(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 Ended
September 30, September 30,
-----------------------------------------
2007 2006 2007 2006
-----------------------------------------
REVENUES $ 56,548 $ 67,175 $179,372 $ 415,398
---------- --------- --------- ----------
OPERATING EXPENSES:
Sales and marketing 1,808 1,671 5,783 5,056
General and administrative 5,396 5,045 18,066 15,761
Patents administration and
licensing 17,997 13,299 49,277 36,085
Development 20,841 16,805 63,818 48,702
Arbitration award - - 16,612 -
---------- --------- --------- ----------
46,042 36,820 153,556 105,604
---------- --------- --------- ----------
Income from operations 10,506 30,355 25,816 309,794
NET INTEREST & OTHER
INVESTMENT INCOME 2,095 4,082 7,000 9,504
---------- --------- --------- ----------
Income before income taxes 12,601 34,437 32,816 319,298
INCOME TAX PROVISION (3,884) (12,780) (10,836) (114,339)
---------- --------- --------- ----------
NET INCOME APPLICABLE TO
COMMON
SHAREHOLDERS $ 8,717 $ 21,657 $ 21,980 $ 204,959
========== ========= ========= ==========
NET INCOME PER COMMON SHARE -
BASIC $ 0.18 $ 0.41 $ 0.46 $ 3.81
========== ========= ========= ==========
WEIGHTED AVERAGE NUMBER OF
COMMON
SHARES OUTSTANDING - BASIC 47,152 52,209 47,954 53,788
========== ========= ========= ==========
NET INCOME PER COMMON SHARE -
DILUTED $ 0.18 $ 0.40 $ 0.44 $ 3.65
========== ========= ========= ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING -
DILUTED 48,774 54,543 49,840 56,189
========== ========= ========= ==========
SUMMARY CASH FLOW
For the Periods Ended September 30
(Dollars in thousands)
(unaudited)
----------------------------------------------------------------------
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
-------------------- ---------------------
2007 2006 2007 2006
---------- --------- ---------- ----------
Net income before income
taxes $ 12,601 $ 34,437 $ 32,816 $ 319,298
Taxes paid - - (15,984) (51,488)
Depreciation & amortization 8,090 6,352 22,563 15,974
Increase in deferred
revenue 41,087 14,809 157,603 301,024
Deferred revenue recognized (30,063) (47,180) (88,248) (148,116)
(Decrease) increase in
operating working capital,
deferred charges and other (19,003) 4,205 24,866 (120,849)
Capital spending & patent
additions (18,108) (6,926) (48,174) (21,382)
---------- --------- ---------- ----------
FREE CASH FLOW (5,396) 5,697 85,442 294,461
Asset acquisition - - (5,000) -
Tax benefit from stock
options 1,713 4,104 5,043 18,421
Debt decrease (969) (87) (1,153) (259)
Repurchase of common stock - (50,037) (165,356) (150,104)
Proceeds from exercise of
stock options 2,626 7,540 6,367 35,856
Unrealized gain on short
term investments 217 116 515 93
---------- --------- ---------- ----------
NET (DECREASE) INCREASE
IN CASH AND SHORT-TERM
INVESTMENTS
$ (1,809) $(32,667) $ (74,142) $ 198,468
========== ========= ========== ==========
