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rmarchma,
As you said, headlines may differ.
QUICK FACTS
InterDigital Q1 Profit Declines - Quick Facts 4/27/2011 5:11 PM ET
InterDigital Q4 Profit Declines - Quick Facts
Commentary (RTTNews) - InterDigital, Inc. (IDCC: News ) posted first-quarter net income of $23.3 million or $0.51 per share, compared to $48.8 million or $1.10 per share in the prior year period.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.57 per share. Analysts' estimates typically exclude special items.
Total revenue for the quarter was $78.46 million, down 33% from $116.19 million in the same period last year. Three Wall Street analysts expected revenues of $76.46 million for the period.
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by RTT Staff Writer
Good to see the "beat the consensus" in the lead line.
KING OF PRUSSIA, Pa., Apr 27, 2011 (BUSINESS WIRE) -- InterDigital, Inc. (IDCC) today announced results for the first quarter ended March 31, 2011. First Quarter 2011 Highlights: -- Revenue of $78.5 million -- Net income of $23.3 million, or $0.51 per diluted share -- Ending cash and short-term investments totaling $527.4 million.
"Our first quarter results for 2011 marked a good start to the year with solid revenues, net income, and a strong cash balance," commented William J. Merritt, InterDigital's President and Chief Executive Officer.
"In addition, we completed the private placement of $230 million in senior convertible notes in early April, which was extremely well received in the capital markets. We believe that this offering provides additional opportunities to create value through targeted acquisitions, partnering opportunities and attractive new investments.
"During the quarter, we continued to have success in adding new patent licenses. In January, we entered into a patent license agreement with Acer, Inc. that covers 2G, 3G and 4G wireless technologies," added Merritt. "Also, we continue to have discussions with industry-leaders in mobile technologies, including LG, for new, renewed and extended license agreements covering 2G, 3G and 4G technologies and a variety of connected devices. "During this quarter, we also saw increasing interest in our suite of technologies targeting the bandwidth crunch," continued Merritt. "Both at the Consumer Electronics Show in January and at the Mobile World Congress in February, we demonstrated some of the key technologies that we believe will drive the future of wireless systems. Indeed, we believe our vision of a 'network of networks' is spot on with where the industry needs to migrate, and we intend to leverage our financial strength, our technical expertise and strategic relationships to make that vision a reality."
First Quarter 2011 Summary Total revenue in first quarter 2011 totaled $78.5 million, a 33 percent decrease from $116.2 million reported in first quarter 2010. The decrease in revenue year over year was driven by the absence of $14.4 million in fixed fee royalties associated with the license agreement with LG Electronics, Inc. ("LG"), the renewal of which continues to be negotiated, and the impact of an unusually high level of past sales revenue of $35.7 million in first quarter 2010 relating to a new patent license agreement with Casio Hitachi Mobile Communications Co., Ltd. ("CHMC") and the resolution of a routine audit. Royalties from past sales totaled $2.3 million in first quarter 2011. This decrease in total revenue was partially offset by an increase in per-unit royalties of 32 percent, or $9.5 million, to $39.5 million in first quarter 2011 from $30.0 million in first quarter 2010 due to strong sales from customers with concentrations in smartphones.
Customers that accounted for ten percent or more of the $78.5 million of first quarter 2011 total revenue were Samsung Electronics Company, Ltd. ("Samsung") (33 percent), Research in Motion Limited ("RIM") (15 percent) and HTC Corporation ("HTC") (10 percent). As a result of the decrease in revenue, the company's first quarter 2011 net income of $23.3 million, or $0.51 per diluted share, declined 52 percent from net income of $48.8 million, or $1.10 per diluted share, in first quarter 2010.
First quarter 2011 operating expenses of $41.1 million decreased $0.4 million, or 1 percent, from $41.5 million in first quarter 2010. This decrease in operating expense was primarily due to a decrease of $2.8 million in intellectual property enforcement costs ($3.8 million in first quarter 2011 versus $6.6 million in first quarter 2010). Additionally, long-term compensation expenses decreased by $0.7 million primarily due to a first quarter 2010 charge of $0.9 million to increase the company's accrual rate for the long-term compensation cash incentive period covering January 1, 2008 through December 31, 2010. These and other decreases were partially offset by higher personnel-related costs and consulting services totaling $2.9 million. Personnel-related costs grew $1.3 million primarily due to increased personnel levels within the company's patents, licensing and advanced research groups. Consulting services increased $1.6 million primarily to support research and development projects initiated within the last twelve months. In first quarter 2011, the company reported net other expense of $0.9 million as compared to net other income of $0.6 million in first quarter 2010. The change between periods resulted from the recognition of $1.3 million for investment impairments in first quarter 2011. The company's first quarter 2011 effective tax rate was approximately 36 percent, compared to an effective tax rate in first quarter 2010 of approximately 35 percent. This year-over-year increase was primarily driven by non-deductible investment impairment charges recognized in first quarter 2011. In first quarter 2011, the company used $12.8 million in free cash flow(1) compared to $65.4 million generated in first quarter 2010. This change in free cash flow was primarily related to the $100 million cash receipt from Samsung in first quarter 2010.
