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Alan Stein
Vice President, Technology
Why Did Interdigital Join the Streaming Video Alliance?
InterDigital is involved in many industry alliances and standards bodies dedicated to the transition to streaming video, particularly focused on streaming over cellular wireless networks at scale. We believe our unique research expertise can contribute to the good work of SVTA in a few domains, specifically video compression, network streaming protocols, and energy reduction/sustainability.
What Do You Believe is the Biggest Technical Challenge Facing the Streaming Video Industry the Alliance Can Help Address?
We believe the streaming industry is suffering from the “launch codec” legacy device difficulty with H.264, as broadcast and cable experienced with MPEG-2 a few years ago. It is challenging to migrate to more efficient codecs, despite their dramatic increase in efficiency. In fact, VVC delivers a greater than 3:1 benefit when compared to H.264. We are also concerned with streaming’s relative energy consumption as compared to multicast-capable systems like ATSC 3.0. We believe a hybrid broadcast-broadband approach could mitigate some of the inefficiencies, which would be good for both the industry and the planet.
How Does an Organization Like the Streaming Video Alliance Bring Value to the Industry?
The streaming industry has grown quickly, often leaving gaps in authoritative voices to provide apples-to-apples comparisons of solutions. SVTA members intimately understand quality of experience and the challenges of scale, and this group can be industry’s leading voice, as supported by unbiased testing and reporting.
About
InterDigital develops mobile and video 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, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ.
Order ~Util - Set Deadlines
Document: 281
ORDER, Interdigital shall file its response to Defendants' Statement of Undisputed Material Facts In Support of their Motion for Summary Judgment (D.I. 214 ) on or before November 21, 2022. Should Interdigital seek to file its response under seal, it must file a motion to seal that complies with this Court's prior rulings( Notice of Compliance deadline set for 11/21/2022.). Signed by Judge Joshua D. Wolson on 11/17/2022. (apk)
New white paper examines the innovative solutions ushering the video entertainment industry towards a more sustainable future
11/14/2022 | 04:00am
WILMINGTON, Del., Nov. 14, 2022 (GLOBE NEWSWIRE) -- As the carbon footprint of the video entertainment industry has ballooned to exceed even that of the airline industry, an important question has been what will it take to make sustainability a key element of video content creation? A new whitepaper released today by InterDigital, Inc. (NASDAQ: IDCC) and written by Futuresource Consulting explores the reasons why the video entertainment industry must lead on positive climate action, set higher standards when it comes to energy efficiency, and integrate solutions that mitigate energy consumption across the end-to-end video chain.
The whitepaper, Sustainability in Video Entertainment, discusses how the content industry is embracing sustainable change by leveraging the supporting technologies and strategies that actively contribute to a more environmentally friendly production environment. Many within the industry have high hopes for developments including remote production; greater overall efficiency in the delivery of IP-based services; the rise of virtual production; cloud-based solutions; environmentally optimized outside broadcasting (OB) trucks; universally efficient data centers; and the manufacturing drive to make consumer products more efficient and authenticated through transparent energy certification.
“This paper comes at a moment when industry stakeholders are thinking about how they can get a handle on the industry’s carbon footprint, and in response, develop the solutions which are seriously needed to minimize the environmental impact of content creation, exchange, and delivery,” said Erik Reinhard, Distinguished Scientist, InterDigital. “It reflects the industry view that more needs to be done within the video entertainment sector to measure and address what it can to achieve more sustainable operations for the video content we all enjoy.”
The paper reveals:
The carbon footprint for production is immense: medium-sized films have an average carbon footprint of 769 metric tons of CO2e, with large films generating substantially more emissions, creating 1,081 metric tons per production
An average day of filming generates more than one person’s annual carbon footprint while an average hour filming is equivalent to the carbon footprint of a return flight from London to New York
Going cloud native saves energy: production services are highly virtualized and as a result, harness more energy efficient equipment than conventional on-premises set ups
Data centers worldwide are becoming more efficient: Power Usage Effectiveness (PUE) averages 1.5 today, but newer installations achieve far better performance
More than a billion hours of content is consumed on a single streaming platform every single day and as a consequence the video streaming industry’s annual carbon footprint now exceeds that of the airline industry
“The video industry is now laser-focused on increasing the sustainability of visual entertainment. From filming and content creation, through broadcast distribution and internet streaming, to consumer devices themselves, all elements of the delivery chain are actively improving efficiency,” says Simon Forrest, Principal Technology Analyst, Futuresource Consulting. “Yet there are continuous challenges: on current trajectories, global TV energy usage alone could increase 5% by 2026 as consumers upgrade to higher resolution screens and transition to 4K HDR video. So, there are clear opportunities for further innovation in video coding and delivery mechanisms to help mitigate this potential rise.”
