Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Company Summaries - **ADEIA INC (ADEA)**: This company focuses on smart, immersive, and personal content management, with a 9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - **Excelerate Energy (EE)**: A provider of floating liquefied natural gas terminals across multiple countries, including the U.S. and Brazil, has seen a 4.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - **Matthews International (MATW)**: This company offers memorialization products and industrial technologies, with a 3.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - **BellRing Brands (BRBR)**: Known for protein shakes and nutrition products, this company has experienced a 3.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - **Farmers & Merchants Bancorp (FMAO)**: A community bank serving Northwest Ohio and Northeast Indiana, has seen a 2.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4]

Core Insights - Adeia Inc. has entered into a multi-year intellectual property license agreement with Canon, enhancing its collaboration with leading companies in the consumer electronics market [1][2] - The agreement signifies the growing importance of innovations in camera technology, particularly in areas such as artificial intelligence, advanced sensors, and computational photography [2] - Adeia's technologies are recognized for their role in advancing photography and consumer electronics, highlighting the value of its expanding IP portfolio in a rapidly evolving industry [3] Company Overview - Adeia is a leading R&D and intellectual property licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries [3] - The company's IP portfolios support technology solutions that shape the future of digital entertainment and electronics, impacting millions of users globally [3]

Core Insights - Adeia Inc. has announced the renewal of a multi-year worldwide license agreement with Sharp Corporation for its media intellectual property portfolio, extending a long-standing partnership between the two companies [1][2] Company Overview - Adeia is a leading R&D and technology licensing company that focuses on accelerating the adoption of innovative technologies in the media and semiconductor industries, with its IP portfolios powering connected devices used by millions globally [4]

Core Insights - Adeia Inc. has signed a multi-year agreement with Amazon regarding its media intellectual property portfolio, highlighting the importance of Amazon in the innovation landscape [1] - The CEO of Adeia emphasized the company's commitment to delivering advanced R&D that drives next-generation products and enhances digital experiences for both consumer and enterprise applications [1] - Adeia's intellectual property is integral to shaping entertainment experiences for millions and improving billions of connected devices globally [1] Company Overview - Adeia is recognized as a leading R&D and intellectual property licensing company that promotes the adoption of innovative technologies within the media and semiconductor sectors [2] - The company's innovations are foundational to technology solutions that are transforming the future of digital entertainment and electronics [2] - Adeia's IP portfolios are essential for the connected devices that impact the daily lives of millions worldwide [2]

Revenue Performance - Revenue for the three months ended September 30, 2024, decreased by $15.3 million, or 15.1%, to $86.1 million compared to $101.4 million in 2023[147]. - For the nine months ended September 30, 2024, revenue decreased by $45.1 million, or 14.9%, to $256.9 million compared to $301.9 million in 2023[150]. Recurring and Non-Recurring Revenues - Recurring revenues for the same period decreased by $0.9 million, or 1.1%, from $83.6 million in 2023 to $82.7 million in 2024[147]. - Non-recurring revenues for the three months ended September 30, 2024, decreased by $14.4 million, or 80.9%, from $17.8 million in 2023 to $3.4 million in 2024[148]. - Recurring revenues for the nine months ended September 30, 2024, decreased by $5.2 million, or 2.1%, from $255.1 million in 2023 to $249.8 million in 2024[150]. - Non-recurring revenues for the nine months ended September 30, 2024, decreased by $39.8 million, or 85.0%, from $46.8 million in 2023 to $7.0 million in 2024[159]. Cash Flow and Operating Activities - Cash provided by operating activities decreased by $6.9 million, or 32.6%, from $21.2 million in 2023 to $14.3 million in 2024[148]. - Net cash from operating activities was $105.0 million for the nine months ended September 30, 2024, compared to $113.3 million for the same period in 2023[188][190]. - Cash and cash equivalents increased to $60.7 million as of September 30, 2024, from $54.6 million at December 31, 2023, primarily due to $105.0 million generated from operations[178][180]. Expenses - Research and development expenses for the three months ended September 30, 2024, increased by $1.1 million, or 8%, to $14.8 million compared to $13.8 million in 2023[161]. - SG&A expenses rose by 23% to $26.9 million for the three months ended September 30, 2024, and by 6% to $75.5 million for the nine months ended September 30, 2024, primarily due to increased headcount and professional services costs[164][165]. - Amortization expense decreased by 42% to $13.6 million for the three months and by 20% to $56.8 million for the nine months ended September 30, 2024, due to certain intangible assets becoming fully amortized[166]. - Litigation expenses increased by 20% to $2.7 million for the three months and by 37% to $9.8 million for the nine months ended September 30, 2024, driven by increased litigation activity[167]. - Interest expense decreased by 19% to $12.8 million for the three months and by 15% to $40.2 million for the nine months ended September 30, 2024, due to lower debt balance and interest rates[170][171]. Debt and Financing Activities - The company made $12.0 million in principal payments on its term loan, bringing the outstanding balance to $537.1 million as of September 30, 2024[148]. - As of September 30, 2024, $537.1 million was outstanding under the term loan B facility, with future minimum principal payments of $7.0 million in 2024 and $28.1 million annually from 2025 to 2027[200]. - The 2024 Term Loan B was established with an aggregate principal amount of $561.1 million, reducing the interest rate margin to SOFR plus 3.00% per annum[199]. - The company paid $29.1 million during the nine months ended September 30, 2024, based on leverage ratios and excess cash flow generated for the year ended December 31, 2023[200]. - Cash used in financing activities was $90.5 million for the nine months ended September 30, 2024, compared to $144.2 million in the same period of 2023, primarily due to debt repayment and dividends paid[194][195]. Capital Expenditures - Capital expenditures for property and equipment were $1.3 million in the nine months ended September 30, 2024, down from $1.9 million in the same period of 2023, with an expected $1.0 million for the remainder of 2024[193]. - Capital expenditures for intangible assets amounted to $8.5 million during the nine months ended September 30, 2024, primarily for acquired patents[193]. Dividends and Stock Repurchase - The company paid quarterly cash dividends of $0.05 per share in September 2024, with another dividend authorized for December 2024[185]. - The stock repurchase plan has repurchased approximately 10.0 million shares at a total cost of $172.2 million, with $77.8 million remaining for future repurchases[186]. Accounting Policies and Compliance - The company has no significant changes in critical accounting policies and estimates during the three and nine months ended September 30, 2024[201]. - The 2020 Credit Agreement was amended to replace LIBOR with SOFR as the base rate on May 30, 2023[198]. - The term loan B facility contains customary covenants, and the company was in full compliance as of September 30, 2024[200].

