Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Xperi Holding Corporation Announces First Quarter 2022 Results By: Xperi Holding Corp via Business Wire May 09, 2022 at 16:05 PM EDT Remains on track to separate product and IP businesses in the fall Xperi Holding Corporation (NASDAQ: XPER) (the “Company”, “Xperi” or “we”) today announced financial results for the first quarter ended March 31, 2022. “We are off to a good start for the year, delivering revenue growth of 16% in the first quarter, primarily due to the previously announced Micron agreement,” said Jon Kirchner, chief executive officer of Xperi. “The top line strength, combined with our progress on key strategic initiatives, positions us well to deliver on our full year 2022 outlook, which we are reaffirming today. We are also excited about the long-term value creation potential of our soon-to-be completed business separation, which remains on track for this fall.” First Quarter 2022 Financial Highlights: Revenue of $257.4 million for the quarter, increased 16% compared to $221.6 million for Q1 2021. GAAP earnings per share of $0.24, compared to $0.05 in Q1 2021, and non-GAAP earnings per share of $0.92, compared to $0.59 in Q1 2021. Cash Flow from Operations was $46.3 million, versus $26.7 million in Q1 2021. Repurchased $17.3 million of common stock. First Quarter 2022 Business and Recent Operating Highlights: IP Licensing Business (Revenue: $138.5 million) A top 10 virtual Multichannel Video Programming Distributor (vMVPD) entered into a long-term license renewal for Adeia’s media patent portfolios. LAPIS Technology, a ROHM Semiconductor Group subsidiary, entered into an agreement for access to Adeia’s DBI® Ultra die-to-wafer hybrid bonding technology and foundational hybrid bonding patent portfolio. Micron entered into a license for Adeia’s hybrid bonding and semiconductor portfolio, resulting in Adeia now having more than 90% of the DRAM memory market under license. Product Business (Revenue: $118.9 million) Pay-TV highlights: Continued to drive adoption of higher-value IPTV solutions, with double-digit IPTV subscriber growth as compared to the fourth quarter. Added new operators with our expanded product offerings, including a new win with NfinityLink Communications. Consumer Electronics highlights: Signed key renewals with Skyworth and Best Buy relating to soundbar and TV products. Expanded licensing relationship with TCL to include decoder post-processing and DTS Play-Fi support in soundbar and TV products. Achieved DXOMARK’s #1 ranking for the latest IMAX Enhanced certified mobile device from Honor.1 DTS Headphone:X-enabled headphones from HyperX were recognized as Editors’ Pick for “Best Gaming Headsets” by Rolling Stone magazine. Connected Car highlights: BMW expanded shipments of the iX model with DTS AutoSense into more countries, and we advanced engagement for in-cabin monitoring solutions with numerous European and Asian car companies. Mercedes-Benz expanded shipments of DTS AutoStage-enabled models to more than 40 countries, and over the quarter we further advanced pipeline development for DTS AutoStage with OEM customers in the U.S., Europe, and Asia. DTS AutoSense Neuromorphic Driver Monitoring Solution was a 2022 Winner for the Artificial Intelligence Excellence Award presented by the Business Intelligence Group. Media Platform highlights: Strengthened customers’ premium live TV viewing experience by integrating YouTube TV into TiVo Stream OS and TiVo Stream 4K. Launched TiVo Xtend™, an end-to-end advertising solution that enables incremental reach and frequency opportunities for Connected TV advertisers. Added streaming services Shudder, SundanceNow, and allblk to TiVo Stream OS, increasing on-platform ad-supported viewership. Advanced TiVo Stream ecosystem development across content partners, OEMs, and chipset providers. 1 DXOMARK is an independent benchmark site that scientifically assesses smartphones, lenses, and cameras. Capital Allocation During the quarter, the Company repurchased $17.3 million of common stock and at quarter end had $77.8 million remaining on the existing authorization. On March 30, 2022, the Company distributed $5.2 million to stockholders of record on March 16, 2022, for a quarterly cash dividend of $0.05 per share of common stock. On April 29, 2022, the Board of Directors declared a dividend of $0.05 per share, payable on June 21, 2022, to stockholders of record on May 31, 2022. Financial Outlook The Company reiterates its full year 2022 outlook: Category GAAP Outlook Non-GAAP Outlook Revenue $910M to $950M $910M to $950M COGS $120M to $130M $120M to $130M Operating Expense excluding COGS* $725M to $755M $490M to $520M Interest Expense ~ $36M ~ $36M Other Income ~ $3M ~ $3M Cash Tax (net of refunds) $33M to $35M $33M to $35M Basic Shares Outstanding 105M 105M Diluted Shares Outstanding 107M 113M Operating Cash Flow $200M to $230M $200M to $230M *See tables for reconciliation of GAAP to non-GAAP differences. Conference Call Information The Company will hold its first quarter 2022 earnings conference call at 2 p.m. PDT (5 p.m. EDT) on Monday, May 9, 2022. To access the call in the U.S., please dial 888-220-8474, and for international callers, dial +1 646-828-8193. The conference ID is 5945774. All participants should dial in 15 minutes prior to the start of the conference call and can use the conference ID to access the call. The Company also suggests utilizing the webcast link to access the call at Q1 Earnings Call Webcast. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company’s financial results, forecasts, and business outlook, and anticipated business separation timing. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenue, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business strategies, and expansion and growth of the Company’s businesses; the Company’s ability to implement its business strategy; pricing trends, including the Company’s ability to achieve economies of scale; the ability of the Company to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; failure to remediate the material weaknesses in our internal control over financial reporting; the evolving legal, regulatory and tax regimes under which the 4 Company operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, including Russia’s invasion of Ukraine, and natural disasters; the extent to which the COVID-19 pandemic continues to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; the impact of semiconductor supply chain constraints on our customers; and any plans regarding the separation of the Company’s IP and Product businesses. These risks, as well as other risks associated with the business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. About Xperi Holding Corporation Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (Adeia, DTS, HD Radio, IMAX Enhanced, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers. Xperi, Adeia, DTS, IMAX Enhanced, HD Radio, Perceive, TiVo and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi Holding Corporation in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges; costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses; separation costs; all forms of stock-based compensation; loss on debt extinguishment; expensed debt refinancing costs and related tax effects. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP Operating Expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics. SOURCE: XPERI HOLDING CORP XPER-E XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended March 31,2022 March 31,2021 Revenue $ 257,420 $ 221,596 Operating expenses: Cost of revenue, excluding depreciation and amortization of intangible assets 27,697 28,132 Research, development and other related costs 59,370 55,223 Selling, general and administrative 70,446 67,430 Depreciation expense 5,866 5,684 Amortization expense 39,319 52,195 Litigation expense 1,753 2,533 Total operating expenses 204,451 211,197 Operating income 52,969 10,399 Interest expense (8,429 ) (11,313 ) Other income (expense), net 968 1,425 Income before taxes 45,508 511 Provision for (benefit from) income taxes 21,533 (4,015 ) Net income $ 23,975 $ 4,526 Less: net loss attributable to noncontrolling interest (968 ) (761 ) Net income attributable to the Company $ 24,943 $ 5,287 Income per share attributable to the Company: Basic $ 0.24 $ 0.05 Diluted $ 0.24 $ 0.05 Weighted average number of shares used in per share calculations-basic 103,679 104,940 Weighted average number of shares used in per share calculations-diluted 105,332 107,776 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, December 31, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 214,095 $ 201,121 Available-for-sale debt securities 52,720 60,534 Accounts receivable, net 100,203 143,683 Unbilled contracts receivable, net 121,778 77,677 Other current assets 42,737 36,459 Total current assets 531,533 519,474 Long-term unbilled contracts receivable 43,112 4,107 Property and equipment, net 59,251 60,974 Operating lease right-of-use assets 65,513 68,498 Intangible assets, net 778,680 817,916 Goodwill 850,100 851,088 Other long-term assets 150,641 147,965 Total assets $ 2,478,830 $ 2,470,022 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 11,835 $ 7,811 Accrued liabilities 99,540 110,705 Current portion of long-term debt, net 36,152 36,095 Deferred revenue 48,913 35,136 Total current liabilities 196,440 189,747 Deferred revenue, less current portion 34,128 37,107 Long-term deferred tax liabilities 19,085 19,848 Long-term debt, net 720,333 729,392 Noncurrent operating lease liabilities 51,930 54,658 Other long-term liabilities 102,267 98,842 Total liabilities 1,124,183 1,129,594 Commitments and contingencies Company stockholders’ equity: Preferred stock — — Common stock 116 113 Additional paid-in capital 1,365,277 1,340,480 Treasury stock at cost (206,350 ) (178,022 ) Accumulated other comprehensive loss (1,766 ) (752 ) Retained earnings 207,539 187,814 Total Company stockholders’ equity 1,364,816 1,349,633 Noncontrolling interest (10,169 ) (9,205 ) Total equity 1,354,647 1,340,428 Total liabilities and equity $ 2,478,830 $ 2,470,022 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Cash flows from operating activities: Net income $ 23,975 $ 4,526 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 5,866 5,684 Amortization of intangible assets 39,319 52,195 Stock-based compensation expense 16,804 13,219 Deferred income taxes (911 ) 666 Other 1,984 3,217 Changes in operating assets and liabilities: Accounts receivable 43,698 (7,632 ) Unbilled contracts receivable (82,995 ) 2,295 Other assets (8,806 ) (10,697 ) Accounts payable 4,024 11,429 Accrued and other liabilities (7,483 ) (45,687 ) Deferred revenue 10,798 (2,486 ) Net cash from operating activities 46,273 26,729 Cash flows from investing