WILMINGTON, Del., Oct. 31, 2013 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq:IDCC), a wireless research and development company, today announced results for the third quarter ended September 30, 2013.
Third Quarter 2013 Financial Highlights:
Revenue of $110.6 million;•
Net income of $26.7 million, or $0.64 per diluted share; and•
Ending cash and short-term investments totaling $756.8 million at September 30, 2013.
"The quarter and year-to-date results reflect the strength of InterDigital's overall business," commented William J. Merritt, President and Chief Executive Officer of InterDigital. "Our patent and technology licensing revenue was strong, reflecting our base of core licensees, our ability to add or extend licensees and our ability to successfully arbitrate disputes with licensees when they arise. Our arbitration successes lifted the quarterly results and are also expected to drive solid incremental revenue in coming quarters. We also demonstrated the depth of the InterDigital patent portfolio as well as our creativity in monetizing patents with the launch of Signal Trust for Wireless Innovation, which will work to secure licenses within the very large cellular infrastructure market. Further, we continue to see significant interest in the technologies being developed in our Labs and Solutions groups, and are excited about the technologies being incubated in our new Innovation Partners ecosystem. Indeed, our pipeline of innovation has never been more diverse, with our patent filings closely in line with past years, but at an overall lower research and development cost."
Third Quarter 2013 Summary
Revenue in third quarter 2013 totaled $110.6 million, including $51.6 million in connection with a third quarter arbitration award related to one of the company's technology solutions agreements and $12.5 million in past sales primarily related to Pegatron shipments from July 1, 2012 through March 31, 2013. Revenue for third quarter 2012 was $434.0 million, which included $58.4 million of patent licensing revenue and $375.0 million from the company's patent sale to Intel Corporation. The company's third quarter 2013 net income was $26.7 million, or $0.64 per diluted share, compared to net income of $235.7 million, or $5.56 per diluted share, in third quarter 2012.
Fixed-fee amortized royalty revenue decreased $16.9 million year-over-year primarily due to the expiration of the 3G portion of the company's patent license agreement with Samsung at the end of 2012, which was partially offset by the addition of fixed-fee amortized royalty revenue from the Sony patent license agreement signed in fourth quarter 2012. Per-unit royalty revenue increased $2.7 million due to the inclusion of certain products as a result of the company's second quarter Pegatron arbitration award. Companies that accounted for ten percent or more of the $110.6 million of third quarter 2013 total revenue were Intel Mobile Communications GmbH (49%) and Pegatron Corporation (14%).