XPER Xperi Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 13, 2023

 

 

Xperi Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-41486	83-4470363
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
2190 Gold Street
San Jose, California				95002
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 408 519-9100

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		XPER		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

On November 13, 2023, Xperi Inc. (the “Company”) announced its financial results for the third quarter ended September 30, 2023. A copy of the Company’s press release announcing these financial results and other information regarding its financial condition is furnished as Exhibit 99.1 to this Form 8-K.

 

The information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
99.1		Press Release dated November 13, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 13, 2023			Xperi Inc.
			By:		/s/ Robert Andersen
			Name:		Robert Andersen
			Title:		Chief Financial Officer

 

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Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

Xperi Inc. Announces Third Quarter 2023 Results

 

Vestel Now Shipping TVs with TiVo OS

Xperi Signs Fourth Smart TV OEM

BMW Cars with DTS AutoStage Video Service in Showrooms and on the Road

 

San Jose, Calif. (November 13, 2023) – Xperi Inc. (NYSE: XPER) (the “Company” or “Xperi”), an entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced financial results for the third quarter ended September 30, 2023.

“Today’s results reflect the completion of our first year as a standalone company – a year highlighted by significant design wins and strong business momentum across our key growth areas, coupled with solid financial performance, including comparable 6% revenue growth over the prior year trailing twelve months,” said Jon Kirchner, chief executive officer of Xperi. “We are entering a particularly exciting phase as our business momentum is translating into tangible operational milestones, such as video services powered by TiVo now shipping in Vestel Smart TVs, as well as in BMW cars. When taken together with ongoing efforts to drive cost transformation, these milestones are important steps toward delivering on our strategic vision, improving profitability, and achieving significant long-term revenue growth,” added Kirchner.

 

Financial Highlights

GAAP Highlights ($ millions, except per share data)		Q3 FY23				Q3 FY22
Revenue		$	130.4			$	121.6
GAAP Operating Loss		$	(31.1	)		$	(399.1	)
GAAP Loss per Share		$	(0.96	)		$	(9.54	)
Non-GAAP Highlights ($ millions, except per share data)1		Q3 FY23				Q3 FY22
Revenue		$	130.4			$	121.6
Non-GAAP Operating Income/(Loss)		$	4.3			$	(5.9	)
Adjusted EBITDA		$	9.3			$	(0.3	)
Non-GAAP Loss per Share		$	(0.08	)		$	(0.22	)

1 For further information on supplemental non-GAAP metrics, refer to the “Non-GAAP Financial Measures” and GAAP to non-GAAP Reconciliations provided in the financial statement tables included below.

Recent Key Operating Achievements

Media Platform

 

Connected Car

 

 

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Pay TV

Consumer Electronics

Perceive

 

 

Financial Outlook

 

The Company is narrowing its fiscal 2023 outlook ranges to the following:

 

Category ($ in millions)		GAAP Outlook		Non-GAAP Outlook
Revenue		$518 to $532		$518 to $532
Adjusted EBITDA Margin1,2		n/a		6% to 8%

1 See discussion of “Non-GAAP Financial Measures” below.

2 With respect to Adjusted EBITDA Margin, the Company has determined that it is unable to provide a quantitative reconciliation of this forward-looking non-GAAP measure to the most directly comparable forward-looking GAAP measure with a reasonable degree of confidence in its accuracy without unreasonable effort, as items including restructuring and impacts from discrete tax adjustments and tax law changes are inherently uncertain and depend on various factors, many of which are beyond the Company's control.
 

Conference Call Information

The Company will hold its third quarter 2023 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Monday, November 13, 2023. To access the call toll-free, please dial 1-888-660-6513, otherwise dial 1-929-203-0876. The conference ID is 5483252. All participants should dial in 15 minutes prior to the start of the call using the conference ID listed above. Alternatively, the call can be accessed via the following webcast link: Q3 2023 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 information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In some cases, you can identify forward-looking statements by the words “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. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. 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 Inc.

 

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Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands and partnerships (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership, are integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. Xperi has created a unified ecosystem that reaches highly engaged consumers driving increased value for partners and customers.
 

Xperi, DTS, HD Radio, Perceive, TiVo, and their respective logos are trademarks or registered trademarks of affiliated companies and partners of Xperi Inc. 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; amortization of capitalized cloud computing costs; costs related to actual or planned acquisitions, financing, and divestitures including transaction fees, integration costs, severance, facility closures, and retention bonuses; separation costs; all forms of stock-based compensation; impairment of assets and goodwill; other items not indicative of our ongoing operating performance, and related tax effects for each adjustment. 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 Adjusted EBITDA, 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 GAAP financial measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable 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 GAAP to non-GAAP financial measures.

 

Xperi Investor Contact:

Mike Iburg

VP, Investor Relations

+1 408-321-3827

ir@xperi.com

 

Media Contact:

Amy Brennan

Senior Director, Corporate Communications

+1 949-518-6846

amy.brennan@xperi.com

– Tables Follow –

SOURCE: XPERI INC.

