Not that impressive report, but here it is.---->http://biz.yahoo.com/bw/990805/pa_interdi_1.html
Thursday August 5, 9:01 am Eastern Time
Company Press Release
InterDigital Reports Third Consecutive Profitable
Quarter
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Aug. 5, 1999-- InterDigital
Communications Corporation (ASE: IDC) today announced positive operating results for
the second quarter ended June 30, 1999.
This is the third consecutive quarter in which InterDigital delivered profitable performance and the fifth profitable quarter in the
last six.
Net income of $1.4 million, or $0.03 per share (diluted), for the quarter decreased when compared to the $27 million, or
$0.55 per share (diluted), reported in last year's strong second quarter. Results in last year's second quarter included the
recognition of significant revenue related to up-front payments from two new TDMA patent license agreements.
Revenues in the second quarter of 1999 totaled $12.3 million and were comprised primarily of licensing and specialized
engineering service revenue. This included an up-front payment associated with a previously announced licensing agreement
with Robert Bosch GmbH and engineering revenue related to InterDigital's technology development agreement with Nokia.
Revenues in the second quarter of 1998 were $46.4 million.
InterDigital maintained its strong cash position during the second quarter of 1999. Cash and short-term investments totaled
$78.6 million at June 30, 1999, up significantly from $52.3 million at year-end 1998.
Operating expenses, excluding $1.2 million of special charges associated with InterDigital's transition from development and
sales of wireless local loop product to development of advanced technology, decreased versus last year's second quarter.
Lower patent administration and licensing costs in the second quarter of 1999 more than offset increases in technology
development expenses.
For the first six months of 1999, InterDigital generated net income of $22.5 million, or $0.46 per share (diluted), compared
with $25.3 million, or $0.52 per share (diluted), in the first six months of 1998. Revenues in the first half of 1999 were $47.5
million, slightly lower than the record $56.5 million generated in the first half of 1998.
''We are pleased that we were able to deliver positive earnings results in the second quarter,'' said William Doyle, President.
''We benefited from continued success with our licensing program and revenue growth in engineering services, driven by the
ramp-up of our technology development project for Nokia. At the same time, we have kept our costs under control as we
make the transition from wireless local loop product development to technology development for advanced wireless
applications. Our strong cash balance and attractive cash flow from licensing activities gives us confidence that we have the
financial strength to establish InterDigital as a leading developer and supplier of wireless technology for third generation
products.''
Looking forward to the second half of 1999, Mr. Doyle indicated that InterDigital's performance will be driven by its ability to
generate new revenues from licensing and engineering services.
''Those are our principal revenue streams for the next 18-24 months,'' he explained. ''As we indicated during the second
quarter, we believe we have new revenue opportunities in those areas which will enable us to outperform the 1999 earnings
estimates currently published by the financial community. Based upon what we see today, the third quarter results could be
slightly negative to breakeven. We are less certain about the fourth quarter, but are cautiously optimistic that fourth quarter
results could be in the same range as the third quarter.''
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
For the Period Ended June 30,
(Dollars in thousands except per share data)
(unaudited)
Second Quarter Six Months
---------------- ------------------
1999 1998 1999 1998
-------- -------- -------- --------
REVENUES:
Product $ 427 $ 1,599 $ 1,524 $ 3,762
Licensing and
strategic partner 11,919 44,842 45,964 52,756
-------- --------- --------- --------
12,346 46,441 47,488 56,518
-------- --------- --------- --------
PRODUCT COSTS AND
OPERATING EXPENSES:
Cost of product 1,302 5,037 2,997 7,639
Sales and marketing 711 987 1,666 2,054
General and
administrative 1,922 1,548 3,440 2,881
Patents administration
and licensing 1,527 4,134 4,324 6,755
Development 5,108 3,820 10,706 7,703
Repositioning Charges 1,213 - 1,213 -
--------- --------- --------- --------
11,783 15,526 24,346 27,032
--------- --------- --------- --------
Income (loss) from
operations 563 30,915 23,142 29,486
NET INTEREST
INCOME (EXPENSE) 890 551 1,632 824
----------- ---------- -------- -------
Income (loss) before
income taxes 1,453 31,466 24,774 30,310
INCOME TAX PROVISION (29) (4,383) (2,125) (4,906)
----------- ---------- -------- -------
Net income (loss) 1,424 27,083 22,649 25,404
PREFERRED STOCK DIVIDENDS (64) (64) (128) (128)
----------- ---------- -------- -------
NET INCOME (LOSS)
APPLICABLE TO COMMON
SHAREHOLDERS $ 1,360 $ 27,019 $ 22,521 $ 25,276
============ ========= ========= ========
============ ========= ========= ========
NET INCOME (LOSS) PER
COMMON SHARE
SHARE - DILUTED $ 0.03 $ 0.55 $ 0.46 $ 0.52
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING - DILUTED 48,581 49,584 48,778 48,895
CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, 1999 Dec. 31, 1998
-------------- --------------
-------------- --------------
Cash & short term investments $ 78,556 $ 52,277
Other current assets 11,943 23,141
Property, plant & equipment (net) 8,164 9,697
Patents (net) & other long term assets 14,057 14,408
------------- --------------
TOTAL ASSETS 112,720 99,523
============= ==============
============= ==============
Current portion of long term debt 557 723
Accounts payable & accrued liabilities 9,813 13,758
Foreign & domestic taxes payable 663 2,249
Deferred revenue 1,556 3,936
Long term debt 2,773 3,049
------------- --------------
TOTAL LIABILITIES 15,362 23,715
SHAREHOLDERS' EQUITY 97,358 75,808
------------- --------------
------------- --------------
TOTAL LIABILITIES & EQUITY $ 112,720 $ 99,523
============= ==============
InterDigital is creating innovative solutions for mainstream wireless applications which deliver cost and time-to-market
advantages for its customers. By leveraging its technology and intellectual property into third generation standards and
products, it is maximizing its long-term revenue and earnings opportunities.
The Company has a strong portfolio of TDMA and CDMA inventions which it licenses worldwide. For more information,
please visit InterDigital's web site: www.interdigital.com. InterDigital® and B-CDMA(tm) are trademarks of the Company.
This press release contains forward looking statements regarding InterDigital's current beliefs and expectations as to future
sources of revenues, the Company's ability to outperform current earnings estimates from the financial community and third and
fourth quarter results. 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: unanticipated development costs, difficulties or delays, failure to successfully negotiate patent
licensing agreements or sale of UltraPhone® inventory, 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
Contact:
InterDigital
Susan Sutton, Media Contact, 610/878-7800
susan.sutton@interdigital.com
or
Rip Tilden, Investor Contact, 610/878-7800
rip.tilden@interdigital.com |
