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How much interest did they make in all
That cash?
InterDigital, Inc. (IDCC) Q2 2023 Earnings Call Transcript
Aug. 03, 2023 1:43 PM ETInterDigital, Inc. (IDCC)
Q2: 2023-08-03 Earnings Summary
InterDigital, Inc. (NASDAQ:IDCC) Q2 2023 Earnings Call Transcript August 3, 2023 10:00 AM ET
Company Participants
Raiford Garrabrant - Head of Investor Relations
Liren Chen - President & Chief Executive Officer
Richard Brezski - Chief Financial Officer
Conference Call Participants
Anja Soderstrom - Sidoti
Brian Chen - Jefferies
Operator
Good morning and thank you for standing by. Welcome to InterDigital Second Quarter 2023 Earnings Call. At this time all participants are in a listen-only. After the speaker’s presentation there will be a question-and-session. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Raiford Garrabrant, Head of Investor Relations. Please go ahead.
Raiford Garrabrant
Good morning to everyone, and welcome to InterDigital's Second Quarter 2023 Earnings Conference Call. I am Raiford Garrabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO; and Richard Brezski, our CFO. Consistent with last quarter's call, we will offer some highlights about the quarter and the company and then open the call up for questions.
Before we begin our remarks, I need to remind you that in this call we will make forward-looking statements regarding our current beliefs, plans and expectations, which are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk Factors section of our 2022 Annual Report on Form 10-K and in our other SEC filings.
In addition, today's presentation may contain references to non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our financial metrics tracker, which is available on the Investor Relations section of our website.
With that taken care of, I will turn the call over to Liren.
Liren Chen
Thank you, Raiford. Good morning, everyone. Thanks for joining us today. This was another strong quarter for the business. We added to our recent momentum once again demonstrated our ability to deliver stable recurring revenue and strong profitability, and continued our excellent track record of returning capital to shareholders.
Let me start with the status update on licensing. We continue to make solid progress in the smartphone space where we added a new licensee in Q2. In addition, we closed a new licensing agreement with Alps Alpine a specialist system and technology provider in the IoT and auto sector. In the first half of the year, our recurring revenue from the consumer electronics and IoT, including auto, increased by almost 20% year-over-year, once again highlighting how we are capitalizing the opportunities in multiple verticals. In addition, early in the third quarter, we added another new licensee from consumer electronics sector.
We also continue to advance our case arbitration with Samsung, the three arbitrators who will hear the case has now been confirmed. And the case management conference is being held today. As a reminder, Samsung has already agreed to take a license to our portfolio effective January 1, 2023, where the arbitration process will decide the monetary terms. We remain confident that our new license with Samsung will reflect the value of our portfolio and continue our long-term relationship with Samsung that started more than 25 years ago.
Next, I want to give you an update on our litigation with Lenovo. Recently, we received another good decision from the U.K. High Court, which increased the amount Lenovo must pay us for license to our 3G, 4G and 5G patents to just under $185 million, which we already received from Lenovo. Rich will explain the revenue recognition topic in his remarks.
This is a very positive development for us. And as to the court's previous ruling, the Lenovo must pay us in full for the past sales going back to [2007] (ph). As court noted, this is intended to be a powerful way of discouraging licenses from holding out on taking up-front license. I want to remind you that the $185 million judgment is for license to only our cellular patents until the end of 2023. It does not include our valuable portfolio of video, WiFi and implementation patterns. And we remain committed to receive a full and fair return our technology that Lenovo uses in its devices each day.
One aspect of our dispute, which I'm particularly pleased with is that, when we asserted our pattern in three separate technical trials against Lenovo, each pattern were found to be valid, essential and infringed. Because they are all standard essential patents, this not only places us in a strong position in our Lenovo case, but also in our future negotiations and litigation with other prospective licensees.
We are, in our heart, a research innovation business. The technology we give out and the pattern that we filed each year are in many ways the products that we bring to the market. The high-quality of our portfolio is directly connected to our ability to remain at the cutting edge of foundational research in wireless, video and increasingly in AI. This year has already included many examples of how we excel as an innovation business. Our engineers produced a record number of new invention filings in the first half across both 5G and video spaces. As we continue our work in 5G, including what will be the first release of 5G advanced, we are also deepening our research for 6G.
