Xperi (US:XPER)2024-11-07 21:30Revenue Performance - Revenue for Q3 2024 was $132.9 million, an increase of $2.5 million or 2% compared to Q3 2023, primarily driven by a $21.4 million increase in Pay-TV revenue[147]. - Revenue for the nine months ended September 30, 2024, decreased by $12.8 million or 3% to $371.3 million, mainly due to a $40.6 million decline in Consumer Electronics revenue[147]. Operating Expenses - Operating expenses for Q3 2024 totaled $151.4 million, a decrease of $9.995 million or 6% compared to Q3 2023[149]. - Research and development expenses for Q3 2024 were $53.6 million, down $2.8 million or 5% from Q3 2023, primarily due to lower spending in the AutoSense business[155]. - Selling, general and administrative expenses for Q3 2024 were $56.5 million, a decrease of $3.1 million or 5% compared to Q3 2023, attributed to reduced employee headcount[159]. Divestitures and Gains - The AutoSense divestiture was completed in January 2024, streamlining the business and enhancing focus on entertainment markets[144]. - The company reported a gain on divestiture of $6 million for the nine months ended September 30, 2024[146]. - The company recognized a gain of $22.9 million from the AutoSense Divestiture in the nine months ended September 30, 2024[169]. Losses and Net Income - Total operating loss for Q3 2024 was $14 million, an improvement from a $24 million loss in Q3 2023[146]. - The net loss for Q3 2024 was 15%, compared to a net loss of 32% in Q3 2023[146]. Stock-Based Compensation and Depreciation - Stock-based compensation expense decreased by $2.4 million (13%) and $6.4 million (12%) for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower expenses for performance-based restricted stock units and reduced employee headcount[161]. - Depreciation expense for the three months ended September 30, 2024, was $2.9 million, a decrease of $1.3 million (31%) from $4.2 million in the same period of the prior year[162]. - Amortization expense for the three months ended September 30, 2024, was $10.9 million, down $3.8 million (26%) from $14.7 million in the same period of the prior year[164]. Cash Flow and Liquidity - Net cash used in operating activities was $56.6 million for the nine months ended September 30, 2024, primarily due to a net loss of $63.8 million[178]. - Cash and cash equivalents decreased to $72.7 million as of September 30, 2024, down $81.7 million from $154.4 million at December 31, 2023[173]. - The current ratio as of September 30, 2024, was 1.3, compared to 1.9 at December 31, 2023[173]. - Net cash used in investing activities was $12.9 million for the nine months ended September 30, 2024, primarily related to capital expenditures[180]. Share Repurchase and Debt - The company repurchased approximately 1.1 million shares of common stock at an average price of $8.92 per share for a total cost of $10.0 million during the three months ended September 30, 2024[177]. - The Promissory Note related to the acquisition of Vewd Software Holdings Limited has an outstanding principal amount of $50.0 million as of September 30, 2024, with a maturity date of July 1, 2025[184]. Market Risk and Accounting - There have been no material changes to the company's exposure to market risk since December 31, 2023[191]. - For more information on recent accounting pronouncements, refer to Note 1 in the Quarterly Report[190].