SAN JOSE, Calif., Jan. 04, 2024 (GLOBE NEWSWIRE) -- Adeia Inc. (NASDAQ:ADEA) today announced that Joseph Guiliano was appointed as Adeia's chief intellectual property (IP) officer, after serving as outside legal counsel for Adeia's IP portfolio since 1995. "With his nearly 30 years of experience with Adeia's IP portfolio, Joe's deep understanding of Adeia's technologies will continue to be instrumental to the management and execution of our long-term portfolio strategy and revenue growth plans," commented P ...

Financial Data and Key Metrics Changes - The company reported revenue of $101.4 million for Q3 2023, representing a 22% increase from the prior quarter [15][6] - Non-GAAP operating margin was 69% for the quarter [6] - Non-GAAP net income and operating margins are forecasted to be at or above the original midpoint of the outlook provided in February [12] Business Line Data and Key Metrics Changes - The company signed 7 agreements in Q3 2023, including a significant long-term renewal with Samsung and a renewal with Starz [6][8] - The media portfolio includes fundamental patents relevant to leading OTT providers, with recent successes indicating strong demand [9][12] Market Data and Key Metrics Changes - The company continues to see strong relationships with customers, evidenced by 24 deals signed in the first 9 months of the year [10] - The semiconductor market is viewed as having significant opportunities, particularly in logic markets as companies address the slowing of Moore's Law [9] Company Strategy and Development Direction - The company aims to grow its patent portfolio by 10% annually and has signed over 30 deals in the last 12 months [13] - Focus areas for growth include new media driven by OTT, semiconductor advancements, and new verticals [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $500 million by 2026, despite challenges in the pay-TV segment [31][32] - The company is committed to paying off debt prior to maturity and maintaining a consistent pace of debt reduction [46][47] Other Important Information - The company paid down $15.1 million on its term loan during the quarter [6] - A dividend of $0.05 per share is scheduled for payment on December 18, 2023 [19] Q&A Session Summary Question: What are the gating factors for the top-line guidance? - Management indicated that the bottom of the revenue range is seen as a floor, with a robust pipeline and focus on deal economics being key factors [25] Question: How was the reduction in operating expenses achieved? - The primary driver for reduced operating expenses was a decrease in litigation expenses, while R&D and SG&A remained consistent with forecasts [26][28] Question: Is the $500 million revenue target still achievable? - Management remains confident in achieving the target, citing growth in OTT, semiconductor deals, and new verticals as key drivers [32][34] Question: Can you discuss the Starz renewal rate? - Specifics on the renewal rate were not disclosed, but management expressed satisfaction with the multiyear agreement [36] Question: How will the company handle the Canadian operator renewal situation? - Management confirmed that Rogers is not a current licensee and emphasized the goal of getting Shaw back as a paying licensee [39] Question: How much of the shifted payments to 2024 are one-time in nature? - Payments are part of the business model involving advance payments, and the shift is not considered a one-time payment [41] Question: How will debt payments be scaled in 2024? - The company plans to maintain the current pace of debt reduction, aiming to retire debt consistently [46][47]