In Q2, we announced a new research partnership with the University of Surrey in the U.K. to focus on specific technologies that we think will become a part of the 6G standard. Our ongoing wireless work, including the use of AI to improve the efficiency and reliability of mobile networks is an excellent example of how central AI has become so much of our innovation. Our CTO, Rajesh Pankaj is a well-known leading expert in AI and has been working in the space for years. Many of our other engineers are becoming noted expert and like Rajesh, several has emerged as leaders in the field.
For example, in Q2, one of our senior engineers [indiscernible] of our industry group within the standard body, ATSC, which is focused on creating standards to preserve and improve the security of AI. Stating our innovation success, we were recently named by LexisNexis as one of world’s top 100 companies in innovation that advances sustainability. We strongly believe that our innovation has only become more valuable in an increasingly connected world, and I'm delighted that we are also playing our part in steering us towards a more sustainable future.
Before I hand it over to Rich, I want to thank all our employees for the hard work in putting us in a strong position and deliver superb value to our shareholders. Our financial strength, combined with our innovation leadership and the growing importance of our technology for different use cases means that we remain ideally placed to build our recent success.
And with that, I hand it over to Rich.
Richard Brezski
Thanks, Liren. I'm pleased to share that in Q2 we delivered diluted earnings per share and adjusted EBITDA above the high end of our guidance range. This was driven primarily by revenue in line with expectations, coupled with continued expense management.
It's worth highlighting that when we received the initial Lenovo judgment in Q1, we recognized a large amount of catch-up revenue and a smaller amount of recurring revenue. In Q2, the U.K. High Court increased the value of the award, but in Q2 we recognized the same conservative level of recurring revenue from Lenovo as in Q1. Furthermore, we expect to continue to recognize revenue on that same basis throughout the balance of the year or until the related appeal process progresses. As such, we are deferring recognition for about 40% of the updated award. This is rooted in the conservatism inherent in the generally accepted accounting principles applicable to the situation since some of the award is still contingent on appeal.
Even with the deferral, our revenue continued to drive strong profitability as we posted adjusted EBITDA of $54 million at a 53% adjusted EBITDA margin. Notably, we have delivered an adjusted EBITDA margin over 50% in seven out of the last eight quarters. Our adjusted EBITDA margin shows the power of our business model as even in a quarter with only a small amount of catch-up sales, we converted over half our revenue to adjusted EBITDA. This is driven by the operating leverage inherent in our model combined with the discipline to ensure we maximize the conversion of revenue to profit and cash flow. As discussed on the last few calls, we believe adjusted EBITDA is a great metric to measure the ability of our business to generate cash over time because it adjusts for timing differences in cash collections under our fixed fee agreements.
For example, this year, we used cash in the first half of the year, but expect customer receipts, including Lenovo will drive well more than $200 million of free cash flow in Q3, and we continue to return excess cash to shareholders. As previously discussed, in the first quarter of this year, we repurchased 2.7 million shares through a $200 million Dutch tender. Since then, we have repurchased over 700,000 additional shares for almost $60 million. That brings the year-to-date totals to over $0.25 billion of share repurchases, a reduction of 12% of the outstanding shares since the beginning of the year.
Looking forward to Q3, I'll remind you that our Q3 revenue guidance is based off of contracts signed to date, since the timing of new license agreements is inherently uncertain. We expect Q3 recurring revenues will once again be around $99 million. We expect operating expenses to be similar to Q2. We expect an adjusted EBITDA margin of about 50%. We expect to continue to repurchase stock. And finally, we expect GAAP diluted earnings per share of $0.60 to $0.70.
Since both of our converts are in the money now, the diluted share count in our guidance includes an estimated 1.2 million shares of accounting dilution. It's important to note that while the converts are dilutive from a GAAP standpoint, they are not economically dilutive below $106 due to hedges we have in place. Longer term, our goal remains to achieve and sustain a 60% adjusted EBITDA margin on $650 million of annual recurring revenue from device licenses with additional upside from licensing new products and services.
With that, I'll turn it back to Raiford.
Raiford Garrabrant
Thanks, Rich. At this point, Michelle, we are ready to take questions.
Question-and-Answer Session
Operator
[Operator Instructions] The first question comes from Anja Soderstrom with Sidoti. Your line is open.
