InterDigital, Inc. (NASDAQ:IDCC) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 10:00 am ET

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InterDigital, Inc. (NASDAQ:IDCC) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day and welcome to the InterDigital's First Quarter 2018 Earnings Call. Today's conference is being recorded.

At this time, I will like to turn the conference over to Patrick Van de Wille. Please go ahead.

Executive
Patrick Van de Wille

Thanks very much, Alicia. Good morning, everyone and welcome to InterDigital's first quarter 2018 earnings conference call. With me this morning are Bill Merritt, our President and CEO and Rich Brezski, our CFO. Consistent with last quarter's call, we will offer some insights about the quarter and the company and then open the call up for questions.

Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans and expectations, which are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those set forth in our earnings release and quarterly report on Form 10-Q, published this morning as well as those details in our Annual Report on Form 10-K for the year ended December 31, 2017 and from time-to-time and our other filings with the Securities and Exchange Commission.

These forward-looking statements are made only as of the date hereof and except as required by law, we undertake no obligation to update or revise any of them whether as a result of new information, future events or otherwise. In addition, today's presentation may contain references to non-GAAP financial measures, such as free cash flow, pro forma operating expenses and non-GAAP net income. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our first quarter 2018 financial metrics tracker, which can be accessed on our homepage, www.interdigital.com, by clicking on the link on the left side of the homepage that says, Financial Metrics Tracker for Q1, 2018.

With that taken care of, I'll turn the call over to Bill.

Executive
Bill Merritt

Good morning everyone. Thank you for joining us on the call today. As you saw in the press release this morning, the Company delivered another very strong quarter both financially and strategically. Rich will go into the numbers in more details in his remarks including providing some added color around the impact of the new accounting standards and tax law. I want to do a quick review of the first quarter from a revenue and cost perspective before touching on the Technicolor transaction and then interesting events going on with respect to China.

The first quarter revenue for the company was just over $87 million which reflects the impact of the new accounting standard ASC 606. Under the prior accounting standards first quarter revenue would have been $105 million. The overall level of revenue was solid and also included a variety of new contributions including new release of LG and Kyocera and a contribution by the Signal Trust which are licensed to get large InterDigital patent portfolio related to