activities: Purchases of property and equipment (4,289 ) (1,772 ) Proceeds from sale of property and equipment — 5 Purchases of intangible assets (180 ) (36 ) Purchases of short-term investments (4,490 ) (42,505 ) Proceeds from sales of investments 2,000 16,921 Proceeds from maturities of investments 10,023 10,000 Net cash from investing activities 3,064 (17,387 ) Cash flows from financing activities: Dividends paid (5,218 ) (5,264 ) Repayment of debt (10,125 ) (13,125 ) Proceeds from employee stock purchase program and exercise of stock options 8,000 6,715 Repurchases of common stock (28,328 ) (32,359 ) Net cash from financing activities (35,671 ) (44,033 ) Effect of exchange rate changes on cash and cash equivalents (692 ) (738 ) Net increase (decrease) in cash and cash equivalents 12,974 (35,429 ) Cash and cash equivalents at beginning of period 201,121 170,188 Cash and cash equivalents at end of period $ 214,095 $ 134,759 Supplemental disclosure of cash flow information: Interest paid $ 7,188 $ 9,015 Income taxes paid, net of refunds $ 3,334 $ 5,921 XPERI HOLDING CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income attributable to the Company: Three Months Ended March 31, 2022 GAAP net income attributable to the Company $ 24,943 Adjustments to GAAP net income attributable to the Company: Stock-based compensation expense: Cost of revenue 628 Research, development and other 5,475 Selling, general and administrative 10,701 Amortization expense 39,319 Merger and integration-related costs: Transaction and other related costs recorded in selling, general and administrative 172 Severance and retention recorded in cost of revenue, excluding depreciation and amortization of intangible assets 144 Severance and retention recorded in research, development and other 290 Severance and retention recorded in selling, general and administrative 28 Separation costs recorded in selling, general and administrative 2,780 Tax provision recorded in excess of cash taxes paid 18,199 Non-GAAP net income attributable to the Company $ 102,679 Diluted earnings per share attributable to the Company: Three Months Ended March 31, 2022 GAAP diluted income per share attributable to the Company $ 0.24 Adjustments to GAAP diluted income per share attributable to the Company: Stock-based compensation expense 0.16 Amortization expense 0.37 Merger and integration-related costs 0.01 Separation costs 0.03 Difference in shares used in the calculation (0.06 ) Tax provision recorded in excess of cash taxes paid 0.17 Non-GAAP diluted earnings per share attributable to the Company $ 0.92 Weighted average number of shares used in per share calculations excluding the effects of stock-based compensation - diluted 111,649 XPERI HOLDING CORPORATION RECONCILIATION FOR GUIDANCE ON GAAP TO NON-GAAP OPERATING EXPENSE EXCLUDING COGS (in millions) (unaudited) Twelve Months Ended December 31, 2022 Low High GAAP operating expense excluding COGS $ 725.0 $ 755.0 Stock-based compensation -- R&D (23.0 ) (23.0 ) Stock-based compensation -- SG&A (39.0 ) (39.0 ) Merger, integration and separation-related expense -- SG&A (15.0 ) (15.0 ) Amortization expense (158.0 ) (158.0 ) Total of non-GAAP adjustments (235.0 ) (235.0 ) Non-GAAP operating expense excluding COGS $ 490.0 $ 520.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005975/en/Contacts Xperi Investor Contact: Jill Koval, Arbor Advisory Group +1 203-832-4449 ir@xperi.com Media Contact: Amy Brennan, Senior Director, Corporate Communications +1 949-518-6846 amy.brennan@xperi.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Xperi Holding Corporation Announces First Quarter 2022 Results By: Xperi Holding Corp via Business Wire May 09, 2022 at 16:05 PM EDT Remains on track to separate product and IP businesses in the fall Xperi Holding Corporation (NASDAQ: XPER) (the “Company”, “Xperi” or “we”) today announced financial results for the first quarter ended March 31, 2022. “We are off to a good start for the year, delivering revenue growth of 16% in the first quarter, primarily due to the previously announced Micron agreement,” said Jon Kirchner, chief executive officer of Xperi. “The top line strength, combined with our progress on key strategic initiatives, positions us well to deliver on our full year 2022 outlook, which we are reaffirming today. We are also excited about the long-term value creation potential of our soon-to-be completed business separation, which remains on track for this fall.” First Quarter 2022 Financial Highlights: Revenue of $257.4 million for the quarter, increased 16% compared to $221.6 million for Q1 2021. GAAP earnings per share of $0.24, compared to $0.05 in Q1 2021, and non-GAAP earnings per share of $0.92, compared to $0.59 in Q1 2021. Cash Flow from Operations was $46.3 million, versus $26.7 million in Q1 2021. Repurchased $17.3 million of common stock. First Quarter 2022 Business and Recent Operating Highlights: IP Licensing Business (Revenue: $138.5 million) A top 10 virtual Multichannel Video Programming Distributor (vMVPD) entered into a long-term license renewal for Adeia’s media patent portfolios. LAPIS Technology, a ROHM Semiconductor Group subsidiary, entered into an agreement for access to Adeia’s DBI® Ultra die-to-wafer hybrid bonding technology and foundational hybrid bonding patent portfolio. Micron entered into a license for Adeia’s hybrid bonding and semiconductor portfolio, resulting