The paper argues that energy-aware streaming protocols promise over 50% in energy savings per hour of content, and InterDigital is an active contributor with innovative solutions in this space. Investigating solutions and technologies to reduce the energy consumption of visual media, InterDigital’s Video Lab has developed critical energy-aware image processing methods, which can help reduce energy consumption without changing visual quality, alongside energy-aware activities in ITU (International Telecommunication Union), DVB (Digital Video Broadcasting), MPEG (Moving Picture Experts Group) and SMPTE (Society of Motion Picture and Television Engineers), as well as foundational support for new video codecs like VVC (Versatile Video Coding), which boasts a significant bitrate reduction and more efficient transmission of 4K UHD (Ultra High Definition) content.
To read the whitepaper, Sustainability in Video Entertainment, please click here.
About InterDigital ®
InterDigital develops mobile and video 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, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.InterDigital.com
InterDigital Contact:
Roya StephensEmail: Roya.Stephens@interdigital.com+1 (202) 349-1714
Source: InterDigital, Inc.
2022 GlobeNewswire, Inc. source Press Releases
Copyright 2022 © Acquiremedia
vegas....you bring up a good point about interest on the cash balances....many have been critical of idc's issuance of convertible debt....while at the same time holding substantial cash balances well in excess of the debt...we are now at the point where idc is experiencing "positive carry" on its debt...versus short term interest rates!!
November 15, 2022 00:00
Order ~Util - Terminate Motions
Document: 280
ORDER, The Parties Joint Motions to Seal (D.I. 242 , 262 ) are GRANTED IN PART and DENIED IN PART. The Parties are to make the approved proposed redactions on the record and unseal all documents on or before November 14, 2022. (SEE ORDER FOR FURTHER DETAILS) Signed by Judge Joshua D. Wolson on 11/15/2022. (apk)
November 15, 2022 00:00
Order ~Util - Terminate Motions ~Util - Set Deadlines
Document: 279
ORDER, Qualcomm's Motion to Intervene (D.I. 276 ) is GRANTED. The Motion for Reconsideration (D.I. 277 ) is GRANTED and the Court's previous Order (D.I. 268 ) is amended in accordance with this Order. The parties shall ensure all documents that the Court has addressed in rulings on motions to seal are redacted or undealed on the public docket on or before December 2, 2022. Signed by Judge Joshua D. Wolson on 11/15/2022. (apk)
Paullee, There is a potential time bomb for a SHORT sighted ML analyst. IDCC has about $900M cash and our CFO talked about $400M more coming in. If IDCC put $1.2 B in 1 year treasuries they could get about 5% ( I bot a couple hundred thousand worth last week at 4.85 %) that would be about $60M per year in interest which would translate to about $2 per share pretax. Add that to the $3.60 estimate for next year and a SHORT sighted ML analyst with a $50 target has a major problem.
Thanks my3sons87...eom
Monterey this is what the decision by the UK judge may be related to. It is good that we have the infringement finding already which is being appealed. The appeal will be heard next month.
“The first and second technical trials were completed, and on July 29, 2021, the UK High Court issued its decision regarding the first technical trial finding European Patent (UK) No. 2,485,558 valid, infringed, and essential to Release 8 of LTE. Lenovo is appealing this decision which will be heard on December 14-15, 2022 before the Court of Appeal.”
I found the above in the 10Q condensed notes in the IDCC filing for the 3rd quarter 2022.
Is it possible the UK court judge in the Lenovo case is holding the decision pending a ruling in the Delaware Lenovo/IDCC case? I expected a decision in the UK case by now.
Hopefully Interdigital will make this analyst look like a fool by over performing.
I moved all my money out of ML , after 35 years. I let them know why , they cared but couldn't do anything about it. I tried calling our analyst friend but he is to much of a coward to pick up the phone.
InterDigital Awarded Five Horizon Europe 6G Flagship Projects Targeting Revolutionary Technology Advancement and Experimental Infrastructures
Source: GlobeNewswire Inc.?
InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced that it has been awarded funding to support five Horizon Europe 6G Flagship research projects. Specifically, the five flagship projects include 6G-XR, CENTRIC, PREDICT-6G, 6G-BRICKS, and 6G-SHINE, each uniquely dedicated to enabling revolutionary technology advancement and experimental infrastructures in 6G.
InterDigital’s awarded flagship projects are part of a portfolio of 35 research, innovation, and trial projects curated by the EU’s Smart Networks and Services Joint Undertaking (SNS JU) to enable the evolution of 5G ecosystems and promote 6G research in Europe. Jointly led by the European Commission and 6G-IA industry association, the SNS JU is responsible for fostering European leadership and technology sovereignty in 6G while boosting 5G deployment across the European continent. The program has allocated upwards of €250 million to fund the portfolio of 6G flagship projects.
“We are honored to be awarded five Horizon Europe 6G flagship projects to help shape the 6G vision. Being selected for each of these unique projects will enable us to leverage our research heritage and expertise that will shape 6G development in Europe through the future,” said InterDigital’s Chief Technology Officer Rajesh Pankaj. “A competitive research environment helps drive our industry forward by pushing the limits of what is possible in the wireless technology landscape. These awards demonstrate InterDigital’s continuous contributions to the European wireless research and innovation ecosystem, as we build upon a strong record of engagement in the Horizon 2020 5G public-private partnership program.”
Of the 35 projects within the SNS JU Horizon Europe portfolio, those awarded to InterDigital are aimed at exploring novel technologies and system architectures to be adopted in commercial networks in the medium or long term, as well as developing EU-wide experimentation platforms that can serve as a sandbox to validate technical 6G enablers. More information on the projects can be found below.
CENTRIC project targets the development of radio access technologies towards fulfilling the ultimate vision of a 6G user centric Artificial Intelligence (AI) native air interface.
PREDICT-6G project focuses on laying the foundations of an AI-powered Digital Twin framework to predict the behavior of the end-to-end 6G network and using this framework to enhance the reliability and time sensitivity of the network.
6G-SHINE project in turn focuses on the design of short-range communication protocols that can meet the extreme bandwidth, latency and energy requirements emerging for 6G.
6G-XR project targets the development of an experimental research infrastructure to evaluate and validate the performance of key 6G candidate technologies, components, and architectures, with focus on enabling next generation Extended Reality (XR) services.
6G-BRICKS project focuses on setting up an experimental research facility to evaluate two key 6G candidate technologies, namely Reconfigurable Intelligent Surfaces (RIS) and cell-free massive multiple input multiple output (MIMO).
About InterDigital?®
InterDigital develops mobile and video 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, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
InterDigital?Contact:
Roya Stephens
Email:?Roya.Stephens@InterDigital.com
+1 (202) 349-1714
new ML report stays at underperform target 50
Solid results but revenues fall YoY due to
tough non-recurring comps; reit. U/P
Reiterate Rating: UNDERPERFORM| PO: 50.00 USD | Price: 48.32 USD
Solid 3Q, yet LT growth remains a concern
3Q revenues were down 20% YoY to $115mn, due to lower non-recurring revenues, yet
came in above Street’s $109mn. Gross and operating margins of 59%/28% also beat
Street’s 50%/22%, with opex levels benefiting from lower-than-expected litigation costs
and a strong USD, which also drove EPS of 74c to beat by 22c. Management provided
solid 4Q guidance for recurring revenues of $100mn, in-line with our estimates, and
opex of $77.5mn, which came in lower than our expectations by $2.2mn. Separately, we
model InterDigital’s FY22 recurring revenues from non-handsets, namely CE and
IoT/autos, at about $50mn, and note that management’s LT targets for consumer
electronics stand at $150mn. We remain cautious on the longer-term growth outlook
and the company’s ability to generate sustainable growth. We reiterate our
Underperform and $50 PO that is now based on 16x our new 2023E EPS (prior 15x).
Strength in smartphone recurring revenues drove topline
Revenues declined 20% YoY from tough comps due to the migration to recurring
revenues, as non-recurring revenues fell 73% YoY to only $14mn this quarter, vs. $51mn
in 3Q21, while recurring revenues increased 8% YoY to $101mn. Recurring revenues now
account for 88% of total revenues and the mix shift impact is therefore expected to
subside over time. Smartphones comprised the majority of recurring revenues, at 87%,
and grew 4% YoY. CE and IoT/Autos accounted for the remaining 13% and increased
60% YoY. Within the non-smartphone markets, Automotive was particularly strong in the
quarter, as Honda, Toyota, and Nissan all began utilizing InterDigital’s 3G and 4G
patents. Overall, management expects CE and IoT/autos to contribute about $100mn in
total FY22 revenues (recurring and non-recurring), which includes a 37% YoY increase
over the first three quarters of the year.
