Business
InterDigital Announces Financial Results for First Quarter 2020
New licensing drives increased revenue platform; Results mark achievement of company cost goals WILMINGTON, Del., May 07, 2020 (GLOBE NEWSWIRE) --
About this update from Interdigital, Inc.
[{"type":"text","content":"New licensing drives increased revenue platform; Results mark achievement of company cost goals\nWILMINGTON, Del., May 07, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the first quarter ended March 31, 2020.\n First Quarter 2020 Financial Highlights First quarter 2020 recurring revenue was $75.5 million, compared to recurring revenue of $74.2 million in first quarter 2019. First quarter 2020 revenue did not include any impact from the company's recently announced second quarter license renewal with Huawei.First quarter 2020 total revenue was $76.2 million, compared to $68.6 million in first quarter 2019. As previously disclosed, first quarter 2019 included a $5.5 million net charge recorded as a reduction to non-recurring revenue related to a restructured licensing arrangement with a long-term customer.First quarter 2020 operating expenses were $71.5 million, compared to $68.8 million in first quarter 2019. First quarter 2020 included one-time charges of nearly $3 million incurred as part of the company's on-going efforts to optimize its cost structure, including the closure of its San Diego office.For the second consecutive quarter the company reported that it has brought its ongoing economic cost1 of operating the business back in line with the 2017 levels that existed before the Technicolor acquisitions.First quarter 2020 net income2 was $0.1 million, or $0.00 per diluted share compared to net loss2 of $2.8 million, or $0.09 per diluted share, in first quarter 2019. “With the renewal of Huawei as a licensee, InterDigital has now completed six licensing agreements in the past six months. This tremendous momentum underscores the strategy that guided our acquisitions and efforts for the past two years: expand InterDigital’s patent and technology footprint, expand our addressable markets, and increase the value we can offer our core mobile handset licensees, all while preserving the phenomenal operating leverage that is a hallmark of our company,” said William J. Merritt, President and CEO of InterDigital. “With Huawei coming on board, continued efforts to license additional companies, our continuing efforts to grow our consumer electronics business, and careful cost control, InterDigital is set on a path for increased profit...