Near-Term Outlook Scott McQuilkin, Chief Financial Officer, commented, "Our first quarter results reflect strong per-unit royalty revenues related to strong sales of smartphones. Indeed, RIM and HTC, which together accounted for 25 percent of first quarter 2011 revenue, continue to post strong sales which, in turn, will drive revenue growth in the future. Our discussions with LG continue and we remain focused on signing a new agreement that delivers value. In addition, we are engaged in arbitration to determine whether royalties are owed on specific product classes pursuant to one of our technology solutions agreements. To date, we have deferred approximately $12.8 million in related revenue." McQuilkin continued, "In first quarter 2011, we reported approximately $16.7 million of revenue and approximately $16.5 million of cash receipts from per unit customers in Japan. Like others, we are assessing the impact of the recent earthquake and tsunami in Japan on our company, including on the per-unit royalties reported by our customers there. Because these events occurred late in the first quarter and due to our practice of reporting per-unit revenues on a one-quarter lag, we expect that the impact of these events on second quarter 2011 total revenue will be modest. We will provide an update on our revenue expectations for second quarter 2011 after we receive and review the applicable patent license and product sales royalty reports."
Earnings Lookout: (TSE: HSE.TO), (NASDAQ: ICON), (NASDAQ: IDCC), (NASDAQ: IFSIA), (NYSE: ICO), (NASDAQ: ISIL)
Interdigital Inc (NASDAQ: IDCC) is expected to earn $0.57 per share for quarter ended Mar 11. Estimates from Wall Street analysts ranged from as low as $0.45 per share to as high as $0.74 per share. For the same quarter last year, the company earned $1.09 per share. Revenues are expected to come in at $76.46M. Shares of Interdigital Inc (NASDAQ: IDCC) traded higher by 2.47% or $1.14/share to $47.33. In the past year, the shares have traded as low as $22.30 and as high as $58.64. On average, 1013670 shares of IDCC exchange hands on a given day and today's volume is recorded at 638419. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momemtum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $45.12 area where the stock will likely see buying pressure.
The bold portion of the above paragraph is the killer and will probably be highlighted by Reuters. IMO
Talk about legalese!! I could not understand what was being done.
With over 8+ million shares short, do not the stock shorters need to come up with $800,000+ to cover the cost of the dividend that will be paid next week?
There is a junior investment banker who has this package on his desk and is responsible for it's return and summarily, his commission bonus. Additionally, update reports must be provided to the higher ups. I would not want to be on the short end of managing this package. My reputation, future and financial well being rides on this package.
I alluded to the same a couple of days ago. The drop in share price was not just the lack of an LG contract but this financial instrument was being finalized in the backrooms of major financial players. And the same financial players are not looking at the low end of return on their money (2.5% interest). They are looking at the $66 warrant exercise price. Now if you were being conservative, ARE these financial players looking to profit 20% on these warrants ($79 price target). I don't think so. IMO they are looking at a significantly higher price before conversion. And these financial players will do all they can to support the higher price levels.
And who is to say that some of the downward pressure from the recent highs was due not only to the lack of an LG contract and the Nokia back and forth, but also to the imminent release of this recent financial instrument.
bionuthing: thanks for your contribution!! It is much appreciated.
While my heart grieves for the people of Japan and the issues they face at the moment, there are positives I believe for IDCC. IDCC has had a strong footprint in Japan for many years with our contracts with NEC, Casio, Sharp, etc. Japan will need to rebuild and refurbish hundreds maybe thousands of cell phone towers/infrastructure and NEC should have the inside track on any money the Japanese government throws in that direction. Likewise, the millions of cell phones lost in homes and store inventories will need to be replaced, again, our licensees should see the bulk of expenditures in this area. Just my unqualified thoughts.
yeah, they will probably say we are burning cash too quickly!
Down on 100 shares. Someone trying to prime the pump or create panic. Probably a short or option trader. I really don't think it portends of anything.
Jeffree...One point not mentioned today, at least I don't think it has, not only the shorts were involved but the option players also. Monday being a holiday, today, Thursday, was the last day to square away the options from last Friday in which a significant # of 55 calls were ITM. I don't recall the number of ITM calls above 45 but it was very significant. Also calls at 46, 47, 48, 49 and 50 were in play. So the writers had to really work the stock today to have thousands of calls expire worthless. That was the pile on effect and the reason IDCC could not get any traction. IMO, but could be wrong.
After Hours
Time (ET) After Hours
Price After Hours
Share Volume
17:05 $ 49.37 918
16:57 $ 49.87 100
16:42 $ 49.3184 1,000
16:32 $ 49.89 100
16:15 $ 50.0525 365
16:12 $ 50.0525 365
16:11 $ 49.6982 100
16:11 $ 49.6982 100
16:10 $ 49.6982 100
16:10 $ 49.6982 100
16:04 $ 49.6965 1,000
16:03 $ 49.7035 411
I am hoping for a nice run after I purchased a bunch of calls today just when we started popping.
After Hours
Time (ET) After Hours
Price After Hours
Share Volume
17:22 $ 49.22 150
17:14 $ 48.97 100
17:08 $ 48.69 625
17:08 $ 48.72 100
17:08 $ 48.70 100
17:08 $ 48.98 100
17:08 $ 48.98 150
17:07 $ 48.45 100
16:58 $ 48.30 125
16:55 $ 48.25 100
16:55 $ 48.25 100
16:42 $ 47.8498 1,200
16:36 $ 48.25 100
16:36 $ 48.25 100
16:30 $ 48.25 200
16:30 $ 48.14 100
16:30 $ 48.15 200
16:25 $ 48.03 100
16:24 $ 48.03 344
16:17 $ 47.8877 600
16:10 $ 46.3431 149
16:09 $ 48.03 301
16:07 $ 48.03 643
16:07 $ 48.03 160
16:01 $ 46.3357 149
16:01 $ 46.3357 157
16:00 $ 47.86 300
16:00 $ 47.86 100
16:00 $ 48.02 100
InterDigital sees strong Q4 sales gain
InterDigital Inc., King of Prussia, today forecast revenue growth of 20 percent to 23 percent in the fourth quarter compared with the same period last year.
