Business
InterDigital Announces Financial Results for Third Quarter 2021
New license agreements drive 64% revenue increase and 138% increase in operating income WILMINGTON, Del., Nov. 04, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc.
About this update from Interdigital, Inc.
[{"type":"text","content":"New license agreements drive 64% revenue increase and 138% increase in operating income\nWILMINGTON, Del., Nov. 04, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the quarter ended September 30, 2021. Third Quarter 2021 Financial Highlights Total revenue of $143.5 million increased 64% from $87.5 million in third quarter 2020. Recurring revenue was $93.4 million, compared to recurring revenue of $87.0 million in third quarter 2020. The increase in both total and recurring revenue was primarily driven by additional revenues from ten new patent license agreements signed in the last twelve months, including agreements with Xiaomi and a top ten global TV manufacturer signed in third quarter 2021. These increases were partially offset by a reduction in recurring revenue due to a handset manufacturer exiting the business in the past year, as previously disclosed.Operating expenses were $106.7 million, compared to $72.1 million in third quarter 2020. The increase was primarily driven by $26.1 million of non-recurring costs associated with the Company’s ongoing restructuring efforts, performance-based compensation and revenue share related to the above-noted patent license agreement with a top ten global TV manufacturer.Income from operations increased to $36.8 million, compared to $15.4 million in third quarter 2020.Net income1 was $26.2 million, or $0.83 per diluted share, compared to net income of $23.8 million, or $0.76 per diluted share, in third quarter 2020. “In this quarter, we’ve continued to build on our business momentum by expanding our customer base in the mobile and consumer electronic spaces. The wireless connectivity and video technologies we develop have never been more important,” said CEO Liren Chen. “We believe we are well positioned for future growth and are prepared to ensure that the value of our patent portfolio is recognized by those who benefit from our innovations.” Additional Highlights The company generated $96.3 million cash provided by operating activities, compared to $101.3 million in third quarter 2020, and $87.4 million of free cash flow2, compared to $85.4 million in third quarter 2020. These changes were primarily driven by timing of collections under fixed-fee agreements. Cash and cash equivalents...