KING OF PRUSSIA, Pa.-Wireless technology company InterDigital Communications Corp. posted increasing revenues and a net income of $6.5 million, news that comes on the company’s announcement that it reached an “amicable resolution” in its patent dispute with Lucent Technologies Inc.
Under the terms of the agreement, Lucent agreed to pay InterDigital $14 million over a five-year period. The companies also agreed to cooperate on future technologies.
“Further, we are taking significant steps forward on our strategy to enhance our technology solutions and position them as a complement to our patent offerings-the purpose of which is to drive license agreements more rapidly and at a higher value,” said William Merritt, InterDigital’s president and chief executive officer. “We recently announced the availability of our HSDPA coprocessor ASIC which is being offered to both semiconductor producers and original equipment manufacturers. Further, we intend to acquire a market-proven legacy 2G protocol stack solution that, in combination with our 3G protocol stack, will be offered to mobile device manufacturers in conjunction with our patents.”
Wall Street seemed relatively satisfied with the company’s results, sending InterDigital’s stock down slightly on the news to $18.32 per share.
InterDigital posted revenues of $48.5 million, way up from the $7.4 million the company earned in the prior year’s same quarter. The jump was due to a change in the way the company tallies its licensing revenues. In the quarter, InterDigital also managed to reverse its net loss of $6.4 million from the year-ago quarter to a net income of $6.5 million.
