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InterDigital, Inc. (IDCC)

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  • 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.
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  • 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.
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  • 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.
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  • 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."
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  • 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
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  • 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.
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  • Jun. 3, 2014, 12:46 PM
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  • Jun. 3, 2014, 9:25 AM
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  • 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.
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  • Apr. 8, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: CTCT +14.1%. BV +5.3%. ACTG +3.1%. IDCC +2.9%. CPSS +2.7%.
    • Top losers, as of 5:15 p.m.: MG -4.4%. AVIV -3.0%. ARO -2.2%. JRJC -2.1%. WLT -1.8%.
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  • 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
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  • 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%.
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  • Dec. 24, 2013, 9:10 AM
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  • Dec. 19, 2013, 5:45 PM
    • Bloomberg reports InterDigital (IDCC) has lost an ITC case it has been pursuing against Nokia, Huawei, and ZTE.
    • Shares tumbled in June after an ITC administrative law judge ruled Nokia, Huawei, and ZTE didn't infringe 3G patents asserted by InterDigital. The case was then sent to the full commission for a final ruling.
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  • Dec. 19, 2013, 5:38 PM
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  • Nov. 4, 2013, 11:01 AM
    • InterDigital (IDCC -2.8%) expects Q4 revenue of $80M-$83M, of which $53M-$56M will come from "current revenue" and $27M from "the interplay between awards received under two separate customer arbitrations." While guidance easily exceeds a $57M consensus, the arbitration figure was disclosed last Thursday in InterDigital's Q3 report, which led shares to surge. (PR)
    • InterDigital, whose quarterly royalties are based on the prior quarter's sales, says it saw a drop in royalties from some "historically strong per-unit licensees" (BlackBerry and HTC are likely culprits), but adds new licensing deals with contract manufacturers and diversifying OEM supply chains (i.e. the use of more contract manufacturers) will nonetheless allow the company to see major Q/Q growth in recurring IP licensing revenue.
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Company Description
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.