Samsung agreement expiration set for next quarter
InterDigital recently announced a new seven-year licensing agreement with Apple lasting
through 2029 (see our initial reaction here), which should carry ~$134mn in annual revs,
vs. the prior six-year deal at ~$111mn per annum. However, the ramp is not linear, with
Apple-related revenues expected to decline YoY in 2023, from ~$140mn in 2022, and
only ramp in outer years. We flag that InterDigital’s current licensing agreement with
Samsung, its second-largest customer, is set to expire next quarter, but the dealings
with Samsung are normally peaceful and the contract could be renewed before then.
InterDigital (NASDAQ:IDCC) has secured funding to support five Horizon Europe 6G Flagship research projects.
but no indication of $ amounts
Way out in left field here. Maybe Qualcomm is now having to use some of our technology and the payment is from them. We have plenty ex Qualcomm people at Interdigital.
I am sure Apple records it as a prepayment.
I believe Interdigital records a receivable for amounts due within one year, under their license agreements with a corresponding credit to deferred revenue. When Interdigital receives cash they credit accounts receivable. They recognize revenue every quarter out of deferred revenue, but I believe you know all this.
As I said before they tend to front load the cash into the early years of a license so they will build up a large deferred revenue amount.
I was a CPA in a prior life too, so what do I know.
that what one would call a prepayment :) but what do I know, I was only a CPA in a previous life.
but what is more interesting why is Qualcomm here
November 04, 2022 00:00
Declaration
Document: 278
DECLARATION re 277 MOTION for Reconsideration re 268 Order on Motion to Seal,,, Order on Motion to Seal Document,, (Qualcomm Inc.'s Unopposed Motion to Modify or Reconsider Sealing Order) (First Supplemental Declaration of Brett Bachtell) by Qualcomm, Inc.. (Keller, Karen)
November 04, 2022 00:00
Reconsideration
Document: 277
MOTION for Reconsideration re 268 Order on Motion to Seal,,, Order on Motion to Seal Document,, (Qualcomm Inc.'s Unopposed Motion to Modify or Reconsider Sealing Order) - filed by Qualcomm, Inc.. (Attachments: # 1 Text of Proposed Order)(Keller, Karen)
November 04, 2022 00:00
Intervene
Document: 276
MOTION to Intervene for The Limited Purpose of Moving to Modify or Reconsider Sealing Order (D.I. 268) (Unopposed) - filed by Qualcomm, Inc.. (Attachments: # 1 Text of Proposed Order)(Keller, Karen)
I am pretty sure it is Apple. It is not a prepayment, they just resigned Apple. Interdigital has typically been able to get licensees to pay cash closer to the front end of the licenses.
whatever it was it was booked. They had to announce it, but I doubt Apple gave them a prepayment
They should be doing that regardless since the outstanding number of shares is 10 percent less than before
Makes one wonder if its another since Brezski mentioned Apple in his comments.
it will only get stronger and with Apple now renewed it's at least comparatively less of necessity
Based upon "record free cash flows", my wishful thinking is IDCC will announce a10 cents dividend increase per quarter ($1.80 total annual dividend) beginning and payable in January 2023. LT shareholders certainly deserve it.
We expect the collection of this receivable in the fourth quarter will drive record free cash flows in the quarter, but will be moderated in our fourth quarter adjusted EBITDA.
the Apple deal? Or another one?
Yeah, it means they already booked the deal in the 3rd qtr. Not sure why he made such a big deal out of it
Here is Brezski's comments alluding to the large payment in his opening statement.
Adjusted EBITDA adjust for the timing of payments and better depicts the ongoing cash generation power of the business. For example, you can see our accounts receivable increased to over $400 million at the end of Q3 due to the partly frontloaded payment structure of one of our recent agreements. We expect the collection of this receivable in the fourth quarter will drive record free cash flows in the quarter, but will be moderated in our fourth quarter adjusted EBITDA.
Here is the conference call transcript with part of Brezski' quoted comments bolded by me.
Anja Soderstrom
Okay. Thank you. And just, Rich, if you could talk about capital allocation priorities in terms of buybacks and dividends and so forth?
