Q2 2024 InterDigital Inc Earnings Call Transcript
Key Points
- InterDigital Inc (IDCC) reported Q2 revenue of $223 million, exceeding the top end of their guidance.
- The company achieved a record first half revenue of $487 million and raised their full-year revenue guidance by $70 million to a new range of $690 million to $740 million.
- New licensing agreements with Google and Panasonic were secured, covering a range of devices and expanding their portfolio to include 5G assets.
- Significant litigation wins, including a UK Court of Appeal ruling that increased the licensing fee Lenovo must pay by more than $55 million.
- Strong cash flow and a cash balance of over $750 million support continued return of capital to shareholders, including share buybacks and dividends.
- The ongoing dispute with Lenovo remains unresolved for sales beyond 2023, and Lenovo is currently unlicensed for cellular patents.
- Potential delays in finalizing the monetary terms of the license with Samsung for mobile devices, with a decision expected by the end of the year.
- The expiration of the Huawei agreement in 2023 has not yet been renewed, impacting recurring revenue.
- The full process of the UK Court of Appeal ruling could extend further with a potential request to appeal to the UK Supreme Court, causing uncertainty.
- Despite strong performance, the full-year guidance implies a potential decline in recurring revenue, indicating challenges in maintaining consistent revenue growth.
Good day, everyone, and thank you for standing by, and welcome to InterDigital's second quarter 2024 earnings call. (Operator Instructions) Again, please be advised that today's conference is being recorded.
I will hand the call over to the Head of Investor Relations, Raiford Garrabrant. Please go ahead.
Thank you, Carmen. Good morning to everyone, and welcome to InterDigital second quarter 2024 earnings conference call. I'm Raiford Garrabrant, Head of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO; and Rich Brezski, our CFO.
Consistent with prior calls, we will offer some highlights about the quarter and the company and then open the call up for questions. For additional detail, which you can access our earnings release and slide presentation that accompany this call on our Investor Relations website.
Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements
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