WILMINGTON, Del., June 06, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile, video and AI technology research and development company, today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.40 per share on its common stock, payable on July 24, 2024, to shareholders of record at the close of business on July 10, 2024. InterDigital is a registered trademark of InterDigital, Inc. InterDigital is a global research and development company focused prim ...

Core Insights - InterDigital, Inc. will present at two upcoming investor events: the William Blair 44th Annual Growth Stock Conference on June 4, 2024, and the 14th Annual East Coast IDEAS Investor Conference on June 12, 2024 [1][2] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence (AI), and related technologies [3] - The company designs and develops foundational technologies that enable connected and immersive experiences across various communications and entertainment products and services [3] - InterDigital licenses its innovations worldwide to companies in sectors such as wireless communications, consumer electronics, IoT devices, and cloud-based services like video streaming [3] - The company has a strong history in wireless technology, having developed innovations from early digital cellular systems to advanced 5G and Wi-Fi technologies [3] - InterDigital is also a leader in video processing and encoding/decoding technology, with significant research efforts in AI that intersect with wireless and video technologies [3] - Founded in 1972, InterDigital is listed on Nasdaq [3]

For the quarter ended March 2024, InterDigital (IDCC) reported revenue of $263.54 million, up 30.2% over the same period last year. EPS came in at $3.58, compared to $4.21 in the year-ago quarter.The reported revenue represents a surprise of +5.36% over the Zacks Consensus Estimate of $250.15 million. With the consensus EPS estimate being $3.37, the EPS surprise was +6.23%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

```markdown [**Form 10-Q Filing Information**](index=1&type=section&id=Form%2010-Q%20Filing%20Information) Details the quarterly report filing information for InterDigital, Inc. for the period ended March 31, 2024 - The document is a Quarterly Report on Form 10-Q for InterDigital, Inc. for the period ended March 31, 2024[1](index=1&type=chunk)[2](index=2&type=chunk) Title of each class | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, par value $0.01 per share | IDCC | Nasdaq Stock Market LLC | - InterDigital, Inc. is classified as a Large accelerated filer[4](index=4&type=chunk) Title of Class | Title of Class | Outstanding at April 30, 2024 | | :--- | :--- | | Common Stock, par value $0.01 per share | 25,235,496 | [**INDEX**](index=2&type=section&id=INDEX) Presents the organizational structure of the report's content for easy navigation [**PART I — FINANCIAL INFORMATION**](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) Presents unaudited condensed consolidated financial statements and management's discussion and analysis [**Item 1. FINANCIAL STATEMENTS**](index=3&type=section&id=Item%201%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements of InterDigital, Inc. and its subsidiaries for the three months ended March 31, 2024 and 2023, including balance sheets, statements of income, comprehensive income, shareholders' equity, cash flows, and accompanying notes [**Condensed Consolidated Balance Sheets**](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%E2%80%94%20March%2031%2C%202024%20and%20December%2031%2C%202023) Presents the company's assets, liabilities, and equity at the end of the reporting period Metric | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Total assets | $1,807,021 | $1,770,814 | | Total liabilities | $1,182,730 | $1,189,265 | | Total shareholders' equity | $624,291 | $581,549 | [**Condensed Consolidated Statements of Income**](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Details the company's revenues, expenses, and net income for the reporting period Metric | Metric | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Revenues | $263,542 | $202,373 | | Total operating expenses | $159,804 | $83,112 | | Income from operations | $103,738 | $119,261 | | Net income attributable to InterDigital, Inc. | $81,652 | $105,259 | | Net income per common share — Basic | $3.20 | $3.66 | | Net income per common share — Diluted | $2.88 | $3.58 | | Cash dividends declared per common share | $0.40 | $0.35 | [**Condensed Consolidated Statements of Comprehensive Income**](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Reports net income and other comprehensive income items for the reporting period Metric | Metric | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net income | $81,652 | $103,520 | | Unrealized (loss) gain on investments, net of tax | $(495) | $579 | | Comprehensive income | $81,157 | $104,099 | | Total comprehensive income attributable to InterDigital, Inc. | $81,157 | $105,838 | [**Condensed Consolidated Statements of Shareholders' Equity**](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Outlines changes in shareholders' equity over the reporting period Metric | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | March 31, 2023 (in thousands) | | :--- | :--- | :--- | :--- | | Total shareholders' equity | $624,291 | $581,549 | $625,301 | Repurchase of common stock (in thousands): | Period | Shares | Amount | | :--- | :--- | :--- | | Three Months Ended March 31, 2024 | 277 | $(29,019) | | Three Months Ended March 31, 2023 | 2,739 | $(203,381) | [**Condensed Consolidated Statements of Cash Flows**](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%94%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Summarizes cash inflows and outflows from operating, investing, and financing activities Cash Flow Activity | Cash Flow Activity | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $50,773 | $(27,852) | | Net cash provided by (used in) investing activities | $16,775 | $(14,463) | | Net cash used in financing activities | $(49,319) | $(218,136) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $18,229 | $(260,451) | | Cash, cash equivalents and restricted cash, end of period | $461,190 | $442,710 | [**Notes to Condensed Consolidated Financial Statements**](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [**1. BASIS OF PRESENTATION**](index=8&type=section&id=1.%20BASIS%20OF%20PRESENTATION) This note outlines the basis for preparing the unaudited condensed consolidated financial statements, confirming they include normal recurring adjustments and should be read in conjunction with the 2023 Form 10-K. It also details supplemental cash flow information and mentions the evaluation of new accounting guidance related to segment reporting and income tax disclosures - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q instructions and include only normal recurring adjustments[24](index=24&type=chunk) - No material changes to existing accounting policies, except for new accounting guidance being evaluated[26](index=26&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) Supplemental Cash Flow Information (in thousands): | Item | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Income taxes paid, including foreign withholding taxes | $9,335 | $4,942 | | Dividend payable | $10,155 | $9,449 | | Right-of-use assets obtained in exchange of operating lease liabilities | $2,189 | — | | Accrued capitalized patent costs and property and equipment purchases | $(1,358) | $(1,274) | [**2. REVENUE**](index=9&type=section&id=2.%20REVENUE) This note disaggregates the company's revenue, showing a 30% increase in total revenues for Q1 2024, primarily driven by catch-up revenues from the Samsung TV agreement. Recurring revenues, however, saw a 5% year-over-year decrease Disaggregated Revenue (in thousands): | Category | March 31, 2024 | March 31, 2023 | Increase/(Decrease) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Smartphone recurring revenues | $74,029 | $87,431 | $(13,402) | (15)% | | CE, IoT/Auto recurring revenues | $22,116 | $14,086 | $8,030 | 57 % | | Other recurring revenues | $719 | $56 | $663 | 1,184 % | | **Total recurring revenues** | **$96,864** | **$101,573** | **$(4,709)** | **(5)%** | | Catch-up revenues | $166,678 | $100,800 | $65,878 | 65 % | | **Total revenues** | **$263,542** | **$202,373** | **$61,169** | **30 %** | - Catch-up revenues are comprised of past patent royalties and revenues from static fixed-fee agreements[31](index=31&type=chunk) Expected Contracted Revenue (in thousands): | Period | Revenue | | :--- | :--- | | Remainder of 2024 | $252,057 | | 2025 | $323,620 | | 2026 | $230,456 | | 2027 | $227,858 | | 2028 | $215,821 | | Thereafter | $265,882 | | **Total Revenue** | **$1,515,694** | [**3. CASH, CONCENTRATION OF CREDIT RISK AND FAIR VALUE OF FINANCIAL INSTRUMENTS**](index=10&type=section&id=3.