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-InterDigital raises stock repurchase program by $100 million.

M2 EQUITYBITES-June 19, 2012--InterDigital raises stock repurchase program by $100 million(C)2012 M2 COMMUNICATIONS

InterDigital, Inc.(NASDAQ: IDCC) board of directors has authorized an increase to the company's existing stock repurchase program from $100 million to $200 million.

The increase to the share buyback program was made in conjunction with the announcement that certain of the company's subsidiaries had agreed to sell a portion of the company's patent portfolio to Intel Corp. (NASDAQ: INTC) for $375 million in cash payable at closing.

Consistent with prior stock repurchase authorizations, InterDigital may purchase stock from time to time through open market purchases, pre-arranged trading plans or privately-negotiated transactions. The amount and timing of the repurchases will be based on a variety of factors, including general business and market conditions, the availability of an open trading window, cash requirements, strategic investment opportunities, the timing of the signing of any new license agreements as well as the timing of any additional sale agreements related to the company's patent assets.

The accounting for the patent sale transaction is still being finalized. However, the company expects that a significant portion of the gross proceeds from the transaction will be recognized as revenue in the period in which the transaction closes, which is anticipated to be the third quarter of 2012. In addition, the company expects to record a related charge of approximately $3 million in second quarter 2012 to increase its accrual for the company's long-term compensation program cycle ending December 31, 2012.

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Publication:M2 EquityBites (EQB)
Date:Jun 19, 2012
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