Early Market Reaction to InterDigital Earnings
>> InterDigital Shares Pressured as Q4 Profits Disappoint
Eric Savitz
Barron's
March 3, 2009, 9:34 am
tinyurl.com
InterDigital (IDCC) shares are heading lower in early trading after the company posted weaker-than-expected Q4 profits.
For the quarter, the wireless technology company posted revenue of $58.7 million, ahead of the Street at $57.4 million. But profits of 9 cents a share were short of the Street at 16 cents. The company said recurring revenue from existing licensing agreements was $51.4 million.
IDCC said it expects recurring revenue of $69 million to $71 million for the first quarter, including nearly $20 million from a licensing agreement with Samsung, offset by the loss of $1.1 million from a customer who exited the handset business. The Street has been expecting total revenue for the quarter of $72 million.
The company also noted that it continues to evaluate strategic options for its modem products business, but that no decision has been made on the future of the unit.
In early trading, IDCC is down $3.38, or -11.5%, at $26. [$25.51, -$3.19, -11% at 10:48 AM just after the CC finish, with Naz at 1,332.45, +9.60, +0.73%] ###
- Eric - |