Projected revenues of $92 million to $94 million reflect strong sales of smart phones and growth in licensing of the company's technology, chief financial officer Scott McQuilkin said. The quarter will end Dec. 31.
InterDigital noted that $4.3 million of the projected revenue comes from a customer that is being acquired by a third party and is expected to eventually end its relationship with the company.
InterDigital develops wireless technologies for mobile devices and networks. - Paul Schweizer
Read more: http://www.philly.com/inquirer/breaking/business_breaking/20101112_InterDigital_sees_strong_Q4_sales_gain.html#ixzz155fQ5frl
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Thanks to all who thanked the Vets.
US Army 1968-1988; Saudi Arabia 1990-1992 during Desert Storm and Desert Shield as a civilian contractor. Father was USAF Bomber Pilot during WWII and Korea, with 168 and 136 bombing missions, respectively. An Uncle who was on Midway at the time of the initial attack by the Japanese.
After Hours
Time (ET) After Hours
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Share Volume
17:31 $ 35.67 100
17:31 $ 35.67 200
17:30 $ 35.48 100
17:30 $ 35.50 400
17:25 $ 34.49 300
17:24 $ 34.20 200
17:06 $ 34.48 5,688
16:42 $ 34.5361 1,700
16:18 $ 34.48 4,149
16:13 $ 34.48 1,002
16:05 $ 34.4714 4,800
16:04 $ 34.49 100
16:04 $ 34.47 100
16:04 $ 34.2318 200
16:01 $ 34.2388 1,442
From IDCC's earnings press release:
“InterDigital’s balance sheet has never been stronger, owing to the company's excellent performance recently,” commented Terry Clontz, InterDigital’s Chairman of the Board.
"In the past we have returned cash to shareholders through share buybacks. While the company plans to maintain its current share repurchase authorization, we believe it is time to include other means of returning surplus cash to shareholders."
Shares of InterDigital Rank the Highest in terms of Free Cash Flow per Share in the Communications Equipment Industry (IDCC, CTV, HRS, CMTL, QCOM)
Written on Thu, 10/28/2010 - 4:16am
By Chip Brian
Below are the top five companies in the Communications Equipment industry as ranked by free cash flow (FCF) per share. FCF/share is a valuable metric signaling a company's ability to facilitate growth in the business.
InterDigital (NASDAQ:IDCC) ranks first with free cash flow per share of 7.31x; CommScope (NYSE:CTV) ranks second with free cash flow per share of 5.2x; and Harris (NYSE:HRS) ranks third with free cash flow per share of 4.75x. Comtech Telecommunications (NASDAQ:CMTL) follows with free cash flow per share of 4.14x and QUALCOMM (NASDAQ:QCOM) rounds out the top five with free cash flow per share of 3.87x.
SMARTREND
I was out this afternoon and unable to watch the trading day. But when I did check I found that in the last half hour and after hours trading, that a total of 314,098 shares were traded of the total day trading of 409,797, which represents 76.65%. Can anyone verify this or is my ameritrade streamer screwed up. TIA
3 Stocks that Could See a Windfall of Cash from Patents
Friday, August 13, 2010 - 4:44 PM
Meet the Expert
David Sterman
David Sterman has worked as an investment analyst for nearly two... Read More
More from David
1. VirnetX Holdings
In the next 12 months, consumers should see an array of new smart phones offering super-fast download speeds. [See: The Time is Ripe to Short this Wireless Upstart]
Yet as more and more personal and corporate information is sent out over the mobile broadband airwaves, the risk of data theft also rises. To tackle that, VirnetX has developed a range of software encryption tools to keep that wireless data secure. Many companies, including the major wireless carriers, are working to come up with their own fixes. But this little-known company has a hunch that any solution these companies come up with might impinge on its patents. So they've gone to court.
Lawsuits are never easy -- until you've won a major one. That's why VirNet's victorious lawsuit against mighty Microsoft (Nasdaq: MSFT) is so important, possibly setting a precedent for future legal activity. In early March, a jury awarded the company $106 million for Microsoft's unlicensed use of a pair of VirnetX's patents. Two months later, Microsoft not only agreed to that decision, but agreed to pay a total of $200 million for the use of all 46 of VirnetX's patents. Shares quickly soared to $8 back in March when the news was first announced, but have since fallen back to $6. Now, VirNextX is gearing up to secure other licensing agreements for its technology. On Thursday, the company filed fresh lawsuits against Apple (Nasdaq: AAPL), Cisco Systems (Nasdaq: CSCO), Japan's NEC, and others.
Action to Take --> It's impossible to predict if and when those suits will be resolved, but VirNetX's $270 million market value appears to sharply discount the prospect of a few more major legal victories. Shares could meander in coming quarters, but could spike sharply higher of any of those defendants choose to settle the lawsuit.
