WILMINGTON, Del., Nov. 05, 2020 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the third quarter ended September 30, 2020.

Third Quarter 2020 Financial Highlights

• Third quarter 2020 recurring revenue was $87.0 million, compared to recurring revenue of $72.1 million in third quarter 2019, a 21% year-over-year increase. This increase was driven by eight new patent license agreements signed over the last twelve months, including Huawei and ZTE. Third quarter 2020 total revenue was $87.5 million, compared to $72.5 million in third quarter 2019.

• Third quarter 2020 operating expenses were $72.1 million, compared to $68.7 million in third quarter 2019 and $0.5 million lower than in second quarter 2020.
• Third quarter 2020 operating income was $15.4 million, compared to $3.8 million in third quarter 2019.
• Third quarter 2020 tax provision includes discrete benefits of $18.5 million, which primarily relates to the expected amendment of a prior year tax return and the reversal of a tax reserve.

• Third quarter 2020 net income¹ was $23.8 million, or $0.76 per diluted share, compared to net income of $2.2 million, or $0.07 per diluted share, in third quarter 2019.

“While continuing to prioritize the safety of our employees, we’ve also executed effectively this quarter, driving strong results and highlighting the resilience of our recession resistant business,” noted William J. Merritt, President and CEO of InterDigital. “Our performance reflects the incredible operating leverage in our model, which saw a 21% increase in recurring revenue drive a fourfold increase in year-over-year operating income. Going forward, we remain focused on pursuing agreements with remaining unlicensed handset companies and expanding our consumer electronics licensing business.”

Additional Highlights

• In third quarter 2020, the company recorded $101.3 million of cash provided by operating activities, compared to $125.5 million in third quarter 2019.

• The company generated $85.4 million of free cash flow² in third quarter 2020, compared to $117.0 million of free cash flow in third quarter 2019.

• In each period, free cash flow was largely driven by cash receipts from existing patent license agreements, a portion of which relates to future periods. Ending cash and short-term investments as of September 30, 2020 totaled $919.4 million.

In light of the ongoing pandemic, the company will remain in a virtual work environment at least through the end of 2020. The company will continue to follow the guidance provided by relevant public health authorities and take a cautious approach to reopening its facilities in 2021.

Conference Call Information

InterDigital will host a conference call on Thursday, November 5, 2020 at 10:00 a.m. ET to discuss its third quarter 2020 financial performance and other company matters. For a live Internet webcast of the conference call, visit www.interdigital.com and click on the link to the live webcast on the Investors page. The company encourages participants to take advantage of the Internet option.

For telephone access to the conference call, dial +1 (800) 367-2403 within the United States and Canada or +1 (334) 777-6978 from outside the United States and Canada. Please call by 9:50 a.m. ET on November 5th and give the operator conference ID number 7531214.

An Internet replay of the conference call will be available on InterDigital’s website in the Investors section. In addition, a telephone replay will be available from 1:00 p.m. ET November 5th through 1:00 p.m. ET November 10th. To access the recorded replay, dial +1 (888) 203-1112 or +1 (719) 457-0820 and use the replay code 7531214.

About InterDigital^®

InterDigital develops mobile and video technologies that are at the core of devices, networks, and services worldwide. We solve many of the industry’s most critical and complex technical challenges, inventing solutions for more efficient broadband networks, better video delivery, and richer multimedia experiences years ahead of market deployment. InterDigital has licenses and strategic relationships with many of the world’s leading technology companies. Founded in 1972, InterDigital is listed on NASDAQ and is included in the S&P MidCap 400^® index.

InterDigital is a registered trademark of InterDigital, Inc.

For more information, visit the InterDigital website: www.interdigital.com.