InterDigital On Jul. 11, Received Cash Payment Of $184.9M Related To Its UK High Court Case Against Lenovo; Co. Expects To Defer Recognizing Any Additional Catch-up Revenue Until Appeal Process Progresses In Lenovo Case
Portfolio Pulse from Benzinga Newsdesk
InterDigital received a cash payment of $184.9M related to its UK High Court case against Lenovo. The company plans to defer recognizing any additional catch-up revenue until the appeal process progresses in the Lenovo case.
July 17, 2023 | 1:11 pm
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NEUTRAL IMPACT
InterDigital's cash flow has been positively impacted by the $184.9M payment from the Lenovo case. However, the company's revenue recognition will be deferred, potentially affecting its short-term financial results.
The cash payment from the Lenovo case improves InterDigital's cash position, which is positive. However, the decision to defer revenue recognition could lead to lower reported revenues in the short term, which may negatively impact the stock price. The net effect is uncertain, hence the neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100