in Adeia now having more than 90% of the DRAM memory market under license. Product Business (Revenue: $118.9 million) Pay-TV highlights: Continued to drive adoption of higher-value IPTV solutions, with double-digit IPTV subscriber growth as compared to the fourth quarter. Added new operators with our expanded product offerings, including a new win with NfinityLink Communications. Consumer Electronics highlights: Signed key renewals with Skyworth and Best Buy relating to soundbar and TV products. Expanded licensing relationship with TCL to include decoder post-processing and DTS Play-Fi support in soundbar and TV products. Achieved DXOMARK’s #1 ranking for the latest IMAX Enhanced certified mobile device from Honor.1 DTS Headphone:X-enabled headphones from HyperX were recognized as Editors’ Pick for “Best Gaming Headsets” by Rolling Stone magazine. Connected Car highlights: BMW expanded shipments of the iX model with DTS AutoSense into more countries, and we advanced engagement for in-cabin monitoring solutions with numerous European and Asian car companies. Mercedes-Benz expanded shipments of DTS AutoStage-enabled models to more than 40 countries, and over the quarter we further advanced pipeline development for DTS AutoStage with OEM customers in the U.S., Europe, and Asia. DTS AutoSense Neuromorphic Driver Monitoring Solution was a 2022 Winner for the Artificial Intelligence Excellence Award presented by the Business Intelligence Group. Media Platform highlights: Strengthened customers’ premium live TV viewing experience by integrating YouTube TV into TiVo Stream OS and TiVo Stream 4K. Launched TiVo Xtend™, an end-to-end advertising solution that enables incremental reach and frequency opportunities for Connected TV advertisers. Added streaming services Shudder, SundanceNow, and allblk to TiVo Stream OS, increasing on-platform ad-supported viewership. Advanced TiVo Stream ecosystem development across content partners, OEMs, and chipset providers. 1 DXOMARK is an independent benchmark site that scientifically assesses smartphones, lenses, and cameras. Capital Allocation During the quarter, the Company repurchased $17.3 million of common stock and at quarter end had $77.8 million remaining on the existing authorization. On March 30, 2022, the Company distributed $5.2 million to stockholders of record on March 16, 2022, for a quarterly cash dividend of $0.05 per share of common stock. On April 29, 2022, the Board of Directors declared a dividend of $0.05 per share, payable on June 21, 2022, to stockholders of record on May 31, 2022. Financial Outlook The Company reiterates its full year 2022 outlook: Category GAAP Outlook Non-GAAP Outlook Revenue $910M to $950M $910M to $950M COGS $120M to $130M $120M to $130M Operating Expense excluding COGS* $725M to $755M $490M to $520M Interest Expense ~ $36M ~ $36M Other Income ~ $3M ~ $3M Cash Tax (net of refunds) $33M to $35M $33M to $35M Basic Shares Outstanding 105M 105M Diluted Shares Outstanding 107M 113M Operating Cash Flow $200M to $230M $200M to $230M *See tables for reconciliation of GAAP to non-GAAP differences. Conference Call Information The Company will hold its first quarter 2022 earnings conference call at 2 p.m. PDT (5 p.m. EDT) on Monday, May 9, 2022. To access the call in the U.S., please dial 888-220-8474, and for international callers, dial +1 646-828-8193. The conference ID is 5945774. All participants should dial in 15 minutes prior to the start of the conference call and can use the conference ID to access the call. The Company also suggests utilizing the webcast link to access the call at Q1 Earnings Call Webcast. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company’s financial results, forecasts, and business outlook, and anticipated business separation timing. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenue, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business strategies, and expansion and growth of the Company’s businesses; the Company’s ability to implement its business strategy; pricing trends, including the Company’s ability to achieve economies of scale; the ability of the Company to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; failure to remediate the material weaknesses in our internal control over financial reporting; the evolving legal, regulatory and tax regimes under which the 4 Company operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, including Russia’s invasion of Ukraine, and natural disasters; the extent to which the COVID-19 pandemic continues to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; the impact of semiconductor supply chain constraints on our customers; and any plans regarding the separation of the Company’s IP and Product businesses. These risks, as well as other risks associated with the business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. About Xperi Holding Corporation Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (Adeia, DTS, HD Radio, IMAX Enhanced, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers. Xperi, Adeia, DTS, IMAX Enhanced, HD Radio, Perceive, TiVo and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi Holding Corporation in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges; costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses; separation costs; all forms of stock-based compensation; loss on debt extinguishment; expensed debt refinancing costs and related tax effects. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP Operating Expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics. SOURCE: XPERI HOLDING CORP XPER-E XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended March 31,2022 March 31,2021 Revenue $ 257,420 $ 221,596 Operating expenses: Cost of revenue, excluding depreciation and amortization of intangible assets 27,697 28,132 Research, development and other related costs 59,370 55,223 Selling, general and administrative 70,446 67,430 Depreciation expense 5,866 5,684 Amortization expense 39,319 52,195 Litigation expense 1,753 2,533 Total operating expenses 204,451 211,197 Operating income 52,969 10,399 Interest expense (8,429 ) (11,313 ) Other income (expense), net 968 1,425 Income before taxes 45,508 511 Provision for (benefit from) income taxes 21,533 (4,015 ) Net income $ 23,975 $ 4,526 Less: net loss attributable to noncontrolling interest (968 ) (761 ) Net income attributable to the Company $ 24,943 $ 5,287 Income per share attributable to the Company: Basic $ 0.24 $ 0.05 Diluted $ 0.24 $ 0.05 Weighted average number of shares used in per share calculations-basic 103,679 104,940 Weighted average number of shares used in per share calculations-diluted 105,332 107,776 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, December 31, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 214,095 $ 201,121 Available-for-sale debt securities 52,720 60,534 Accounts receivable, net 100,203 143,683 Unbilled contracts receivable, net 121,778 77,677 Other current assets 42,737 36,459 Total current assets 531,533 519,474 Long-term unbilled contracts receivable 43,112 4,107 Property and equipment, net 59,251 60,974 Operating lease right-of-use assets 65,513 68,498 Intangible assets, net 778,680 817,916 Goodwill 850,100 851,088 Other long-term assets 150,641 147,965 Total assets $ 2,478,830 $ 2,470,022 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 11,835 $ 7,811 Accrued liabilities 99,540 110,705 Current portion of long-term debt, net 36,152 36,095 Deferred revenue 48,913 35,136 Total current liabilities 196,440 189,747 Deferred revenue, less current portion 34,128 37,107 Long-term deferred tax liabilities 19,085 19,848 Long-term debt, net 720,333 729,392 Noncurrent operating lease liabilities 51,930 54,658 Other long-term liabilities 102,267 98,842 Total liabilities 1,124,183 1,129,594 Commitments and contingencies Company stockholders’ equity: Preferred stock — — Common stock 116 113 Additional paid-in capital 1,365,277 1,340,480 Treasury stock at cost (206,350 ) (178,022 ) Accumulated other comprehensive loss (1,766 ) (752 ) Retained earnings 207,539 187,814 Total Company stockholders’ equity 1,364,816 1,349,633 Noncontrolling interest (10,169 ) (9,205 ) Total equity 1,354,647 1,340,428 Total liabilities and equity $ 2,478,830 $ 2,470,022 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Cash flows from operating activities: Net income $ 23,975 $ 4,526 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 5,866 5,684 Amortization of intangible assets 39,319 52,195 Stock-based compensation expense 16,804 13,219 Deferred income taxes (911 ) 666 Other 1,984 3,217 Changes in operating assets and liabilities: Accounts receivable 43,698 (7,632 ) Unbilled contracts receivable (82,995 ) 2,295 Other assets (8,806 ) (10,697 ) Accounts payable 4,024 11,429 Accrued and other liabilities (7,483 ) (45,687 ) Deferred revenue 10,798 (2,486 ) Net cash from operating activities 46,273 26,729 Cash flows from investing activities: Purchases of property and equipment (4,289 ) (1,772 ) Proceeds from sale of property and equipment — 5 Purchases of intangible assets (180 ) (36 ) Purchases of short-term investments (4,490 ) (42,505 ) Proceeds from sales of investments 2,000 16,921 Proceeds from maturities of investments 10,023 10,000 Net cash from investing activities 3,064 (17,387 ) Cash flows from financing activities: Dividends paid (5,218 ) (5,264 ) Repayment of debt (10,125 ) (13,125 ) Proceeds from employee stock purchase program and exercise of stock options 8,000 6,715 Repurchases of common stock (28,328 ) (32,359 ) Net cash from financing activities (35,671 ) (44,033 ) Effect of exchange rate changes on cash and cash equivalents (692 ) (738 ) Net increase (decrease) in cash and cash equivalents 12,974 (35,429 ) Cash and cash equivalents at beginning of period 201,121 170,188 Cash and cash equivalents at end of period $ 214,095 $ 134,759 Supplemental disclosure of cash flow information: Interest paid $ 7,188 $ 9,015 Income taxes paid, net of refunds $ 3,334 $ 5,921 XPERI HOLDING CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income attributable to the Company: Three Months Ended March 31, 2022 GAAP net income attributable to the Company $ 24,943 Adjustments to GAAP net income attributable to the Company: Stock-based compensation expense: Cost of revenue 628 Research, development and other 5,475 Selling, general and administrative 10,701 Amortization expense 39,319 Merger and integration-related costs: Transaction and other related costs recorded in selling, general and administrative 172 Severance and retention recorded in cost of revenue, excluding depreciation and amortization of intangible assets 144 Severance and retention recorded in research, development and other 290 Severance and retention recorded in selling, general and administrative 28 Separation