|
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands except per share data) (unaudited) | |||||||
|
For the Three Months
Ended March 31, | |||||||
| 2016 | 2015 | ||||||
| REVENUES: | |||||||
| Per-unit royalty revenue | $ | 73,689 | $ | 75,583 | |||
| Fixed fee amortized royalty revenue | 29,098 | 33,373 | |||||
| Current patent royalties | 102,787 | 108,956 | |||||
| Past patent royalties | 4,167 | 17 | |||||
| Total patent licensing royalties | 106,954 | 108,973 | |||||
| Current technology solutions revenue | 810 | 1,405 | |||||
| $ | 107,764 | $ | 110,378 | ||||
| OPERATING EXPENSES: | |||||||
| Patent administration and licensing | 27,167 | 31,625 | |||||
| Development | 20,269 | 17,991 | |||||
| Selling, general and administrative | 11,972 | 9,518 | |||||
| 59,408 | 59,134 | ||||||
| Income from operations | 48,356 | 51,244 | |||||
| OTHER EXPENSE (NET) | (7,137 | ) | (5,236 | ) | |||
| Income before income taxes | 41,219 | 46,008 | |||||
| INCOME TAX (PROVISION) | (14,068 | ) | (17,676 | ) | |||
| NET INCOME | $ | 27,151 | $ | 28,332 | |||
| Net loss attributable to noncontrolling interest | (920 | ) | (733 | ) | |||
| NET INCOME ATTRIBUTABLE TO INTERDIGITAL, INC. | $ | 28,071 | $ | 29,065 | |||
| NET INCOME PER COMMON SHARE — BASIC | $ | 0.80 | $ | 0.79 | |||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — BASIC | 35,045 | 36,954 | |||||
| NET INCOME PER COMMON SHARE — DILUTED | $ | 0.79 | $ | 0.78 | |||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING — DILUTED | 35,377 | 37,329 | |||||
| CASH DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.20 | $ | 0.20 | |||
|
SUMMARY CONSOLIDATED CASH FLOWS
(dollars in thousands) (unaudited) | |||||||
|
For the Three Months
Ended March 31, | |||||||
| 2016 | 2015 | ||||||
| Income before income taxes | $ | 41,219 | $ | 46,008 | |||
| Taxes paid | (14,423 | ) | (12,714 | ) | |||
| Non-cash expenses | 25,385 | 18,259 | |||||
| Increase in deferred revenue | 80,440 | 72,503 | |||||
| Deferred revenue recognized | (34,594 | ) | (44,157 | ) | |||
| Increase (decrease) in operating working capital, deferred charges and other | (81,794 | ) | (78,128 | ) | |||
| Capital spending and capitalized patent costs | (9,656 | ) | (9,265 | ) | |||
| FREE CASH FLOW | 6,577 | (7,494 | ) | ||||
| Tax benefit from share-based compensation | — | 1,539 | |||||
| Payments on long-term debt | (230,000 | ) | — | ||||
| Acquisition of patents | (4,500 | ) | (20,000 | ) | |||
| Proceeds from noncontrolling interests | — | 1,275 | |||||
| Dividends paid | (7,068 | ) | (7,433 | ) | |||
| Share repurchases | (40,399 | ) | (50,731 | ) | |||
| Proceeds from issuance of senior convertible notes | — | 316,000 | |||||
| Purchase of convertible bond hedge | — | (59,376 | ) | ||||
| Proceeds from issuance of warrants | — | 42,881 | |||||
| Payment of debt issuance costs | — | (9,403 | ) | ||||
| Unrealized gain (loss) on short-term investments | 376 | (5 | ) | ||||
| NET (DECREASE) INCREASE IN CASH AND SHORT-TERM INVESTMENTS | $ | (275,014 | ) | $ | 207,253 | ||