Anja Soderstrom
Hi. Thank you for taking my question and congratulations on the solid execution. I have question on the Lenovo case. So the resolution you got, now the $185 million is just in regards to license for the cellular. Are you running the other technologies parallel? Or is that something you will -- when do you think that's going to be resolved as well? And how is that progressing?
Liren Chen
Hi, Anja. Good morning. This is Liren. So as I mentioned in the prepared remarks, our current $185 million reward from the U.K. judge only captures 3G, 4G, 5G cellular technology. And -- but it also only captures the use of those technology until end of this year. So therefore, there is really three elements for additional value. One, we have other patents that's WiFi, HEVC and implementation patterns that their devices are using. We also have patents waiting on their non-cellular devices, including their PC and their laptop, which are not part of the judge's decision.
In addition, after end of the year going forward, they are unlicensed, even for the cellular devices. So regarding us capture the value, we currently already have ongoing litigation against them, for example, in Germany, but we are asserting our HEVC patents against both their laptop and their mobile devices, their cell phones and the trial is actually coming up in the next month. So we're definitely working on those, and we cracked, as I said in the prepared remarks, to be paid fully for our technology that they are using.
Anja Soderstrom
Okay. Thank you. And in terms of capital allocation with all this cash coming in, what's your sort of priorities?
Richard Brezski
Yes. So Anja, our priorities are to be responsible stewards of our cash. We've returned, as I noted in my comments, quite a bit of cash so far this year. But we have $142 million remaining on the authorization. And as I indicated, we certainly plan to continue to repurchase shares into Q3. So that's, as always, an ongoing discussion with us.
Anja Soderstrom
Okay. Thank you. That was all from me.
Operator
[Operator Instructions] The next question comes from Brian Chen with Jefferies. Your line is open.
Brian Chen
Hi. Thanks for taking the question. Just on the targets that you've outlined, $500 million for wireless and the $150 million for IoT revenues. Could you please give an update on reaching those targets? How should we think about levers that you still need to pull, perhaps upside from the ongoing cases to reach that $500 million wireless target?
Liren Chen
Yes. Hi, Brian, this is Liren. So on the target for $500 million for mobile, we are proceeding very well. Obviously, the Lenovo case is part of the step towards that decision, but the three largest unlicensed including also Oppo and Vivo, which frankly size-wise are bigger than Lenovo regarding their annual device sales. We currently have cases against Oppo pending in multiple jurisdictions. One of the things I mentioned in my prepared remarks is the decision in U.K. for the three patent trials is actually a very helpful decision even for the Oppo case, because the standard essential patterns, all our patents have been found -- the three patents have been found to be valid, infringed and actual to the standard, which allows us to fast track that case in U.K. against Oppo and there's actually an important hearing coming up in October of this year. It's still in trial and followed by up-front redetermination next February. So those are -- frankly, the Oppo time line is quite good. And regarding Vivo, we are continuing active dialogue with them. So we feel confident about our $500 million target for the mobile side.
Regarding the CE and IoT space, the $150 million, that's something we are making progress. And frankly, if you look at our program here, our IoT, CE growth rate is faster than our mobile. We have been achieving double-digit year-over-year growth for the IoT space for the last couple of years already. And the first half of this year we grew about 20% year-over-year. So we'd like to keep on building on that momentum.
Brian Chen
Okay. Perfect. And I just had one follow-up. So on -- you guys have started articulating potential monetization of services. Could you perhaps provide an update on potential size of opportunity and timing of this and if you could provide any color on the processing and strategy and building out this platform that would be great.
Liren Chen
Yes. Again, look, Brian, this is Liren. So if you look at -- so what the kind of technology those online services are using, the online services have been the distribution of video, either in one direction interactively. It's beyond any reasonable doubt that they're using and benefiting a lot from our connectivity as well as from our video technology. So the real question is really how do we launch a licensing program in there, which we have been working on for quite a bit now. If you look at the market size, the online video space is projected to be growing to about $500 billion in 2027, which is interesting enough, it's the same size as today's smartphone market size.
So we are working on that quite diligently. Currently, we don't have enough specification to provide a precise estimate on how big a licensing opportunity this is with us because we really would prefer to sign up at least one or more license before we put a specific number to it. So we'll keep you informed, and we have been working quite diligently on that space.
Brian Chen
Okay. Great. Thank you.
Operator
[Operator Instructions] I’m showing no other questions in the queue at this time. I would now like to turn the call back to Raiford for closing remarks.
