Patent-holder InterDigital reported higher revenue and earnings in the third quarter. The company moved its headquarters to north Wilmington from King of Prussia earlier this year
Revenue in third quarter 2012 totaled $434.0 million, compared to $76.5 million in third quarter 2011. This increase was primarily due to a $375 million patent sale to Intel Corporation representing 86 percent of total revenue.
Patent licensing royalties of $58.4 million in third quarter 2012 declined $16.9 million, or 22 percent, from $75.3 million in third quarter 2011, primarily due to a $10.6 million decrease in oyalty revenue and lower past sales revenue.
The decrease in per-unit royalty revenue resulted primarily from lower shipments by our Japanese per-unit licensees, as well as Research in Motion Limited (“RIM”) and HTC Corporation,
As of Sept. 30, the company has deferred $40.1 million, including $3.6 million in third quarter 2012, of disputed SlimChip modem IP royalties pending the outcome of an ongoing arbitration.
The company’s third quarter 2012 net income was $235.7 million, compared to $26.2 million, or $0.57 per diluted share during the same quarter a year earlier.
Not including the Intel patent sale revenue of $375.0 million, cost of patent sale of $15.6 million and the related income tax impact of $124.7 million, third quarter 2012 net income would have been $1 million.
Third quarter 2012 operating expenses totaled $70.9 million, an increase of $26.6 million from $44.3 million in third quarter 2011. This increase was driven by $15.6 million of costs associated with the patent sale to Intel and an $11.3 million increase in intellectual property enforcement and non-patent litigation costs.
Third quarter 2012 intellectual property enforcement and non-patent litigation costs were $18 million as compared to $6.7 million in third quarter 2011, and related primarily to the ITC patent infringement proceeding initiated in second half 2011.
These and other increases were partially offset by lower costs associated with long-term compensation and the 2011 strategic evaluation process.
