InterDigital Issues Financial Guidance for Third Quarter 2012
WILMINGTON, Del.--(BUSINESS WIRE)-- InterDigital, Inc. (IDCC) today announced financial guidance for third quarter 2012. InterDigital expects third quarter 2012 revenue to be approximately $435 million, including $375 million from the proceeds of the sale of roughly 1,700 patents and patent applications to Intel Corporation. This revenue guidance does not include the potential impact of any additional new agreements that may be signed during the balance of third quarter 2012 or the potential impact of any royalties identified in audits regularly conducted by the company. The company is finalizing its accounting for the Intel transaction, but currently expects to recognize approximately $15 million in expenses associated with the patent sale in third quarter 2012, the majority of which relate to the write off of the carrying value for the patents sold.
Our projected third quarter revenue demonstrates the strength of our strategy of expanding the monetization of our patent portfolio beyond licensing to include patent sales and other patent-related opportunities, commented William J. Merritt, InterDigitals President and Chief Executive Officer. While we forecast a decrease in per-unit revenue in third quarter 2012 from selected licensees, mainly in Japan, we believe the strength and diversity of our expected total revenue stream provides us with the necessary resources as we continue to pursue additional patent sales and significant value-adding patent licensing opportunities.
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 strategic relationships with many of the world's leading wireless companies. For more information, visit: www.interdigital.com.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit the InterDigital website: www.interdigital.com.
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 information regarding our current expectations with respect to the company's third quarter 2012 revenue and other information regarding our current beliefs, plans and expectations, including, without limitation: (i) our expectations with respect to third quarter expenses associated with the Intel patent sale, (ii) our belief that projected third quarter revenue demonstrates the strength of our strategy of expanding the monetization of our patent portfolio beyond licensing to include patent sales and other patent-related opportunities; (iii) our forecast of a decrease in per-unit revenue in third quarter 2012 from selected licensees, mainly in Japan; and (iv) our belief that the strength and diversity of our expected total revenue stream provides us with the necessary resources as we continue to pursue additional patent sales and significant value-adding patent licensing opportunities. Words such as expects, forecast, believes, projected, may, 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, but not limited to: (i) the entry into additional patent license, sales or technology solutions agreements; (ii) the accuracy of market sales projections of the company's licensees and timely receipt and final reviews of quarterly royalty reports from the company's licensees and related matters; (iii) amounts of royalties payable following routine audits, if any, and the timely receipt of such amounts during third quarter 2012; (iv) the final accounting for the Intel patent sale; and (v) changes in the companys business strategy. 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.
InterDigital Media Contact:
Patrick Van de Wille, +1 858-210-4814
InterDigital Investor Contact:
Janet Point, +1 302-281-3746
Source: InterDigital, Inc.Copyright Business Wire 2012