Raiford Garrabrant
Thank you, Michelle. I'll now turn it back to Liren for his closing remarks.
Liren Chen
Thank you, everyone, who joined today's call. We look forward to updating you on our progress next quarter.
Operator
This concludes today's conference call. Thank you for participating. You may now disconnect.
i would have thought there would be more volume...down 3.50....and it seems like a nothing day
Looks like a potential BEAR TRAP today
New opportunity in Services licensing. Oppo trial next Feb. Trial to revue frand rates by next Jan. They said AI many many times. They are continuing to buy back shares...
It should be encouraging that they bought back 138K in June at an average of $91.31. The share count is below 26.5M with approx. $158 M left.
hard long road up, quick slide down
InterDigital Non-GAAP EPS of $1.30, revenue of $101.6M
Aug. 03, 2023 8:35 AM ETInterDigital, Inc. (IDCC)By: Manshi Mamtora, CFA
InterDigital press release (NASDAQ:IDCC): Q2 Non-GAAP EPS of $1.30.
Revenue of $101.6M (-18.5% Y/Y).
Recurring revenue was $99.1 million and decreased 1%.
Operating expenses were $78.2 million and increased 5% due primarily to higher research and portfolio development costs.
Non-operating income1 was $2.2 million, as compared to non-operating expense1 of $21.3 million, driven primarily by our 2022 debt refinancing.
Net income2 was $21.8 million and increased 3%; net income2 margin was 21%.
New Report Reveals Critical Innovation and Standardization Enabling XR Experiences
Source: GlobeNewswire Inc.
As new devices entice the consumer XR market, a new white paper commissioned by InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, and written by market research firm ABI Research, details the standards, solutions, and emerging challenges shaping new extended reality (XR) opportunities.
The report, “Defining the XR Experience: Enabling the Immersivity Ecosystem,” introduces the strong foundation of wireless and video innovation that underpin the spectrum of XR experiences, including AR, VR, and MR, and stresses the importance of standards to ensure compatibility and combat technology fragmentation across the various devices, networks, and systems that empower XR experiences. While consumer adoption of XR headsets and services has been relatively slow, the report points to improvements in device hardware, content capture, encoding, and XR-specific content distribution capabilities as critical components to fuel future growth of the XR market.
Seamless immersive XR experiences depend on a variety of factors, including headsets equipped to process high resolution, high framerate, multi-view content, and spatial audio, and a network capable of meeting XR’s low latency and high reliability demands. Among the existing standalone, tethered, and mobile-based solutions for VR devices, not all headsets are able to host compute capabilities within the device. Most require rendering to be split across the network, often imposing delays and other hinderances to truly immersive experiences. Recently introduced devices like the Apple Vision Pro have shown improvements in haptics, eye tracking, and other metrics of accuracy that enhance the immersive experiences that devices can provide.
“Today’s XR capabilities are forged from innovations in wireless and multimedia that enable us to capture audio, video, haptic, and kinesthetic data into one scene representation and transmit that complex XR traffic across our networks to achieve a seamless blend of our physical and virtual worlds,” said Rajesh Pankaj, CTO, InterDigital. “These new “realities” would be impossible without long-term research and contributions to standards from companies like InterDigital, which help improve network capabilities, evolve compression techniques, and ensure the interoperability of devices and services for this growing ecosystem.”
The report attributes the growth of the immersivity ecosystem to foundational improvements in video compression and delivery protocols and the myriad benefits provided by standards. Video standards body MPEG has begun to explore XR experiences with standards study efforts around dynamic mesh coding, haptics, and scene description research. In addition, MPEG’s Visual Volumetric Video-based Coding (V3C) standard, comprised of MIV (MPEG Immersive Video) and V-PCC (Video-based Point Cloud Compression), has set up definitions for encoding and streaming volumetric content, which is expected to be among the most challenging XR content types in terms of capture, processing, and delivery. Within wireless standards, 3GPP has dedicated significant activity to enhance the 5G system to better support XR traffic, while addressing how the 5G network can become more “XR aware”.
