January 23, 2012 / 9:36 PM / 8 years ago

UPDATE 3-InterDigital fails to find buyer, shares slip

* Says to continue exploring licensing partnerships, sale of patent portfolio

* Sees $800 million annual rev from sale, licensing deals in 3-5 yrs

* Sees Q4 rev $74.2 mln vs est. $73.1 mln

* Sees Q4 EPS $0.46 vs est. $0.37

By Rachana Khanzode

Jan 23 (Reuters) - InterDigital Inc said it had failed to find any takers for the entire company, but would continue to look for buyers for its patent portfolio and enter licensing partnerships.

The wireless technology patent holder, however, said its patent portfolio generated interest from buyers during the strategic process and plans to move quickly on a potential sale.

In July, InterDigital said it was looking at a possible sale of the company or its patents, just weeks after a consortium of technology giants including Apple Inc and Google bought bankrupt Nortel Networks’ patents for $4.5 billion.

InterDigital would also consider selling parts of its portfolio that are not related to its core licensing programs like 3G and LTE cellular infrastructure patents, William Merritt, president and chief executive said in a call with analysts.

The company expects about $800 million in annual revenue from the sale and licensing deals in three to five years.

In August, Apple, Nokia, Qualcomm Inc and several other technology companies were pondering bids for InterDigital.

InterDigital said it has more than 19,500 patents and patent applications and has received nearly $3 billion in royalties from 2G and 3G licenses through Dec. 31, 2011.

The company makes most of its money from licensing its patented technology and from damages it wins in patent lawsuits.

InterDigital also reported preliminary fourth-quarter earnings of $21 million, or 46 cents a share, and revenue of $74.2 million.

Analysts, on an average, are expecting earnings of 37 cents a share on revenue of $73.1 million, according to Thomson Reuters I/B/E/S.

Shares of the Pennsylvania-based company were trading down 16 percent at $37.28 on Monday after the bell. They closed at $44.45 on the Nasdaq.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below