costs recorded in selling, general and administrative 2,780 Tax provision recorded in excess of cash taxes paid 18,199 Non-GAAP net income attributable to the Company $ 102,679 Diluted earnings per share attributable to the Company: Three Months Ended March 31, 2022 GAAP diluted income per share attributable to the Company $ 0.24 Adjustments to GAAP diluted income per share attributable to the Company: Stock-based compensation expense 0.16 Amortization expense 0.37 Merger and integration-related costs 0.01 Separation costs 0.03 Difference in shares used in the calculation (0.06 ) Tax provision recorded in excess of cash taxes paid 0.17 Non-GAAP diluted earnings per share attributable to the Company $ 0.92 Weighted average number of shares used in per share calculations excluding the effects of stock-based compensation - diluted 111,649 XPERI HOLDING CORPORATION RECONCILIATION FOR GUIDANCE ON GAAP TO NON-GAAP OPERATING EXPENSE EXCLUDING COGS (in millions) (unaudited) Twelve Months Ended December 31, 2022 Low High GAAP operating expense excluding COGS $ 725.0 $ 755.0 Stock-based compensation -- R&D (23.0 ) (23.0 ) Stock-based compensation -- SG&A (39.0 ) (39.0 ) Merger, integration and separation-related expense -- SG&A (15.0 ) (15.0 ) Amortization expense (158.0 ) (158.0 ) Total of non-GAAP adjustments (235.0 ) (235.0 ) Non-GAAP operating expense excluding COGS $ 490.0 $ 520.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005975/en/Contacts Xperi Investor Contact: Jill Koval, Arbor Advisory Group +1 203-832-4449 ir@xperi.com Media Contact: Amy Brennan, Senior Director, Corporate Communications +1 949-518-6846 amy.brennan@xperi.com
Xperi Holding Corporation (NASDAQ: XPER) (the “Company”, “Xperi” or “we”) today announced financial results for the first quarter ended March 31, 2022. “We are off to a good start for the year, delivering revenue growth of 16% in the first quarter, primarily due to the previously announced Micron agreement,” said Jon Kirchner, chief executive officer of Xperi. “The top line strength, combined with our progress on key strategic initiatives, positions us well to deliver on our full year 2022 outlook, which we are reaffirming today. We are also excited about the long-term value creation potential of our soon-to-be completed business separation, which remains on track for this fall.” First Quarter 2022 Financial Highlights: Revenue of $257.4 million for the quarter, increased 16% compared to $221.6 million for Q1 2021. GAAP earnings per share of $0.24, compared to $0.05 in Q1 2021, and non-GAAP earnings per share of $0.92, compared to $0.59 in Q1 2021. Cash Flow from Operations was $46.3 million, versus $26.7 million in Q1 2021. Repurchased $17.3 million of common stock. First Quarter 2022 Business and Recent Operating Highlights: IP Licensing Business (Revenue: $138.5 million) A top 10 virtual Multichannel Video Programming Distributor (vMVPD) entered into a long-term license renewal for Adeia’s media patent portfolios. LAPIS Technology, a ROHM Semiconductor Group subsidiary, entered into an agreement for access to Adeia’s DBI® Ultra die-to-wafer hybrid bonding technology and foundational hybrid bonding patent portfolio. Micron entered into a license for Adeia’s hybrid bonding and semiconductor portfolio, resulting in Adeia now having more than 90% of the DRAM memory market under license. Product Business (Revenue: $118.9 million) Pay-TV highlights: Continued to drive adoption of higher-value IPTV solutions, with double-digit IPTV subscriber growth as compared to the fourth quarter. Added new operators with our expanded product offerings, including a new win with NfinityLink Communications. Consumer Electronics highlights: Signed key renewals with Skyworth and Best Buy relating to soundbar and TV products. Expanded licensing relationship with TCL to include decoder post-processing and DTS Play-Fi support in soundbar and TV products. Achieved DXOMARK’s #1 ranking for the latest IMAX Enhanced certified mobile device from Honor.1 DTS Headphone:X-enabled headphones from HyperX were recognized as Editors’ Pick for “Best Gaming Headsets” by Rolling Stone magazine. Connected Car highlights: BMW expanded shipments of the iX model with DTS AutoSense into more countries, and we advanced engagement for in-cabin monitoring solutions with numerous European and Asian car companies. Mercedes-Benz expanded shipments of DTS AutoStage-enabled models to more than 40 countries, and over the quarter we further advanced pipeline development for DTS AutoStage with OEM customers in the U.S., Europe, and Asia. DTS AutoSense Neuromorphic Driver Monitoring Solution was a 2022 Winner for the Artificial Intelligence Excellence Award presented by the Business Intelligence Group. Media Platform highlights: Strengthened customers’ premium live TV viewing experience by integrating YouTube TV into TiVo Stream OS and TiVo Stream 4K. Launched TiVo Xtend™, an end-to-end advertising solution that enables incremental reach and frequency opportunities for Connected TV advertisers. Added streaming services Shudder, SundanceNow, and allblk to TiVo Stream OS, increasing on-platform ad-supported viewership. Advanced TiVo Stream ecosystem development across content partners, OEMs, and chipset providers. 