2. Rambus (Nasdaq: RMBS)
With a mountain of technology patents under its belt, Rambus (Nasdaq: RMBS) has a long history of successfully suing any firm that appears to use its Intellectual Property (IP) without permission. Friday morning, the company secured a licensing agreement for a few of its patents with NVidia (Nasdaq: NVDA), pushing Rambus' shares up +5%. During the past decade, the company has waited for its patents to be broadly used before seeking legal remedies, which has usually netted between $100 million and $200 million in annual revenue.
Rambus doesn't always take the aggressive legal route. In late June, it showed it can also play nice, using its considerable IP to help develop a market, rather than pounce once a market is developed. Although Rambus is best known for its IP in the area of semiconductors and telecom, it also has an impressive array of LED lighting patents, which it acquired and then augmented with its own IP.
The new LED division, which uses back-light technology to provide sharper illumination, has already found its first major customer: GE (NYSE: GE). Rambus announced in late June that they were teaming up to develop a range of newly-developed architectural lighting products. This looks like a win/win for Rambus, as it will require no capital outlays, and the company can simply share in the profits.
Yet Rambus is mostly still focused on litigating when necessary. The company has recently had a string of legal victories with firms such as Sony (NYSE: SNE) and Samsung, which are expected to result in steadily rising royalty payments in coming quarters. And Rambus' legal momentum looks set to continue. The company is expected to imminently win a patent case with Japan's Elpida Memory, which could net close to $500 million in an upfront license, and then more revenue from ongoing royalties. Taiwan's Hynix, along with Micron Technology (NYSE: MU), are also in Rambus' crosshairs after a recent preliminary legal decision in its favor. As is the case with all "intellectual property plays," there's no way to peg any sort of value created by some of these deals. (Details are sometimes limited for legal reasons.) So how do you place a value on a company that has erratic, but bounteous earnings streams? A P/E ratio doesn't apply. Rambus lost nearly $1 a share last year, will likely make more than a $1 a share this year, and it's anybody's guess what will happen next year on the earnings front.
In this instance, enterprise value (market capitalization plus debt minus cash) is a better gauge. The company has about $600 million in net cash, implying an enterprise value of around $1.6 billion. Yet the company could snag up to $2 billion or more in fresh patent agreements over the next several years.
Action to Take --> This is all very imprecise, which explains why most Wall Street firms simply avoid trying to even value and follow the stock. But with each passing year, it's apparent that Rambus' team of 290 engineers (out of 350 employees) are on the right track, developing patents that turn into major money makers. Over the next 12 months, investors should see further large checks being mailed to Rambus.
3. Interdigital (Nasdaq: IDCC)
With more than 12,000 patents and patents pending, Interdigital is seen by some as the grandfather of the technology patent movement. Interdigital, like VirnetX, focuses on wireless technology. The company's software is used in the majority of all 3G cell phones and wireless networks, helping to manage bandwidth constraints, network capacity issues and security.
In contrast to Rambus with its lumpy, occasionally massive one-time payments, Interdigital likes to secure long-term revenue streams. As the company has secured new long-term licensing arrangements, the company's sales -- and profits -- have steadily risen. By 2009, the company generated a company-record $284 million in free cash flow.
Although Interdigital's sales and revenue have been remarkably steady for this type of company, a few one-time payments are nevertheless spiking sales and profits this year. Analysts expect revenue to rise more than +20%, and earnings per share (EPS) to surge more than +80% to about $3.20 in 2010. That surge also means next year's results will show a bit of a pullback.
Action to Take --> With that kind of financial performance, coming up with a fair value for the stock is indeed tricky. Dougtherty & Co. uses a weighted average of the next 10 years of cash flow, arriving at a target price of $36 -- roughly +40% ahead of current levels.
Analysts at Hilliard Lyons think shares are worth $34, or 12 times Interdigital's 2010 profit forecast. They also note that the company's growing cash balance is also of interest. Interdigital now has $486 million in cash ($12 a share), and analysts wonder if a share buyback, a one-time large dividend, or even a bid to go private might be in the offing -- all usually good things for shareholders.
Note: All three of these companies appear to be racking up impressive licensing deals that will, over the long-haul, generate compelling free cash flow growth. Other licensing companies to research include Qualcomm (Nasdaq: QCOM), Digimarc (Nasdaq: DMRC), Tessera Technologies (Nasdaq: TSRA) and Acacia Research (Nasdaq: ACTG).
-- David Sterman
David Sterman has worked as an investment analyst for nearly two decades. He started his career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. David has also served as Director of Research at Individual Investor and has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV. David has a master's degree in management from Georgia Tech. Read More...
Aug 06, 2010 (EarningsWhispers Guidance Summaries via Comtex) --
InterDigital (NASDAQ: IDCC | PowerRating) said it expects third quarter revenue of $88.5 million to $90.5 million. The current consensus estimate is revenue of $86.3 million for the quarter ending September 30, 2010.
Merritt needs to slow down the reading of his prepared remarks. His words are garbled and hard to follow his thoughts. Sometimes inaudible.
InterDigital Announces Second Quarter 2010 Financial Results
Last update: 7/28/2010 6:19:00 PM Expansion of Customer Relationships Drives Strong Revenue Growth and Profitability KING OF PRUSSIA, Pa., Jul 28, 2010 (BUSINESS WIRE) -- InterDigital, Inc. (IDCC) today announced results for the second quarter ended June 30, 2010.
