WILMINGTON, DE — InterDigital, Inc. (Nasdaq: IDCC) has reported its financial results for the third quarter of 2024, achieving revenues of approximately $129 million, surpassing the top end of its forecast. This strong performance was largely attributed to robust consumer electronics and IoT licensing activities.
CEO and President Liren Chen remarked on the quarter’s success, stating, “In the third quarter we delivered revenues of about $129 million, exceeding the top end of our guidance, driven by a strong performance from our consumer electronics and IoT licensing program.” He further noted the company’s growing momentum with the initiation of a new license agreement with OPPO Group, a leading smartphone manufacturer, and a binding arbitration agreement with Lenovo. This positive trajectory led InterDigital to increase the midpoint of its full-year revenue guidance for 2024 by $145 million, bringing it to a projected $860 million.
In addition to financial achievements, InterDigital addressed the convertibility of its 3.50% Senior Convertible Notes due 2027. These notes are convertible in the fourth quarter of 2024 at a rate of 12.9041 shares per $1,000 principal amount. Upon conversion, InterDigital will settle the principal amount in cash and may choose to fulfill any additional conversion obligations with cash, shares, or a combination thereof. Notably, strategic call spread transactions were executed to effectively raise the economic conversion price from $77.49 to $106.31, minimizing potential share issuance.
InterDigital’s updated financial outlook reflects confidence in its existing agreements and potential new accords that could further enhance revenue projections for the remainder of the year. The company remains focused on leveraging its strategic partnerships and technological advancements to sustain its growth trajectory.
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