XPER-E

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XPERI INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue		$	130,390			$	121,637			$	384,101			$	366,728
Operating expenses:
Cost of revenue, excluding depreciation and amortization of intangible assets			26,413				31,403				85,061				85,689
Research and development			56,436				57,070				166,993				158,641
Selling, general and administrative			59,620				56,702				173,893				156,894
Depreciation expense			4,248				4,990				12,543				15,697
Amortization expense			14,724				16,613				44,349				46,166
Goodwill impairment			-				354,000				-				354,000
Impairment of long-lived assets			-				-				1,096				-
Total operating expenses			161,441				520,778				483,935				817,087
Operating loss			(31,051	)			(399,141	)			(99,834	)			(450,359	)
Other expense, net			(1,336	)			(527	)			(60	)			(301	)
Loss before taxes			(32,387	)			(399,668	)			(99,894	)			(450,660	)
Provision for income taxes			9,685				2,024				14,481				12,500
Net loss			(42,072	)			(401,692	)			(114,375	)			(463,160	)
Less: net loss attributable to noncontrolling interest			(646	)			(890	)			(2,554	)			(2,706	)
Net loss attributable to the Company		$	(41,426	)		$	(400,802	)		$	(111,821	)		$	(460,454	)
Net loss per share attributable to the Company - basic and diluted		$	(0.96	)		$	(9.54	)		$	(2.61	)		$	(10.96	)
Weighted-average number of shares used in net loss per share calculations - basic and diluted			43,316				42,024				42,774				42,024

 

 

 

 

 

 

 

 

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XPERI INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

		September 30,				December 31,
		2023				2022
ASSETS
Current assets:
Cash and cash equivalents		$	131,530			$	160,127
Accounts receivable, net			64,171				64,712
Unbilled contracts receivable, net			61,148				65,251
Prepaid expenses and other current assets			38,946				42,174
Total current assets			295,795				332,264
Unbilled contracts receivable, noncurrent			21,926				4,289
Property and equipment, net			44,600				47,827
Operating lease right-of-use assets			43,969				52,901
Intangible assets, net			220,356				264,376
Deferred tax assets			2,465				2,096
Other noncurrent assets			35,122				33,158
Total assets		$	664,233			$	736,911
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	15,575			$	14,864
Accrued liabilities			109,924				110,014
Deferred revenue			25,979				25,363
Total current liabilities			151,478				150,241
Long-term debt			50,000				50,000
Deferred revenue, noncurrent			19,050				19,129
Operating lease liabilities, noncurrent			34,497				42,666
Deferred tax liabilities			12,246				12,899
Other noncurrent liabilities			10,507				12,990
Total liabilities			277,778				287,925
Commitments and contingencies
Equity:
Preferred stock			-				-
Common stock			43				42
Additional paid-in capital			1,189,289				1,136,330
Accumulated other comprehensive loss			(5,493	)			(4,119	)
Accumulated deficit			(780,656	)			(668,835	)
Total Company stockholders’ equity			403,183				463,418
Noncontrolling interest			(16,728	)			(14,432	)
Total equity			386,455				448,986
Total liabilities and equity		$	664,233			$	736,911

 

 

 

 

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XPERI INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

		Nine Months Ended September 30,
		2023				2022
Cash flows from operating activities:
Net loss		$	(114,375	)		$	(463,160	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment			12,543				15,697
Amortization of intangible assets			44,349				46,166
Stock-based compensation expense			51,681				29,761
Goodwill impairment			-				354,000
Impairment of long-lived assets			1,096				-
Deferred income taxes			(1,022	)			(451	)
Other			(162	)			(146	)
Changes in operating assets and liabilities:
Accounts receivable			188				18,990
Unbilled contracts receivable			(13,556	)			623
Prepaid expenses and other assets			1,264				(14,884	)
Accounts payable			87				10,504
Accrued and other liabilities			(3,229	)			(824	)
Deferred revenue			537				(7,609	)
Net cash used in operating activities			(20,599	)			(11,333	)
Cash flows from investing activities:
Purchases of property and equipment			(9,432	)			(10,514	)
Purchases of intangible assets			(149	)			(110	)
Net cash paid for acquisition			-				(50,473	)
Net cash used in investing activities			(9,581	)			(61,097	)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee stock purchase plan			5,850				-
Withholding taxes related to net share settlement of equity awards			(4,313	)			-
Net proceeds from Former Parent capital contributions			-				83,235
Net transfers from Former Parent			-				52,802
Net cash provided by financing activities			1,537				136,037
Effect of exchange rate changes on cash and cash equivalents			46				(4,184	)
Net (decrease) increase in cash and cash equivalents			(28,597	)			59,423
Cash and cash equivalents at beginning of period			160,127				120,695
Cash and cash equivalents at end of period		$	131,530			$	180,118
Supplemental disclosure of cash flow information:
Interest paid		$	2,244			$	-
Income taxes paid, net of refunds		$	15,504			$	9,460
Debt issued in connection with acquisition		$	-			$	50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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XPERI INC.

