InterDigital Boosts Q4 Revenue Guidance Above Consensus; Wins Court Ruling Against Lenovo

  • InterDigital, Inc IDCC shared preliminary financial results for the quarter that ended December 31, 2022.
  • IDCC expects fourth-quarter total revenue of approximately $114 million, up from the prior expectation of $98 million - $102 million (consensus $102.6 million), driven primarily by new agreements signed in the second half of the quarter.
  • The company expects operating expenses of approximately $79 million, versus the prior expectation of $76 million - $79 million.
  • IDCC expects net non-operating income of approximately $1 million, driven by higher interest income and foreign currency gains.
  • Net income will likely be approximately $28 million, or $0.93 per share (consensus $0.57).
  • Adjusted EBITDA will likely be approximately $60 million.
  • Cash and cash equivalents, restricted cash, and short-term investments will likely be $1.2 billion as of December 31, 2022.
  • IDCC also won another critical decision from a U.K. court in the company's litigation against Lenovo Group Ltd LNVGF LNVGY
  • The court upheld the lower court decision, confirming that Lenovo infringed a valid and essential InterDigital cellular patent.
  • In July 2021, the U.K. High Court ruled that the patent-in-suit is valid, infringed, and essential to the 4G LTE standard. 
  • Price Action: IDCC shares traded higher by 5.23% at $62.41 in the premarket on the last check Thursday.
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