1 DXOMARK is an independent benchmark site that scientifically assesses smartphones, lenses, and cameras. Capital Allocation During the quarter, the Company repurchased $17.3 million of common stock and at quarter end had $77.8 million remaining on the existing authorization. On March 30, 2022, the Company distributed $5.2 million to stockholders of record on March 16, 2022, for a quarterly cash dividend of $0.05 per share of common stock. On April 29, 2022, the Board of Directors declared a dividend of $0.05 per share, payable on June 21, 2022, to stockholders of record on May 31, 2022. Financial Outlook The Company reiterates its full year 2022 outlook: Category GAAP Outlook Non-GAAP Outlook Revenue $910M to $950M $910M to $950M COGS $120M to $130M $120M to $130M Operating Expense excluding COGS* $725M to $755M $490M to $520M Interest Expense ~ $36M ~ $36M Other Income ~ $3M ~ $3M Cash Tax (net of refunds) $33M to $35M $33M to $35M Basic Shares Outstanding 105M 105M Diluted Shares Outstanding 107M 113M Operating Cash Flow $200M to $230M $200M to $230M *See tables for reconciliation of GAAP to non-GAAP differences. Conference Call Information The Company will hold its first quarter 2022 earnings conference call at 2 p.m. PDT (5 p.m. EDT) on Monday, May 9, 2022. To access the call in the U.S., please dial 888-220-8474, and for international callers, dial +1 646-828-8193. The conference ID is 5945774. All participants should dial in 15 minutes prior to the start of the conference call and can use the conference ID to access the call. The Company also suggests utilizing the webcast link to access the call at Q1 Earnings Call Webcast. Safe Harbor Statement This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company’s financial results, forecasts, and business outlook, and anticipated business separation timing. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenue, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business strategies, and expansion and growth of the Company’s businesses; the Company’s ability to implement its business strategy; pricing trends, including the Company’s ability to achieve economies of scale; the ability of the Company to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; failure to remediate the material weaknesses in our internal control over financial reporting; the evolving legal, regulatory and tax regimes under which the 4 Company operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, including Russia’s invasion of Ukraine, and natural disasters; the extent to which the COVID-19 pandemic continues to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; the impact of semiconductor supply chain constraints on our customers; and any plans regarding the separation of the Company’s IP and Product businesses. These risks, as well as other risks associated with the business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. About Xperi Holding Corporation Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (Adeia, DTS, HD Radio, IMAX Enhanced, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers. Xperi, Adeia, DTS, IMAX Enhanced, HD Radio, Perceive, TiVo and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi Holding Corporation in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies. Non-GAAP Financial Measures In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges; costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses; separation costs; all forms of stock-based compensation; loss on debt extinguishment; expensed debt refinancing costs and related tax effects. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company’s ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as non-GAAP Operating Expenses, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP measures in the tables attached hereto. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis. Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics. SOURCE: XPERI HOLDING CORP XPER-E XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended March 31,2022 March 31,2021 Revenue $ 257,420 $ 221,596 Operating expenses: Cost of revenue, excluding depreciation and amortization of intangible assets 27,697 28,132 Research, development and other related costs 59,370 55,223 Selling, general and administrative 70,446 67,430 Depreciation expense 5,866 5,684 Amortization expense 39,319 52,195 Litigation expense 1,753 2,533 Total operating expenses 204,451 211,197 Operating income 52,969 10,399 Interest expense (8,429 ) (11,313 ) Other income (expense), net 968 1,425 Income before taxes 45,508 511 Provision for (benefit from) income taxes 21,533 (4,015 ) Net income $ 23,975 $ 4,526 Less: net loss attributable to noncontrolling interest (968 ) (761 ) Net income attributable to the Company $ 24,943 $ 5,287 Income per share attributable to the Company: Basic $ 0.24 $ 0.05 Diluted $ 0.24 $ 0.05 Weighted average number of shares used in per share calculations-basic 103,679 104,940 Weighted average number of shares used in per share calculations-diluted 105,332 107,776 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31, December 31, 2022 2021 ASSETS Current assets: Cash and cash equivalents $ 214,095 $ 201,121 Available-for-sale debt securities 52,720 60,534 Accounts receivable, net 100,203 143,683 Unbilled contracts receivable, net 121,778 77,677 Other current assets 42,737 36,459 Total current assets 531,533 519,474 Long-term unbilled contracts receivable 43,112 4,107 Property and equipment, net 59,251 60,974 Operating lease right-of-use assets 65,513 68,498 Intangible