Xperi (XPER) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended June 30, 2024, was $119.6 million, a decrease of$7.3 million, or 6%, compared to $126.9 million in the same period of 2023[117]. - Revenue for the six months ended June 30, 2024, was$238.4 million, down $15.3 million, or 6$253.7 million in the same period of 2023[119]. - The company reported an increase of $11.8 million in Connected Car revenue for the six months ended June 30, 2024, driven by minimum guarantee revenue[119]. Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled$141.5 million, a decrease of $20.6 million, or 13$162.1 million in the same period of 2023[120]. - Research and development expenses for the three months ended June 30, 2024, were $45.1 million, down$10.6 million, or 19%, from $55.7 million in the same period of 2023[124]. - Selling, general and administrative expenses for the three months ended June 30, 2024, were$53.1 million, a decrease of $3.4 million, or 6$56.5 million in the same period of 2023[126]. - Stock-based compensation expense decreased by $2.8 million, or 15$3.3 million, a decrease of 22% from $4.2 million in Q2 2023[129]. - Amortization expense for Q2 2024 was$11.0 million, down 25% from $14.8 million in Q2 2023[130]. Divestiture and Gains - The divestiture of the AutoSense in-cabin safety business was completed in January 2024, streamlining the company's focus on entertainment markets[114]. - Gain on divestiture for the six months ended June 30, 2024, was$10 million, contributing to a loss before taxes of $13 million, compared to a loss of$27 million in the same period of 2023[115]. - The company recognized a gain of $22.9 million from divestiture in the six months ended June 30, 2024[134]. Net Loss and Tax - Net loss for the three months ended June 30, 2024, was 26$9.3 million on a pretax loss of $21.4 million, resulting in an effective tax rate of (43.4)$92.5 million as of June 30, 2024, down $61.9 million from$154.4 million at December 31, 2023[139]. - Net cash used in operating activities was $51.9 million for the six months ended June 30, 2024, primarily due to a net loss of$44.0 million[141]. - Capital expenditures for 2024 are expected to be approximately $20.0 million[143]. - Long-term debt includes a$50.0 million promissory note with a 6.00% interest rate, maturing on July 1, 2025[145]. Stock Repurchase and Current Ratio - The company has authorized a stock repurchase program of up to $100.0 million, with no shares repurchased to date[140]. - The current ratio improved to 2.0 as of June 30, 2024, compared to 1.9 as of December 31, 2023[137].