects," "projects," “believes,” "forecast, "goal” and variations of such words or similar expressions are intended to identify such forward-looking statements.
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, but not limited to: (i) the timing of entry into additional patent license, patent sales or technology solutions agreements; (ii) 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; (iii) amounts of royalties payable following routine audits, if any, and the timely receipt of such amounts during fourth quarter 2016; (iv) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees, delays in payments from our licensees and related matters; (v) unanticipated operating expenses; (vi) the impact of final accounting treatment; (vii) delays or difficulties relating to the growth of our IoT business; (viii) the timing and outcome of the company's litigation and arbitration proceedings and the payment of any related awards; and (ix) new developments in the company’s litigation or arbitration proceedings. 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 is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.