Business
InterDigital Announces Financial Results for First Quarter 2023
Samsung arbitration agreement and Lenovo judgment drive total revenue to over $200 million; record return of capital to shareholders WILMINGTON, Del., May 04,
About this update from Interdigital, Inc.
[{"type":"text","content":"Samsung arbitration agreement and Lenovo judgment drive total revenue to over $200 million; record return of capital to shareholders\nWILMINGTON, Del., May 04, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced results for the quarter ended March 31, 2023. \"In the first quarter, we continued to make strong progress in executing against our long-term goals,” commented Liren Chen, President and CEO, InterDigital. “The recent Lenovo judgment, along with our Samsung arbitration agreement and the 2022 Apple renewal, drove exceptional financial results in first quarter 2023 and provide a strong recurring revenue base well into the future.\" First Quarter 2023 Financial Highlights, as compared to First Quarter 2022: GAAP Total revenue was $202.4 million and increased 100%. The increase was driven by the recent Lenovo judgment.Recurring revenue was $101.6 million and increased 2%.Operating expenses were $83.1 million and increased 17%. The increase was driven by $8.2 million of one-time items.Net income1 was $105.3 million and increased 485%.Diluted earnings per share was $3.58 and increased 517%.The company completed its modified Dutch auction tender offer in which it repurchased 2.7 million shares, for an aggregate cost of $199.9 million, excluding fees, expenses and excise tax. The company repurchased $24.7 million, or 0.3 million shares, during the period April 1, 2023 through April 30, 2023. Non-GAAP Adjusted EBITDA2 was $154.8 million and increased 179%.Adjusted EBITDA margin2 was 76% up from 55%.Non-GAAP net income3 was $123.6 million and increased 301%.Non-GAAP diluted earnings per share3 was $4.21 and increased 325%. Near Term Outlook The table below presents guidance of the Company's expectations for second quarter 2023. The revenue range covers both existing licenses and license agreements that we currently expect to be executed in second quarter 2023. Q2 2023Revenue$100M - $104MOperating expenses$78M - $81MNet income 1$16.4M - $19.1MAdjusted EBITDA 2$50.2M- $52.9MDiluted earnings per share$0.60 - $0.70Non-GAAP diluted earnings per share 3$1.19 - $1.29Weighted-average diluted shares (a)27.3M (a) Based on share repurchases through April 30, 2023, excluding any additional repurchases that may occur during the remainder of second quarter 20...