InterDigital Inc. (IDCC), the mobile technology research and development company run by CEO William Merritt, said reached a licensing agreement with Kyocera Corp. and also increased its guidance for fourth quarter 2015 revenue to be between $107 million and $111 million.
The Wilmington, Delaware-based company said its patent holding subsidiaries have entered into a new worldwide, non-exclusive, royalty bearing patent license agreement with Kyocera, covering Kyocera's sale of certain cellular terminal unit products. The terms were not disclosed.
"InterDigital is pleased to continue its relationship with Kyocera, which is a significant contributor in the wireless markets and a long-time licensee of InterDigital," said Lawrence Shay, president of InterDigital's patent holding subsidiaries. "The agreement highlights the strength of InterDigital's research and intellectual property portfolio, and positions Kyocera for continued success in the wireless market."
An InterDigital representative couldn't be reached for comment.
The company also said it expects revenue to be comprised of recurring revenue of $92 million to $94 million and past sales of $15 million to $17 million.
In November, the company had said it expected total revenue of $89 million and $91 million, comprised almost entirely of recurring revenue.
The new guidance includes, among other things, the expected impact of a new patent license agreement signed during the quarter and the collection of outstanding payments from a prior technology solutions customer.
The company said these updated expectations are based on preliminary accounting results that are subject to review and finalization. In addition, the guidance is based primarily on royalty reports received and license agreements signed to date, and does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of fourth quarter 2015.
Shares of InterDigital gained $1.26 or 2.6% to $48.93. They’ve traded between $44.28 and $60.69 over the past year.
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