Xperi (XPER) - 2025 Q1 - Quarterly Report

Revenue Performance - Revenue for the three months ended March 31, 2025, was $114.0 million, a decrease of$4.8 million or 4% compared to $118.8 million in the same period of 2024[145] - Pay-TV revenue decreased by$6.9 million, primarily due to declines in core guide products and consumer hardware, while Connected Car revenue increased by $9.0 million[146] Operating Expenses - Total operating expenses for the three months ended March 31, 2025, were$130.5 million, a decrease of $20.7 million or 14$151.2 million in the same period of 2024[147] - Research and development expenses decreased by $10.9 million or 22$39.5 million for the three months ended March 31, 2025, primarily due to lower spending following the AutoSense Divestiture[151] - Selling, general and administrative expenses were $48.7 million, a decrease of$7.7 million or 14% compared to $56.4 million in the same period of 2024[153] Net Loss and Tax Rate - The company recorded a net loss of 16$3.5 million on a pretax loss of $14.9 million[162] Business Divestitures - The AutoSense Divestiture was completed in January 2024, streamlining the business and enhancing focus on entertainment markets[141] - The company completed the sale of Perceive Corporation for$80.0 million in cash in October 2024, allowing for a greater focus on entertainment-based solutions[142] Cash and Liquidity - As of March 31, 2025, cash and cash equivalents decreased to $87.988 million from$130.564 million at December 31, 2024, a decline of approximately 33%[165] - The current ratio improved to 2.3 as of March 31, 2025, compared to 1.6 at December 31, 2024, indicating better short-term liquidity[165] - Net cash used in operating activities for the three months ended March 31, 2025, was $22.258 million, a significant improvement from$49.787 million for the same period in 2024[168] Capital Expenditures and Share Repurchase - Capital expenditures for 2025 are expected to be approximately $20 million, primarily for computer hardware and software[172] - The company repurchased approximately 2.2 million shares at an average price of$9.23 per share, totaling around $20 million, leaving$80 million available for future repurchases[167] Financing Activities - Net cash used in financing activities was $16.111 million for the three months ended March 31, 2025, primarily due to a$50 million voluntary repayment of a promissory note[173] - The company borrowed $40 million under the accounts receivable securitization program (AR Facility) on February 21, 2025, with interest payments expected to be approximately$2.6 million for the next 12 months[177] - The company anticipates that current cash and cash equivalents, along with borrowings under the AR Facility, will be sufficient to meet its needs for at least the next 12 months[178] Interest Expense - A 1% increase in the secured overnight financing rate (SOFR) would result in an estimated annual increase in interest expense of approximately $0.5 million[185] - The company made a full principal payment of$50 million on the Vewd senior unsecured promissory note on February 21, 2025, using cash on hand and new financing[175]