%20CASH%2C%20CONCENTRATION%20OF%20CREDIT%20RISK%20AND%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note provides a reconciliation of cash, cash equivalents, and restricted cash, details the concentration of credit risk, and outlines the fair value measurements of financial instruments, including recurring fair value measurements for various assets and non-recurring measurements for patents and long-term debt Cash, Cash Equivalents and Restricted Cash (in thousands): | Item | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $440,242 | $437,076 | $430,625 | | Restricted cash included within prepaid and other current assets | $20,948 | $5,885 | $12,085 | | **Total cash, cash equivalents and restricted cash** | **$461,190** | **$442,961** | **$442,710** | - Four licensees comprised **85%** and **84%** of accounts receivable balance as of March 31, 2024 and December 31, 2023, respectively[37](index=37&type=chunk) Recurring Fair Value Measurements (Assets as of March 31, 2024, in thousands): | Asset Type | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Money market and demand accounts | $435,695 | — | — | $435,695 | | Commercial paper | — | $136,406 | — | $136,406 | | U.S. government securities | — | $251,166 | — | $251,166 | | Corporate bonds, asset backed and other securities | — | $182,316 | — | $182,316 | | **Total** | **$435,695** | **$569,888** | **—** | **$1,005,583** | Fair Value of Long-Term Debt (in thousands): | Debt Type | Principal Amount (March 31, 2024) | Carrying Value (March 31, 2024) | Fair Value (March 31, 2024) | | :--- | :--- | :--- | :--- | | 2027 Senior Convertible Long-Term Debt | $460,000 | $453,295 | $658,030 | | 2024 Senior Convertible Long-Term Debt | $126,174 | $126,074 | $165,364 | | Technicolor Patent Acquisition Long-Term Debt | N/A | $28,029 | $28,300 | [**4. OTHER ASSETS AND LIABILITIES**](index=12&type=section&id=4.%20OTHER%20ASSETS%20AND%20LIABILITIES) This note provides a detailed breakdown of the components comprising 'Prepaid and other current assets,' 'Other non-current assets, net,' 'Other accrued expenses,' and 'Other long-term liabilities' as of March 31, 2024, and December 31, 2023 Prepaid and other current assets (in thousands): | Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Prepaid assets | $32,792 | $9,353 | | Tax receivables | $21,959 | $19,835 | | Restricted cash | $20,948 | $5,885 | | Other current assets | $9,473 | $8,903 | | **Total** | **$85,172** | **$43,976** | Other non-current assets, net (in thousands): | Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Tax receivables | $79,251 | $76,740 | | Long-term investments | $33,481 | $31,895 | | Goodwill | $22,421 | $22,421 | | Right-of-use assets | $17,328 | $15,746 | | Other non-current assets | $3,579 | $2,854 | | **Total** | **$156,060** | **$149,656** | Other accrued expenses (in thousands): | Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Customer deposit | $76,100 | $76,100 | | Accrued legal fees | $16,541 | $10,338 | | Other accrued expenses | $29,525 | $11,604 | | **Total** | **$122,166** | **$98,042** | Other long-term liabilities (in thousands): | Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Deferred compensation liabilities | $18,967 | $18,413 | | Operating lease liabilities | $18,547 | $17,385 | | Other long-term liabilities | $19,413 | $19,454 | | **Total** | **$56,927** | **$55,252** | [**5. OBLIGATIONS**](index=13&type=section&id=5.%20OBLIGATIONS) This note details the company's convertible notes (2027 and 2024 Notes) and related note hedge and warrant transactions, including their terms, conversion rates, and carrying values. It also covers the Technicolor Patent Acquisition long-term debt, which is contingent on future royalty revenues - The 2027 Notes (**3.50%** Senior Convertible Notes due 2027) have an aggregate principal amount of **$460.0 million** and are convertible at an initial rate of **12.9041 shares** per **$1,000 principal amount** (initial conversion price of approximately **$77.49 per share**). Holders have conversion rights from January 1, 2024, through June 30, 2024[50](index=50&type=chunk)[51](index=51&type=chunk) - The 2024 Notes (**2.00%** Senior Convertible Notes due 2024) have **$126.2 million** in aggregate principal amount outstanding and became convertible on March 1, 2024, at an initial conversion rate of **12.3018 shares** per **$1,000 principal amount** (initial conversion price of approximately **$81.29 per share**)[54](index=54&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk) Carrying Value of Convertible Notes Long-Term Debt (in thousands): | Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | 3.50% Senior Convertible Notes due 2027 | $460,000 | $460,000 | | 2.00% Senior Convertible Notes due 2024 | $126,174 | $126,174 | | Less: Deferred financing costs | $(6,805) | $(7,422) | | **Net carrying amount of the Convertible Notes** | **$579,369** | **$578,752** | Interest Cost Recognized for Convertible Notes (in thousands): | Item | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Contractual coupon interest | $4,656 | $4,656 | | Amortization of deferred financing costs | $616 | $573 | | **Total** | **$5,272** | **$5,229** | - The Technicolor Patent Acquisition long-term debt is a contingent obligation based on future royalty revenues from the Madison Arrangement, with an effective interest rate of approximately **14.5%**. A **$1.6 million** payment was made to CPPIB Credit during Q1 2024[61](index=61&type=chunk)[62](index=62&type=chunk) [**6. LITIGATION AND LEGAL PROCEEDINGS**](index=15&type=section&id=6.