PART I - FINANCIAL INFORMATION [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q3 and nine months ended September 30, 2023, including operations, balance sheets, cash flows, and equity, with accompanying notes [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Adeia reported Q3 2023 revenue of **$101.4 million**, up 13.6%, with net income of **$24.2 million**, while nine-month revenue decreased 10% to **$301.9 million** Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $101,397 | $89,297 | $301,921 | $335,644 | | **Operating Income from Continuing Operations** | $40,117 | $15,642 | $112,963 | $119,817 | | **Net Income (Loss) from Continuing Operations** | $24,232 | $(6,343) | $54,672 | $64,662 | | **Diluted EPS from Continuing Operations** | $0.21 | $(0.06) | $0.48 | $0.61 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$1.12 billion** as of September 30, 2023, while total liabilities significantly reduced to **$780.2 million**, increasing stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $219,784 | $258,713 | | **Total Assets** | $1,124,071 | $1,210,526 | | **Total Current Liabilities** | $81,912 | $166,712 | | **Long-term Debt, net** | $576,781 | $619,580 | | **Total Liabilities** | $780,246 | $909,114 | | **Total Stockholders' Equity** | $343,825 | $301,412 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$113.3 million** for the nine months ended September 30, 2023, with significant cash used in financing for debt and dividends Cash Flow Summary for Nine Months Ended September 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $113,315 | $142,042 | | **Net cash from investing activities** | $(31,829) | $(4,313) | | **Net cash from financing activities** | $(144,186) | $(64,339) | | **Net (decrease) increase in cash** | $(62,700) | $69,971 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides critical context to financial statements, detailing the Xperi Inc. spin-off, revenue disaggregation, debt obligations, and ongoing legal proceedings - On October 1, 2022, the company completed the separation of its product business into Xperi Inc., with Adeia now operating as a single IP Licensing segment and Xperi's historical results presented as discontinued operations[27](index=27&type=chunk)[28](index=28&type=chunk) Revenue by Market Vertical (in thousands) | Vertical | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Media | $95,748 | $259,027 | | Semiconductor | $5,649 | $42,894 | | **Total Revenue** | **$101,397** | **$301,921** | - As of September 30, 2023, the outstanding balance on Refinanced Term B Loans was **$630.4 million**, with **$118.9 million** in principal payments made during the first nine months of 2023[130](index=130&type=chunk)[135](index=135&type=chunk) - The company is engaged in ongoing patent infringement litigation against Videotron, Bell, and Telus in Canada, with appeals pending, and a new breach of contract lawsuit filed against Shaw in October 2023[186](index=186&type=chunk)[187](index=187&type=chunk)[189](index=189&type=chunk) - On October 25, 2023, the Board declared a quarterly cash dividend of **$0.05 per share** of common stock[197](index=197&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance as a standalone IP licensing entity, highlighting Q3 2023 revenue growth driven by Samsung, reduced operating expenses, and liquidity management Financial Highlights Comparison | Metric | Q3 2023 vs Q3 2022 | 9M 2023 vs 9M 2022 | | :--- | :--- | :--- | | **Revenue** | +14% to $101.4M | -10% to $301.9M | | **Diluted EPS (Continuing Ops)** | $0.21 (vs. -$0.06) | $0.48 (vs. $0.61) | | **Net Income (Continuing Ops)** | $24.2M (vs. -$6.3M) | $54.7M (vs. $64.7M) | - Q3 2023 revenue growth was primarily driven by a long-term renewal with Samsung, while the nine-month revenue decrease resulted from the non-recurrence of major 2022 deals[217](index=217&type=chunk)[218](index=218&type=chunk) - Selling, General and Administrative (SG&A) expenses decreased **37% in Q3** and **31% in the first nine months of 2023**, primarily due to the spin-off of the product business[226](index=226&type=chunk)[228](index=228&type=chunk) - Interest expense increased **56%** for the nine months ended September 30, 2023, driven by rising interest rates on variable-rate debt despite a lower debt balance[232](index=232&type=chunk)[234](index=234&type=chunk) - Cash, cash equivalents, and short-term investments decreased from **$114.6 million** at year-end 2022 to **$82.1 million** at September 30, 2023, primarily due to debt repayments and dividend payments funded by operating cash flow[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Refers to the Annual Report on Form 10-K for market risk disclosures, noting no material changes during the quarter - There have been no material changes to the company's market risk disclosures from those presented in its Annual Report on Form 10-K[261](index=261&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period[264](index=264&type=chunk) - There were no material changes in internal control over financial reporting during the last fiscal quarter[265](index=265&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) Outlines significant ongoing legal matters, including patent infringement lawsuits in Canada against Videotron, Bell, and Telus, and a new breach of contract suit against Shaw - The company is appealing a June 2022 court decision in its patent infringement case against Videotron, with a hearing scheduled for November 28, 2023, and another trial set for January 2025[269](index=269&type=chunk)[270](index=270&type=chunk) - The company is appealing an October 2022 decision in its patent cases against Bell and Telus, with a hearing scheduled for November 29, 2023, and another trial set for April 2025[271](index=271&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk) - The patent infringement litigation against NVIDIA was settled, with all remaining claims dismissed on September 11, 2023[276](index=276&type=chunk) - On October 2, 2023, Adeia filed a breach of contract complaint against Shaw for failure to pay royalties owed under a license agreement[277](index=277&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - There were no material changes to the risk factors disclosed in the company's 2022 Annual Report on Form 10-K[279](index=279&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is reported as not applicable for the period - Not applicable[279](index=279&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading plan or non-Rule 10b5-1 trading arrangement during Q3 2023 - During the three months ended September 30, 2023, no Rule 10b5-1 plans or non-Rule 10b5-1 trading arrangements were adopted, modified, or terminated by any director or officer of the Company[279](index=279&type=chunk)

Adeia Inc. (NASDAQ:ADEA) Q2 2023 Earnings Conference Call August 7, 2023 5:00 PM ET Company Participants Chris Chaney - Vice President of Investor Relations Paul Davis - Chief Executive Officer Keith Jones - Chief Financial Officer Conference Call Participants Hamed Khorsand - BWS Financial Nicholas Zangler - Stephens Operator Good day, everyone. Thank you for standing by. Welcome to Adeia's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] I would like to now turn the call over to Chris ...

