InterDigital Wins Award in Arbitration on Royalties; Says Sees Q3 Sales $55-56M vs $50M Est.
InterDigital, Inc. (Nasdaq: IDCC), a wireless research and development company, today announced that it expects its total third quarter 2013 revenue to be between $55 million and $56 million. The revenue guidance for third quarter 2013 includes $43 million to $44 million of current revenue, as well as approximately $12 million of past sales revenue, primarily relating to past sales by Pegatron of certain products between July 1, 2012 and March 31, 2013, the royalties for which were covered by an arbitration award announced at the end of April.
The company further announced that it had received an award in an arbitration involving royalties due under one of its technology solutions agreements. The panel determined that InterDigital was entitled to the royalties sought by the company under the arbitration at the rates specified in the technology license agreement. The licensee under the agreement had paid the disputed amounts under protest and, as of June 30, 2013, the total deferred revenue balance was approximately $52.6 million as reported in the company's quarterly report on Form 10-Q for the period ended June 30, 2013. The company is reviewing the award and working through the related revenue recognition with its independent auditors.
The revenue guidance includes recognition of revenue for royalty reports received to date, but does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any amounts related to the most recent arbitration decision discussed above or to any other arbitration or dispute resolutions that may occur, during the balance of third quarter 2013.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.