“XR is a perfect storm of hardware and content requirements that make it a challenge to support: high resolutions and frame rates, interactivity, mobility, and novel data types like haptics and spatial tracking,” says Eric Abbruzzese, Research Director with ABI Research. “Increasing efficiency across the XR pipeline from creation through distribution benefits both users and operators. As XR adoption grows, ensuring interoperability across devices and ecosystems also becomes critical, ensuring a healthy developer and content ecosystem enabling high-value content to users while minimizing user experience friction.”
The report argues there is progress to be made in every facet of XR, and standards remain integral to empowering the new capabilities and ensuring compatibility in ways that users find valuable. Looking towards the future, the XR ecosystem will continue to explore new “XR aware” network capabilities, new XR accessories and supporting hardware, and solutions that enable multi-user support for XR and user tracking and positioning, among other opportunities.
To read the white paper “Defining the XR Experience: Enabling the Immersivity ecosystem,” 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 Stephens
Email: roya.stephens@interdigital.com
+1 (202) 349-1714
I agree, I don't have much faith in this quarterly report. Already had a big jump , momentum has died down. Market is hard on IDCC reporting, a good quarter just isn't good enough, especially after a stock price run..
Smells like the quarter report after the big jump in 2017 when it got to $101, long down slide after that, check my post from then & Mickey response.
I sold a chunk today.
I will buy back in again. Not negative on the company, just doing some harvesting.
tnyellowtomcat, Zacks is setting up IDCC to fail this earnings. They have revenue at $101M and earnings at $1.21. If Revs are $101M and usual expenses are $75M they will make $26M. IDCC has to use a weighted share count of about 27.5M shares and deduct taxes they will make about 75 cents. I expect they will make about another $12M in interest, but that takes them up to $1.15 ....
That is insane!!
There have GO TO BE easier ways to make money than to short IDCC!
I know most are probably legacy shorts! There were about 250,000 new shorts added that week when we corrected from the high 90s to the low 90s. I gotta believe that was the legacy shorts doubling down trying to get a decline going to erase some of their losses. In reality they have just dug themselves a deeper grave, unless there is a market crash or some terrible unexpected news.
If they have enough margin, they can stay short forever i guess, but they have to pay dividends and interest!
IMHO - Tomcat
INSTITUTIONAL OWNERSHIP 97.3% to 106.24% depending on who you follow....SHORT INTEREST 3.24M. Thursday could be the match needed to light the fire....
Holy Crap, Batman!! These shorts are getting blasted out of the water!!
Tomcat
Another day another dollar given back.
Apparently the Zack's "Strong Buy " recommendation killed the momentum. Perhaps the upcoming earnings release will reverse the slide.
Eagle
Short interest: 3.24M as of 7/14/23. Up from 3.07M two weeks ago.
It took 2 days; they got the $1.00. We get 35 cents back tomorrow.
Effective July 31, 2023, Mr. Eric Cohen will no longer be serving as Chief Strategy & Growth Officer of InterDigital, Inc. (the “Company”). He will remain with the Company through September 15, 2023, as a strategic advisor to facilitate the transition of his responsibilities.
Da shortz gave a good effort today...they came off the line...early and strong...with a good ground game...we regrouped at halftime....and came back just short of even...tomorrow is another day of practice.
Seems like we are giving back a dollar a day
patopinion...in my "opinion", compression will always be needed. The need for more speed and larger (pipes) bandwidth is increasing every day. Compression is a way in which to use the pipes more efficiently when the demand continues to grow...just thinking about the use of video (like tiktok, YouTube, FaceTime, streaming services, etc) on mobile devices by millions of users, and how the need is to access the apps without video/audio stutter or any other imperfection.
A very reasonable approach IMO.
Following article 'Huawei to roll out 5.5G equipment' is from ECNS.NS (I believe the English-language version of the China News Service). The last paragraph of the article states:
"With service models and content evolving continuously, breakthroughs in technologies like goggles-free 3D are creating unprecedented immersive experiences for users. However, these new services require stronger 5G network capabilities, making a stronger case for 5.5G modalities".
I cannot envision a goggles-free 3D immersive experiences unless one either puts on some sort of huge space helmet or enters a custom designed room created for that purpose. But I digress.
However I have a technical question for any techies on the board lurking (looking at you Data) or otherwise actively posting. If 5.5G and eventually 6G enable faster and faster downloads of data then are such future speeds dependent on video compression that IDCC is providing leading edge solutions for or will video compression solutions eventually become a non-factor due to future download speed solutions not needing video compression?
