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InterDigital expects total second quarter 2006 revenue to be in the range of approximately $291 million to $293 million
May 30, 2006
KING OF PRUSSIA, Pa. -- InterDigital Communications Corporation (Nasdaq:IDCC) today announced that it expects total second quarter 2006 revenue to be in the range of approximately $291 million to $293 million. Expected revenues for second quarter 2006 include the following approximate amounts:
$228 million associated with the resolution of a dispute with Nokia related to a prior patent license agreement,
$50 million to $51 million of recurring patent license royalty revenue from its base of existing licensees,
$12 million of patent license royalty revenue related to resolution of a licensing matter with Panasonic, and
$1 million to $2 million of revenue related to technology solution agreements.
Additionally, InterDigital expects to recognize the balance of the revenue related to Nokia's $253 million payment this year, recording $12.5 million per quarter in each of third and fourth quarter 2006. Panasonic is obligated to provide InterDigital a royalty report for first quarter 2006 sales. As InterDigital has not yet received the report, the second quarter 2006 forecast does not include per unit royalties from Panasonic.
Richard Fagan, InterDigital's Chief Financial Officer, noted, "We continue to benefit from solid contributions from our existing base of patent licensees and we remain optimistic about our prospects for growth as we continue to capitalize on opportunities in the growing 3G market. While the recognition of a large portion of the payment from Nokia in the second quarter will create an unusual quarter, the payment provides further validation as to our ability to generate value from our intellectual contributions to the wireless industry."
InterDigital Inc. (Nasdaq: IDCC)
Panasonic Corp. (NYSE: PC)
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