Richard Brezski
Yes, Anja, I’m happy to. I think the first thing I'll note is, as I alluded to on the prepared remarks, we do expect a large payment coming in Q4. So, it's always a big topic for us and will remain so. But our priorities remain to keep a strong balance sheet with the large payment coming in, it will only get stronger and with Apple now renewed it's at least comparatively less of necessity, but still a priority for us to maintain a strong balance sheet. And then we want to make sure we can invest in organic opportunities. Liren talked about the growth that we have in R&D and we've demonstrated the success in deploying that in the market and getting paid for it.
And to the extent that -- we're choosing, but to the extent there are inorganic opportunities, we'll consider them as well. And then finally, we want to make sure returning capital to shareholders as appropriate. And we always feel like we do a good job of that over any appropriately length of time.
Anja Soderstrom
Okay. Thank you. That was all for me.
Yes they have all that cash but they also have $606m in LT debt plus $488M in deferred revenue. I believe half that debt will come do soon and they are expected to pay it off which of course will reduce cash.
There is a stock conversion in LT Debt in the $8-$90 range which I doubt in this market can be achieved. But who knows.
Large payment? FroM a customer or they expect to make a large payment?
Does anyone have the transcript?
They have almost 900million in the Bank
Anja from Sidoti raised a question about dividends and buybacks. Brezski (IDCC CFO) said a large payment is expected in 4th Qtr and said he is reiterating what Liren said in Liren's opening remarks. Brezski also said their priority is to maintain a strong balance sheet even stronger now with the Apple license renewal.
In consumer electronics, TV is the largest revenue opportunity as No. 1 Samsung and No. 2 LG are not licensed in the consumer electronics TV space. Liren indicated the Samsung TV license can negotiated in parallel with the mobile license but is negotiated separately from the mobile license.
The above is from my notes while listening to the conference call recording.
Does their priority to maintain a strong balance sheet for opportunities translate to shareholders should not expect a dividend increase?
Seen all this before, sell off on news, report, make new highs by end of year
Liren - Apple is a "huge validation" if IDCC's IP portfolio.
AAPL will pay ~ $134 million annually for seven years - a
15% increase from the previous agreement.
I just reported the facts you should be able decide. But in Summation higher for the calendar year but 3rd to 4th qtr not much change going from memory maybe higher costs and lower revenue.
So which is it? Higher or lower, up or down? Kind of covered all the bases there didn’t you?
An order to terminate hearings makes me think a settlement has been reached.
Liren - UK judges FRAND decision could come at any time.
YOY using future guidance 21 vs 22 recurring revenue will be up 15% and operating expenses will be down about $40M to $314 or 11%.
If my calculations are correct.
Forward Guidance - higher expenses flat to lower revenue
InterDigital Announces Financial Results for Third Quarter 2022
Source: GlobeNewswire Inc.
InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the quarter ended September 30, 2022.
“We significantly strengthened our business by renewing our license with Apple through 2029,” said Liren Chen, CEO and President of InterDigital. “In addition, new agreements drove our sixth consecutive quarter of recurring revenue growth in the consumer electronics and IoT/automotive markets. All together, we have signed sixteen agreements over the last eighteen months with a total estimated contract value of more than $1.5 billion. I look forward to building on this foundation as we pursue significant growth opportunities in licensing both devices and services.”
Third Quarter 2022 Financial Highlights
Total revenue, which includes both recurring and non-recurring revenue, of $114.8 million decreased 20% from $143.5 million in third quarter 2021 primarily due to $50.1 million of non-recurring revenues in third quarter 2021.
Recurring revenue increased 8% to $101.0 million, compared to recurring revenue of $93.4 million in third quarter 2021. The company increased recurring revenue in both its smartphone (up 4%) and CE, IoT/Auto markets (up 60%).
Operating expenses were $82.9 million, compared to $106.7 million in third quarter 2021. The decrease was primarily driven by a $21.3 million reduction of non-recurring costs from restructuring activities, revenue share costs and a reduction in performance-based compensation.
Income from operations was $31.8 million compared to $36.8 million in third quarter 2021.
Net income1 was $22.2 million, or $0.74 per diluted share, compared to $26.2 million, or $0.83 per diluted share, in third quarter 2021.
Adjusted EBITDA2 was $56.4 million compared to $78.3 million in third quarter 2021, primarily driven by $50.1 million of non-recurring revenue in third quarter 2021.