GAAP TO NON-GAAP RECONCILIATIONS

(in thousands, except per share amounts)

(unaudited)

 

Net loss attributable to the Company:
		Three Months Ended				Three Months Ended
		September 30, 2023				September 30, 2022
GAAP net loss attributable to the Company		$	(41,426	)		$	(400,802	)
Adjustments to GAAP net loss attributable to the Company:
Stock-based compensation(1)			17,622				13,015
Amortization of intangible assets			14,724				16,613
Goodwill impairment			-				354,000
Transaction, separation, integration and restructuring related costs:
Transaction, separation, integration and other related costs(2)			1,904				7,181
Severance and retention(3)			1,149				2,390
Non-GAAP tax adjustment(4)			2,764				(1,818	)
Non-GAAP net loss attributable to the Company		$	(3,263	)		$	(9,421	)
(1) Stock-based compensation included in above line items:
Cost of revenue, excluding depreciation and amortization of intangible assets		$	806			$	779
Research and development		$	6,584			$	5,515
Selling, general and administrative		$	10,232			$	6,721
(2) Transaction, separation, integration and other related costs included in above line items:
Cost of revenue, excluding depreciation and amortization of intangible assets		$	-			$	356
Research and development		$	-			$	1,772
Selling, general and administrative		$	1,904			$	5,053
(3) Severance and retention included in above line items:
Cost of revenue, excluding depreciation and amortization of intangible assets		$	-			$	-
Research and development		$	471			$	1,830
Selling, general and administrative		$	678			$	560
(4) The provision for income taxes is adjusted to reflect the net direct and indirect income tax effects of the various non-GAAP pretax adjustments.
Net loss per share attributable to the Company:
		Three Months Ended				Three Months Ended
		September 30, 2023				September 30, 2022
GAAP net loss per share attributable to the Company		$	(0.96	)		$	(9.54	)
Adjustments to GAAP loss per share attributable to the Company:
Stock-based compensation			0.41				0.31
Amortization of intangible assets			0.34				0.40
Goodwill impairment			-				8.42
Transaction, separation, integration and restructuring related costs			0.07				0.23
Non-GAAP tax adjustment			0.06				(0.04	)
Non-GAAP net loss per share attributable to the Company		$	(0.08	)		$	(0.22	)
GAAP weighted average number of shares-basic/diluted			43,316				42,024
Non-GAAP weighted average number of shares-basic/diluted			43,316				42,024

 

 

 

 

 

 

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XPERI INC.

GAAP TO NON-GAAP RECONCILIATIONS

(in thousands)

(unaudited)

 

		Three Months Ended September 30,
		2023				2022
GAAP operating loss		$	(31,051	)		$	(399,141	)
Adjustments to GAAP operating loss:
Stock-based compensation			17,622				13,015			(5	)
Amortization of intangible assets			14,724				16,613
Goodwill impairment			-				354,000
Transaction, separation, integration and restructuring related costs:
Transaction, separation, integration and related costs			1,904				7,181
Severance and retention			1,149				2,390
Non-GAAP operating income (loss)		$	4,348			$	(5,942	)

 

(5) Includes $2.4 million of stock-based compensation expense that was recognized in operating results as part of the corporate and shared functional employee’s expenses allocation during the three months ended September 30, 2022.

 

 

 

 

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XPERI INC.

GAAP TO NON-GAAP RECONCILIATIONS

(in thousands)

(unaudited)

 

		Three Months Ended September 30,
		2023				2022
GAAP net loss		$	(42,072	)		$	(401,692	)
Interest expense			770				750
Provision for income taxes			9,685				2,024
Depreciation expense			4,248				4,990
Amortization of intangible assets			14,724				16,613
Amortization of capitalized cloud computing costs			1,316				435
Goodwill impairment			—				354,000
Transaction, separation, integration and restructuring related costs:
Transaction, separation, integration and other related costs			1,904				7,181
Severance and retention			1,149				2,390
Stock-based compensation			17,622				13,015			(6	)
Non-GAAP Adjusted EBITDA		$	9,346			$	(294	)

(6) Includes $2.4 million of stock-based compensation expense that was recognized in operating results as part of the corporate and shared functional employee’s expenses allocation during the three months ended September 30, 2022.

 

 

 

 

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v3.23.3

Document And Entity Information	Nov. 13, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 13, 2023
Entity Registrant Name	Xperi Inc.
Entity Central Index Key	0001788999
Entity Emerging Growth Company	true
Securities Act File Number	001-41486
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-4470363
Entity Address, Address Line One	2190 Gold Street
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95002
City Area Code	408
Local Phone Number	519-9100
Entity Information, Former Legal or Registered Name	N/A
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Ex Transition Period	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	XPER
Security Exchange Name	NYSE

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