The reason I ask questions is due to the fact that IDCC's price is high compared to most of its history. I see a few posts asking for a reasonable exit point. Personally I am hopeful for IDCC's future due to some of the heavyweights in the industry who have joined IDCC during the past few years. But I have been invested more on a hunch than on technical knowledge. Personally I am not looking to sell because I hold onto a stock until either it goes bankrupt or gets bought out. That is why I am in favor of a dividend increase.
http://www.ecns.cn/news/2023-07-20/detail-ihcrinym0655700.shtml
Mackenzie Financial Corp Shows Confidence in InterDigital’s Success with Recent Acquisition
Yasmim Mendonça by Yasmim Mendonça July 21, 2023
In a recent development, Mackenzie Financial Corp has acquired a new stake in InterDigital, Inc. (NASDAQ:IDCC), as stated in its Form 13F filing with the Securities and Exchange Commission (SEC). The firm has obtained 7,331 shares of the wireless communications provider’s stock, which holds an estimated value of approximately $534,000. This acquisition signifies Mackenzie Financial Corp’s growing interest in InterDigital’s potential for success and further solidifies its presence in the market.
InterDigital (NASDAQ:IDCC) recently published its quarterly earnings results on Thursday, May 4th. Surpassing analysts’ expectations, the wireless communications provider reported earnings per share (EPS) of $4.00 for the quarter. This impressive figure exceeded consensus estimates by a substantial margin of $3.38. Furthermore, InterDigital boasted a noteworthy return on equity (ROE) of 28.17% and an impressive net margin of 32.38%. During this quarter, the company recorded revenue worth $202.37 million, greatly surpassing analysts’ predictions that stood at $97.40 million.
With such exceptional financial performance and consistently exceeding projected estimates, InterDigital is poised for future growth and continued success within the wireless communications sector. Sell-side analysts anticipate that the company will post earnings per share of 7.12 for the current year – a reflection of its strong standing and promising trajectory.
Various equities research analysts have expressed their opinions on InterDigital’s stock performance as well. StockNews.com recently initiated coverage on shares of InterDigital and assigned them a “buy” rating – signaling confidence in their potential for growth and profitability going forward. Additionally, Bank of America upgraded their rating from “neutral” to “buy,” raising their price objective from $55.00 to an impressive $105.00 per share.
This positive reception from renowned investment firms indicates widespread optimism towards InterDigital’s future prospects. As a result, the stock has garnered an average rating of “buy” based on data from Bloomberg. Furthermore, analysts have established a consensus price target of $92.50, further bolstering InterDigital’s promising outlook.
In conclusion, Mackenzie Financial Corp’s recent acquisition of InterDigital’s shares highlights their interest in the company’s potential for success. With exceptional quarterly earnings and strong financial performance, InterDigital has continuously surpassed analysts’ expectations and positioned itself for future growth. Analysts’ positive views and elevated price targets further solidify their confidence in InterDigital’s outlook. It is clear that the wireless communications provider has successfully established a reputation as a key player within the industry.
https://beststocks.com/mackenzie-financial-corp-shows-confidence-in-inter/
Following article is from Asia Times written by Scott Foster: 'ZTE leaving Ericsson, Nokia in its 5G dust'.
https://asiatimes.us14.list-manage.com/track/click?u=2049a8663daea00bd30c32cf2&id=8e7f97181e&e=f8d8372cc1
I am not a chartist, but if you go on Stockcharts, IDCC has been overbought for awhile. Plus, Apple and QCOM are getting hit today also, which may indicate that the sector is seeing a sell-off cycle.
But...that doesn't mean I know what is happening.
We were doing so well.
Why the haircut for the last few days?
Any theories ?
Paullee, Am I correct that IDCC won in the UK court and also was granted interest on the lawsuit. I think I recall that IDCC was still appealing something in the UK court and Lenovo was hoping for a victory against the appeal in the UK court.
SO, what is the case in the U S Courts and why would they (Lenovo)look to stay and sever? Is this a separaat and different lawsuit involving different patents and uf the same patents, why sue in the us and UK?
not being a lawyer, this becomes very confusing.
TIA
Somebody wanted in this morning $98.88 for a few shares.
