June 3, 1999 08:30 AM
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--June 3, 1999-- InterDigital Communications Corporation CA:IDC announced today that it expects to surpass the current estimates by the financial community for earnings per share in fiscal year 1999.
The current estimate for fiscal year 1999 earnings, as published on First Call, is $0.25 per share. InterDigital now believes its earnings per share will be at least 40% higher than that estimate for the year, excluding any one-time charges associated with the company's transition from wireless local loop product development and sales to advanced technology development. The Company's improved earnings outlook is being driven by a richer mix of higher margin revenues and lower than expected costs.
"In our first quarter earnings release, we expressed cautious optimism that we could meet or beat the financial community forecasts. We now have a clearer picture of expected revenues from specialized engineering services and licensing, and costs associated with technology and product development programs. Because of that, we believe that we can beat current earnings forecasts," commented William Doyle, President.
In February 1999, InterDigital and Nokia announced a long-term cooperation agreement involving the development of new technology for third generation wireless telecommunications products designed for high data rate applications, such as Internet access. InterDigital is developing technology for Nokia to use in its third generation products. Revenues associated with that contract are growing this year as the project accelerates.
Over the past 18 months, InterDigital has generated more than $140 million in revenues from new and existing licensees. The Company, which has more than 800 patents and patent applications filed in more than 50 countries for TDMA and CDMA inventions, is continuing to pursue new licensing agreements around the world.
InterDigital is a leading technology developer for the wireless telecommunications industry. The Company is developing advanced technology for third generation products and licenses its TDMA and CDMA inventions worldwide. For more information, please visit InterDigital's web site: www.interdigital.com. InterDigital(R) is a registered trademark of the Company.
This press release contains forward looking statements regarding InterDigital's current beliefs and expectations as to the level of its per share earnings for fiscal 1999 and the sources of 1999 revenues.
Such statements are subject to risks and uncertainties. Actual outcomes could differ materially from those expressed in any such forward looking statement due to a variety of factors including, but not limited to: failure to successfully negotiate patent licensing agreements, inability to enforce patents against third parties, failure of licensees to meet expectations and commitments and Nokia's exercise of its rights to terminate the development project for convenience.
InterDigital undertakes no duty to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.
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