Today, 6:15 PM
- InterDigital (NASDAQ:IDCC) -2.9% AH after the U.S. International Trade Commission rejects the company’s request to block U.S. imports of Nokia-branded phones, lost an eight-year battle to claim patent royalties.
- IDCC, which gets nearly all of its revenue from patent licensing, has sued companies that refused to pay royalties, contending that its inventions are an essential component of standardized 3G and 4G wireless technologies.
- "Today’s decision is disappointing but is expected to have a limited impact on our going-forward business, given the decline of the Nokia mobile device business under Microsoft’s control and its limited market position,” CEO William Merritt says.
- The case was filed in 2007 before Nokia sold its handset business to Microsoft.
Today, 5:40 PM
Fri, Jun. 12, 12:23 PM
- InterDigital (NASDAQ:IDCC) has rallied towards $59 after announcing (along with its quarterly dividend) it's adding $100M to its buyback authorization, raising its available funds to $179.8M.
- InterDigital's buyback authorization is good for repurchasing over 8% of shares at current levels. The 3G/4G patent owner had $911M in cash at the end of Q1, and $473M in long-term debt.
Wed, Feb. 18, 10:17 AM
- InterDigital (IDCC -1.5%) has slipped amid a report the company's appeal of an adverse ITC ruling for its infringement suit against ZTE and Microsoft's phone unit (formerly Nokia's) has been rejected.
- The 3G/4G patent owner received a favorable ruling in October from a Delaware court for an infringement suit against ZTE. Q4 results arrive tomorrow morning.
- Update (12:40PM): InterDigital has issued a PR confirming the rejection. The company adds its Delaware cases and a separate ITC case feature patents not covered by the decision.
Dec. 9, 2014, 2:36 PM
- 3G/4G IP licensing firm InterDigital (IDCC +3.6%) and storage adapter card/switch vendor Emulex (ELX +3.6%) have both rallied after presenting at Barclays' Global Technology Conference (webcast).
- InterDigital CEO Bill Merritt and Emulex CEO Jeff Benck each presented at 1:30PM ET. InterDigital is near its 52-week high of $53.50, and up 80% YTD.
Oct. 28, 2014, 12:11 PM
- InterDigital (NASDAQ:IDCC) has won a Delaware infringement suit against ZTE. ZTE was ruled to be infringing claims in 3 asserted InterDigital patents, and ZTE's attempts to have the claims rejected as invalid (on grounds of obviousness) were rejected.
- Earlier this year, InterDigital saw unfavorable ITC rulings for patents asserted against Nokia and ZTE. Q3 results are due on Thursday.
- The court ruling (.pdf)
- Update: InterDigital has issued a PR.
Aug. 14, 2014, 5:41 PM
- The ITC has decided not to place import bans on Nokia and ZTE phones alleged by InterDigital (NASDAQ:IDCC) to be infringing its IP. (official ruling)
- The decision comes after an ITC administrative law judge ruled against InterDigital in June. Shares plunged in response. Discussing the judge's ruling, the ITC says it has decided "reverse certain findings, to take no position on others, and to terminate the investigation with a finding of no violation."
Jun. 13, 2014, 1:51 PM
- An ITC administrative law judge has ruled against InterDigital (IDCC -10.8%) in an infringement case against Nokia. The commission still has to make a final ruling.
- Shares dove last December after the commission ruled against InterDigital in a suit against Nokia, Huawei, and ZTE. Before today's move, they were up sharply in June thanks to InterDigital's Samsung deal.
- Yesterday: InterDigital doubles dividend, announces $300M buyback
Jun. 3, 2014, 6:45 PM
- After rising 20.7% in regular trading on news of its Samsung deal, InterDigital (IDCC) is up another 3.4% AH after CEO Bill Merritt provided upbeat comments (video) on CNBC.
- Merritt states the Samsung pact is "potentially a 10-year deal." He adds the licensing terms mesh with InterDigital's traditional rate structure, and suggests the company is now set to get ~$300M/year in revenue from the 50% of the mobile phone market covered by licensing deals.
- The deal covers "future generation devices" (e.g. 5G) through 2017. InterDigital is now hoping to reach "a comprehensive agreement" with Apple.
Jun. 3, 2014, 12:46 PM
Jun. 3, 2014, 9:25 AM
Jun. 3, 2014, 9:23 AM
- InterDigital (IDCC) has struck a multi-year, royalty-bearing licensing deal with Samsung related to the use smartphone giant's sale of 3G, 4G, and "certain future generation" devices.
- The deal ends a long-running dispute with a company estimated by IDC to have 24.5% of the 2013 mobile phone market (in terms of units), and 31.3% of the smartphone market.
- With the Samsung deal in tow, InterDigital now expects Q2 revenue of $172M-$210M, far above prior guidance of $65M-$72M. Recurring revenue is now expected to be in a range of $72M-$80M (up from $55M-$57M), and revenue from past sales $100M-$130M (up from just $10M-$15M).
- The company adds that it still only has "roughly have of the market under license," leaving plenty of room for additional recurring revenue growth.
- 12.3% of the float was shorted as of May 15.
Apr. 8, 2014, 5:38 PM
Feb. 20, 2014, 2:58 PM
- In addition to beating Q4 estimates, InterDigital (IDCC +7%) is guiding for Q1 revenue of $54M-$59M, above a $53.8M consensus. The company says the guidance only accounts for recurring revenue streams (e.g. royalties), and excludes the potential impact of new deals and/or settlements.
- Q4 revenue blew away estimates thanks to the recognition of $36.4M in past royalty revenue, primarily from Pegatron (previous). Royalty and tech solutions revenue rose 34% Y/Y to $63.3M due to arbitration awards in disputes with Apple, Pegatron, and a technology solutions partner.
- Excluding a $12.5M restructuring charge taken a year ago, opex rose 9% Y/Y to $61.7M, thanks in large part to a 16% increase in patent admin/licensing costs to $36.2M.
- Q4 results, PR
Dec. 24, 2013, 12:35 PM
- InterDigital's (IDCC +3.6%) arbitration deal with Huawei, which comes shortly after the ITC ruled against InterDigital in a patent suit against Huawei, Nokia, and ZTE, is expected to eventually yield "a global licensing agreement," says InterDigital CEO Wiliiam Merritt.
- The company's disputes with Nokia (in the process of selling its phone business to Microsoft) and ZTE are still outstanding. Shares remain 7% below where they traded prior to the ITC ruling, and are down 27% YTD in a year the Nasdaq is up over 30%.
Dec. 24, 2013, 9:10 AM
IDCC vs. ETF Alternatives
InterDigital Inc designs and develops technologies that enable and enhance wireless communications and capabilities. The Company is a contributor of intellectual property to the wireless communications industry.
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