Business
InterDigital Issues Expense Guidance for Second Quarter 2021
WILMINGTON, Del., June 17, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today
About this update from Interdigital, Inc.
[{"type":"text","content":"WILMINGTON, Del., June 17, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today provided expense guidance for second quarter 2021. In order to increase focus on core technologies and markets, the company anticipates taking a non-recurring, net charge of approximately $28-$32 million, with approximately two-thirds of the charge expected to be recognized in second quarter 2021 and the remaining one-third expected to be recognized in second half 2021. This charge includes a $12-14 million non-cash impairment associated with a consolidated partially owned subsidiary’s anticipated disposal of assets. Beginning in fourth quarter 2021, the company expects these actions will drive annual operating expense savings of approximately $15 million prior to any reinvestments. As a result of the above non-recurring, net charge, the company expects total second quarter 2021 operating expenses to be $91-96 million. About InterDigital® InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry's most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world's leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P SmallCap 600® index. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include information regarding the company’s current expectations with respect to second quarter 2021 revenue. Words such as “expects,” “projects,” “forecasts,” “anticipates,” and variations of such words or similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors, including, but not limited to: (i) the outcome of discussions with the works council in France; (ii) the entry into additional p...