InterDigital Paints Rosy 2Q Outlook
InterDigital expects to post revenue as high as $38.5 million in the second quarter, thanks in large part to an up-tick in royalty revenue.
The company is forecasting revenue between $37.2 million and $38.5 million. Royalty revenue will account for between $32.5 million and $33 million. InterDigital says it is continuing to benefit from having General Dynamics as a customer, with royalty revenue from this contract coming in equal to or higher than numbers posted in the first quarter.
Earlier this month, InterDigital reported first-quarter revenue of $35.5 million, which was up from $33 million a year ago. Although royalty revenue associated with NEC declined, the company said it saw an increase in royalties from other licensees, including Sharp. The company also reported $4.7 million in revenue associated with its General Dynamics software licensing agreement.
The company reported a net loss of $0.9 million, or 2 cents per share, for first quarter of 2005, compared to net income of $5.8 million, or 10 cents per diluted share, in the year-ago quarter.
Along with its second-quarter forecast, InterDigital also announced it postponed its evidentiary hearing with Samsung until October 2005.
The postponement was facilitated by the companies' desire to consider the potential effect on their arbitration of a pending award in a separate arbitration case InterDigital has with Nokia before the International Chamber of Commerce. InterDigital expects a decision by month's end.