%20LITIGATION%20AND%20LEGAL%20PROCEEDINGS) This note provides updates on various ongoing patent infringement and FRAND licensing legal proceedings involving InterDigital and other companies such as Lenovo, Oppo/OnePlus/realme, Samsung, and Tesla across multiple international jurisdictions - In UK proceedings against Lenovo, InterDigital was awarded a lump sum of **$184.9 million** for a license through December 31, 2023, which was paid on July 11, 2023. Appeals are scheduled for June 10, 2024[65](index=65&type=chunk) - Lenovo's antitrust and breach of FRAND claims in the Delaware District Court are stayed pending resolution of UK appeals[69](index=69&type=chunk)[72](index=72&type=chunk) - InterDigital filed new patent infringement complaints against Lenovo in the US International Trade Commission and North Carolina District Court in September 2023[73](index=73&type=chunk)[74](index=74&type=chunk) - Lenovo withdrew its FRAND royalty rate determination requests in China (Beijing IP Court in December 2023 and Wuhan Intermediate People's Court in January 2024)[75](index=75&type=chunk)[76](index=76&type=chunk) - A FRAND trial to determine royalties with Oppo in the UK was held from March 1 - April 16, 2024, with judgment pending. The Delhi High Court granted InterDigital's application for pro tem security against Oppo in India[79](index=79&type=chunk)[80](index=80&type=chunk) - InterDigital and Samsung are in binding arbitration to determine the terms of a renewed patent license agreement, effective January 1, 2023. The hearing is scheduled for Summer 2024, with an expected resolution in late 2024[84](index=84&type=chunk)[85](index=85&type=chunk) - Tesla filed a claim in the UK High Court against InterDigital and Avanci in December 2023, alleging invalidity of 5G patents and challenging Avanci's 5G Connected Vehicle platform license terms as non-FRAND[86](index=86&type=chunk) [**7. INCOME TAXES**](index=19&type=section&id=7.%20INCOME%20TAXES) This note discusses the company's effective tax rate, which increased to 19.2% in Q1 2024 from 14.0% in Q1 2023, primarily due to a decrease in Foreign Derived Intangible Income deduction benefit and an increase in Global Intangible Low-Tax Income inclusion Effective Tax Rate: | Period | Effective Tax Rate | | :--- | :--- | | Three Months Ended March 31, 2024 | 19.2% | | Three Months Ended March 31, 2023 | 14.0% | - The change in effective tax rate is due to a **decrease** in Foreign Derived Intangible Income deduction benefit and an **increase** in Global Intangible Low-Tax Income inclusion from French revenue[88](index=88&type=chunk) Discrete Net Benefits (in millions): | Period | Amount | | :--- | :--- | | Three Months Ended March 31, 2024 | $1.7 | | Three Months Ended March 31, 2023 | $1.0 | - Foreign source creditable withholding tax paid was approximately **$9.3 million** in Q1 2024, **up from $4.4 million** in Q1 2023[89](index=89&type=chunk) [**8. NET INCOME PER SHARE**](index=20&type=section&id=8.%20NET%20INCOME%20PER%20SHARE) This note reconciles the basic and diluted net income per share, detailing the weighted-average shares outstanding and the dilutive effects of stock options, RSUs, warrants, and convertible securities Net Income Per Common Share: | Metric | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Basic | $3.20 | $3.66 | | Diluted | $2.88 | $3.58 | Weighted-Average Shares Outstanding (in thousands): | Metric | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Basic | 25,510 | 28,780 | | Diluted | 28,341 | 29,372 | | Dilutive effect of convertible securities | 1,942 | — | Anti-Dilutive Securities Excluded from EPS (in thousands): | Security Type | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Restricted stock units and stock options | — | 420 | | Warrants | 7,488 | 7,488 | | **Total** | **7,488** | **7,908** | [**9. OPERATING INCOME, NET**](index=21&type=section&id=9.