Near Term Outlook
The company expects recurring revenue for fourth quarter to be between $98 and $102 million. This revenue guidance covers existing agreements, including the company’s recent renewal of its license agreement with Apple, and does not include the potential impact of any additional new agreements that may be signed during the balance of fourth quarter 2022.
The company expects fourth quarter operating expenses will be in the range of $76 to $79 million. In addition, the company expects non-operating expenses, comprised of interest expense and other income (expense), will be in the range of $4 to $6 million and the effective tax rate will be in the range of 21% to 24%.
Conference Call Information
InterDigital will host a conference call on Thursday, November 3, 2022 at 10:00 a.m. ET to discuss its third quarter 2022 financial performance and other company matters.
For a live Internet webcast of the conference call, visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference call, visit www.interdigital.com and click on the “Dial In Registration” link on the Investors page. Registration is necessary to obtain a dial in phone number and PIN to join.
An Internet replay of the conference call will be available on InterDigital’s website under Events in the Investor’s section. The replay will be available for one year.
About InterDigital®
InterDigital develops mobile and video 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, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on Nasdaq.
InterDigital is a registered trademark of InterDigital, Inc.
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, our belief that we will continue to be able to execute strongly on our business during the ongoing COVID-19 pandemic. Words such as “believe,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “forecast,” “goal,” “could,” "would," "should," "if," "may," "might," "future," "target," "trend," "seek to," "will continue," "predict," "likely," "in the event," and variations of any such words or similar expressions are intended to identify such forward-looking statements.
Forward-looking statements are made on the basis of management’s current views and assumptions and are not guarantees of future performance. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results, and actual events that occur, to differ materially from results contemplated by the forward-looking statements. These risks and uncertainties include, but are not limited to: (i) unanticipated delays, difficulties or accelerations 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) our ability to enter into partnerships with leading inventors and research organizations and identify and acquire technology and patent portfolios that align with our roadmap; (v) our ability to commercialize our technologies and enter into customer agreements; (vi) the failure of the markets for our current or new technologies and products to materialize to the extent or at the rate that we expect; (vii) unexpected delays or difficulties related to the development of our technologies and products; (viii) changes in our interpretations of, and assumptions and calculations with respect to the impact on us of, the 2017 Tax Cuts and Jobs Act, as well as further guidance that may be issued regarding such act; (ix) risks related to the potential impact of new accounting standards on our financial position, results of operations or cash flows; (x) failure to accurately forecast the impact of our restructuring activities on our financial statements and our business; (xi) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal or regulatory proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such proceedings; (xii) the timing and impact of potential administrative and legislative matters; (xiii) changes or inaccuracies in market projections; (xiv) our ability to obtain liquidity though debt and equity financings; (xv) the potential effects that the ongoing COVID-19 pandemic and/or general economic or other conditions could have on our financial position, results of operations and cash flows; and (xvi) changes in our business strategy.
We undertake no duty to revise or update publicly any forward-looking statement for any reason, except as otherwise required by law.
Footnotes
1 Throughout this press release, net income and diluted earnings per share (“EPS”) are attributable to InterDigital, Inc. (e.g., after adjustments for non-controlling interests), unless otherwise stated.
2 Adjusted EBITDA is a supplemental non-GAAP financial measure that InterDigital believes provides investors with important insight into the company's ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital, Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items may include restructuring costs, impairment charges and other non-recurring items. InterDigital’s computation of Adjusted EBITDA might not be comparable to Adjusted EBITDA reported by other companies. The presentation of Adjusted EBITDA, 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 GAAP. A reconciliation of Adjusted EBITDA to net income attributable to InterDigital, Inc., the most directly comparable GAAP financial measure, is provided below.
