Technicolor has announced it is negotiating a strategic transaction relating to its patent licensing business. While there is no assurance that a transaction will take place, Technicolor is confident it will reach an agreement. This is in line with the firm’s objective to simplify the group’s structure and allocate its capital and resources to its operating businesses.
Technicolor has suspended its commercial patent licensing discussions and reached a settlement agreement with Samsung Electronics with regard to ongoing litigation in Germany and France.
The technology segment is expected to generate around €70 million ($83.2 million) of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and around €25 million ($29.7 million) of free cash flow, instead of an estimated €115 million ($136.6 million) of adjusted EBITDA and €100 million ($118.8 million) of free cash flow incorporated in the low end of the group’s full year guidance.
The performance of the operating businesses is in line with the Group’s expectations. Technicolor anticipates generating an adjusted EBITDA of around €370 million ($439.6 million) including a negative forex impact of between €5 million and €10 million ($5.9 million and $11.9 million) and a free cash flow of around €75 million ($89.1 million) before paying fees to settle a historical legal dispute involving CRT technology.