%20OPERATING%20INCOME%2C%20NET) This note details the components of 'Other income, net,' which decreased significantly in Q1 2024, primarily due to a foreign currency translation net loss compared to a net gain in the prior year Other Income, Net (in thousands): | Item | For the Three Months Ended March 31, 2024 | For the Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Interest and investment income | $11,778 | $11,680 | | Other | $(2,531) | $1,511 | | **Total Other income, net** | **$9,247** | **$13,191** | - The change in Other income, net was primarily due to a foreign currency translation **net loss** of **$2.4 million** in Q1 2024, compared to a **$0.7 million net gain** in Q1 2023[95](index=95&type=chunk) [**Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**](index=22&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on InterDigital's financial condition and results of operations for the three months ended March 31, 2024, discussing key financial highlights, liquidity, capital resources, and a detailed comparison of financial results [**OVERVIEW**](index=22&type=section&id=OVERVIEW) This overview highlights key financial developments for Q1 2024, including the Samsung TV agreement, capital return to shareholders, and the company's cash and short-term investments position. It also notes the significant impact of catch-up revenues on total revenue growth - InterDigital signed a patent license agreement with Samsung Electronics in January 2024, covering digital TVs and computer display monitors, including ATSC 3.0, HEVC, VVC, and Wi-Fi technologies[99](index=99&type=chunk) - During Q1 2024, the company returned **$39.2 million** to shareholders, comprising **$10.2 million** in cash dividends (**$0.40 per share**) and **$29.0 million** through repurchases of **0.3 million** common shares[100](index=100&type=chunk) - As of April 30, 2024, **$246.3 million** remained under the share repurchase authorization[101](index=101&type=chunk) - As of March 31, 2024, the company had **$1.0 billion** in cash, restricted cash, and short-term investments, plus an additional **$1.2 billion** in cash payments due under contracted fixed price agreements[102](index=102&type=chunk) - Total revenues **increased 30%** in Q1 2024 compared to Q1 2023, primarily due to **$166.7 million** in catch-up revenues from the Samsung TV agreement[105](index=105&type=chunk)[107](index=107&type=chunk) - Q1 2024 operating expenses included **$65.7 million** of nonrecurring revenue share costs associated with the recognized catch-up revenues[108](index=108&type=chunk) [**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**](index=23&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section states that there have been no material changes to the company's critical accounting policies and estimates from those disclosed in its 2023 Form 10-K, with updates related to new accounting pronouncements noted in the Basis of Presentation - No material changes to critical accounting policies and estimates from the 2023 Form 10-K[110](index=110&type=chunk) - Refer to Note 1, 'Basis of Presentation,' for updates related to new accounting pronouncements and changes in accounting policies[110](index=110&type=chunk) [**FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES**](index=24&type=section&id=FINANCIAL%20POSITION%2C%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section details InterDigital's liquidity position, highlighting its $1.0 billion in cash and short-term investments. It analyzes cash flows from operating, investing, and financing activities, noting a significant increase in operating cash flow and a decrease in cash used in financing activities due to lower share repurchases. The section also discusses the impact of convertible notes on diluted earnings per share - Primary sources of liquidity are cash, cash equivalents, short-term investments, and cash generated from operations[111](index=111&type=chunk) Total Cash, Cash Equivalents, Restricted Cash and Short-term Investments (in thousands): | Date | Amount | | :--- | :--- | | March 31, 2024 | $1,005,583 | | December 31, 2023 | $1,012,241 | | **Net Decrease** | **$(6,658)** | - Net cash provided by operating activities was **$50.8 million** in Q1 2024, a **$78.6 million change** from **$27.9 million used** in Q1 2023, driven by higher cash receipts from new patent license agreements[113](index=113&type=chunk)[114](index=114&type=chunk) - Net cash used in financing activities **decreased by $168.8 million** to **$49.3 million** in Q1 2024, primarily due to a **$174.5 million decrease** in share repurchases compared to Q1 2023[116](index=116&type=chunk) - The combined short-term and long-term deferred revenue balance was **$349.9 million** as of March 31, 2024, with **$156.0 million** expected to be amortized over the next twelve months[117](index=117&type=chunk)[118](index=118&type=chunk) - The 2024 Notes became convertible on March 1, 2024, and holders of the 2027 Notes have conversion rights from April 1, 2024, through June 30, 2024[121](index=121&type=chunk) [**RESULTS OF OPERATIONS**](index=28&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed comparison of InterDigital's financial results for Q1 2024 versus Q1 2023, highlighting a 30% increase in total revenues driven by catch-up revenues from the Samsung TV agreement, a 92% increase in operating expenses due to higher revenue share and intellectual