Highlights for second quarter 2010:
-- Net income of $35.0 million, or $0.78 per diluted share, a 32 percent increase over second quarter 2009;
-- Revenue of $91.2 million (which includes $4.9 million related to past sales), a 22 percent increase over second quarter 2009; and
-- Ending cash and short-term investments totaling $485.8 million.
William J. Merritt, InterDigital's President and Chief Executive Officer, commented, "We continue to show strong growth in revenues and profitability in the second quarter, driven by new customer agreements and continued strong sales by our customers. Our addition of Capital Semiconductor as a customer for our SlimChip(TM) core reinforces the strength of this market-ready technology, and opens the possibility of new revenue streams."
"We expect to continue our strong financial performance as we further expand our base of customers. In particular, we are focusing on expanding our customer base for LTE technology. We have made significant contributions to the worldwide standards bodies in several key areas of LTE technology, including power control, bandwidth on-demand, interference reduction and higher data throughput. These areas are central to the user experience and key to unlocking the potential of wireless communications," continued Mr. Merritt. "With our pioneering wireless technologies, InterDigital continues to be a leader in building innovative solutions, benefiting users, device manufacturers and operators worldwide."
Second Quarter Summary Net income for second quarter 2010 totaled $35.0 million, or $0.78 per diluted share, an increase of 32 percent over second quarter 2009 net income of $26.4 million, or $0.59 per diluted share. Contributions from several new customers including Casio Hitachi Mobile Communications ("CHMC"), Pantech, Cinterion, Enfora, Beceem, and Capital Semiconductor ("CapiSemi") as well as higher sales by nearly all of our existing per-unit licensees drove higher profitability in the quarter.
Total revenue in second quarter 2010 of $91.2 million, increased 22 percent from $74.9 million reported in second quarter 2009. Patent licensing royalties of $85.1 million increased $12.4 million, or 17 percent, over $72.7 million in second quarter 2009 driven by new agreements signed subsequent to second quarter 2009, the renewal of a patent license agreement in second quarter 2010, which contributed to both per-unit royalties and past sales, and higher sales by nearly all of our existing per-unit licensees. Technology solutions revenue in second quarter 2010 of $6.1 million more than doubled from $2.2 million in second quarter 2009 due to contributions from customers added during first half 2010, Beceem and CapiSemi, as well as customer sales of products containing the company's SlimChip modem core platform. Customers that accounted for ten percent or more of the $91.2 million of second quarter 2010 total revenue were Samsung (28 percent) and LG Electronics (16 percent).
Second quarter 2010 operating expenses of $38.1 million increased by $3.4 million, or 10 percent, over $34.7 million reported in second quarter 2009. Total operating expenses in second quarter 2010 included a cumulative charge of $0.9 million to increase the accrual rate for a performance-based cash incentive under the company's long-term compensation program ("LTCP"). The expectation for an increased payout under the LTCP relates to the addition of new revenue-producing agreements signed in second quarter 2010, and the charge covers the first two and one-quarter years of the three-year performance period ending December 31, 2010. In addition, expenses rose $4.1 million as a result of sublicense fees and other non-personnel expenses to support the technology transfer under the new agreements entered into during first half 2010, new research and development projects initiated in the last twelve months and an increase in costs associated with due diligence related to potential patent acquisition opportunities. These and other increases were offset by the lower level of intellectual property enforcement activity ($2.4 million in second quarter 2010 versus $5.6 million in second quarter 2009).
Net interest and investment income for second quarter 2010 totaled $0.9 million, an increase of 42 percent from $0.6 million in second quarter 2009. The increase was primarily due to higher investment balances in second quarter 2010 as compared to second quarter 2009.
The company's second quarter 2010 effective tax rate was approximately 35 percent, level with second quarter 2009.
Six Months Summary The company's first half 2010 net income totaled $83.8 million, or $1.87 per diluted share, more than double first half 2009 pro forma net income(1) of $41.8 million, or $0.93 per diluted share. The first half 2009 pro forma results do not include a $37.0 million repositioning charge incurred in first half 2009. This year-over-year increase in net income was driven by revenue contributions from several new customers added subsequent to second quarter 2009. On a GAAP-reported basis, first half 2009 net income totaled $17.8 million, or $0.39 per diluted share.
Total revenue in first half 2010 of $207.3 million increased 42 percent from $145.5 million reported in first half 2009. This increase was driven by a $56.8 million, or 40 percent, increase in patent licensing royalties primarily attributable to past sales resulting from the first quarter 2010 patent license agreement signed with CHMC. The remaining increase in patent licensing royalties was primarily attributable to new license agreements signed subsequent to second quarter 2009 with Pantech, CHMC, Cinterion, and Enfora, a renewal of an agreement in second quarter 2010, and a full six months of revenue from the patent license agreement with Samsung signed during first quarter 2009. Technology solutions revenue in first half 2010 of $8.4 million more than doubled from $3.4 million in first half 2009 due to contributions from new technology solutions agreements with Beceem and CapiSemi and customer sales of products containing the company's SlimChip modem core platform. Customers that accounted for ten percent or more of the $207.3 million of first half 2010 total revenue were Samsung (25 percent), CHMC (16 percent) and LG Electronics (14 percent).
