Xiaomi – InterDigital, Inc. (NASDAQ:IDCC), (XIACF) – InterDigital Q2 Revenue Declines 16% As Patent Royalties Decrease 15%
- InterDigital Inc (NASDAQ: IDCC) reported a second-quarter FY21 revenue decline of 16% year-on-year to $87.7 million, beating the analyst consensus of $84.3 million.
- Recurring revenue declined 8.3% Y/Y to $78.1 million due to the exit of a handset manufacturer and the absence of non-current patent royalties from a fixed-fee patent license agreement.
- Total patent royalties declined 14.8% Y/Y to $86.2 million, and Fixed-fee royalty revenue reduced 10.4% Y/Y to $69.3 million.
- InterDigital posted an operating loss of $(3.1) million due to higher restructuring costs.
- EPS of $0.05 beat the analyst consensus loss of $(0.15).
- InterDigital used $27.3 million in operating cash flow and held $837.7 million in cash and equivalents.
- InterDigital recently inked a multi-year, worldwide, non-exclusive, royalty-bearing license with Xiaomi Corp (OTC: XIACF) (OTC: XIACY).
- Xiaomi‘s coming on board as a new licensee and the continued efforts to license other companies helped InterDigital grab 55% of the worldwide smartphone market under license, CEO Liren Chen stated.
- Price action: IDCC shares traded higher by 0.22% at $69.08 on the last check Thursday.
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