Business
InterDigital Announces Financial Results For Second Quarter 2020
New licensing drives 15% year-over-year increase in recurring revenue WILMINGTON, Del., Aug. 06, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a
About this update from Interdigital, Inc.
[{"type":"text","content":"New licensing drives 15% year-over-year increase in recurring revenue\nWILMINGTON, Del., Aug. 06, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the second quarter ended June 30, 2020.\n Second Quarter 2020 Financial Highlights Second quarter 2020 recurring revenue was $85.2 million, compared to recurring revenue of $74.4 million in second quarter 2019, a 15% increase. This increase was driven by new patent license agreements signed over the last twelve months, including with Huawei and ZTE. Second quarter 2020 total revenue was $104.5 million, compared to $75.6 million in second quarter 2019. The increase was primarily driven by the signing of a new fixed-fee patent license agreement with Huawei in second quarter 2020.Second quarter 2020 operating expenses were $72.6 million, compared to $66.7 million in second quarter 2019. Second quarter 2020 included one-time charges of approximately $2.9 million primarily related to increased performance-based compensation. Intellectual property enforcement costs totaled $6.9 million, an increase of $2.4 million compared to second quarter 2019, driven by litigations with Lenovo and Xiaomi that we initiated in second half 2019 and July 2020, respectively.Second quarter 2020 net income1 was $22.3 million, or $0.72 per diluted share compared to net income of $7.7 million, or $0.24 per diluted share, in second quarter 2019. “Delivering double-digit revenue growth in a quarter marked by a global pandemic clearly has demonstrated the incredible strength and stability of our business and our ability to execute. That resilience, backed by a strong balance sheet, allows us to remain focused on our long-term strategic priorities and combined opportunities in wireless and consumer electronics licensing,” said William J. Merritt, President and CEO of InterDigital. “In light of the pandemic, our focus also remains on the well-being of our employees and the safety of our communities, whom we have supported through the donation of PPEs, as well as monetary donations.” Additional Highlights In second quarter 2020, the company recorded $69.8 million of cash provided by operating activities, compared to $22.7 million of cash used in operating activities in second quarter 2019. The company generated $60.0 m...