Keith Jones: Thank you, Paul. I am pleased to be speaking with you today to share details of our third quarter financial results. We turned in a strong third quarter, delivering revenue of $101.4 million, an increase of 22% from the prior quarter. Our strong revenue was driven by the execution of 7 agreements in the quarter. This includes executing a long-term agreement with Samsung for their mobile phones, which complements our existing consumer electronics and semiconductor agreements. We are also very pleased to announce the renewal of our OTT licensing agreement with Starz, which further validates our value to the OTT market. Now I’d like to discuss our operating expenses, which I will be referring to non-GAAP numbers. For the third quarter, operating expenses were $31.1 million, a decrease of $800,000 or 3% from the prior quarter.
Research and development expenses increased $621,000 or 5% from the prior quarter as we remain committed to growing both our media and semiconductor IP portfolios and fostering our pioneering innovation. Selling, general and administrative expenses decreased $1.3 million or 8% from the prior quarter, primarily due to lower corporate administrative costs and outsourced services. Litigation expense was $2.2 million a decrease of $129,000 from the prior quarter due to the timing of expenses related to various legal matters. Interest expense during the third quarter was $15.7 million, an increase of $119,000 from the prior quarter due to rising interest rates, which is in spite of continued debt repayments and a lower principal amount. Our current effective interest rate amortization of debt issuance costs is approximately 9.8%.
Other income was $1.5 million and was primarily related to interest income recognized on revenue agreements with long-term billing structures under ASC 606 and due to interest earned on our cash and investment portfolio. Our adjusted EBITDA for the third quarter was $0.7 million, reflecting an adjusted EBITDA margin of 70%. Depreciation expense for the quarter was $382,000. Our non-GAAP income tax rate remained at 23% for the quarter. Our income tax expense consists primarily of federal and state domestic taxes as well as Korean withholding taxes. Now for a few details on the balance sheet. We ended the third quarter with $82.1 million in cash, cash equivalents and marketable securities. During the quarter, we generated $21.2 million in cash from operations.
Additionally, we made $15.1 million in principal payments on our debt. As a result, we ended the quarter with a term loan balance of $630.4 million. Additionally, our Board approved the payment of another $0.05 per share dividend to be paid on December 18 to shareholders of record as of November 27th. Now I will go over our guidance for the full year 2023. Our operational execution and licensing agreements. But we had not contemplated was subsequent to the merger of Rogers & Shaw that Shaw but failed to continue to honor its contractual commitments with us. Consistent with our Shaw press release on October 2, for the full year 2023, we are now narrowing our revenue guidance to be in the range of $385 million to $395 million. We are also lowering our expected operating expenses to be in the range of $130 million to $133 million.
We expect interest expense to be in the range of $63 million to $63.5 million, and we expect other income to be in the range of $5 million to $6 million. We expect a resulting adjusted EBITDA margin of 67%. Additionally, we expect cash flows from operations to be in the range of $150 million to $155 million. The adjusted cash flow guidance reflects the impact of 3 items that generally share equal weight. Specifically, it has always been a priority to maximize the economics of our licensing agreements. As such, we accommodated shifting certain payments from our customers to 2024 in order to achieve better overall deal economics. Secondly, we have been impacted by the failure of Shaw to honor their contractual obligations. And lastly, we were further impacted on anticipated renewal with a certain Canadian pay TV operator, which we now believe will not take place in 2023.
We expect the non-GAAP tax rate to remain consistent at roughly 23% for the full year. We also expect capital expenditures to be roughly $4 million for the full year. I want to provide a high-level look at 2024. As a reminder, we will provide more detailed 2024 guidance on our fourth quarter earnings call in February of next year. First, we anticipate revenue growth with a low to mid-single-digit increase. We anticipate our non-GAAP operating margins to be in the 60s. Also, we anticipate a moderate increase in cash flows from operations, which takes into account the shifted customer payments I referred to early. Paying off our debt will continue to be our priority, and we’ll continue to return capital to shareholders through our dividend program.
