WILMINGTON, Del., Feb. 18, 2021 (GLOBE NEWSWIRE) -- InterDigital, Inc. (NASDAQ:IDCC), a mobile and video technology research and development company, today announced results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights

• Recurring revenue was $89.1 million, compared to $77.5 million in fourth quarter 2019, a 15% year-over-year increase, which was driven by six new patent license agreements signed during 2020. Total revenue was $90.8 million, compared to $102.2 million in fourth quarter 2019, which is attributable to past sales from deals signed in fourth quarter 2019.
• Operating expenses were $87.7 million, compared to $76.9 million in fourth quarter 2019, due to one-time charges of approximately $10.0 million, primarily related to a non-cash charge for on-going patent portfolio management.
• Operating income was $3.1 million, compared to $25.3 million in fourth quarter 2019.
• Net loss¹ was $1.4 million, or $(0.04) per diluted share compared to net income¹ of $13.8 million, or $0.44 per diluted share, in fourth quarter 2019.
• The company recorded $19.3 million of cash provided by operating activities, compared to $17.5 million in the same quarter last year.
• The company generated $10.4 million of free cash flow in fourth quarter 2020, compared to free cash flow² of $8.7 million generated in fourth quarter 2019. The increase was primarily driven by timing of collections under fixed-fee agreements. Ending cash and short-term investments totaled $926.6 million.

Full Year 2020 Financial Highlights

• Recurring revenue was $336.8 million, compared to $298.2 million for full year 2019, a 13% year-over-year increase. This increase was driven by new licensing activity. Total revenue was $359.0 million, compared to $318.9 million for full year 2019, a 13% year-over-year increase.
• Operating expenses were $303.8 million, compared to $281.1 million for full year 2019. Full year 2020 operating expenses included one-time charges incurred in initiatives designed to drive ongoing cost savings.
• Operating income was $55.2 million, compared to $37.8 million in full year 2019, a 46% increase year- over- year.
• The current year tax benefit was driven by discrete benefits of $20.9 million that primarily relate to the expected amendment of a prior year tax return, as well as the reversal of a tax reserve.
• Net income¹ was $44.8 million compared to $20.9 million, an increase of 114% year-over-year. Earnings per share was $1.44 per diluted share compared to $0.66 per diluted share, an increase of 118% year-over-year.
• The company recorded $163.5 million of cash provided by operating activities, compared to $89.4 million provided by operating activities for full year 2019. The company generated $121.1 million of free cash flow² in full year 2020, compared to $51.4 million for full year 2019. In each period, free cash flow was largely driven by cash receipts from patent license agreements, a portion of which relates to future periods.

“Despite uncertain macroeconomic conditions, we successfully executed on our strategy and signed numerous license agreements, which delivered very strong year-over-year growth for revenue and earnings, noted William J. Merritt, President and CEO of InterDigital. “We enter 2021 with strong licensing momentum and remain confident in our long-term opportunities as we diligently pursue agreements with remaining unlicensed companies in the handset and consumer electronics business.”

“Our performance continues to show the incredible operating leverage in our model, which saw a 13% increase year-over-year in total revenue drive a 46% increase in year-over-year operating income, and a 118% year-over-year increase in earnings per share,” said Richard Brezski, CFO of InterDigital.

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.