WILMINGTON, DE — InterDigital, Inc. (NASDAQ: IDCC) this week announced selected and unaudited preliminary financial results for the quarter ended December 31, 2022.
- The company expects total revenue to be approximately $114 million, including recurring revenue of $101 million. The update from the company’s prior expectation of $98 to $102 million was driven primarily by new agreements signed in the second half of the quarter.
- The company expects operating expenses to be approximately $79 million, updated from its previous expectation of $76 to $79 million.
- The company expects net non-operating income1 will be approximately $1 million, updated from its previous expectation of net non-operating expense1 of $4 to $6 million. The increase in the company’s expectation was driven by higher interest income, as well as foreign currency gains.
- Net income2 is expected to be approximately $28 million, or $0.93 per diluted share.
- Adjusted EBITDA3 is expected to be approximately $60 million.
- Cash and cash equivalents, restricted cash and short-term investments are expected to total $1.2 billion as of December 31, 2022, and include approximately $400 million of customer receipts during fourth quarter 2022.
The company has not yet finalized its financial results for the quarter and full year ended December 31, 2022. These preliminary financial results reflect the company’s current estimates, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter and year-end closing procedures.
The Company’s update does not present all necessary information for an understanding of InterDigital’s financial condition as of the date of this release, or its results of operations for the fourth quarter and full year ended December 31, 2022. As InterDigital completes its quarter-end and year-end financial close processes and finalizes its financial statements for the quarter and year-end, it will be required to make significant judgments in a number of areas and expects to receive new information including customer royalty reports for periods ended December 31, 2022.
It is possible that InterDigital may identify items or receive new information that requires it to make adjustments to the preliminary financial information set forth above and those changes could be material. InterDigital does not intend to update such financial information prior to the release of its final fourth quarter and full year ended December 31, 2022, financial statement information, which is currently scheduled for Wednesday, February 15, 2023.
For more information, visit the InterDigital website: www.interdigital.com.
1 . Net non-operating income (expense) is comprised of interest expense and other income (expense).
- Throughout this press release, net income and diluted earnings per share (“EPS”) are attributable to InterDigital, Inc. (e.g., after adjustments for non-controlling interests), unless otherwise stated.
3 . Adjusted EBITDA is a supplemental non-GAAP financial measure that InterDigital believes provides investors with important insight into the company’s ongoing business performance. InterDigital defines Adjusted EBITDA as net income attributable to InterDigital, Inc. plus net loss attributable to non-controlling interest, income tax (provision) benefit, other income (expense) & interest expense, depreciation and amortization, share-based compensation, and other items. Other items may include restructuring costs, impairment charges and other non-recurring items. InterDigital’s computation of Adjusted EBITDA might not be comparable to Adjusted EBITDA reported by other companies. The presentation of Adjusted EBITDA, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
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