Business
INTERDIGITAL RAISES Q1 REVENUE GUIDANCE, LOWERS EXPENSE ESTIMATES
Substantial Base of Fixed Price Contracts Provides Significant Revenue Stability WILMINGTON, Del., March 26, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc.
About this update from Interdigital, Inc.
[{"type":"text","content":"Substantial Base of Fixed Price Contracts Provides Significant Revenue Stability\nWILMINGTON, Del., March 26, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced an increase to its revenue guidance and a lowering of expense estimates for first quarter 2020. The changes reflect the impact of two new license agreements to its respective portfolios of mobile and video technologies.\n The company increased the top end of the range for its expected first quarter 2020 revenue, with a new range of $73 million to $76 million that includes less than $1 million in past sales revenue. The prior range was $73 million to $75 million. In addition, the company noted that it expects first quarter operating expenses to be in the range of $69 million to $73 million, down $4-8 million sequentially from Q4 2019. Previously, the company had guided operating expenses to be in the range of $71 million to $74 million. William Merritt, President and CEO, noted: “With a strong balance sheet and nearly 90% of our revenue coming from fixed fee agreements that are not sensitive to our customer’s volumes, we are in a strong position to weather the current macro-economic environment and maintain our focus on continuing licensing discussions to drive top line growth.” 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 MidCap 400® 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 first quarter 2020 revenue. Words such as \"expects,\" \"projects,\" \"forecast,\" “anticipates,” and variations of such words or similar expressions are intended to identify such forward...