KING OF PRUSSIA, Pa.-The Securities and Exchange Commission is reviewing InterDigital Communications Corp.’s financials from 2003 and 2004, a move that the company said could result in financial adjustments. The news comes in conjunction with InterDigital’s fourth-quarter report, which showed the company’s revenues increasing but a net loss in income due to the accounting for the company’s stock option exercises.
InterDigital’s stock was down around 4 percent to $16.52 following the news.
The SEC is investigating InterDigital’s 2003 results and its 2004 third-quarter results. The investigation centers on the timing of InterDigital’s expense recognition for its foreign source withholding taxes and the 10-year amortization period for costs of internally developed patents. InterDigital said the resolution of the issues “could, but may not necessarily, result in adjustments to the company’s current and prior financial results as it relates to these items.”
For the fourth quarter, InterDigital’s revenues were $33.9 million, up from the $24.7 million it reported in the same quarter a year ago. The company reported a fourth-quarter loss of $200,000 due to its stock option exercises.
