InterDigital 3Q guidance to narrowly miss Street
KING OF PRUSSIA, Pa. — Wireless technology developer InterDigital Inc. said Monday it expects third-quarter sales of $73.5 million to $75.5 million, just below Wall Street forecasts of $76.8 million.
The outlook came as InterDigital suffered a steep decline in share price following an initial ruling from the U.S. International Trade Commission against the company in a dispute with cell phone maker Nokia Corp. The case relates to third-generation cell phone technology patents.
An ITC judge ruled Friday that Nokia’s phones did not violate four patents held by InterDigital. The company, which filed its complaint with the ITC two years ago, said it will ask for a review of the decision.
InterDigital shares fell $6.43, or 22 percent, to $23.07 in morning trading.
In a statement, InterDigital Chief Financial Officer Scott McQuilkin nevertheless sounded an upbeat note. “Third quarter 2009 reflects solid 3G sales by our patent licensees,” McQuilkin said. He added that “based on the sales reports it appears that the declines in overall handset sales have stabilized in second quarter 2009 and indeed some of our key licensees have reported increases in sales.”