InterDigital Inc (IDCC)

[Gamco]

InterDigital Issues Preliminary Financial Results for Fourth Quarter 2023 and Outlook for First Quarter 2024

Source: GlobeNewswire Inc.

InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced selected unaudited preliminary financial results for the quarter ended December 31, 2023, and an initial outlook for first quarter 2024.

Q4 2023 Preliminary Results

GAAP

The company expects total revenue to be approximately $105 million, comprised primarily of recurring revenue and in line with prior guidance.

The company expects operating expenses to be approximately $81 million, updated from its previous expectation of $77 to $79 million. The increase related to higher litigation costs and performance-based compensation.

Net income1 is expected to be approximately $34 million, above the previous expectation of $18 to $21 million. The diluted earnings per share is expected to be approximately $1.20, above the previous expectation of $0.70 to $0.80. These increases are primarily related to the company’s expected release of a value allowance against deferred tax assets in certain foreign jurisdictions.

Non-GAAP

Adjusted EBITDA2 is expected to be approximately $52 million, at the top end of the prior guidance.

Non-GAAP net income3 is expected to be approximately $36 million, above the previous expectation of $31 to $34 million.

Non-GAAP diluted earnings per share3 is expected to be approximately $1.34, above the previous expectation of $1.17 to $1.29.

Q1 2024 Outlook

Total revenue is expected to be in the range of $245 to $255 million, including approximately $152 to $160 million of catch-up sales.

Operating expenses are expected to be in the range of $146 to $154 million, including revenue share expense of $66 to $69 million.

Net income1 is expected to be in the range of $70 to $85 million, or $2.50 to $3.00 per diluted share.

This outlook is based on estimates covering existing licenses, and does not include any new agreements we may sign over the balance of the first quarter.

The company has not yet finalized its financial results for the quarter and full year ended December 31, 2023 or outlook for first quarter 2024. These preliminary financial results and outlook reflect the company’s current estimates, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter and year-end closing procedures, as applicable. This update does not present all necessary information for an understanding of InterDigital’s financial condition as of the date of this release, or its results of operations for the fourth quarter and full year ended December 31, 2023 or first quarter 2024. As InterDigital completes its quarter-end and year-end financial close processes and finalizes its financial statements for the quarter and year-end, it will be required to make significant judgments in a number of areas and expects to receive new information including customer royalty reports for periods ended December 31, 2023. It is possible that InterDigital may identify items or receive new information that require it to make adjustments to the preliminary financial information set forth above and those changes could be material. InterDigital does not intend to update such financial information prior to release of its final fourth quarter and full year ended December 31, 2023 financial statement information and updated first quarter 2024 guidance, which is currently scheduled for Thursday, February 15, 2024.

Conference Call and Webcast Information

The company will discuss its business and outlook for first quarter 2024 at the 26th Annual Needham Growth Conference on Thursday, January 18th, 2024, at 3:00 PM ET.

InterDigital executives will also host a conference call on Thursday, February 15, 2024 at 10:00 a.m. Eastern Time (ET) to discuss the company's performance.

To access the live webcasts of these events, please visit the Investors section of the company's website. Archived replays will also be available following the events.

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.