KING OF PRUSSIA, Pa.—InterDigital Communications Corp. announced a substantial boost in second quarter revenue from $38.6 million in the year-ago quarter to $296.6 million this year. The difference was primarily related to the resolution of InterDigital’s patent disputes with Nokia Corp. and Panasonic Mobile Communications Co. Ltd.
InterDigital’s second-quarter revenue included $56.6 million in recurring patent license royalties and technology sales, while $228 million and $12 million, respectively, came from one-time payments from Nokia and Panasonic to resolve their patent disputes.
InterDigital reported net income for the quarter of $170.4 million, a substantial increase from the $4 million posted in the year-ago quarter. Of the second quarter’s net income, approximately $154.1 million came from the Nokia and Panasonic settlements.
News of InterDigital’s earnings sent its stock up 2.3 percent to $26.72 per share.
InterDigital holds a portfolio of patented technologies for 2G, 2.5G, 3G and 802-related wireless products. Its patent disputes with Nokia related to the Finnish handset maker’s second-generation GSM/TDMA handsets and its 2.5G GSM/GPRS/EDGE products sold between 2002 and 2006; an international tribunal and United States district court ruled that under an existing patent license agreement, Nokia should have paid InterDigital more than it had.
