InterDigital, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Tax Rate Guidance for the Year 2018
November 01, 2018 at 08:30 am EDT
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InterDigital, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported revenues of $75,079,000 compared to $97,325,000 a year ago. Income from operations was $12,920,000 compared to $40,875,000 a year ago. Loss before income taxes was $1,033,000 compared to income of $38,688,000 a year ago. Net income attributable to the company was $21,407,000 or $0.60 per diluted share compared to $35,536,000 or $1.00 per diluted share a year ago. Net cash provided by operating activities was $170,385,000 compared to $104,749,000 a year ago. Purchases of property, equipment, & technology licenses were $340,000 compared to $117,000 a year ago. Free cash inflow was $160,707,000 compared to $94,877,000 a year ago. These increases were primarily driven by collections under fixed-fee agreements, as well as a timing difference related to the third quarter 2018 collection of a $61.2 million tax refund from a foreign government that The company expects to remit to the U.S. government in fourth quarter 2018.
For the nine months, the company reported revenues of $232,078,000 compared to $327,634,000 a year ago. Income from operations was $58,750,000 compared to $155,791,000 a year ago. Income before income taxes was $33,614,000 compared to $148,460,000 a year ago. Net income attributable to the company was $62,038,000 or $1.74 per diluted share compared to $121,791,000 or $3.4 per diluted share a year ago. Net cash provided by operating activities was $176,617,000 compared to $98,341,000 a year ago. Purchases of property, equipment, & technology licenses were $1,882,000 compared to $942,000 a year ago. Free cash flow was $150,890,000 compared to $71,093,000 a year ago.
The company expects to report a negative effective tax rate for the full year, but expects its long-term tax rate will be in the range of approximately 14% to 15%. The effective tax rate reported in any given year will continue to be influenced by a variety of factors, including timing differences between the recognition of book and tax revenue, the level of pre-tax income or loss, the foreign versus domestic classification of the company's customers, and any discrete items that may occur.
InterDigital, Inc. is a global research and development company focused primarily on wireless, video, artificial intelligence (AI), and related technologies. It designs and develops foundational technologies that enable connected, immersive experiences in a range of communications and entertainment products and services. The Company license its innovations worldwide to companies providing such products and services, including makers of wireless communications devices, consumer electronics, IoT devices, cars and other motor vehicles and providers of cloud-based services such as video streaming. It focuses on wireless technology, which is used in wireless products and networks, from the earliest digital cellular systems to 5G and advanced Wi-Fi technologies. The Company also focuses on video processing and video encoding/decoding technology, with a significant AI research effort that intersects with both wireless and video technologies.
InterDigital, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Tax Rate Guidance for the Year 2018