Xperi (US:XPER)2023-08-11 20:31Revenue Performance - Revenue for the three months ended June 30, 2023, was $126.9 million, a 1% increase from $126.2 million in the same period of 2022, primarily driven by growth in Media Platform and Connected Car revenues [128]. - Revenue for the six months ended June 30, 2023, was $245.1 million, a 4% decrease from $253.7 million in the same period of 2022, attributed to declines in Pay TV revenue offset by increases in Media Platform and Consumer Electronics revenues [129]. Expenses - Cost of revenue, excluding depreciation and amortization, for the three months ended June 30, 2023, was $30.9 million, an increase of $4.0 million from $26.9 million in the same period of 2022 [131]. - Research and development expenses for the three months ended June 30, 2023, were $55.7 million, an increase of $4.3 million from $51.4 million in the same period of 2022, mainly due to hiring related to the Vewd acquisition [134]. - Selling, general and administrative expenses for the three months ended June 30, 2023, were $56.5 million, an increase of $6.2 million from $50.3 million in the same period of 2022, primarily due to increased stock-based compensation [137]. - Total operating expenses for the three months ended June 30, 2023, were 128% of revenue, compared to 118% in the same period of 2022 [126]. - Total stock-based compensation expense for Q2 2023 was $18.1 million, up 71.5% from $10.5 million in Q2 2022 [143]. - For the six months ended June 30, 2023, stock-based compensation expense totaled $34.1 million, a 77.8% increase from $19.2 million in the same period of 2022 [143]. - Amortization expense for the three months ended June 30, 2023, was $14.8 million, consistent with the same period in 2022 [142]. - The company anticipates that amortization expenses will remain significant over the next several years due to previous mergers and acquisitions [142]. Financial Position - Net loss for the three months ended June 30, 2023, was 31% of revenue, compared to 25% in the same period of 2022 [126]. - Cash and cash equivalents decreased to $112.2 million as of June 30, 2023, down from $160.1 million at December 31, 2022 [153]. - Net cash used in operating activities was $44.6 million for the six months ended June 30, 2023, compared to $22.3 million in the same period of 2022 [155][156]. - Net cash provided by financing activities was $2.7 million for the six months ended June 30, 2023, mainly from the issuance of common stock under the employee stock purchase program [159]. - The company has a senior unsecured promissory note of $50.0 million with a 6.0% annual interest rate, maturing on July 1, 2025 [160][162]. Taxation - The effective tax rate for the six months ended June 30, 2023, was (7.1)%, compared to (20.5)% for the same period in 2022 [147][148]. - The company plans to maintain a full valuation allowance on federal deferred tax assets until sufficient evidence supports a reversal [150]. Company Overview - The company operates in four market categories: Pay-TV, Consumer Electronics, Connected Car, and Media Platform, with approximately 2,100 employees [122]. - Non-cash impairment charges of $1.1 million were recorded for the six months ended June 30, 2023, due to consolidating the global real estate footprint [144]. - Capital expenditures for 2023 are expected to be approximately $15.0 million, primarily for computer hardware and software [158].