InterDigital announces financial results for second quarter 2021

WILMINGTON, Del., Aug. 05, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the quarter ended June 30, 2021.

Second Quarter 2021 Financial Highlights

• Recurring revenue was $78.1 million, compared to recurring revenue of $85.2 million in second quarter 2020.  Total revenue was $87.7 million, compared to $104.5 million in second quarter 2020.  As previously disclosed, second quarter 2020 included recurring revenue from a handset manufacturer that has since exited the business, and non-current patent royalties from a fixed-fee patent license agreement. Second quarter 2021 revenue did not include any impact from the company's recently announced agreement with Xiaomi which was executed in third quarter 2021.
   
• Operating expenses were $90.9 million, compared to $72.6 million in second quarter 2020. The increase was primarily driven by non-recurring charges of $15.2 million, substantially related to the company's recently announced restructuring plans.
   
• Operating income (loss) decreased to a loss of $3.1 million, compared to income of $31.9 million in second quarter 2020.
   
• Net income1 was $1.6 million, or $0.05 per diluted share, compared to net income of $22.3 million, or $0.72 per diluted share, in second quarter 2020.

“I am pleased with the team’s strong focus on execution during the quarter, which led to the recent signing of our long-term agreement with Xiaomi, one of the largest smartphone vendors worldwide. This agreement, along with the recent verdict from the UK’s High Court that Lenovo has infringed one of the company’s patents, reinforces both our technology leadership and the strengths of our patent portfolio,” said Liren Chen, President and CEO of InterDigital. “With Xiaomi coming on board as a new licensee, and the continued efforts to license additional companies, we now have 55% of the worldwide smartphone market under license and are well positioned for continued growth.”

Additional Highlights

• The company used $27.3 million of cash in operating activities, compared to $69.8 million cash provided by operating activities in second quarter 2020, and used $38.4 million of free cash flow2, compared to generating $60.0 million in second quarter 2020. These changes were primarily driven by timing of collections under fixed-fee agreements. Cash and cash equivalents, restricted cash and short-term investments totaled $837.7 million on June 30, 2021.
   
• The company repurchased $5.4 million, or 0.1 million shares, during second quarter 2021.