Benzinga | Aug 5, 2021 03:47PM EDT

InterDigital Q2 Revenue Declines 16% As Patent Royalties Decrease 15%

* InterDigital Inc (NASDAQ:IDCC) reported a second-quarter FY21 revenue decline of 16% year-on-year to $87.7 million, beating the analyst consensus of $84.3 million.

* Recurring revenue declined 8.3% Y/Y to $78.1 million due to the exit of a handset manufacturer and the absence of non-current patent royalties from a fixed-fee patent license agreement.

* Total patent royalties declined 14.8% Y/Y to $86.2 million, and Fixed-fee royalty revenue reduced 10.4% Y/Y to $69.3 million.

* InterDigital posted an operating loss of $(3.1) million due to higher restructuring costs.

* EPS of $0.05 beat the analyst consensus loss of $(0.15).

* InterDigital used $27.3 million in operating cash flow and held $837.7 million in cash and equivalents.

* InterDigital recently inked a multi-year, worldwide, non-exclusive, royalty-bearing license with Xiaomi Corp (OTC:XIACF) (OTC:XIACY).

* Xiaomi's coming on board as a new licensee and the continued efforts to license other companies helped InterDigital grab 55% of the worldwide smartphone market under license, CEO Liren Chen stated.

* Price action: IDCC shares traded higher by 0.22% at $69.08 on the last check Thursday.