KING OF PRUSSIA, Pa.-InterDigital Communications Corp. gave second-quarter financial guidance anticipating revenue of $291million to $293 million, without forecasting net profit.
The company’s revenue forecast includes a massive payment of $228 million from Nokia Corp. related to the resolution of a prior patent license agreement, about $50 million from recurring patent license royalties, and $12 million from patent license royalties from Panasonic Inc.
The large payment from Nokia relates to the Finnish handset maker’s second-generation GSM/TDMA and 2.5-generation GSM/GPRS/EDGE products sold between 2002 and this year that an international tribunal and U.S. district court found should have resulted in greater payments to InterDigital under an existing patent license pact.
The company acknowledged that the payment from Nokia would “create an unusual quarter,” but suggested that the money “provides further validation” of its ability to generate value from its patent licenses. Richard Fagan, InterDigital’s chief financial officer, said that the company’s growth lies in the 3G market.
InterDigital holds a portfolio of patented technologies for 2G, 2.5G, 3G and 802.-related wireless communications products.
