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InterDigital Doubles Revenue Outlook, Announces License Agreement With Apple

IDCC, AAPL

InterDigital, Inc. (NASDAQ: IDCC) saw its stock gain more than 18 percent and trade above the $100 per share mark after the company revised its revenue outlook notably higher.

Not including the pre-market gain, shares of InterDigital gained more than 70 percent over the past year and more than doubled from its 52-week low of $41.01.

At the end of November InterDigital guided its fourth-quarter revenue to be in a range of $95 million to $99 million. On Thursday, the company revised its guidance to a range of $258 million to $268 million.

What Happened?

The mobile technology research and development company announced on Thursday it struck a patent licensing agreement with Apple Inc. (NASDAQ: AAPL).

In addition to the company's strong fourth-quarter guidance, management reaffirmed it is "well-positioned" to achieve its long-term goals of generating $500 million to $600 million in annual recurring revenues from its core terminal unit licensing business along with $75 million to $100 million from its Internet of Things (IoT) business.

"Our focus during 2016 was to balance revenue growth with long-term revenue stability. Having long-term agreements now in place with the top three terminal unit manufacturers, we've achieved that goal," commented William J. Merritt, president and CEO of InterDigital.

At last check, shares of InterDigital were up 7.43 percent at $91.05.



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