Business
InterDigital Announces Financial Results for Second Quarter 2023
Continued business success drives high margins and fuels return of capital to shareholders WILMINGTON, Del., Aug. 03, 2023 (GLOBE NEWSWIRE) -- InterDigital,
About this update from Interdigital, Inc.
[{"type":"text","content":"Continued business success drives high margins and fuels return of capital to shareholders\nWILMINGTON, Del., Aug. 03, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced results for the quarter ended June 30, 2023. \"This was another strong quarter for the business where we added to our recent momentum,\" commented Liren Chen, President and CEO, InterDigital. \"The UK High Court increased the Lenovo license to $184.9 million, which bolstered our cash balance to approximately $1 billion. Our financial strength, combined with our innovation leadership, puts us in a strong position to build on our recent progress and deliver considerable value to our shareholders.\" Second Quarter 2023 Financial Highlights, as compared to Second Quarter 2022: GAAP Total revenue was $101.6 million. This was 19% lower due to catch-up revenues that were recognized in second quarter 2022 from two previously announced license agreements.Recurring revenue was $99.1 million and decreased 1%.Operating expenses were $78.2 million and increased 5% due primarily to higher research and portfolio development costs.Non-operating income1 was $2.2 million, as compared to non-operating expense1 of $21.3 million, driven primarily by our 2022 debt refinancing.Net income2 was $21.8 million and increased 3%; net income2 margin was 21%.Diluted earnings per share was $0.79 and increased 14%.During second quarter 2023, we repurchased $42.5 million, or 0.5 million shares, under our share repurchase program. Non-GAAP Adjusted EBITDA3 was $53.6 million and decreased 31% due to lower catch-up revenues noted above; Adjusted EBITDA margin3 was 53%.Non-GAAP net income4 was $35.6 million and decreased 11%.Non-GAAP diluted earnings per share4 was $1.30 and was flat. Near Term Outlook The table below presents guidance of the Company's expectations for third quarter 2023. The revenue range covers existing licenses and does not include any new agreements we may sign over the balance of the third quarter. Q3 2023Revenue$97M - $100MOperating expenses$78M - $81MNet income2$17M - $20MAdjusted EBITDA3$47M- $50MDiluted earnings per share$0.60 - $0.70Weighted-average diluted shares(a)28.2MNon-GAAP diluted earnings per share4$1.10 - $1.20Non-GAAP weighted-average diluted shares4 (a)27.0M (a) Based on sha...