property enforcement costs, and an increased effective tax rate Total Revenues (in thousands): | Period | Amount | | :--- | :--- | | Q1 2024 | $263,542 | | Q1 2023 | $202,373 | | **Increase** | **30%** | - Recurring revenues **decreased 5%** to **$96.9 million** in Q1 2024, primarily due to the expiration of the Huawei patent license agreement, partially offset by seven new agreements[133](index=133&type=chunk) Customer Revenue Concentration (Q1 2024): | Customer | % of Total Revenue | | :--- | :--- | | Customer A (Samsung) | 71% | | Customer B (Apple) | 13% | Total Operating Expenses (in thousands): | Period | Amount | | :--- | :--- | | Q1 2024 | $159,804 | | Q1 2023 | $83,112 | | **Increase** | **92%** | - The **$76.7 million increase** in operating expenses was primarily driven by a **$67.9 million increase** in revenue share costs (related to the Samsung TV agreement) and an **$11.5 million increase** in intellectual property enforcement costs[136](index=136&type=chunk)[137](index=137&type=chunk) - Non-operating (expense) income, net, shifted to a **net expense** of **$(2.7) million** in Q1 2024 from a **net income** of **$1.1 million** in Q1 2023, mainly due to a foreign currency translation **net loss**[140](index=140&type=chunk) - The effective tax rate **increased to 19.2%** in Q1 2024 from **14.0%** in Q1 2023[141](index=141&type=chunk) [**STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 — FORWARD-LOOKING STATEMENTS**](index=30&type=section&id=STATEMENT%20PURSUANT%20TO%20THE%20PRIVATE%20SECURITIES%20LITIGATION%20REFORM%20ACT%20OF%201995%20%E2%80%94%20FORWARD-LOOKING%20STATEMENTS) This section contains cautionary statements regarding forward-looking information, emphasizing that actual results may differ materially from expectations due to various risks and uncertainties, and the company undertakes no obligation to publicly update these statements - Forward-looking statements are based on management's current views and assumptions and are not guarantees of future performance[143](index=143&type=chunk) - Risks and uncertainties include unanticipated delays in patent license agreements, ability to secure new agreements, market failures, development delays, changes in tax interpretations, legal proceedings, and macroeconomic uncertainty[144](index=144&type=chunk) - Investors should not place undue reliance on forward-looking statements, which are made only as of the date of this Form 10-Q[144](index=144&type=chunk) [**Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**](index=31&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section states that there have been no material changes in the company's quantitative and qualitative market risk disclosures from those included in its 2023 Form 10-K - No material changes in quantitative and qualitative market risk disclosures from the 2023 Form 10-K[145](index=145&type=chunk) [**Item 4. CONTROLS AND PROCEDURES**](index=31&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms that the company's principal executive and financial officers concluded that disclosure controls and procedures were effective as of March 31, 2024, and that there were no material changes to internal control over financial reporting during the quarter - The company's disclosure controls and procedures were effective as of March 31, 2024[146](index=146&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2024[146](index=146&type=chunk) [**PART II — OTHER INFORMATION**](index=32&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, risk factors, and exhibits [**Item 1. LEGAL PROCEEDINGS**](index=32&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 6 of the Condensed Consolidated Financial Statements for a detailed description of the company's legal proceedings - A description of legal proceedings is incorporated by reference from Note 6, 'Litigation and Legal Proceedings,' in Part I, Item 1[149](index=149&type=chunk) [**Item 1A. RISK FACTORS**](index=32&type=section&id=Item%201A.%20RISK%20FACTORS) This section refers to the 2023 Form 10-K for information concerning risk factors and the forward-looking statements section of this report, noting that there have been no material changes to the risk factors previously disclosed - No material changes with respect to the risk factors disclosed in the 2023 Form 10-K[150](index=150&type=chunk) - Additional risks and uncertainties not currently known or deemed immaterial may materially and adversely affect the business[150](index=150&type=chunk) [**Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**](index=32&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section provides information on the company's common stock repurchases during the first quarter of 2024 under its Share Repurchase Program Issuer