In a press release issued Tuesday morning, InterDigital (NASDAQ: IDCC) announced updated guidance for the second quarter of fiscal 2014.
The company now expects its total revenue to be in the range of $172 -$210 million, its recurring revenues to be between $72 and $80 million and past sales of $100 - $130 million.
Shares of the company have rocketed up over 14 percent following the release.
InterDigital CFO, Richard Brezski commented, "Our current level of recurring revenues provides a foundation to drive strong financial performance and free cash flow for the foreseeable future. Moreover, with roughly half of the market under license, we believe there is ample opportunity to continue to add to our recurring revenue base while adding little variable cost."
The company also made note that the new guidance does not reflect any contribution from the arbitration award it received in May from its agreement with Arima.
- Morning Market Movers
- Novatel Wireless Slips to Sell - Analyst Blog
- Surging Earnings Estimates Signal Good News for InterDigital (IDCC) - Tale of the Tape
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.