With shares down nearly 50% in the past year, it has been a rough go for investors in wireless technology developer InterDigital Communications
On Thursday, InterDigital reported $54.9 million in revenue for the quarter, of which $50.3 million was recurring revenue from patent royalties. Like fellow licensor Qualcomm
The bottom line suffered because of increased expenses, though, as InterDigital reported a net loss of $2 million, or $0.04 per share, for the quarter. A significant expense was a $5.1 million reserve for its ongoing litigation in the U.K. with mobile-phone maker Nokia
Phone makers LG, Sharp, and NEC still make up the bulk of InterDigital's recurring income: LG accounted for 28%, Sharp for 17%, and NEC for 11% of recurring patent license royalties and technology solution sales this quarter. So far, recent licenses with Research In Motion
So patience is still the theme for investors in InterDigital. While the growth in recurring revenue for the quarter underwhelmed many, the company expects to report a respectable $53 million to $55 million next quarter. It also recently signed a license with a leading Asian chip manufacturer and continues to buy back stock. But because new licenses take more time to contribute to growth, investors should still expect volatility based on the outcome of ongoing court cases and legal disputes.
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Fool contributor Dave Mock doesn't know where the idea for a deep-fried breaded hot dog on a stick came from, but he's happy about it nonetheless. He owns shares of Qualcomm and is the author of The Qualcomm Equation. Apple is a Stock Advisor recommendation. The Fool has a disclosure policy, but it's willing to share if you don't have one of your own.