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InterDigital (NASDAQ: IDCC ) is a R&D company that develops advanced technologies used in wireless products. In addition, the company is one of the leading companies in video research, developing advanced video compression standards for the world. Currently, the company reports its revenueWith over 7 years of experience in the buy-side, my investment philosophy is rooted in both fundamental bottom-up analysis and quantitative modelling. My forte lies in identifying perception gaps to capitalize on over-pess ...

InterDigital, Inc. (IDCC) reported strong third-quarter 2024 results, with the adjusted earnings and revenues surpassing the respective Zacks Consensus Estimates.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company generated higher revenues year over year, driven by solid licensing momentum and product innovation. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.Net IncomeQuarterly net income decreased ...

Core Insights - InterDigital reported revenue of $128.68 million for Q3 2024, marking an 8.2% decline year-over-year, with EPS at $1.63 compared to $2.13 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $96.51 million by 33.33%, and the EPS surpassed the consensus estimate of $0.76 by 114.47% [2] Revenue Breakdown - Recurring revenues were $98.60 million, exceeding the average estimate of $84.65 million, but reflecting a 5.6% decline year-over-year [3] - Smartphone revenue was $87.40 million, compared to the average estimate of $62.79 million, showing a 16.2% year-over-year decline [3] - CE, IoT/Auto revenue reached $40.60 million, significantly above the average estimate of $18.11 million, with a year-over-year increase of 14.8% [3] - Catch-up revenues totaled $30 million, surpassing the average estimate of $23.47 million, but showing a 15.8% decline year-over-year [3] Stock Performance - InterDigital's shares have returned 2% over the past month, outperforming the Zacks S&P 500 composite's 1% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Group 1 - InterDigital reported quarterly earnings of $1.63 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, but down from $2.13 per share a year ago, representing an earnings surprise of 114.47% [1] - The company posted revenues of $128.68 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 33.33%, although this is a decrease from year-ago revenues of $140.11 million [2] - InterDigital has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Group 2 - The stock has gained approximately 36.1% since the beginning of the year, outperforming the S&P 500's gain of 21.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.49 on revenues of $134.47 million, and for the current fiscal year, it is $10.36 on revenues of $717.99 million [7] Group 3 - The estimate revisions trend for InterDigital is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Wireless Equipment industry, to which InterDigital belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Revenues for the three months ended September 30, 2024, were $128,679 thousand, a decrease of 8.5% compared to $140,106 thousand for the same period in 2023[8]. - Net income for the three months ended September 30, 2024, was $34,190 thousand, down 27.5% from $47,154 thousand in the same period last year[11]. - Operating expenses totaled $89,337 thousand for the three months ended September 30, 2024, an increase of 3.2% from $86,453 thousand in the prior year[8]. - Income from operations for the three months ended September 30, 2024, was $39,342 thousand, a decline of 26.6% compared to $53,653 thousand in the same quarter of 2023[8]. - Comprehensive income for the three months ended September 30, 2024, was $35,556 thousand, down from $47,184 thousand in the prior year[11]. - Total revenues for the nine months ended September 30, 2024, were $615.7 million, an increase of 39% compared to $444.1 million in 2023[26]. - Net income for the first nine months of 2024 was $225.5 million, compared to $172.0 million in the same period of 2023, representing a 31% increase[8]. Shareholder Returns - Cash dividends declared per common share increased to $0.45 for the three months ended September 30, 2024, compared to $0.40 in the same period last year[8]. - The company declared dividends of $0.45 per share for the period, totaling $11,817, compared to $29,106 in the previous year[17]. - The Company returned $14.5 million to shareholders in Q3 2024, including $11.4 million in cash dividends and $3.1 million in share repurchases[84]. - Cash dividends declared per common share increased to $1.25 in the first nine months of 2024 from $1.10 in 2023[8]. Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2024, provided $79,494, a decrease from $237,318 in the prior year[17]. - Total cash, cash equivalents, and restricted cash at the end of the period was $410,780, down from $525,712 at the end of September 2023[17]. - The company had a total cash, cash equivalents, restricted cash, and short-term investments balance of $822.9 million as of September 30, 2024, down from $1,012.2 million at the end of 2023[96]. - The net cash used in financing activities for the nine months ended September 30, 2024, was $251,025, a decrease from $340,469 in the previous year[17]. Revenue Sources - Recurring revenues from smartphones decreased by 15% to $221.7 million in 2024 from $260.9 million in 2023[26]. - The company recognized $119.8 million in revenue from deferred revenue during the nine months ended September 30, 2024[27]. - Contracted revenue expected to be recognized includes $330.4 million for 2025 and $237.3 million for 2026, totaling $1.36 billion[29]. - Recurring revenues for the first nine months of 2024 decreased by 4% to $291.4 million, compared to $305.1 million in the same period of 2023[117]. Expenses and Liabilities - Operating expenses increased to $89.3 million in Q3 2024, up 3% from $86.5 million in Q3 2023, driven by a $6.1 million increase in revenue share costs[112]. - Licensing expenses surged by 151% to $149.2 million in the first nine months of 2024, compared to $59.5 million in the same period of 2023[119]. - The effective interest rate for the long-term debt was approximately 14.5%, with interest expenses of $0.6 million and $2.2 million for the three and nine months ended September 30, 2024, respectively[53]. - The total amount of other long-term liabilities was $56.1 million as of September 30, 2024, compared to $55.3 million as of December 31, 2023[46]. Legal and Regulatory Matters - The UK High Court awarded the company a total of $240.1 million from Lenovo for patent licensing through December 31, 2023, following a series of legal proceedings[58]. - The company entered into a binding arbitration agreement with Lenovo to finalize a new patent license agreement effective January 1, 2024, dismissing all pending litigations[55]. - The company filed multiple patent infringement claims against Oppo and its affiliates in various jurisdictions, including the UK, India, and Germany, seeking injunctive relief and damages[66][69]. - The company is involved in ongoing legal proceedings in multiple countries, including the US, UK, and Germany, against various companies for patent infringements related to 3G, 4G/LTE, and 5G standards[62][66]. Taxation - The effective tax rate for the nine months ended September 30, 2024, was 18.4%, up from 14.7% in 2023, primarily due to a decrease in Foreign Derived Intangible Income deduction benefits[73]. - The effective tax rate for Q3 2024 was 17.0%, up from 15.3% in Q3 2023, due to a decrease in Foreign Derived Intangible Income deduction benefits[114]. Stock and Equity - The balance of total shareholders' equity as of September 30, 2024, was $722,537, an increase from $696,777 at the end of June 2024[15]. - The company repurchased common stock totaling $66,726 during the nine months ended September 30, 2024, compared to $302,728 in the prior year[17]. - The balance of common shares as of September 30, 2023, was 69,431 thousand shares[13]. Other Financial Metrics - Basic Earnings Per Share (EPS) for the three months ended September 30, 2024, was $1.36, down from $1.82 in 2023[75]. - Net income per common share (diluted) was $8.92 for the first nine months of 2024, compared to $6.42 in the same period of 2023[8]. - The company recorded other income, net of $12.55 million for the three months ended September 30, 2024, compared to $14.73 million in 2023[78].

WILMINGTON, Del., Oct. 31, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video, and AI technology research and development company, today announced results for the quarter ended September 30, 2024. "In the third quarter we delivered revenues of about $129 million, exceeding the top end of our guidance, driven by a strong performance from our consumer electronics and IoT licensing program," commented InterDigital CEO and President Liren Chen. "In addition, at the start of the fourth q ...

WILMINGTON, Del., Oct. 25, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, announced that research from InterDigital’s Video Lab was recognized with the Society of Motion Picture and Television Engineers (SMPTE) Journal Certificate of Merit. The research paper, titled “Pixel Value Adjustment to Reduce the Energy Requirements of Display Devices,” was written by InterDigital engineers Erik Reinhard, Claire-Hélène Demarty, and Laur ...

WILMINGTON, Del., Oct. 21, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, announced its participation in the 2024 Brooklyn 6G Summit, taking place October 23 – 25. At the show, InterDigital and researchers from The University of Texas at Austin will display the latest in their collaboration to validate AI solutions for wireless networks and shape how AI will be used for 5G and 6G. Jointly organized by Nokia and the NYU Wireless ...