Forward-looking statements are subject to risks and uncertainties, and actual outcomes could differ materially from those expressed in or anticipated by such forward-looking statements due to a variety of factors including those identified in this press release as well as the following: (i) changes in expenses, related to our technology offerings and operations; (ii) potential difficulties in the production of ASIC samples; (iii) changes in the technology preferences or needs of strategic partners or our prospective customers; (iv) changes in the availability of competitive technologies; (v) the resolution of current legal proceedings, additional legal proceedings, changes in the schedules or costs associated with legal proceedings, or adverse rulings in such legal proceedings; and (vi) changes in our expectations of the amount and composition of full-year taxable income, changes in foreign and domestic tax laws or treatises, or changes in our tax planning strategies. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
(1) InterDigital defines "free cash flow" as operating cash flow less purchases of property and equipment and investments in patents. A detailed reconciliation of free cash flow to GAAP results is provided at the end of this news release.
SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
----------------------------------------------------------------------
For the Periods Ended September 30
(Dollars in thousands except per share data)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------------------------------
2006 2005 2006 2005
-------------------------------------------
REVENUES $67,175 $48,538 $415,398 $122,636
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Sales and marketing 1,671 1,798 5,056 5,615
General and
administrative 5,045 5,420 15,761 17,898
Patents administration
and licensing 13,299 14,695 36,085 36,022
Development 16,805 15,610 48,702 46,704
Repositioning - 849 - 849
---------- ---------- ---------- ----------
36,820 38,372 105,604 107,088
---------- ---------- ---------- ----------
Income from operations 30,355 10,166 309,794 15,548
NET INTEREST & OTHER
INVESTMENT INCOME 4,082 779 9,504 2,246
---------- ---------- ---------- ----------
Income before income
taxes 34,437 10,945 319,298 17,794
INCOME TAX PROVISION (12,780) (4,419) (114,339) (8,139)
---------- ---------- ---------- ----------
NET INCOME APPLICABLE TO
COMMON SHAREHOLDERS $21,657 $6,526 $204,959 $9,655
========== ========== ========== ==========
NET INCOME PER COMMON
SHARE - BASIC $0.41 $0.12 $3.81 $0.18
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
- BASIC 52,209 53,611 53,788 54,097
========== ========== ========== ==========
NET INCOME PER COMMON
SHARE - DILUTED $0.40 $0.11 $3.65 $0.17
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
- DILUTED 54,543 57,089 56,189 57,663
========== ========== ========== ==========
SUMMARY CASH FLOW
----------------------------------------------------------------------
For the Periods Ended September 30
(Dollars in thousands)
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
--------------------- ---------------------
2006 2005 2006 2005
--------------------- ---------------------
Net income before income
taxes $34,437 $10,945 $319,298 $17,794
Taxes Paid - (370) (51,488) (755)
Depreciation &
amortization 6,352 5,357 15,974 16,086
Increase in deferred
revenue 14,809 11,000 301,024 46,105
Deferred revenue
recognized (47,180) (14,852) (148,116) (43,647)
Increase (decrease) in
operating working
capital, deferred charges
and other 4,321 5,285 (120,756) 2,001
Capital spending & patent
additions (6,926) (4,931) (21,382) (16,549)
---------- ---------- ---------- ----------
FREE CASH FLOW 5,813 12,434 294,554 21,035
Asset acquisition - - - (8,050)
Tax benefit from stock
options 4,104 - 18,421 -
Debt decrease (87) (82) (259) (243)
Repurchase of common stock (50,037) - (150,104) (34,085)
Proceeds from exercise of
stock options 7,540 1,842 35,856 3,752
---------- ---------- ---------- ----------
NET (DECREASE) INCREASE
IN CASH AND SHORT-TERM
INVESTMENTS $(32,667) $14,194 $198,468 $(17,591)
========== ========== ========== ==========