Financial Performance - Revenue for Q2 2023 was $83.2 million, a decrease of 23% from $107.8 million in Q2 2022[182] - Net income for Q2 2023 was $1.4 million, a decrease of 91% from $15.2 million in Q2 2022[182] - Diluted earnings per share (EPS) for Q2 2023 was $0.01, a decrease of 93% from $0.14 in Q2 2022[182] - Revenue for the first half of 2023 was $200.5 million, a decrease of 19% from $246.3 million in the same period in 2022[182] - Cash flows from operations for Q2 2023 were $28.7 million, a decrease of 30% from $40.8 million in Q2 2022[182] Operational Costs - Research and development (R&D) expenses increased to $13,116,000 for the three months ended June 30, 2023, up 19% from $11,010,000 in the same period of 2022[190] - R&D expenses for the six months ended June 30, 2023, were $26,127,000, reflecting a 26% increase from $20,660,000 in the prior year[190] - Selling, general and administrative (SGA) expenses decreased to $26,394,000 for the three months ended June 30, 2023, down 24% from $34,836,000 in the same period of 2022[192] - SGA expenses for the six months ended June 30, 2023, were $49,256,000, a decrease of 28% from $68,660,000 in the prior year[192] - Interest expense rose to $15,540,000 for the three months ended June 30, 2023, a 65% increase from $9,440,000 in the same period of 2022[197] - Interest expense for the six months ended June 30, 2023, was $31,478,000, reflecting a 76% increase from $17,869,000 in the prior year[197] Cash Flow and Investments - Cash and cash equivalents decreased to $60,470,000 as of June 30, 2023, down from $114,555,000 as of December 31, 2022[208] - Cash flows from operations for the six months ended June 30, 2023, were $92.1 million, driven by a net income of $30.4 million[215] - Net cash used in investing activities was $25.4 million for the six months ended June 30, 2023, primarily for short-term investments and capital expenditures[218] - Net cash used in financing activities was $120.7 million for the six months ended June 30, 2023, mainly due to debt repayment and dividends paid[220] - Capital expenditures for the six months ended June 30, 2023, were $1.5 million, down from $8.9 million in the same period of 2022[219] Debt and Financing - The company made $20.1 million in principal payments towards its term loan, bringing the outstanding balance to $645.5 million as of June 30, 2023[182] - As of June 30, 2023, $645.5 million was outstanding under the Refinanced Term B Loans, with future minimum principal payments of $20.3 million for the remainder of 2023[224] - The company amended its Credit Agreement to replace LIBOR with SOFR as the base rate on May 30, 2023[223] - The company has been in full compliance with covenants under the Refinanced Term B Loans as of June 30, 2023[224] Other Financial Metrics - Other income and expense, net increased to $1,617,000 for the three months ended June 30, 2023, a 275% increase from $431,000 in the same period of 2022[200] - Other income and expense, net for the six months ended June 30, 2023, was $3,237,000, a 321% increase from $768,000 in the prior year[200] - The provision for income taxes decreased to $2,381,000 for the three months ended June 30, 2023, down 77% from $10,552,000 in the same period of 2022[201] - Quarterly cash dividends of $0.05 per share were paid in June 2023 and authorized for September 2023[212] - A stock repurchase plan allows for the repurchase of up to $150.0 million in common stock, with $77.8 million remaining as of June 30, 2023[213] Market and Strategic Insights - The decrease in Q2 2023 revenue was primarily due to the execution of a long-term license agreement in Q2 2022 and a decline in royalty revenue from certain Pay-TV customers[186] - The company operates in one segment: IP Licensing, focusing on growth opportunities in the entertainment and semiconductor industries[181] - The impact of the COVID-19 pandemic has resulted in significant volatility in the markets served, affecting customer acquisition and license renewals[173] - The company expects cash from operations to meet anticipated cash requirements for at least the next 12 months[214] - The company incurred separation costs of $43.7 million from January 1, 2020, to June 30, 2023, with $15.1 million incurred after the Separation reflected in continuing operations[180]

Adeia Inc. (NASDAQ:ADEA) Q1 2023 Earnings Conference Call May 8, 2023 5:00 PM ET Company Participants Chris Chaney - Investor Relations Paul Davis - Chief Executive Officer Keith Jones - Chief Financial Officer Conference Call Participants Hamed Khorsand - BWS Financial Matthew Galinko - Maxim Operator Good day, everyone. Thank you for standing by. Welcome to Adeia's First Quarter 2023 Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Chris Chaney, Vice President of Inv ...

Q1 2023 Earnings May 8, 2023 1 © 2023 Adeia| All rights reserved. Safe Harbor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39304 ADEIA INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 84-4734590 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organ ...

Investor Deck I February 2023 1 Safe Harbor This presentation 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39304 ADEIA INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 84-4734590 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organizati ...