Purchases of Equity Securities (Q1 2024): | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 1, 2024 - January 31, 2024 | 60,872 | $104.32 | | February 1, 2024 - February 29, 2024 | 47,446 | $103.41 | | March 1, 2024 - March 31, 2024 | 168,461 | $104.49 | | **Total** | **276,779** | **$104.27** | - As of March 31, 2024, **$267,392,476** remained under the Share Repurchase Program, which has no expiration date[152](index=152&type=chunk)[154](index=154&type=chunk) [**Item 3. DEFAULTS UPON SENIOR SECURITIES**](index=32&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there are no defaults upon senior securities to report - Not applicable[153](index=153&type=chunk) [**Item 4. MINE SAFETY DISCLOSURES**](index=32&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that there are no mine safety disclosures to report - Not applicable[154](index=154&type=chunk) [**Item 5. OTHER INFORMATION**](index=33&type=section&id=Item%205.%20OTHER%20INFORMATION) This section reports that no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first three months of 2024 - None of the Company's directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2024[155](index=155&type=chunk) [**Item 6. EXHIBITS**](index=33&type=section&id=Item%206.%20EXHIBITS) This section lists all exhibits filed with this Quarterly Report on Form 10-Q, including certifications from executive officers and various Inline XBRL documents - Exhibits include certifications of the Principal Executive Officer and Principal Financial Officer (31.1, 31.2, 32.1, 32.2)[156](index=156&type=chunk) - Includes Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[156](index=156&type=chunk) [**SIGNATURES**](index=34&type=section&id=SIGNATURES) Confirms the official submission of the report by the company's principal executive and financial officers - The report was signed on May 2, 2024, by Liren Chen, President and Chief Executive Officer, and Richard J. Brezski, Chief Financial Officer[161](index=161&type=chunk) ```

New license agreements drive 30% increase in YoY revenue and record quarter for Consumer Electronics Company reaffirms full year 2024 guidance WILMINGTON, Del., May 02, 2024 (GLOBE NEWSWIRE) --  InterDigital, Inc. (NASDAQ:IDCC), a mobile, video, and AI technology research and development company, today announced results for the quarter ended March 31, 2024. "InterDigital made significant progress in first quarter towards our 2024 revenue guidance of $620 million to $670 million," commented Liren Chen, Presi ...

A faster pace of 5G deployment is expected to augment the telecommunications industry's scalability, security and universal mobility and propel the wide proliferation of IoT. Expansion of fiber optic networks by carriers to support their 4G LTE and 5G wireless standards, as well as wireline connections, are likely to act as additional tailwinds.The Wireless Equipment firms are facilitating their customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessl ...

WILMINGTON, Del., April 29, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile, video and AI technology research and development company, announced the election of Doug Castor, InterDigital's Head of Wireless Research, to serve as co-chair of the ATIS Next G Alliance (NGA) Steering Group. InterDigital is a founding member of the NGA, an industry group committed to delivering North American wireless technology leadership in 6G and beyond. Co-chaired by InterDigital's Doug Castor alongside re ...

WILMINGTON, Del., April 25, 2024 (GLOBE NEWSWIRE) -- As 5G-Advanced evolves and transitions to 6G, standards and pre-standards bodies have begun to align on the new features and enhanced capabilities that will define the next generation of wireless. A new report commissioned by InterDigital, Inc. (NASDAQ:IDCC), a mobile, video and AI technology research and development company, and written by market research firm ABI Research, introduces the enhancements to 5G capabilities and the novel features of integrat ...

WILMINGTON, Del., April 15, 2024 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile, video and AI technology research and development company, and Concordia University's Intelligent Next Generation Networking and Multimedia (IN2GM) Lab have announced a multi-year research and development collaboration offering PhD and master's students an opportunity to explore tools that support AI-enabled end-to-end delivery of immersive media over 5G networks. Specifically, the collaboration supports research ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR Securities registered pursuant to Section 12(g) of the Act: None ____________________________________________ Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐ ☐ TRANSITION REPORT PURSUANT TO SECTION ...