KING OF PRUSSIA, Pa.-InterDigital Communications Corp. issued guidance for the third quarter, saying it expects to record revenues of between $67 million and $68 million.
The guidance is below average analyst estimates of $69.02 million for the quarter.
The company’s third-quarter revenue predictions include $53 million to $54 million of recurring patent license royalty revenue, $12.5 million associated with its resolution of a prior patent license dispute with Nokia Corp., and between $1 million and $2 million related to technology solution agreements.
“In third quarter 2006, we will benefit from both the contributions of a diverse base of licensees and the recognition of a portion of the balance of the revenue related to Nokia’s $253 million payment this year,” said Richard Fagan, Interdigital’s chief financial officer.
InterDigital’s stock dropped by more than $1 per share on the news, but quickly popped back to about $30.50 per share, which is where it had traded before the company’s announcement.