3 Free 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 used in operating activities less purchases of property and equipment and capitalized patent costs. InterDigital’s computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of free cash flow, 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 GAAP. A reconciliation of free cash flow to net cash used in operating activities, the most directly comparable GAAP financial measure, is provided below.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands except per share data)
(unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 REVENUES: Recurring revenues: Smartphone$87,467 $84,143 $262,908 $223,701 CE, IoT/Auto 13,579 8,498 36,455 21,951 Other — 747 911 4,467 Total recurring revenues 101,046 93,388 300,274 250,119 Non-recurring revenues 13,718 50,108 40,465 63,475 Total revenues$114,764 $143,496 $340,739 $313,594 OPERATING EXPENSES: Patent administration and licensing 46,720 56,150 134,232 133,694 Development 21,789 22,546 56,487 66,999 Selling, general and administrative 14,418 20,978 34,818 46,994 Restructuring activities — 7,045 3,280 20,290 Total Operating expenses 82,927 106,719 228,817 267,977 Income from operations 31,837 36,777 111,922 45,617 INTEREST EXPENSE (7,659) (5,773) (19,446) (19,429)OTHER INCOME (EXPENSE), NET 912 (1,537) (15,109) 2,226 Income before income taxes 25,090 29,467 77,367 28,414 INCOME TAX PROVISION (3,323) (4,253) (17,312) (6,039)NET INCOME$21,767 $25,214 $60,055 $22,375 Net loss attributable to noncontrolling interest (455) (1,014) (1,230) (11,042)NET INCOME ATTRIBUTABLE TO INTERDIGITAL, INC.$22,222 $26,228 $61,285 $33,417 NET INCOME PER COMMON SHARE — BASIC$0.75 $0.85 $2.03 $1.09 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — BASIC 29,659 30,737 30,255 30,792 NET INCOME PER COMMON SHARE — DILUTED$0.74 $0.83 $2.00 $1.07 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — DILUTED 29,940 31,431 30,638 31,272 CASH DIVIDENDS DECLARED PER COMMON SHARE$0.35 $0.35 $1.05 $1.05
SUMMARY CONSOLIDATED CASH FLOWS
(in thousands)
(unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Income before income taxes$25,090 $29,467 $77,367 $28,415 Taxes paid (222) (5,042) (4,585) (9,835)Non-cash expenses 25,243 35,882 90,313 95,272 Change in deferred revenue 274,034 150,703 146,334 64,044 Change in operating working capital, deferred charges and other (342,874) (114,746) (379,898) (118,733)Purchases of property and equipment and capitalized patent costs (9,054) (8,857) (31,139) (30,022)FREE CASH FLOW 3 (27,783) 87,407 (101,608) 29,141 Net proceeds from debt refinancing (796) — 139,193 — Repurchase of common stock — (11,859) (74,445) (23,000)Dividends paid (10,380) (10,794) (31,924) (32,319)Other (552) 708 (7,028) (1,471)NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS$(39,511) $65,462 $(75,812) $(27,649)
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
SEPTEMBER 30, 2022 DECEMBER 31, 2021ASSETS Cash, cash equivalents and short-term investments$ 863,423 $ 941,627 Accounts receivable, net 403,043 31,113 Prepaid and other current assets 86,028 77,545 Property & equipment and patents, net 373,795 376,962 Other long-term assets, net 201,926 200,909 TOTAL ASSETS$ 1,928,215 $ 1,628,156 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable, accrued liabilities, taxes payable & dividends payable$ 79,480 $ 79,888 Current deferred revenue 210,981 291,673 Long-term deferred revenue 276,589 19,463 Long-term debt & other long-term liabilities 659,370 484,215 TOTAL LIABILITIES 1,226,420 875,239 TOTAL INTERDIGITAL, INC. SHAREHOLDERS' EQUITY 695,775 745,239 Noncontrolling interest 6,020 7,678 TOTAL EQUITY 701,795 752,917 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$ 1,928,215 $ 1,628,156
RECONCILIATION OF NON-GAAP MEASURES
The table below presents a reconciliation of Adjusted EBITDA to net income attributable to InterDigital, Inc., the most directly comparable GAAP financial measure (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Net income attributable to InterDigital, Inc.$22,222 $26,228 $61,285 $33,417 Net loss attributable to non-controlling interest (455) (1,014) (1,230) (11,042)Income tax provision 3,323 4,253 17,312 6,039 Other income (expense) & interest expense 6,747 7,310 34,555 17,203 Depreciation and amortization 18,713 19,421 59,149 58,971 Share-based compensation 5,846 15,082 15,209 21,010 Other items(a) — 7,045 3,280 22,290 Adjusted EBITDA2$56,396 $78,325 $189,560 $147,888
(a) Other items in the above table includes $7.0 million of restructuring costs during the three months ended September 30, 2021 and restructuring costs of $3.3 million and $20.3 million during the nine months ended September 30, 2022 and 2021, respectively. The nine months ended September 30, 2021 also includes $2.0 million of additional non-recurring personnel-related costs expenses related to new employee agreements.
