PRESS RELEASE: InterDigital Announces Fourth -2-
Forward-looking statements are subject to risks and uncertainties, and actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including 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 relationships or appropriate technologies on acceptable terms, changes in the market share and sales performance of our primary licensees, delays in product shipments of our licensees, and any delay in receipt of quarterly royalty reports from our licensees; (iii) changes or inaccuracies in market data; (iv) the market relevance of our technologies, changes in technology preferences of strategic partners or consumers, the availability or development of substitute or competitive technologies, and the economy and sales trends in the wireless market; (v) changes in personnel costs and commissions; (vi) the resolution of current legal proceedings or unanticipated additional legal proceedings, or changes in the schedules or costs associated with current proceedings, or adverse rulings in such legal proceedings; and, (vii) changes in our foreign withholding tax. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS -------------------------------------------- For the Periods Ended December 31 (Dollars in thousands except per share data) (unaudited) For the Three For the Twelve Months Ended Months Ended December 31, December 31, --------------------------------------- 2005 2004 2005 2004 --------------------------------------- REVENUES $40,489 $33,932 $163,125 $103,685 --------- --------- --------- --------- OPERATING EXPENSES: Sales and marketing 2,299 1,792 7,914 6,201 General and administrative 6,252 5,756 24,150 21,622 Patents administration and licensing 13,377 10,702 49,399 30,340 Development 16,391 13,127 63,095 51,218 Repositioning 631 (11) 1,480 596 --------- --------- --------- --------- 38,950 31,366 146,038 109,977 --------- --------- --------- --------- Income (loss) from operations 1,539 2,566 17,087 (6,292) NET INTEREST & OTHER INVESTMENT INCOME 918 617 3,164 1,743 --------- --------- --------- --------- Income (loss) before income taxes 2,457 3,183 20,251 (4,549) INCOME TAX BENEFIT (PROVISION) 42,573 (3,347) 34,434 4,704 --------- --------- --------- --------- Net income (loss) 45,030 (164) 54,685 155 PREFERRED STOCK DIVIDENDS - - - (66) --------- --------- --------- --------- NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $45,030 $ (164) $54,685 $ 89 ========= ========= ========= ========= NET INCOME PER COMMON SHARE - BASIC $0.83 $- $1.01 $- ========= ========= ========= ========= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 53,943 55,036 54,058 55,264 ========= ========= ========= ========= NET INCOME PER COMMON SHARE - DILUTED $0.80 $- $0.96 $- ========= ========= ========= ========= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 56,370 55,036 57,161 59,075 ========= ========= ========= ========= SUMMARY CASH FLOW ----------------- For the Periods Ended December 31 (Dollars in thousands) (unaudited) For the Three For the Twelve Months Ended Months Ended December 31, December 31, ------------------- ------------------- 2005 2004 2005 2004 ------------------- ------------------- Net income (loss) before income taxes $2,457 $3,183 $20,251 $(4,549) Taxes paid - - (755) (4,187) Depreciation & amortization 5,540 4,121 21,187 15,807 Increase in deferred revenue 11,500 3,208 57,605 66,202 Deferred revenue recognized (21,906) (16,702) (65,553) (53,601) (Increase) decrease in operating working capital, deferred charges and other (1,519) (3,342) 921 28,312 Capital spending & patent additions (5,777) (5,429) (22,326) (16,899) --------- --------- --------- --------- CASH FLOW BEFORE FINANCING ACTIVITIES (9,705) (14,961) 11,330 31,085 Asset acquisition - - (8,050) - Disposal of fixed assets 169 - 169 - Debt decrease & preferred dividends (84) (47) (327) (236) Repurchase of common stock - - (34,085) (17,061) Stock issued 1,101 1,904 4,853 12,103 --------- --------- --------- --------- NET (DECREASE) INCREASE IN CASH AND SHORT-TERM INVESTMENTS $(8,519) $(13,104) $(26,110) $25,891 ========= ========= ========= ========= CONDENSED BALANCE SHEET ----------------------- (Dollars in thousands) (unaudited) December 31, December 31, 2005 2004 ------------ ------------ Assets ------ Cash & short-term investments $105,708 $131,818 Accounts receivable 19,534 11,612 Current deferred tax assets 42,103 5,170 Other current assets 8,370 8,017 Property & equipment and Patents (net) 70,176 51,688 Long-term deferred tax assets and non-current assets 53,646 33,615 ------------ ------------ TOTAL ASSETS $299,537 $241,920 ============ ============ Liabilities and Shareholders' Equity ------------------------------------ Current portion of long-term debt $350 $212 Accounts payable & accrued liabilities 30,129 21,546 Current deferred revenue 20,055 28,075 Long-term deferred revenue 71,193 71,121 Long-term debt & long-term liabilities 3,496 5,307 ------------ ------------ TOTAL LIABILITIES 125,223 126,261 SHAREHOLDERS' EQUITY 174,314 115,659 ------------ ------------ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $299,537 $241,920 ============ ============
The company's short-term investments are comprised of high quality credit instruments including U.S. Government agency instruments and corporate bonds. Management views these instruments to be near equivalents to cash and believes that investors may share this viewpoint. This release includes a summary cash flow statement that reflects the key activities causing the change in both our cash and short-term investment balances. One of the subtotals in the summary cash flow statement is cash flow before financing activity. Management has presented a reconciliation of this non-GAAP line item to net cash provided by operating activities below:
For the Three For the Twelve Months Ended Months Ended December 31, December 31, ------------------- ------------------- 2005 2004 2005 2004 ------------------- ------------------- Net cash (used) provided by operating activities $(3,959) $(9,589) $33,674 $48,230 Purchases of property and equipment (1,366) (1,092) (5,372) (3,746) Patent additions (4,411) (4,337) (16,954) (13,153) Unrealized gain (loss) on short-term investments 31 57 (18) (246) --------- --------- --------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
03-09-06 0846ET
AI