assets, net 778,680 817,916 Goodwill 850,100 851,088 Other long-term assets 150,641 147,965 Total assets $ 2,478,830 $ 2,470,022 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 11,835 $ 7,811 Accrued liabilities 99,540 110,705 Current portion of long-term debt, net 36,152 36,095 Deferred revenue 48,913 35,136 Total current liabilities 196,440 189,747 Deferred revenue, less current portion 34,128 37,107 Long-term deferred tax liabilities 19,085 19,848 Long-term debt, net 720,333 729,392 Noncurrent operating lease liabilities 51,930 54,658 Other long-term liabilities 102,267 98,842 Total liabilities 1,124,183 1,129,594 Commitments and contingencies Company stockholders’ equity: Preferred stock — — Common stock 116 113 Additional paid-in capital 1,365,277 1,340,480 Treasury stock at cost (206,350 ) (178,022 ) Accumulated other comprehensive loss (1,766 ) (752 ) Retained earnings 207,539 187,814 Total Company stockholders’ equity 1,364,816 1,349,633 Noncontrolling interest (10,169 ) (9,205 ) Total equity 1,354,647 1,340,428 Total liabilities and equity $ 2,478,830 $ 2,470,022 XPERI HOLDING CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Cash flows from operating activities: Net income $ 23,975 $ 4,526 Adjustments to reconcile net income to net cash from operating activities: Depreciation of property and equipment 5,866 5,684 Amortization of intangible assets 39,319 52,195 Stock-based compensation expense 16,804 13,219 Deferred income taxes (911 ) 666 Other 1,984 3,217 Changes in operating assets and liabilities: Accounts receivable 43,698 (7,632 ) Unbilled contracts receivable (82,995 ) 2,295 Other assets (8,806 ) (10,697 ) Accounts payable 4,024 11,429 Accrued and other liabilities (7,483 ) (45,687 ) Deferred revenue 10,798 (2,486 ) Net cash from operating activities 46,273 26,729 Cash flows from investing activities: Purchases of property and equipment (4,289 ) (1,772 ) Proceeds from sale of property and equipment — 5 Purchases of intangible assets (180 ) (36 ) Purchases of short-term investments (4,490 ) (42,505 ) Proceeds from sales of investments 2,000 16,921 Proceeds from maturities of investments 10,023 10,000 Net cash from investing activities 3,064 (17,387 ) Cash flows from financing activities: Dividends paid (5,218 ) (5,264 ) Repayment of debt (10,125 ) (13,125 ) Proceeds from employee stock purchase program and exercise of stock options 8,000 6,715 Repurchases of common stock (28,328 ) (32,359 ) Net cash from financing activities (35,671 ) (44,033 ) Effect of exchange rate changes on cash and cash equivalents (692 ) (738 ) Net increase (decrease) in cash and cash equivalents 12,974 (35,429 ) Cash and cash equivalents at beginning of period 201,121 170,188 Cash and cash equivalents at end of period $ 214,095 $ 134,759 Supplemental disclosure of cash flow information: Interest paid $ 7,188 $ 9,015 Income taxes paid, net of refunds $ 3,334 $ 5,921 XPERI HOLDING CORPORATION GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) Net income attributable to the Company: Three Months Ended March 31, 2022 GAAP net income attributable to the Company $ 24,943 Adjustments to GAAP net income attributable to the Company: Stock-based compensation expense: Cost of revenue 628 Research, development and other 5,475 Selling, general and administrative 10,701 Amortization expense 39,319 Merger and integration-related costs: Transaction and other related costs recorded in selling, general and administrative 172 Severance and retention recorded in cost of revenue, excluding depreciation and amortization of intangible assets 144 Severance and retention recorded in research, development and other 290 Severance and retention recorded in selling, general and administrative 28 Separation costs recorded in selling, general and administrative 2,780 Tax provision recorded in excess of cash taxes paid 18,199 Non-GAAP net income attributable to the Company $ 102,679 Diluted earnings per share attributable to the Company: Three Months Ended March 31, 2022 GAAP diluted income per share attributable to the Company $ 0.24 Adjustments to GAAP diluted income per share attributable to the Company: Stock-based compensation expense 0.16 Amortization expense 0.37 Merger and integration-related costs 0.01 Separation costs 0.03 Difference in shares used in the calculation (0.06 ) Tax provision recorded in excess of cash taxes paid 0.17 Non-GAAP diluted earnings per share attributable to the Company $ 0.92 Weighted average number of shares used in per share calculations excluding the effects of stock-based compensation - diluted 111,649 XPERI HOLDING CORPORATION RECONCILIATION FOR GUIDANCE ON GAAP TO NON-GAAP OPERATING EXPENSE EXCLUDING COGS (in millions) (unaudited) Twelve Months Ended December 31, 2022 Low High GAAP operating expense excluding COGS $ 725.0 $ 755.0 Stock-based compensation -- R&D (23.0 ) (23.0 ) Stock-based compensation -- SG&A (39.0 ) (39.0 ) Merger, integration and separation-related expense -- SG&A (15.0 ) (15.0 ) Amortization expense (158.0 ) (158.0 ) Total of non-GAAP adjustments (235.0 ) (235.0 ) Non-GAAP operating expense excluding COGS $ 490.0 $ 520.0 View source version on businesswire.com: https://www.businesswire.com/news/home/20220509005975/en/
Xperi Investor Contact: Jill Koval, Arbor Advisory Group +1 203-832-4449 ir@xperi.com Media Contact: Amy Brennan, Senior Director, Corporate Communications +1 949-518-6846 amy.brennan@xperi.com
