WILMINGTON, Del., Nov. 04, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
Total revenue of $143.5 million increased 64% from $87.5 million in third quarter 2020. Recurring revenue was $93.4 million, compared to recurring revenue of $87.0 million in third quarter 2020. The increase in both total and recurring revenue was primarily driven by additional revenues from ten new patent license agreements signed in the last twelve months, including agreements with Xiaomi and a top ten global TV manufacturer signed in third quarter 2021. These increases were partially offset by a reduction in recurring revenue due to a handset manufacturer exiting the business in the past year, as previously disclosed.
Operating expenses were $106.7 million, compared to $72.1 million in third quarter 2020. The increase was primarily driven by $26.1 million of non-recurring costs associated with the Company’s ongoing restructuring efforts, performance-based compensation and revenue share related to the above-noted patent license agreement with a top ten global TV manufacturer.
Income from operations increased to $36.8 million, compared to $15.4 million in third quarter 2020.
Net income1 was $26.2 million, or $0.83 per diluted share, compared to net income of $23.8 million, or $0.76 per diluted share, in third quarter 2020.
“In this quarter, we’ve continued to build on our business momentum by expanding our customer base in the mobile and consumer electronic spaces. The wireless connectivity and video technologies we develop have never been more important,” said CEO Liren Chen. “We believe we are well positioned for future growth and are prepared to ensure that the value of our patent portfolio is recognized by those who benefit from our innovations.”
Additional Highlights
The company generated $96.3 million cash provided by operating activities, compared to $101.3 million in third quarter 2020, and $87.4 million of free cash flow2, compared to $85.4 million in third quarter 2020. These changes were primarily driven by timing of collections under fixed-fee agreements. Cash and cash equivalents, restricted cash and short-term investments totaled $903.2 million on September 30, 2021.
The company repurchased $11.9 million, or 0.2 million shares, during third quarter 2021.
Fourth Quarter Outlook
The company expects fourth quarter revenue to be between $98 million and $105 million, including approximately $97 million to $100 million of recurring revenue.
Additionally, the company expects operating expenses to be between $85 million and $88 million, including restructuring charges of approximately $5 million to $6 million.
Conference Call Information
InterDigital will host a conference call on Thursday, November 4th, 2021 at 10:00 a.m. ET to discuss its third quarter 2021 financial performance and other company matters.
For a live Internet webcast of the conference call, visit www.interdigital.com and click on the link to the live webcast on the Investors page. The company encourages participants to take advantage of the Internet option.
For telephone access to the conference call, dial (800) 353-6461 within the United States or +1 (334) 323-0501 from outside the United States. Please call by 9:50 a.m. ET on November 4th and give the operator conference ID number 5681111.
An Internet replay of the conference call will be available on InterDigital’s website in the Investors section. In addition, a telephone replay will be available from 1:00 p.m. ET on November 4th through 1:00 p.m. ET on November 9th. To access the recorded replay, call (888) 203-1112 or +1 (719) 457-0820 and use the replay code 5681111.
About InterDigital®
InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website: www.interdigital.com.