The table below presents a reconciliation of free cash flow to net cash (used in) provided by operating activities, the most directly comparable GAAP financial measure (in thousands):
For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Net cash (used in) provided by operating activities$(18,729) $96,264 $(70,469) $59,163 Purchases of property and equipment (110) (940) (872) (1,877)Capitalized patent costs (8,944) (7,917) (30,267) (28,145)Free cash flow3$(27,783) $87,407 $(101,608) $29,141
CONTACT:InterDigital, Inc. Email: investor.relations@interdigital.com +1 (302) 300-1857
Paullee thanks for the post. It seems interesting the day before earnings are announced.
Loop and other attorneys any comments on what the court decisions mean in Paullee’s post.
Paullee - Thank you, sir! EOM
November 02, 2022 00:00
Order 1 - Terminate Hearings
Document: 275
ORDER, the Hearing on Summary Judgment and Daubert Motions scheduled for November 22, 2022 by the Court's Amended Scheduling Order (ECF No. 181 ) is CANCELED. The Court's previous Order is amended accordingly. Signed by Judge Joshua D. Wolson on 11/2/2022. (twk)
Excuse my prior post typos. Small keys on the iPhone, and my failure to proof a second time before posting.
Fish do yourself and all is us a favor, so not post clearly wrong information. You nor we should have to try and decipher what these paid analyst are saying. Particularly when the company has clearly publicly disclosed the information they will be reporting in advance.
Stay safe and well in these turbulent days. The market did not like what Chairman Powell had to say after the interest rate increase.
I only posted what was written by Seeking Alpha.
BUT
IIt might be interpreted that AFTER MARKET CLOSE TODAY
ns
BEFORE MARKET OPENS TOMORROW could be the 'same'.
Fish the document you posted is definitely wrong. It says earnings after market closes. IDCC earnings announcement says before market opens tomorrow morning.
Advise your source to vet their information.
InterDigital Q3 2022 Earnings Preview
Nov. 02, 2022 12:29 PM ETInterDigital, Inc. (IDCC)By: Manshi Mamtora, CFA1 Comment
InterDigital (NASDAQ:IDCC) is scheduled to announce Q3 earnings results on Wednesday, November 2nd, after market close.
The consensus EPS Estimate is $0.59 and the consensus Revenue Estimate is $113.51M (-20.9% Y/Y).
Over the last 3 months, EPS estimates have seen 0 upward revisions and 2 downward. Revenue estimates have seen 1 upward revision and 0 downward.
Now Read: InterDigital, Philips partner on video-based immersive codec research
October 31, 2022 00:00
Letter
Document: 273
Letter to The Honorable Joshua D. Wolson from Neal C. Belgam regarding the Court's October 24, 2022 Order. (Belgam, Neal)
October 31, 2022 00:00
Declaration
Document: 272
DECLARATION -- Second Supplemental Declaration of Brett Bachtell in Support of Parties' Joint Motions to Seal Oppositions and Replies to MSJ's and Motions to Exclude Expert Testimony Which Contain Qualcomm Confidential Source Code -- by Lenovo (United States) Inc., Lenovo Holding Company Inc., Motorola Mobility LLC. (Smith, Rodger)
October 31, 2022 00:00
Letter
Document: 271
Letter to The Honorable Joshua D. Wolson from Rodger D. Smith II regarding the Court's October 24, 2022 Order. (Smith, Rodger)
This could bode well for IDCC because Samsung doesn't appear to be
in a litigious mood - they extended their license early with Qualcomm
earlier this year as well.
https://www.qualcomm.com/news/releases/2022/07/qualcomm-and-samsung-extend-and-expand-broad-strategic-partnersh
Rambus and Samsung Electronics Extend Comprehensive Agreement
October 31, 2022
Ten-year agreement enables deep collaboration on products and broad access to Rambus innovations
SAN JOSE, Calif.--(BUSINESS WIRE)-- Rambus Inc. (NASDAQ: RMBS), a premier chip and silicon IP provider making data faster and safer, today announced it has extended its comprehensive patent license agreement with Samsung Electronics, a world leader in advanced semiconductor technology, for an additional ten years. The extension substantially maintains the existing financial terms and provides Samsung with broad access to the full Rambus patent portfolio through late 2033. Other terms and details are confidential.
“Samsung has been a trusted partner for many years, and we are very pleased to extend our strategic relationship,” said Luc Seraphin, president and chief executive officer of Rambus. “This extension enables deeper collaboration to deliver even greater value to the industry, and we are excited to continue working with such an innovative industry leader.”
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