InterDigital, Inc (IDCC) has reported a 313.07 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $136.47 million, or $3.85 a share in the quarter, compared with $33.04 million, or $0.92 a share for the same period last year.
Revenue during the quarter surged 144.31 percent to $273.87 million from $112.10 million in the previous year period. Total expenses were 23.63 percent of quarterly revenues, down from 52.42 percent for the same period last year. This has led to an improvement of 2879 basis points in operating margin to 76.37 percent.
Operating income for the quarter was $209.15 million, compared with $53.34 million in the previous year period.
"2016 was a tremendous year for the company, reflecting the strength of our research contributions as well as the leverage and power of the research-based licensing business model," said William J. Merritt, president and chief executive officer of InterDigital. "In addition to our successes in helping to define 5G and future Internet of Things technologies on the research side, our licensing efforts drove substantial cash flow while we were able to slightly reduce overall expenses on a year-over-year basis."
For the first-quarter, InterDigital projects revenue to be in the range of $91 million to $96 million.
Working capital increases sharply
InterDigital has recorded an increase in the working capital over the last year. It stood at $795.64 million as at Dec. 31, 2016, up 30.22 percent or $184.64 million from $610.99 million on Dec. 31, 2015. Current ratio was at 2.87 as on Dec. 31, 2016, up from 2.53 on Dec. 31, 2015.
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