Xperi (US:XPER)2023-11-13 21:31Revenue Performance - Revenue for the three months ended September 30, 2023, was $130.4 million, an increase of $8.8 million or 7% compared to $121.6 million in the same period of 2022, driven by growth in Media Platform and Connected Car revenues [150]. - Revenue for the nine months ended September 30, 2023, was $384.1 million, a 5% increase from $366.7 million in the same period of 2022, primarily due to contributions from the Vewd acquisition and growth in monetization [151]. Expenses - Cost of revenue, excluding depreciation and amortization, for the three months ended September 30, 2023, was $26.4 million, a decrease of $5.0 million from $31.4 million in the same period of 2022 [153]. - Research and development expenses for the three months ended September 30, 2023, were $56.4 million, a slight decrease of $0.7 million from $57.1 million in the same period of 2022 [156]. - Selling, general and administrative expenses for the three months ended September 30, 2023, were $59.6 million, an increase of $2.9 million from $56.7 million in the same period of 2022 [159]. - Total operating expenses for the three months ended September 30, 2023, were 124% of revenue, down from 428% in the same period of 2022 [148]. - Amortization expense for the three months ended September 30, 2023, was $14.7 million, a decrease of $1.9 million from $16.6 million in the same period of 2022 [164]. - Total stock-based compensation expense for Q3 2023 was $17.6 million, a 66.5% increase from $10.6 million in Q3 2022 [167]. - For the nine months ended September 30, 2023, total stock-based compensation expense was $51.7 million, up 73.7% from $29.8 million in the same period of 2022 [167]. Net Loss and Tax - Net loss for the three months ended September 30, 2023, was 32% of revenue, compared to a net loss of 330% of revenue in the same period of 2022 [148]. - The effective tax rate for the nine months ended September 30, 2023 was (14.5)%, with an income tax expense of $14.5 million on a pretax loss of $99.9 million [174]. Cash Flow and Investments - Cash and cash equivalents decreased to $131.5 million as of September 30, 2023, down $28.6 million from $160.1 million at December 31, 2022 [179]. - Net cash used in operating activities for the nine months ended September 30, 2023 was $20.6 million, compared to $11.3 million for the same period in 2022 [181]. - Net cash used in investing activities was $9.6 million for the nine months ended September 30, 2023, significantly lower than $61.1 million in the same period of 2022 [183]. - The company recorded non-cash impairment charges of $1.1 million for operating lease right-of-use assets during the nine months ended September 30, 2023 [170]. Future Expectations - The company anticipates that amortization expenses will continue to be significant over the next several years due to previous mergers and acquisitions [166]. - The company expects capital expenditures in 2023 to be approximately $15.0 million, primarily for computer hardware and software [184]. - The company may record additional impairment charges related to operating lease right-of-use assets based on plans to reduce its real estate footprint [171]. Financing Activities - The company issued a senior unsecured promissory note of $50.0 million in connection with the Vewd Acquisition, with an interest rate of 6.0% [187]. -