Not including the $37.0 million repositioning charge incurred in first half 2009, first half 2010 operating expenses decreased by 3 percent, or $2.4 million, to $79.6 million compared to first half 2009. This year-over-year decrease was driven by a $7.5 million decrease in development expenses, primarily related to the 2009 repositioning, partly offset by an increase in patent administration and licensing costs related to increased activity in management of the company's patent portfolio and due diligence associated with patent acquisition opportunities. Total operating expenses in first half 2010 included a cumulative charge of $1.8 million to increase the accrual rate from 50 percent to 70 percent for a performance-based cash incentive under the company's LTCP in connection with revenue-producing agreements signed in first half 2010. This charge primarily relates to the first two years of the three-year performance period ending December 31, 2010.
Net interest and investment income for each of first half 2010 and first half 2009 totaled $1.5 million.
The company's first half 2010 effective tax rate was approximately 35 percent, as compared to the first half 2009 effective tax rate of approximately 36 percent.
In first half 2010, the company generated $66.6 million of free cash flow(2) compared to $86.5 million in first half 2009. The decrease of $19.9 million in free cash flow was driven primarily by a reduction of $67.3 million in prepayments and fixed fee cash receipts from patent license agreements due to a higher level of such payments received in first half 2009 compared to first half 2010. This decrease was partially offset by an increase in payments from new and current licensees and technology solutions customers of $37.8 million, lower cash requirements for operating expenses and capital investments, and changes in working capital.
Near-Term Outlook
Scott McQuilkin, Chief Financial Officer, commented, "Our second quarter results reflect the growth of our customer base and strong sales from our existing licensees reflecting the rebound in industry mobile phone shipments. We will provide an update on our revenue expectations for third quarter 2010 after we receive and review the applicable patent license and product sales royalty reports. Finally, I am pleased to note that subsequent to the close of the second quarter, we received a scheduled $100 million payment from Samsung."
Conference Call Information
InterDigital will host a conference call on Thursday, July 29, 2010 at 10:00 a.m. Eastern Time to discuss its second quarter 2010 performance and other company matters. For a live Internet webcast of the conference call, visit and click on the link to the Live Webcast on the homepage. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference, call (888) 802-2225 within the U.S. or (913) 312-1254 from outside the U.S. Please call by 9:50 a.m. ET on July 29 and ask the operator for the InterDigital Financial Call.
An Internet replay of the conference call will be available for 30 days on InterDigital's web site in the Investor Relations section. In addition, a telephone replay will be available from 1:00 p.m. ET July 29 through 1:00 p.m. ET August 4. To access the recorded replay, call (888) 203-1112 or (719) 457-0820 and use the replay code 8699174.
About InterDigita
l InterDigital develops fundamental wireless technologies that are at the core of mobile 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 partnerships with many of the world's leading wireless companies.
InterDigital is a registered trademark and SlimChip is a trademark of InterDigital, Inc. For more information, visit: 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 the information under the heading "Near-Term Outlook" and other information regarding our current beliefs, plans and expectations, including, without limitation: (i) the possibility of new revenue streams, (ii) our future financial performance, (iii) the expansion of our customer base, (iv) the impact of our recently signed agreements, and (v) third quarter 2010 revenue guidance. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "forecast," variations of any 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, without limitation, those identified in this press release, as well as the following: (i) unanticipated delays, difficulties or acceleration in the execution of patent license agreements; (ii) our ability to leverage our strategic relationships and secure new patent license and technology solutions agreements on acceptable terms; (iii) changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees and timely receipt and final reviews of quarterly royalty reports from our licensees and related matters; (iv) the failure of the markets for our technologies to materialize to the extent or at the rate that we expect; and (v) the resolution of current legal proceedings, including any awards or judgments relating to such proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings or adverse rulings in such legal 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.
(1) Pro forma net income is a supplemental non-GAAP financial measure that InterDigital believes is helpful in evaluating the company's first half 2010 operating results relative to first half 2009. A limitation of the utility of pro forma net income as a measure of financial performance is that it does not represent the company's total operating expenses for the period. For purposes of this press release, InterDigital defines "pro forma net income" as net income excluding the expense associated with the repositioning charge and the related tax benefit, both non-recurring items in first quarter 2009. InterDigital's computation of pro forma net income might not be comparable to pro forma net income reported by other companies. The presentation of this financial information, 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 generally accepted accounting principles ("GAAP"). A detailed reconciliation of pro forma net income to net income, the most directly comparable GAAP financial measure, is provided at the end of this press release.
(2)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 provided by operating activities less purchases of property and equipment, technology licenses and investments in patents. InterDigital's computation of free cash flow might not be comparable to free cash flow reported by other companies. The presentation of this financial information, 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 detailed reconciliation of free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure, is provided at the end of this press release.
InterDigital 2Q Net $35M >IDCCLast update: 7/28/2010 6:19:00 PM(MORE TO FOLLOW) Dow Jones Newswires (212-416-2400)July 28, 2010 18:19 ET (22:19 GMT)
Add another 100 at $28.20. Nice. Bid now 28.20 Ask 28.90.
Looks as if their projection isn't holding up as we are down .50 cents. Guess no one got the message. We are acting like someone has gotten a peek at our earnings or traders are attempting to reconcile their positions prior to earnings release. Take your pick.