Financial Data and Key Metrics Changes - The company reported revenue of $86.1 million for Q3 2024, with an adjusted EBITDA of $51.3 million, reflecting an adjusted EBITDA margin of 60% [15][30][36] - Operating expenses were $35.3 million, an increase of 1% from the prior quarter, while litigation expenses decreased by 38% to $2.7 million [31][33] - Interest expense decreased to $12.8 million, down $540,000 from the prior quarter, due to lower interest rates and continued debt repayments [33][34] Business Line Data and Key Metrics Changes - The company signed seven deals in Q3 2024, bringing the total to 22 deals for the year, with agreements spanning Consumer Electronics, Pay-TV, Semiconductor, and OTT [14][30] - Six of the deals signed in Q3 were renewals, maintaining a high renewal rate exceeding 90% [14] - A multiyear e-commerce license agreement was closed with Neiman Marcus, marking a significant milestone in the e-commerce media adjacent market [11][30] Market Data and Key Metrics Changes - The company ended Q3 with over 11,750 worldwide patent assets, an increase from 11,500 in the prior quarter, indicating growth in its intellectual property portfolio [19] - The semiconductor market is seeing increased interest in hybrid bonding, particularly in flash memory and logic devices, which is expected to drive revenue opportunities [23][24] Company Strategy and Development Direction - The company aims to grow annual revenue to over $500 million, with a robust pipeline of opportunities in key verticals such as OTT, semiconductor, and e-commerce [13] - The company is focused on protecting its intellectual property, as evidenced by the recent patent infringement litigation against Disney, which was not included in the 2024 revenue guidance [10][46] - The company is also looking to augment its portfolio through M&A, particularly in media and semiconductor sectors, with a focus on tuck-in acquisitions [21][61] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing declines in traditional Pay-TV subscribers but expressed confidence in offsetting these declines through growth in OTT services [52] - The company adjusted its revenue guidance for 2024 to a range of $370 million to $400 million, reflecting potential timing impacts of deal closures [42] - Operating expenses are expected to be in the range of $144 million to $148 million, with a consistent non-GAAP tax rate of approximately 23% [44][45] Other Important Information - The Board approved an increase in the share repurchase program to up to $200 million, part of a broader capital allocation strategy [39][40] - The company paid a cash dividend of $0.05 per share in Q3 and plans to pay another dividend of the same amount in December [38] Q&A Session Summary Question: Details around the semiconductor license signed during the quarter - Management highlighted continued interest in hybrid bonding across various industries but could not disclose specific details due to confidentiality [48][50] Question: Trends in Pay-TV subscribers - Management confirmed ongoing declines in traditional Pay-TV subscribers but noted growth in OTT services as a counterbalance [51][52] Question: Confidence in signing deals in Q4 and potential slippage into 2025 - Management expressed confidence based on regular communication with customers and an expanding pipeline, although some deals may slip into 2025 [55][56] Question: Background on negotiations with Disney prior to litigation - Management could not provide specific details but emphasized the lengthy nature of negotiations and the necessity of litigation to protect IP [58][60] Question: Pipeline for tuck-in M&A opportunities - Management indicated a strong cash flow outlook and flexibility for potential acquisitions, aligning with their capital allocation strategy [61][63]

| --- | --- | --- | |------------------|-------|-------| | | | | | | | | | | | | | Q3 2024 Earnings | | | 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, a ...

Adeia (ADEA) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.86%. A quarter ago, it was expected that this provider of chip technology for small electronic devices would post earnings of $0.23 per share when it actually produced earnings of $0.28, delivering a surprise of 21.74%.O ...

Exhibit 99.1 FOR IMMEDIATE RELEASE ADEIA ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS Signed 7 deals across multiple verticals in the third quarter Board increased share repurchase authorization up to $200 million Filed patent infringement litigation against Disney Signed a new multi-year e-commerce license agreement with a leading luxury retailer SAN JOSE, Calif. – November 7, 2024 – Adeia Inc. (Nasdaq: ADEA) (the "Company" or "Adeia") today announced financial results for the third quarter ended Septemb ...

 Signed 7 deals across multiple verticals in the third quarterBoard increased share repurchase authorization up to $200 millionFiled patent infringement litigation against DisneySigned a new multi-year e-commerce license agreement with a leading luxury retailer SAN JOSE, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the third quarter ended September 30, 2024. “In the third quarter, we signed 7 deals in multiple verticals ...