Trial in US delayed
ORDER, Defendants Motion To Sever and Motion To Stay InterDigital's Patent Infringement Claims (D.I. 300 ) is GRANTED IN PART and DENIED WITHOUT PREJUDICE IN PART, as follows: The Motion DENIED WITHOUT PREJUDICE as to Lenovo's request to sever InterDigital's patent infringement claims. The Motion is GRANTED with respect to Lenovo's request to stay InterDigital's patent infringement claims. It is FURHTER ORDERED that all claims in this case are STAYED pending the appeal of the UK court decision. Signed by Judge Joshua D. Wolson on 7/18/2023. (mpb)
Document: 318
How to make IDCC a $200 stock on August 3. First, announce that they have bought back 1.5 M shares in May and June. Second, announce that IDCC is being split into 3 companies cell phones, video, then AI with IOT and cars. That should do the trick...
Monterey2000, that is not correct. $98M was recognized in the first quarter. The remaining $87M will be recognized after the appeals.
Am I correct that Lenovo's $184.9 million will all be recognized in 2nd Q 2023 financials? Any future Lenovo settlement revenue will await the completion of the appeal of the recent Lenovo decision.
InterDigital Announces Date for Second Quarter 2023 Financial Results
Company Release - 7/18/2023
WILMINGTON, Del., July 18, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced that the company will release its second quarter 2023 financial results before market open on Thursday, August 3, 2023.
InterDigital executives will host a conference call that same day at 10:00 a.m. Eastern Time (ET) to discuss the company's performance.
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 Investors section. The replay will be available for one year.
Wall Street Bulls Look Optimistic About InterDigital (IDCC): Should You Buy?
IDCC
+0.29%
Zacks Equity Research
Mon, July 17, 2023 at 8:30 AM CDT
In this article:
IDCC
+0.29%
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about InterDigital (IDCC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
InterDigital currently has an average brokerage recommendation (ABR) of 1.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by three brokerage firms. An ABR of 1.00 indicates Strong Buy.
Of the three recommendations that derive the current ABR, three are Strong Buy, representing 100% of all recommendations.
Brokerage Recommendation Trends for IDCC
Broker Rating Breakdown Chart for IDCC
Broker Rating Breakdown Chart for IDCC
Check price target & stock forecast for InterDigital here>>>
While the ABR calls for buying InterDigital, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks Rank
In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is IDCC a Good Investment?
Looking at the earnings estimate revisions for InterDigital, the Zacks Consensus Estimate for the current year has increased 0.1% over the past month to $8.08.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for InterDigital. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for InterDigital may serve as a useful guide for investors.
The company just received another nearly $7 per share of cash, presumably the minimum they will receive from Lenovo. Maybe the company’s board of directors can find a way to bump the dividend payout to owners by a penny per quarter, just so they can say they raised the dividend that has been the same nearly forever.
Item 8.01.
Other Events.
On July 11, 2023, InterDigital, Inc. (the “Company”) received a cash payment in the amount of $184.9 million related to its UK High Court case against Lenovo equal to the amount the court ordered Lenovo to pay for a license through 2023. At this time the Company expects to defer recognizing any additional catch-up revenue until the appeal process progresses.
I have been lurking here almost as long as Loop and accumulated many shares. The end game and strategies have consumed a great deal of thought as I have gotten older.
When we hit $75 a few months ago I decided to sell 1000 shares then and whenever it reached another $5 increment so I’ve peeled off 4000 shares thus far this year. I have been very overweighted with this security and this allows me to re-allocate while not sacrificing the potential I still see for further appreciation.
I’ve got enough remaining shares to see me through $200 and am very comfortable waiting.
Hope this offers a different perspective.
I believe the "shorts", call sellers, etc were caught off guard yesterday, and needed to throw a lot of water on IDCC today.
Looks like the shorts are getting some relief today on above average volume.
a savvy old trader told me...its the situations where stuff is easy to borrow....that tend to put the shorts in worst places..
teecee56, An hour ago the shares available to borrow went up 300K. I am guessing that with our volume today someone reached MAX pain...
Hey guys!!!!
Great to see!!
What price targets do you realistically have in mind before end game (when u sell)
It’s been a long journey
vegas...they may not be at max pain...but they sure as heck are in the meat grinder
The most interesting take away from the short interest is that the shorts have not met max pain as they are not covering...
$100 OREENOS in pre market! Just 1 share though…
IDCC short interest down 12K to 3.073M.
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