Top 10 Most Efficient Telecom Equipment Stocks: IDCC, QCOM, RIMM, SATS, ZSTN, CSCO, GRMN, ARRS, APKT, ADTN (Jul 04, 2010)
InterDigital, Inc. (NASDAQ:IDCC) is the 1st most efficient company in this segment of the market. Its earnings per employee was $482,563 for the last 12 months. Its revenue per employee was $1,143,433 for the same period. QUALCOMM, Inc. (NASDAQ:QCOM) is the 2nd most efficient company in this segment of the market. Its earnings per employee was $195,901 for the last 12 months. Its revenue per employee was $669,317 for the same period. Research In Motion Limited (USA) (NASDAQ:RIMM) is the 3rd most efficient company in this segment of the market. Its earnings per employee was $186,230 for the last 12 months. Its revenue per employee was $1,136,634 for the same period. Echostar Corporation (NASDAQ:SATS) is the 4th most efficient company in this segment of the market. Its earnings per employee was $182,123 for the last 12 months. Its revenue per employee was $854,622 for the same period. ZST Digital Networks Inc (NASDAQ:ZSTN) is the 5th most efficient company in this segment of the market. Its earnings per employee was $109,042 for the last 12 months. Its revenue per employee was $997,014 for the same period.
Cisco Systems, Inc. (NASDAQ:CSCO) is the 6th most efficient company in this segment of the market. Its earnings per employee was $105,461 for the last 12 months. Its revenue per employee was $575,728 for the same period. Garmin Ltd. (NASDAQ:GRMN) is the 7th most efficient company in this segment of the market. Its earnings per employee was $82,078 for the last 12 months. Its revenue per employee was $348,437 for the same period. Arris Group, Inc. (NASDAQ:ARRS) is the 8th most efficient company in this segment of the market. Its earnings per employee was $51,531 for the last 12 months. Its revenue per employee was $596,269 for the same period. Acme Packet, Inc. (NASDAQ:APKT) is the 9th most efficient company in this segment of the market. Its earnings per employee was $50,402 for the last 12 months. Its revenue per employee was $358,936 for the same period. ADTRAN, Inc. (NASDAQ:ADTN) is the 10th most efficient company in this segment of the market. Its earnings per employee was $49,192 for the last 12 months. Its revenue per employee was $319,011 for the same period.
KING OF PRUSSIA, Pa., Jun 29, 2010 (BUSINESS WIRE) -- InterDigital, Inc. (IDCC) today announced the election of Jean F. Rankin to its Board of Directors, effective June 28, 2010.
As Executive Vice President, General Counsel and Secretary at LSI Corporation, a leading provider of innovative silicon, systems and software technologies for the global storage and networking markets, Ms. Rankin serves as corporate secretary and manages the company's legal affairs, as well as its intellectual property licensing programs. Ms. Rankin's 20-year career in the telecommunications industry spans a number of relevant areas for InterDigital, including managing and extracting value from large portfolios of technology-focused intellectual property.
"It's a great pleasure to welcome Jean to InterDigital's Board of Directors," stated Terry Clontz, InterDigital's Chairman of the Board. "Jean's background and expertise, particularly in overseeing legal affairs for high profile, multinational companies in the semiconductor industry, are highly relevant for InterDigital's business. In addition, her comprehensive experience in intellectual property licensing positions Jean as a great asset in helping to guide management and govern the company. My fellow directors and I look forward to working with her."
Ms. Rankin joined LSI in 2007 as part of the merger with Agere Systems, where she was also Executive Vice President, General Counsel and Secretary. Prior to joining Agere in 2000, Ms. Rankin was responsible for corporate governance and corporate center legal support at Lucent Technologies, including mergers and acquisitions, securities laws, labor and employment, public relations, ERISA, investor relations and treasury. She also supervised legal support for Lucent's microelectronics business.
Ms. Rankin received her law degree, with honors, from the University of Pennsylvania, and earned a bachelor's degree with high distinction from the University of Virginia.
Ms. Rankin, an independent director, was elected for a term expiring at the company's 2011 Annual Meeting of Shareholders, at which time her continued Board service will be subject to re-nomination and shareholder approval. The company's Board of Directors now totals seven members.
About InterDigital(R)
InterDigital develops fundamental wireless technologies that are at the core of mobile 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 partnerships with many of the world's leading wireless companies.
InterDigital is a registered trademark of InterDigital, Inc.
No one is buying or selling except computers at 100 share trades. The bid/ask keeps jumping around without any trades until the computer finds another computer to make that 100 share trade.
Nortel is in possession of numerous LTE patents. DATAROX can probably expound on those. Whether or not they will want to sell them is another matter. And if they do, at what price? RIMM is also interested in the LTE patents and I would hate to get into a bidding war.
InterDigital Hosts 2010 Annual Shareholders Meeting
KING OF PRUSSIA, Pa., Jun 03, 2010 (BUSINESS WIRE) -- InterDigital, Inc. (IDCC) held its annual meeting of shareholders in King of Prussia, Pennsylvania today. At the meeting, InterDigital(R) shareholders approved the amendment of the company's Articles of Incorporation and Bylaws to provide for the annual election of directors beginning at the 2011 annual meeting of shareholders. Directors elected by the company's shareholders prior to the 2011 annual meeting, and directors appointed by the board prior to the 2010 annual meeting, will complete their respective terms. Beginning with the annual meeting of shareholders in 2013, the declassification of InterDigital's board will be complete and all directors will be subject to election for one-year terms at each annual meeting.
"After considering the trends among other leading public companies, InterDigital's size and financial strength and input from our shareholders, the board determined that shareholders should have the ability to vote annually on the election of all of the company's directors," commented William J. Merritt, InterDigital's President and Chief Executive Officer. "We are extremely pleased that our shareholders have overwhelmingly supported this proposal."
