InterDigital Inc (IDCC)

[mschere]

A 15% increase of $26.6..is a total of $30.5 Million..without any provision for Option true-up..that would leave $3 Million for net profits..


InterDigital Raises Royalty Revenue Guidance for Fourth Quarter 2004
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nov. 23, 2004--InterDigital Communications Corporation (Nasdaq:IDCC), a leading architect, designer and provider of wireless technology and product platforms, today announced it is raising its royalty revenue guidance for fourth quarter 2004.

InterDigital now expects to report fourth quarter 2004 royalty revenues from current licensees in the range of $33.3 to $33.6 million. The Company had previously forecast fourth quarter 2004 royalty revenues in excess of $30 million.

Richard Fagan, InterDigital's Chief Financial Officer, said, "We are revising our guidance upward as recently received reports from our licensees indicate that we will record greater than expected royalty revenue during the fourth quarter. This increase reflects solid sales of both 2G and 3G products by key licensees."

2004 Outlook

Rich Fagan, Chief Financial Officer commented, "We expect to provide updated guidance on fourth quarter 2004 revenue shortly, after we receive and review all per-unit royalty reports. Based on reports received to date, we expect that fourth quarter 2004 revenue should exceed $30 million due to the strength of our licensees in the 3G market. We're also excited about the potential of our new relationship with General Dynamics and heightened interest in our AIM ANTENNA family of products. To take full advantage of these opportunities, we're scaling our developments efforts. As a result of additional investment in technology development and related productization and higher commissions related to per-unit royalty revenue, we expect our fourth quarter operating expenses to increase 10% to 15% over third quarter 2004 levels."