In addition, shareholders approved the election of Jeffrey K. Belk and the reelection of Robert S. Roath as members of the Board of Directors for a three-year term expiring at the 2013 annual meeting of shareholders. Mr. Belk, a seasoned technology executive with over a decade of strategic marketing experience with Qualcomm Incorporated joined InterDigital's Board of Directors in March 2010. Currently, Mr. Belk serves as Managing Director of ICT168 Capital, LLC, a company he founded to focus on developing and guiding global growth opportunities in the information and communications technology industry. Mr. Roath, who served as the Chief Financial Officer of RJR Nabisco, Inc. before his retirement in 1997, has served on InterDigital's Board of Directors since May 1997.
Finally, InterDigital shareholders also ratified the selection of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending December 31, 2010.
A copy of the slides presented by Mr. Merritt at the meeting is available in the investor relations section of the company's web site.
About InterDigital: InterDigital develops fundamental wireless technologies that are at the core of mobile 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 partnerships with many of the world's leading wireless companies.
InterDigital is a registered
MossyOak...I appreciate your continued posting of IDCC charts.
InterDigital to elaborate on advancements in "Fuzzy Cell" technology at LTE World Summit 2010
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By Pankaj - Posted on 16 May 2010
InterDigital has announced that the company will present at the LTE World Summit 2010 to be held in Amsterdam, Netherlands on May 18-20, 2010. Dr. Ariela Zeira, InterDigital's Vice-President of Advanced Air Interfaces, will provide an overview of the company's cellular technology roadmap and elaborate on advancements in "Fuzzy Cell" technology that address inconsistent and non-uniform performance across the cell. The Fuzzy Cell technology is part of InterDigital's comprehensive suite of "Next Generation Cellular" (NGC) innovations that combine advanced network topologies and spectrally-efficient air interface solutions for LTE-Advanced and beyond. LTE (Long Term Evolution) technologies are under development globally to support the next generation of cellular air interface technology.
Building on the company's legacy of inventing fundamental technologies used in 2G, 3G, and LTE cellular systems, InterDigital is now developing a new comprehensive set of advanced solutions that will drive future wireless systems, including LTE-Advanced. Using a holistic approach to solving network congestion, InterDigital is focused on three comprehensive areas of bandwidth innovations: spectrum optimization; cross-network connectivity and mobility; and intelligent data delivery techniques, using the descriptive phrase "bigger pipes, more pipes, and better pipes."
"The wireless industry is facing one of its biggest challenges ever in terms of providing mobile users with the necessary bandwidth to drive all the applications people need and want on the go," said William J. Merritt, President and Chief Executive Officer of InterDigital. "Our ambitious effort on Next Generation Cellular directly addresses this impending bandwidth crunch and fits perfectly with InterDigital's reputation for solving the industry's toughest technical problems."
During her presentation at the LTE World conference, Dr. Zeira will focus on the company's roadmap for "bigger pipes" and elaborate on the novel Fuzzy Cell approach for leveraging existing resources to improve spectral efficiency and cell-edge performance. While cellular networks have become virtually ubiquitous, users continue to experience inconsistent and unpredictable performance when moving around. While this degradation is often the result of network congestion or an obstructed path of the radio waves, it is also inherent to traditional cellular deployments, whereby signals degrade towards the fringe of any given cell due to interference from neighboring cells. Typical users experience a degradation of signal throughput, known as being at the cell-edge, the majority of the time. Because of this, advancements in HSPA and LTE, which primarily increase peak data rates at the center of the cell, only offer modest improvements in average performance throughout a cell.
In a traditional deployment, a device connects to one site at a time (even if multiple sub-bands are used at each site) and all sites use the same power levels and sector orientations for all sub-bands. In a Fuzzy Cell deployment, a device may connect to multiple sites at a time through the different sub-bands and continue to realize full system bandwidth. The power levels and sector orientations of the different sub-bands are optimized for best performance. In simpler terms, the device exploits the best combination of base station support regardless of its position, removing traditional limitations of cell or sector boundaries. Importantly, Fuzzy Cell technology can also allow gains indoors as it allows connection to more than one cell/sector at a time as available. The Fuzzy Cell technology provides additional improvement over Fractional Frequency Reuse (FFR) methods that are supported by current specifications.
Data Rox
Try this place, you might find it interesting and enjoyable. About 20 minutes north of San Antonio.
http://www.grueneapple.com/
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Market Report -- In Play ()April 27, 2010 11:47 AM ET advertisement
All Briefing.com newsRumor Round Up Rumor activity picked up today following a few days of muted activity. At the open it was rumored that Research In Motion (RIMM 72.14 -0.55) could be interested in Palm (PALM 4.78 -0.04). Note on April 12th reports surfaced that the co is looking to sell itself. It was rumored that Interdigital Comm (IDCC 28.43 -0.51) could be hearing interest from Qualcomm (QCOM 28.30 +0.19). IDCC shares did not react materially to the rumor. Overseas Shipholding (OSG 48.08 -1.88) shares were rumored to be hearing interest from Frontline (FRO 35.11 -1.30), OSG shares did not react materially to the rumor. As mentioned before, while many rumors circulate during the day, and the validity of the source of these rumors can be questionable, the speculation may increase volatility in the near term.
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